Pinglu Canal, the first canal built by the Chinese regime, is a 72.7 billion yuan ($10.18 billion) hydro project approved last August. China said it is the shortest, most economical, and most convenient land-sea passage for economic trade between Southwest China and members of the Association of Southeast Asian Nations (ASEAN).
Chinese Officials said the canal—linking the Xijiang River with ports in the Beibu Gulf—can improve the navigation conditions of the Xijiang River and greatly enhance the transport capacity for west China.
However, experts criticized the project as more of a political concern than a true economic benefit.
The shortened voyage won’t compensate for the huge debt resulting from the investment. One more port will not automatically increase the total trade volume. A sea port to the Western countries versus to ASEAN has a completely different significance, said the experts….