The Pinglu Canal, a major infrastructure project, is scheduled to be fully connected and begin trial navigation this September. This development is expected to significantly reduce logistics costs for companies in China's western regions, such as Chongqing and Sichuan, by 20% to 30%.

This announcement was made during the ASEAN Supply Chain Cooperation Exchange, a key business event held alongside the fourth China International Supply Chain Expo in Beijing.

Key Details of the Project

The 134.2-kilometer Pinglu Canal originates at Pingtang Jiangkou in Hengzhou, Nanning, Guangxi, and follows the Qin River to reach the Beibu Gulf. Upon its opening, it will become the shortest and most cost-effective waterway connecting southwestern China with ASEAN nations, cutting the maritime journey for western regions by approximately 560 kilometers.

Strengthening Economic Ties

Officials highlighted the deepening economic integration between China and ASEAN. The full implementation of the Regional Comprehensive Economic Partnership (RCEP) and the ongoing upgrade of the China-ASEAN Free Trade Area are fostering stronger trade and investment links. Despite a complex global landscape, this partnership remains a resilient and vital engine for global economic growth.

Bilateral investment has surpassed $450 billion, with the two sides maintaining their status as each other's largest trading partner for six consecutive years. Trade between China and ASEAN saw robust growth of 20.6% year-on-year in the first five months of 2026.

Cooperation is expanding across traditional sectors like electronics and automotive manufacturing, as well as emerging fields such as artificial intelligence, the digital economy, and green energy. The geographical proximity, cultural ties, and commercial links between ASEAN and China provide a strong foundation for collaboration, with technological partnership becoming a particularly dynamic area of growth.

Impact and Future Outlook

The completion of the Pinglu Canal is viewed as a historic milestone that will create a new, seamless logistics corridor connecting inland regions directly to the sea. It is projected to generate annual cost savings of approximately 5.2 billion yuan once fully operational.

This "golden waterway" is poised to more tightly integrate the massive markets of China and ASEAN, fostering a new pattern of efficient, unimpeded goods flow. The project underscores the commitment to deepening regional cooperation, which is seen as essential for shared prosperity and addressing global challenges collectively.