China-ASEAN Trade Enters New Era as Pinglu Canal Set for September Opening

Deep News04-25 07:21

Trucks carrying containers of various colors are moving across the Beilun River Second Bridge at the Dongxing Port, approaching the national gate. These containers display text in different languages, including English, Chinese, Vietnamese, and Thai. Some indicate logistics routes such as "China-Vietnam-Cambodia," while others show logos of logistics firms or manufacturers, featuring Chinese shipping companies, a Singaporean logistics giant, and a well-known South Korean automotive group. This busy crossing scene was observed at the Dongxing Port in Fangchenggang City, Guangxi, in early April, reflecting the deepening economic and trade ties between China and ASEAN.

In 2025, the total import and export value between China and ASEAN reached 7.55 trillion yuan, an increase of 8% year-on-year, marking the sixth consecutive year that they have been each other's largest trading partners. In the first quarter of this year, trade with ASEAN grew by 15.4%, maintaining rapid growth. The Pinglu Canal, a project with an investment exceeding 70 billion yuan, is scheduled to begin trial operations during the China-ASEAN Expo from September 17 to 21, representing a major initiative to facilitate convenient exchanges between China and ASEAN. Enhanced connectivity is expected to bring more investment and development opportunities.

Trade in goods with ASEAN continues to grow at a high speed. The Dongxing Port in Fangchenggang City is connected to the Mong Cai port in Quang Ninh Province, northern Vietnam, via the first and second Beilun River bridges. Electronics and intermediate goods from the Yangtze River Delta, Pearl River Delta, and Chengdu-Chongqing economic circles are exported to ASEAN through Dongxing Port, while fruits, agricultural products, and mineral resources from ASEAN enter the Chinese market via the same route. The port has witnessed increasing activity in recent years.

The Beilun River Second Bridge began temporary operations in March 2019, and in July 2020, Dongxing Port expanded its operations following national approval, with the second bridge officially opening to the public. In 2020, freight volume via the bridge was 800,000 tons, valued at over 400 billion yuan. By 2025, import and export freight volume at Dongxing Port had increased to 2.62 million tons, up 29% year-on-year, with a total value of 170.5 billion yuan, a rise of 10.3%.

Since March this year, the Beilun River Second Bridge has implemented regular weekend clearance, allowing businesses to conduct import and export activities without prior appointments. The port has also begun handling battery goods, expanding the categories it can process, and now supports all three major cross-border e-commerce export models, streamlining channels for e-commerce companies.

Wu Changru, Vice Mayor of Dongxing City, stated that by addressing hardware and software shortcomings at the port, separating passenger and cargo flows, reducing clearance times, and establishing an intelligent customs system, the port has leveraged regional development strategies, its unique geographical advantages, and long-term friendly relations with Vietnam. As a result, the import and export value via the second bridge has maintained steady growth, with an average annual increase of over 30%. Exports of electronics and intermediate goods have helped stabilize supply chains in Vietnam, deepening industrial coordination and economic cooperation between China and Vietnam.

The growing activity at Dongxing Port reflects the strengthening cooperation between Guangxi and ASEAN. In 2025, Guangxi's total import and export value exceeded 800 billion yuan for the first time, an increase of 8.4% year-on-year, with trade with ASEAN rising by 8%. ASEAN has been Guangxi's largest trading partner for 26 consecutive years. Guangxi's trade volume grew from 500 billion yuan in 2020 to 800 billion yuan in 2025, with ASEAN playing a crucial role. For example, many electronics exported to Vietnam pass through Guangxi's land ports to key industrial zones in northern Vietnam. The Friendship Port in Pingxiang City, Guangxi, imports half of the country's durians from ASEAN.

Additionally, Guangxi has attracted key import and export enterprises such as BYD and FinDreams Battery, contributing significantly to foreign trade growth. Wei Wencheng, Deputy Director of the Regulations and Comprehensive Business Department of Nanning Customs, noted that businesses prioritize logistics efficiency when choosing routes. Land ports offer advantages in speed, reliability, and predictability, which are critical for supply chain stability. The Friendship Port in Chongzuo is close to Bac Giang and Bac Ninh in northern Vietnam, making it a preferred route for exporting electronic intermediate goods.

Guangxi exemplifies the deepening cooperation between China and ASEAN. This year marks the fifth anniversary of the China-ASEAN Comprehensive Strategic Partnership, a period during which trade has achieved leapfrog growth. Trade volume surpassed 6 trillion and 7 trillion yuan, reaching 7.55 trillion yuan in 2025, a 34.4% increase from 2021, with an average annual growth rate of 7.7%. In the first quarter of this year, trade with ASEAN via water, land, and air transport increased by 11.6%, 23.6%, and 25.6%, respectively.

What will the Pinglu Canal bring? In addition to improved efficiency at various ports, the Pinglu Canal is a key project enhancing connectivity between China and ASEAN. With an estimated investment of 72.7 billion yuan, the canal will link the Xijiang River Basin with the Beibu Gulf, creating the shortest, most economical, and convenient route for Guangxi and southwestern China to access ASEAN markets. It will reduce the inland shipping distance by over 560 kilometers compared to using Guangzhou Port.

This new route is expected to drive rapid economic development in surrounding areas. Beibu Gulf Port Co., Ltd., the main investor and operator of public ports in coastal Guangxi, addressed investor inquiries about the canal during its 2025 performance briefing on April 16. The company has established task forces and research teams to explore cargo sources in cities such as Nanning, Baise, Chongzuo, Guigang, Liuzhou, Laibin, Hechi, and Wuzhou, aiming to channel more goods through the canal and ensure efficient operations upon its opening.

Beibu Gulf Port has set a 2026 operating revenue target of 8.2 billion yuan, a year-on-year increase of 7.7%. Businesses are also closely watching the canal's impact. Xinyi Glass (Guangxi) Co., Ltd., established in Beihai City in 2018, produces float glass, automotive glass, and architectural glass for markets in the Americas, Southeast Asia, and the Middle East. General Manager Yang Kuang noted that Guangxi's rapid development and expanding port routes have facilitated exports of photovoltaic glass to Southeast Asia via Qinzhou Port. The Pinglu Canal is expected to reduce logistics costs, although water transport may take longer for raw materials like soda ash.

Guangxi Fengyun Shipping Co., Ltd., based in Guigang City, operates two 2,000-ton bulk carriers transporting building materials and coal along the Xijiang River. Guigang, a core hub of the Xijiang Golden Waterway, is poised to benefit from the canal. Upon learning that 4,000-ton vessels could navigate directly to Beibu Gulf Port year-round, reducing costs by over 30% compared to transshipment via the Pearl River Delta, owner Huang Yongzhao decided to replace old vessels with a new 4,000-ton ship.

Guangxi authorities are actively coordinating efforts, including organizing cargo sources, developing shipping markets, studying support policies for the Pinglu Canal economic belt, and planning industrial layouts. The canal is a key project in Guangxi's broader opening to ASEAN. The Guangxi Finance Department allocated over 48.9 billion yuan in 2025 for major transportation infrastructure projects, supporting the timely completion of the Pinglu Canal. Beibu Gulf Port now connects to over 200 ports in more than 100 countries, with container routes exceeding 100, sea-rail intermodal trains surpassing 10,000, and container throughput historically breaking 10 million TEUs.

Guangxi continues to develop the New Western Land-Sea Corridor, advance open platforms, promote export-oriented economic growth, and strengthen its role as a frontier for cooperation with ASEAN.

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