CHINA

China Begins Testing on $10 Billion Trade Canal to Southeast Asia

Published: Jun. 9, 2026 3:19 a.m. GMT+8

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The Madao hub of the Pinglu Canal on June 6. Photo: Xinhua

China has begun water testing on a $10 billion, 134-kilometer canal in its south, aiming to drastically cut shipping times to Southeast Asia when it opens to navigation in September.

The Pinglu Canal connects the Xijiang River to the Beibu Gulf in the Guangxi Zhuang Autonomous Region, creating a direct maritime gateway for southwestern China.

The mega-project is the vanguard of a broader wave of provincial canal building across the country, raising concerns among analysts about the risks of mounting local government debt.

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China's $10.7 billion, 134-km Pinglu Canal opens in September, cutting shipping time to Southeast Asia from half a month to under three days.
The canal connects Xijiang River to Beibu Gulf, bypassing a 560-km detour via Guangzhou for southwestern cargo.
Analysts warn that provincial canal fever may worsen local government debt, despite expected cargo of 108 million tons annually by 2035.

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Who’s Who

Pinglu Canal Group Co. Ltd.: Pinglu Canal Group Co. Ltd. manages funding for the $10.7 billion Pinglu Canal project, covering half the cost via special-purpose bonds, corporate capital, and bank loans. The canal, opening in September 2026, will cut shipping times from Guangxi to Southeast Asia to under three days.

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What Happened When

As of the article's publication (2023-2024)：: China has begun water testing on the Pinglu Canal, a $10 billion, 134-kilometer canal connecting the Xijiang River to the Beibu Gulf in Guangxi.

September 2026：: The Pinglu Canal is scheduled to open to navigation, shortening shipping routes to Southeast Asia by over 560 kilometers and cutting transit times for agricultural exports from about half a month to under three days.

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