China Opens Pinglu Canal to Boost ASEAN Trade

The Government of China officially opened the Pinglu Canal to navigation on September 16, 2026. The 134.2-kilometer waterway in the Guangxi Zhuang Autonomous Region is the first national-level river-to-sea project since 1949, connecting Hengzhou and Nanning directly to the Beibu Gulf. Built at a cost of 72.7 billion yuan, the canal allows vessels up to 5,000 tonnes to bypass a 560-kilometer detour through Guangdong, reducing logistics costs by 18 to 30 percent and saving an estimated 5.2 billion yuan annually.

Vice Premier Ding Xuexiang presided over the opening ceremony in Qinzhou, characterizing the canal as a backbone of the New Western Land-Sea Trade Corridor. The project integrates river, rail, and sea transport, linking with the China-Laos Railway and the China-Europe Railway Express. Early shipments have already included automotive parts from SAIC-GM-Wuling and Dongfeng Liuzhou Motor to Vietnam and Cambodia, as well as potassium fertilizer from Laos.

To promote adoption, the government is offering free passage through the canal's three water gates until December 31, 2026. The project also incorporates green technology, including a partnership with battery maker CATL for zero-carbon energy systems and electric vessels. While ASEAN leaders and diplomats from Cambodia and Laos praised the canal's potential to streamline agricultural exports, the United States has cautioned that such infrastructure expands Chinese soft power and increases debt risks for participating nations.