Canal will boost trade, vitalize regional economy

Editor's note: Vessel trials on the Pinglu Canal began on Wednesday, marking a key step toward the full opening of the waterway planned for September. China News Service interviewed Ni Yuping, vice-dean of the School of Humanities at Tsinghua University, to understand the significance of the Pinglu Canal. Below are excerpts from the interview. The views don't necessarily represent those of China Daily.

A visit to the Madao hub on the Pinglu Canal showcases an impressive feat of modern engineering. The canal, equipped with advanced sluice-and-lock technology and abundant southern Chinese water resources, ensures year-round, all-weather navigation. The project reflects a construction philosophy that adapted to the local conditions and leveraged scientific and technological advancements, so as to support regional development.

The Pinglu Canal will help enhance water transport in the southwest, reshaping the regional waterway network. Future projects, such as the planned Yongzhou-Guilin Canal, will further strengthen China's inland waterway system.

Unlike international canals such as the Panama and Suez canals, which primarily facilitate ocean-going transit, the Pinglu Canal is a multifunctional waterway that supports both domestic inland transport and international trade. Domestically, it connects China's vast southwestern hinterland, including Yunnan, Guizhou and Sichuan provinces, and Chongqing. Internationally, it opens to the Beibu Gulf, linking with global shipping routes.

The canal will boost both waterborne and land-based trade, fostering continuous exchanges among the diverse ethnic communities of Southwest China. This will deepen inter-ethnic interactions and integration through economic connectivity. Additionally, cross-border trade and exchanges will act as a cultural bridge, extending the canal's influence from the Guangxi Zhuang autonomous region to the countries of the Association of Southeast Asian Nations and the international community at large.

Once the canal begins operations, industries along its route — such as logistics, shipping, culture and tourism, and trade — are expected to flourish, creating numerous jobs and enabling local residents to work nearby and diversify their income. As industries, capital and talent converge in Guangxi, increased local fiscal revenue will be reinvested into public services and infrastructure, improving livelihoods across the region. Upon completion of the Yongzhou-Guilin Canal, China's inland waterway system will form a closed loop, further enhancing people's quality of life.

The Pinglu Canal provides the shortest waterway for southwestern regions to access the sea, reducing cross-border logistics costs between China and ASEAN countries and serving as a crucial lever for optimizing the bilateral supply chain.

Lower logistics costs will draw domestic and international trading companies to establish operations in Guangxi. Bulk commodities from ASEAN countries, such as minerals and agricultural and forestry products, will enter the canal through the Beibu Gulf and be efficiently distributed to China's southwestern hinterland and national market. A stable cargo supply will ensure the long-term success of the canal's shipping operations.

The canal offers significant development benefits to Southeast Asia. It reduces bilateral trade costs, enhances economic gains for both China and ASEAN countries and fosters mutually beneficial trade cooperation. Besides, regular commercial exchanges improve mutual understanding, highlight China's commitment to peaceful development, and strengthen bilateral cooperation. In addition, the movement of goods and people accelerates cultural exchanges and integration among regional civilizations, promoting coordinated development.