Analysts suggest that Beijing’s initiative to construct additional man-made waterways aims to better connect inland economic areas with the wealthier coastal regions.
According to a recently issued policy document, China’s government has formally incorporated a 767-kilometer-long canal into its plans. This canal would connect the interior rare earth center in Jiangxi Province with the thriving eastern coastal region of Zhejiang. The initiative reflects the country’s intensified focus on developing its internal waterways infrastructure.
China already has an extensive network of
high-speed rail
And highways that extend far into almost every region of the nation; however, authorities have progressively shifted their focus towards utilizing rivers and man-made water channels. This shift is part of an overall strategy aimed at reducing logistics expenses and connecting underdeveloped inland areas with more prosperous coastal centers, according to analysts.
The Jiangxi-Zhejiang Canal is a component of an
mega-project
Designed to link Guangdong, Jiangxi, and Zhejiang via waterways, this project is anticipated to be the costliest man-made canal constructed in China, with projected costs reaching approximately 320 billion yuan (about US$44.4 billion). This expenditure would make it almost triple the investment required for the Hong Kong-Zhuhai-Macau Bridge.
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An action plan unveiled in early May stated that the Zhejiang provincial government intends to start “planning and advancing” the development of the canal with the objective of making the province a national frontrunner in inland water transportation by 2035.
Once finished, the canal will link Jiangxi province—a burgeoning center for electric vehicle production, rich in rare earth elements and copper—to ports in Zhejiang, which is among the most prosperous provinces in China.
Envisioned as a Class III waterway, the canal will have the capacity to manage ships weighing up to 1,000 tons based on the Ministry of Transport’s standards. Upon becoming fully functional, it has been estimated that approximately 25 million metric tons of freight could pass through each year, as stated by the ministry.
By 2035, Chinese officials aim to create an extensive domestic inland waterways system covering approximately 25,000 kilometers. In 2024, logistics expenses constituted 14.1 percent of the nation’s gross domestic product—a significant proportion even when compared with those of advanced economies. Although roads presently handle most transportation needs, shipping via waterways presents a more economical option, costing merely one-fifteenth as much as road transport and about a quarter as much as railway services, as stated by China Merchants Bank.
“China’s development of inland waterways is transforming its economic landscape,” noted analysts from the bank in an April memo, highlighting the role of the West River system. This network has reduced cargo transit time between the southwestern area and the Greater Bay Area to just 36 hours—facilitating the connection between western inexpensive power resources and eastern ports as well as logistical capabilities.
These linkages form the foundation for a diversified, interconnected industrial structure, promoting enhanced regional integration throughout eastern, central, and western China.
In 2022, the Jianghuai Canal in Central Anhui Province—a water diversion project with a price tag of 100 billion yuan—welcomed boats to its channels.
That same year,
construction began
In southwestern China’s Guangxi Zhuang Autonomous Region, close to the Vietnamese border, construction of the 134.2-kilometer-long Pinglu Canal is planned at an estimated cost surpassing 70 billion yuan.
An artificial waterway connecting the border-area autonomous region and inland Hunan Province is reportedly in the initial phases of planning, as stated by the Guangxi government’s official social media channels. The projected investment for this project is approximately 150 billion yuan.
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The article initially appeared on the South ChinaMorning Post (www.scmp.com), which is the premier source for news coverage of China andAsia.
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