China's Canal to Nowhere? Southeast Asia Trade Boom Masks Underlying Risks The news that China's Pinglu Canal will begin trial operations in September has sent shockwaves through the global shipping community.
The $10 billion waterway connects China's heartlands to the Gulf of Tonkin, a major milestone for China's economic ambitions.
China's desire to reduce its reliance on sea routes traversing the Malacca Strait, which connects the South China Sea to the Indian Ocean, drove the canal's construction.