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Belt and Road Initiative
EconomyChina Economy
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Carol Yangin Beijing
Published: 9:00am, 9 Feb 2026
China has almost finished building the US$10 billion Pinglu Canal to deepen trade ties between its southwestern provinces and Southeast Asia. Now, it is considering an even more ambitious – and expensive – project further inland.
The Xianggui Canal would be a 300km (186 mile) waterway that effectively acts as an extension of the new Pinglu Canal, giving cities right at the heart of the Chinese interior direct access to the Gulf of Tonkin, known in China as the Beibu Gulf.
Like the earlier project, the aim is to give China’s inland cities quicker and easier access to global shipping lanes, easing shipments to the country’s biggest export market: the Association of Southeast Asian Nations (Asean).
EconomyChina Economy
‘Time is ripe’: why China is eyeing another vast canal link to Southeast Asia
China has almost completed the US$10 billion Pinglu Canal connecting its heartlands to Southeast Asia. Now, it is mulling an even larger waterway
Reading Time:2 minuteshttps://www.scmp.com/policies-and-standards
Carol Yangin Beijing
Published: 9:00am, 9 Feb 2026
China has almost finished building the US$10 billion Pinglu Canal to deepen trade ties between its southwestern provinces and Southeast Asia. Now, it is considering an even more ambitious – and expensive – project further inland.
The Xianggui Canal would be a 300km (186 mile) waterway that effectively acts as an extension of the new Pinglu Canal, giving cities right at the heart of the Chinese interior direct access to the Gulf of Tonkin, known in China as the Beibu Gulf.
Like the earlier project, the aim is to give China’s inland cities quicker and easier access to global shipping lanes, easing shipments to the country’s biggest export market: the Association of Southeast Asian Nations (Asean).
