China plans to complete the construction of the Pinglu canal (Binh Luc) before the end of this year, after 4 years of implementing a project worth 72.7 billion yuan (about 10.4 billion USD).
This symbolic project aims to strengthen trade connections with Southeast Asia - Beijing's largest export market today.
The 134km long canal connects Nanning (capital of Guangxi Zhuang Autonomous Region) with the Gulf of Tonkin through the Qin River.
This is the first large-scale canal that China has built in centuries, marking an important shift in the waterway transport infrastructure strategy.
According to China National Radio, the project has entered the final construction phase, expected to open to navigation by the end of 2026.
Guangxi Daily reported that 89.7% of the total investment capital has been disbursed, citing a local government conference.
The Pinglu canal is designed to be capable of receiving 5,000-ton ships, with 3 2-lane boat docks, along with 27 new or renovated bridges, of which 13 bridges have been put into use. According to the project leader, the preparation for opening the waterway transport route will begin in May, when the construction progress is smooth.
Strategically, this canal plays a key role in connecting China's inland waterway network with the sea, allowing goods from Guangxi, Guizhou, Yunnan to go directly to seaports and access the global market faster and cheaper.
This not only helps reduce logistics costs for the domestic region but also reshapes the trade flow between China and its Southeast Asian neighbors.
The project is also considered a "strategic link" in tightening economic relations between China and ASEAN.
Last year, China's exports to ASEAN increased by 13.4%, while exports to the US decreased by 20%. In value, ASEAN is currently China's largest trading partner, with two-way turnover reaching 1.05 trillion USD, up 7.4% compared to the previous year. Conversely, US-China trade only reached 559.7 billion USD, down 18.7%.
At the southern end of the canal, the Gulf of Tonkin port - a major logistics center of Southwest China - has processed more than 10 million TEU containers in the past year, showing the increasingly prominent role of this region in the regional transportation network.
