Pinglu Canal economic belt set to deepen ties

The 134.2 kilometer Pinglu Canal in South China's Guangxi Zhuang autonomous region has carried out smooth lock maneuvers and displayed stable overall performance throughout the period since its opening.

On Sept 23, the first vessel from the "Nanning-Can Tho" trade route reached Can Tho Port in Vietnam. The canal offers a direct route to Beibu Gulf, significantly shortening the sea journey between Southwest China and member states of the Association of Southeast Asian Nations. However, experts note its economic value extends well beyond being merely a shortcut.

At the Madao hub in Guangxi, the canal winds through karst hills, with ships overcoming a 29.6-meter water level difference. A hillside overlooking the canal bears the slogan "seeking maritime development".

The slogan was also featured at the canal's booth at the recent 23rd China-ASEAN Expo in Nanning, capital of Guangxi. Jiang Yi, from the investment and development department of Pinglu Canal Group, told China Daily that the canal enhances river-sea-rail and road-river-rail intermodal transport.

Since some Xijiang River tributaries in the region lack the 5,000-metric-ton channel capacity of the Pinglu Canal, cargo can be transshipped at the future Pingji and Luwu operation areas. "This allows for transfers between larger and smaller vessels, connecting with other Xijiang tributaries and extending the canal's influence across Guangxi, well beyond its hundred kilometers," said Jiang.

Building the canal is just the first step. Zhang Jie, a research fellow at the National Institute of International Strategy at the Chinese Academy of Social Sciences, said the focus should extend beyond the corridor economy, as it alone may not sufficiently drive local growth.

The next step is to develop the Pinglu Canal economic belt, comprising a core zone of five cities, including Nanning and Qinzhou, and a pilot zone of 33 counties, cities and districts along the coast, canal, Xijiang shipping lines, and the Zuojiang and Youjiang river valleys. In late July, Guangxi decided to accelerate the formulation of a development plan for the economic belt during the 15th Five-Year Plan (2026-30) period.

The plan will guide construction and identify key areas for infrastructure, industrial parks and priority service industries, Jiang said.

Guangxi's marine economy strategy for the 15th Five-Year Plan period aims to fully integrate the economic belt with ASEAN and Belt and Road markets. On Sept 14, Pinglu Canal Group announced that it will implement a "canal plus port plus industry" model, fostering the growth of high-volume, port and water-related industries along the canal.

"This means building industrial parks near ports and developing industry chains. Instead of focusing solely on a corridor economy, Guangxi can cluster processing industries and bonded zones near the economic belt," Zhang said. The goal, she added, is to anchor industries in Guangxi, enhance product value, create jobs and connect ports, industrial parks and transport corridors to drive local industrial growth.

Taking into consideration the fast-growing field of artificial intelligence; the model of research and development in Beijing, Shanghai and Guangzhou (Guangdong province); integration in Guangxi; and application in ASEAN countries, this dynamic creates an effective division of labor among industrial and supply chains. Jiang emphasized that the economic belt benefits from China-ASEAN Free Trade Area policies, enabling goods cleared in Nanning to be shipped directly to ASEAN countries.