Guangxi - A new gateway to global markets is about to open for western China.
After four years of construction, the Pinglu Canal will begin operations in mid-September, strengthening the New International Land-Sea Trade Corridor (ILSTC) and supporting the region’s wider opening-up.
The 134.2-kilometer waterway links Guangxi’s inland rivers with the Beibu Gulf, can handle ships of up to 5,000 tonnes and cuts more than 560 kilometers from the existing route through Guangzhou.
Guangxi serves as the ILSTC’s southern gateway, connecting western China with the Beibu Gulf and onward to ASEAN and global markets. The corridor currently relies mainly on rail-sea transport, with goods traveling by train to Guangxi before continuing by ship, said Lei Xiaohua, deputy director of the Institute of Southeast Asian Studies at the Guangxi Academy of Social Sciences.
The Pinglu Canal will connect the Xijiang River system, whose basin spans Yunnan, Guizhou, Hunan, Guangxi and Guangdong, directly to the Beibu Gulf, complementing existing rail-sea services and improving western China’s access to global markets.
Historically, freight from western China has moved largely along an east-west axis, traveling by rail or road to eastern coastal ports before reaching global markets. Lei said the development of the ILSTC and the opening of the Pinglu Canal will further optimize China’s logistics landscape, shifting the transport network from its traditional east-west pattern toward stronger north-south connectivity.
Behind this shift is the ongoing adjustment of China’s economic landscape. Lei said that as industries in central and western China continue to grow, regions represented by Chongqing and Sichuan are becoming important industrial bases and consumer markets.
On the one hand, industries in western China need more efficient channels to reach overseas markets; on the other hand, the vast western market can also absorb agricultural products from Southeast Asia, creating win-win opportunities for both sides.
The Pinglu Canal will give western Chinese companies more routes to global markets, allowing their goods to reach Beibu Gulf Port more flexibly through the ILSTC.
Lei said that exports through eastern coastal areas, such as Guangzhou or Hong Kong, involve relatively longer transport distances. After the Pinglu Canal opens, it can shorten transport distances by about 560 kilometers and reduce overall costs by 18% to 30%.
Meanwhile, ASEAN countries can also use the Pinglu Canal to further expand into western China’s market. Lei said that when ASEAN products enter the Chinese market, the Pinglu Canal will provide a more convenient logistics option. As transport links continue to improve, it will also encourage more Chinese companies to invest in ASEAN, bringing industrial development and employment opportunities to the region.