New China canal creates shortcut to Southeast Asia

Built at a cost of 72.7 billion yuan (about 10.75 billion U.S. dollars), the 134.2-kilometer canal runs from Nanning, capital of south China's Guangxi Zhuang Autonomous Region, to the Beibu Gulf, the closest maritime outlet for much of southwest China.

The canal stretches along the New International Land-Sea Trade Corridor, a strategic trade route connecting China's inland regions with ASEAN and other global markets. It is the first river-to-sea canal project planned and coordinated at the national level since the founding of the People's Republic of China in 1949.

Designed for vessels of up to 5,000 tonnes, the canal shortens the inland waterway journey for goods from southwest China to the sea by more than 560 kilometers compared with traditional routes through ports in Guangdong Province. It is expected to reduce overall logistics costs by 18 to 30 percent and save more than 5 billion yuan in transportation costs each year.

The canal took over four years to build. Most of it was created by widening, deepening and straightening existing waterways, while a small section had to be excavated through dry land and mountainous terrain.

The new artery carries particular significance for China's southwest, which has long lagged behind the more prosperous eastern coast and faced higher costs getting goods to seaports. Coal, ore, grain, new-energy materials and auto parts from the region can now take a more direct route to overseas markets.

China's trade with ASEAN exceeded 1 trillion U.S. dollars for the first time last year. In the first seven months of 2026, total trade between the two sides reached 744.41 billion U.S. dollars, an increase of 24.7 percent year on year, accounting for 21.8 percent of China's total foreign trade during this period.

Earlier, it was reported that China successfully launched nine satellites into preset orbits from waters off the coast of Shanghai on Wednesday.