China's Pinglu Canal, a New Gateway to Southeast Asia

On Wednesday, China inaugurated the Pinglu Canal as the first modern river-to-sea canal, a project aimed at significantly reducing transportation distances between the inland regions of southern China and Southeast Asian countries.

Location and Specifications of the Canal

The Pinglu Canal is located in Guangxi Province in southern China and connects to the Xijiang River and Beibu Gulf. This waterway, 134 kilometers (83 miles) long, provides shorter access to the sea and Asian markets for broader areas of southwest China, including Yunnan and Guizhou provinces.

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Cost Reduction and Increased Trade

According to local officials, this canal reduces transportation distances by up to 560 kilometers (350 miles) and lowers logistics costs by 18 to 30 percent. Estimates suggest that annual transportation costs will decrease by more than 5 billion yuan (about 700 million dollars). Additionally, the loading capacity of ships in this canal will be 5,000 tons, and the construction cost is estimated to be around 72.7 billion yuan (equivalent to 10.8 billion dollars).

These developments come at a time when trade between China and Southeast Asian countries is rapidly growing. According to Chinese customs statistics, bilateral trade in the first half of 2026 reached 4.34 trillion yuan (about 640 billion dollars), representing an 18.2 percent increase compared to the previous year.

Social Impact and Population Relocation

The construction of this canal necessitated the relocation of thousands of families. The relocation process involved 2,764 households and 11,228 individuals across four counties and county-level cities in Guangxi. Among them, some families were trying to move their ancient trees to the new location. In this context, residents in Shaping, the largest city of the relocation project, were moved to four-story homes with an area of 420 square meters (4,520 square feet).

This relocation project was completed within 39 days, and alongside it, job promises at the construction site and vocational training for residents were provided. One resident stated, “There is no longer a village called Fenghuangping, but with the Pinglu Canal, tomorrow will be better.”

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