China Inaugurates $10.75 Billion Canal to Boost Trade with ASEAN

China announced on September 16 the inauguration of the PINGLU Canal, a project built with an investment of $10.75 billion (72.7 billion yuan). The canal aims to facilitate access for China's southwestern regions to ASEAN markets, its largest trading partner, and other overseas markets. The PINGLU Canal, spanning 134.2 kilometers, connects Nanning City in China's southern Guangxi Zhuang Autonomous Region to the Beibu Gulf. It forms part of the strategic New International Land-Sea Trade Corridor, linking China's inland regions with ASEAN and other global markets. This canal is a national-level project, marking the first river-to-sea connection since the founding of the People's Republic of China. It can accommodate vessels up to 5,000 tons, shortening the water transport distance from southwestern China to the sea by over 560 kilometers. This is expected to reduce logistics costs by 18% to 30% annually. The construction took over four years to complete. The canal is anticipated to dramatically improve logistics between China's southwestern inland and coastal areas, as well as with ASEAN countries, further deepening economic cooperation.