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China trade
EconomyChina Economy

China to widen Asean trade with first major waterway in 700 years, but will Pinglu Canal be a game changer or white elephant?

  • China kicked off construction of the 135km-long (84-mile), 72.7 billion yuan (US$10.1 billion) Pinglu Canal in the Guangxi Zhuang autonomous region in August
  • It is hoped that the waterway can facilitate trade with Southeast Asian nations, but concerns have been raised about the demand and environmental impact of the project

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The Pinglu Canal will mainly be used for shipping coal, minerals, cement, grains, mining and construction materials and containers. Illustration: Henry Wong
He Huifengin Qinzhou, Guangxi Zhuang autonomous region
This is the second story in a two-part series about how China’s years-long drive to enhance trade infrastructure and bolster ties is yielding greater connectivity with Southeast Asia. You can read part one here.

Chinese authorities like building roads and bridges from times gone by, as connectivity facilitates flows of people, goods and also fortune. But only a few can afford to construct canals that demand massive amounts of labour and mastery of technology.

Over 2,200 years ago during the Qin dynasty, China’s first emperor built the 36.4km (22.6 mile) Lingqu Canal to carry soldiers to conquer the southern tribes and expand the imperial territory.

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Qin Shi Huang’s mega project connected Xiang River in Hunan province - a tributary of the 6,300km (3,915 mile) Yangtze River – and Li River in south China’s Guangxi Zhuang autonomous region.

Construction of what would become the 1,800km Grand Canal – the Unesco World Heritage site built to link east China’s business hub of Hangzhou and the capital city of Beijing – was then completed during the Yuan dynasty over 700 years ago.

The practical value of this project is worth looking forward to
Gao Zhendong
But until August, when construction started on the Pinglu Canal, no other new canals had been built.
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