ASEAN Leaders See New Regional Cooperation Potential in Pinglu Canal

Deep News
09/20

ASEAN officials and business representatives are voicing strong expectations for the economic impact of the newly completed Pinglu Canal, signaling a new chapter in regional connectivity and trade integration with China. The waterway, which opened to navigation, has become a central focal point at the ongoing 23rd China-ASEAN Expo and the China-ASEAN Business and Investment Summit in Nanning, Guangxi.

Speaking at the event, ASEAN Secretary-General Kao Kim Hourn highlighted the canal's historic importance, noting that large volumes of goods moving between ASEAN and China depend heavily on port logistics. According to him, the Pinglu Canal will help lower comprehensive logistics costs and boost the overall competitiveness of the regional economy. With the signing of the China-ASEAN Free Trade Area 3.0 upgrade protocol and ongoing progress under the Regional Comprehensive Economic Partnership (RCEP), the canal is expected to open new avenues for cooperation and deepen bilateral economic ties.

At the expo, the Pinglu Canal exhibition area attracted considerable attention, offering visitors an immersive VR experience of the Madao Junction through a simple QR code scan. The display, combining a physical sand table and a demonstration of the canal's full lifecycle smart management system, gave Chinese and foreign business visitors a vivid sense of the century-scale project and its role in advancing the western land-sea corridor's rail-river-sea intermodal network.

Indonesian student Adrian Kusuma, who toured the exhibition, recalled his visits to the Madao and Qingnian shipping hubs, saying he was most impressed by a local company executive's account of how canal shipping has cut transport costs by hundreds of yuan per ton. Given Indonesia's heavy reliance on maritime transport across its many islands, Kusuma expressed hope that the canal will enrich the Indonesia-China logistics network and further reduce trade costs between the two countries.

Singapore, a key player in the international land-sea trade corridor, has shown strong interest in the canal's inauguration. Singapore's Senior Minister of State for Trade and Industry, Low Yen Ling, noted that she has been closely following updates on the waterway, which she described as complementary to the China-Singapore connectivity project launched 11 years ago. That earlier initiative linked China's western regions via rail and logistics networks, and the Pinglu Canal, she said, now builds on that momentum to expand the shared pie of cooperation.

Thailand, China's largest trading partner within ASEAN, has taken a prominent role at this year's expo with a dedicated 2,000-square-meter pavilion showcasing its signature community products, geographic indication goods, and items from cities along the China-Thailand logistics corridor. Liu Hanyan, a representative of the Federation of Thai Industries, pointed out that while Thailand already possesses extensive multimodal freight options, the Pinglu Canal now enables seamless river-sea connectivity, allowing direct maritime routes from Bangkok to Nanning. The federation has voiced support for the canal's economic belt development, anticipating broader benefits for regional trade.

Timor-Leste, making its debut as a full ASEAN member and co-organizer of the expo, held a brief ribbon-cutting ceremony at its pavilion with traditional dance performances and displays of local spices and coffee. Sidonio Fernandes, vice chairman of the Timor-Leste Chamber of Commerce and Industry, emphasized that the canal drastically reduces both time and transport costs for ASEAN members, offering his country a faster and more convenient route to regional markets. He described the waterway as a vital conduit for expanding economic exchanges between China and Southeast Asia.

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