What’s the Pinglu Canal, China’s new gateway to Southeast Asia?

China has put the Pinglu Canal into operation in Guangxi, marking the country's first modern river-to-sea navigation channel. Stretching roughly 134 kilometres, the waterway connects the Xijiang River system to the Beibu Gulf, providing a direct maritime link for parts of southwestern China that previously relied on much longer overland or transshipment routes. Officials say the canal will substantially shorten voyages to Southeast Asian markets — by about 560 kilometres — and lower logistics expenses by an estimated 18 to 30 percent. Guangxi authorities project transport cost savings of more than 5 billion yuan a year (around $700 million). The channel can accommodate vessels of up to 5,000 tonnes and cost roughly 72.7 billion yuan (about $10.8 billion) to build. The Pinglu Canal is being promoted as a key segment of the New International Land-Sea Trade Corridor and, by extension, a component of the Belt and Road Initiative. It is linked into a wider network reaching inland hubs such as Chongqing and Chengdu and the provinces of Guizhou and Yunnan, funneling goods to ports on the Beibu Gulf. Container throughput at Beibu Gulf Port has expanded rapidly in recent years, from 2.28 million TEUs in 2017 to 10.06 million TEUs in 2025, and bilateral trade with Southeast Asia rose strongly in the first half of 2026. Guangxi plans an industrial “Pinglu Canal Economic Belt” to attract manufacturing and resource processing along the corridor, targeting sectors including non-ferrous metals, critical minerals, green chemicals, and information technology. Early operational steps include direct river-to-sea sailings (with services planned to Can Tho in southern Vietnam) and a phased transit-fee regime: passages through the canal’s water gates are free until December 31, 2026, after which a trial fee of 1 yuan per tonne of vessel capacity per passage will apply until September 2031. The project also required substantial resettlement: official figures report 2,764 households (11,228 people) moved from four counties, with significant demolitions and temporary relocations in places such as Hengzhou.