Key infrastructure unlocks trade potential: China Daily editorial
A crucial component of the New International Land-Sea Trade Corridor, the Pinglu Canal is a monumental Chinese infrastructure project designed to enhance trade connectivity between China and the members of the Association of Southeast Asian Nations. The completion of the canal's full water filling on Wednesday represents a key step toward its planned opening for full navigation in September.
The flagship project with an investment of $10.2 billion under China's strategy to develop the Guangxi Zhuang autonomous region and Yunnan province is a gateway to and for ASEAN. Stretching 134.2 kilometers from Nanning to Qinzhou Port facing the Beibu Gulf, the canal is the first direct river-to-sea canal project since the founding of the People's Republic of China. Connecting the upper reaches of the Xijiang River system directly to the sea, the canal provides a more cost-effective alternative route to the traditional, longer route via Guangdong province for vessels up to 5,000 tonnes. It is estimated that it will save 5.2 billion yuan ($753 million) a year in logistics costs.
The canal's effect on Guangxi and the broader southwestern interior will be transformative, as it will give the landlocked provinces of Sichuan, Yunnan and Guizhou more convenient access to the sea, accelerating their integration into global value chains, enabling Guangxi to better leverage its geographic advantage as a connector of Southeast Asia.
As logistics costs decrease, port-oriented industries focused on bulk raw materials, heavy chemical industries, and equipment manufacturing are expected to gather along the canal. Convenient transportation via the canal will help meet the increasing needs of the fast-developing manufacturing in Southeast Asian countries, such as Vietnam, which have a growing demand for equipment and raw materials. The canal will thus serve to strengthen supply chains in the region. And since the canal covers major agricultural production areas, it will also contribute to agricultural modernization and rural vitalization. All this will help upgrade the regional development landscape during the 15th Five-Year Plan (2026-30) period.
The Pinglu Canal fits into the broader picture of China's infrastructure development strategy, which aims to enhance internal connectivity and strengthen international trade routes. Aligned with the country's long-term commitment to investing in infrastructure that supports both domestic development and international cooperation, the ambition of the Pinglu Canal invites comparison with another Guangxi marvel: the Lingqu Canal, constructed in 214 BC. As one of China's oldest canals, Lingqu played a crucial role in connecting the Yangtze and Pearl river systems, fostering cultural and ethnic integration.
But while the Lingqu Canal facilitated internal integration, the Pinglu Canal project promotes regional integration. Once fully operational, the canal is expected to alter trade dynamics in the region. It will present opportunities for businesses and industries that rely on trade between China and ASEAN countries, leading to anticipated increases in trade volumes and economic growth.
In essence, the Pinglu Canal is not merely a new route on a map. It is a strategic instrument that converts geographic proximity into economic gravity, promising to accelerate China's "dual circulation" development pattern while forging a more integrated, prosperous and interconnected future for Southeast Asia.
The scale of the project is extraordinary. An engineering feat that showcases China's capabilities in large-scale infrastructure development, Pinglu is the highest-grade navigable canal in China and one of the largest earth and rockwork projects of its kind in the country in recent years. It required the excavation of approximately 315 million cubic meters of material. When fully operational, the canal is expected to shape a more connected and prosperous future for the region.
