China Nears Completion of $10 Billion Pinglu Canal to Boost Southeast Asia Trade

China is close to completing the Pinglu Canal, a major infrastructure project designed to strengthen trade links between its inland regions and Southeast Asia. The 134-kilometre canal connects Nanning in Guangxi province to the Beibu Gulf, providing landlocked southwestern provinces with direct access to global shipping routes.
Built at a cost of about $10 billion, the canal is the first large-scale waterway constructed in China in centuries. It is designed to handle vessels of up to 5,000 tonnes and includes multiple shiplocks and newly built or upgraded bridges. Construction has entered its final stage, with most of the planned investment already completed.
Once operational, the canal will significantly reduce transport time and logistics costs for goods moving between China’s interior regions—such as Guangxi, Guizhou, and Yunnan—and international markets. Preparations for opening the canal to shipping traffic are expected to begin later this year, with full navigation planned by the end of 2026.
The project is expected to deepen economic ties between China and Southeast Asia, China’s largest trading partner, while strengthening inland connectivity and regional trade competitiveness.