Pinglu Canal: A New Logistics Route That Benefits ASEAN
The Pinglu Canal officially started operating on September 16, becoming China’s first nationally designed canal to link rivers and the sea. Stretching 134.2 km with an investment of RMB 72.7 billion, this route slashes shipping distance by over 560 km from southwestern China’s interior to the Beibu Gulf, while cutting logistics costs by 18–30 percent.
For ASEAN, the canal smooths the delivery of products like Indonesian coconuts and nickel to China at lower costs and shorter times. The real benefits are felt by LiuGong’s factory in Indonesia, with shipping cost savings of around RMB 600 per unit and delivery speeded up by up to eight days. Chinese products like electric vehicles and machinery parts also become more competitive entering Southeast Asian markets.
A number of ASEAN reps stressed the economic perks of this corridor. Vietnam’s Ambassador Pham Thanh Binh called it a dual opportunity with the China–ASEAN Expo; Philippine Ambassador Jaime FlorCruz reckoned farmers and fishermen would gain; Lao Ambassador Somphone Sichaleune saw it as a historic chance to overcome Laos’ geographic limits. Senior researcher Yu Hong from the East Asian Institute noted this public infrastructure lowers transaction costs and fosters shared development amid global supply chain restructuring.
The Pinglu Canal is focused on trade efficiency, not geopolitical interests. It doesn’t mess with regional security dynamics, but it does speed up shipping Indonesian nickel for battery chains, Thai durians to the Chinese market, and Lao agricultural products to global markets. This infrastructure underscores development and mutual benefit as the foundation of regional cooperation.
https://www.gelora.co/2026/09/