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How will China’s Pinglu Canal chart new economic tides for ASEAN

The Pinglu Canal, China’s first national-level river-sea navigation waterway constructed since 1949, officially opened to traffic on Wednesday. Located in the Guangxi Zhuang Autonomous Region, the 134.2-km canal connects Hengzhou to the Beibu Gulf, providing a direct maritime outlet for southwest China.

Designed to accommodate vessels up to 5,000 tonnes, the canal is a key component of the New International Land-Sea Trade Corridor. According to official reports, the waterway reduces the inland shipping distance to the sea by more than 560 km and is expected to lower comprehensive logistics costs by 18 to 30 percent.

Proponents suggest the canal will facilitate trade between ASEAN nations and China by providing a more efficient route for commodities such as tropical fruits, minerals, and agricultural products. Experts noted that the infrastructure could support deeper industrial cooperation, allowing for the processing of raw materials and the distribution of Chinese manufactured goods, including new-energy vehicles and machinery, into Southeast Asian markets.

Yu Hong, a senior research fellow at the National University of Singapore, stated that the canal’s success will depend on effective soft connectivity, including the alignment of customs clearance procedures and digital logistics platforms. Regional officials indicated that the project is intended to strengthen the China-ASEAN Free Trade Area 3.0 and enhance broader regional economic integration.

The opening of the canal coincides with the 23rd China-ASEAN Expo held in Nanning. Officials from the Guangxi regional government expressed that the waterway is expected to serve as a hub for regional opening-up, connecting inland China with global markets and supporting the goals of the Belt and Road Initiative.

Article and image source: malaysiasun.com

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