To enhance regional connectivity and economic growth, Chinese provinces are ramping up efforts to construct canals.

During this year's "two sessions," the Hunan delegation submitted a proposal to include the Xianggui (Hunan-Guangxi) Canal in the national 15th Five-Year Plan (2026-2030). This follows a similar proposal made in 2023, underscoring the province's determination to advance the project.

Pinglu Canal is under construction in Guangxi Zhuang Autonomous Region. (Photo provided to China News Network) 

Other provinces are also accelerating their waterway projects. South China's Guangxi Zhuang Autonomous Region is constructing the Pinglu Canal, which aims to open a shorter route to the sea for the region and others across southwest China.

Central China's Hubei Province is promoting the Jinghan (Jingzhou-Wuhan) Canal. Jianghuai Canal, which links the Yangtze River and Huai River, proposed by east China's Anhui Province, is already operational. Central China's Henan Province is also working on expanding its inland shipping network.

Development of artificial canals reflects the strategic ambitions of China's provinces to boost trade, enhance water transport efficiency, and strengthen regional economic integration.

First, considering geographical location and economic development needs, central China expects to establish new transportation access to the sea.

Provinces like Hunan and Henan, both landlocked, see inland waterways and artificial canals as a way to overcome logistical bottlenecks and stimulate regional growth.

Once complete, the Xianggui Canal will not only link the Yangtze River and Pearl River, but also benefit 55 counties and cities across Hunan and Guangxi, which hold a total population exceeding 40 million.

Second, the construction of artificial canals is set to expand investment opportunities, especially as traditional infrastructure sectors like real estate face diminishing returns.

As China maps out its 15th Five-Year Plan, advancing canal projects would not only boost traditional industries including construction, steel, and machinery but stimulate maritime trade. By leveraging these waterways, cities along their routes can establish industrial parks to enhance resource flow and economic integration.

Third, China is building more canals to make transportation cheaper and more efficient. Water transport uses less energy and causes less pollution than roads and railways.

For example, Anhui's Jianghuai Canal could save 6 billion yuan (829 million dollars) in freight costs each year and cut carbon emissions by 1.8 million metric tons annually, helping businesses lower logistics costs by 5 percent to 10 percent each year, according to the Anhui Provincial Department of Transport.

Chinese provinces are pushing for new canal projects to strengthen land-sea connectivity and enhance their role in the national economy.

The Zhejiang-Jiangxi-Guangdong Canal would link Zhejiang Province in the north to Guangdong Province in the south, with Jiangxi Province at the center. For landlocked Jiangxi, the canal would provide new trade routes, strengthening its economic ties with the Pearl River Delta and Yangtze River Delta while improving its position in national resource allocation.

In the long run, canal investments could unlock greater economic potential, driving balanced regional development. However, building new canals requires massive investment, and must undergo rigorous feasibility assessments to balance costs and benefits.

Only through scientific planning and management could canal construction improve inland water resource utilization and bring economic, social, and environmental benefits to those regions along its route.

Source: Ecns