Published by ChinaMNC · Longshenggezu
China’s Major Water Projects Accelerate: What Foreign Founders Need to Know
A roundup of China’s fast-moving water infrastructure projects—from the Xiangjiaba irrigation district to the South-to-North Water Diversion—and why they matter for foreign founders operating in China.
China’s Major Water Projects Accelerate: What Foreign Founders Need to Know
China is pushing ahead with a series of large-scale water infrastructure projects that could reshape logistics, water availability, and regional development. For foreign founders registering or operating a company in China, these developments offer both opportunities and practical considerations. Below is a factual overview based on recent official reports.
Xiangjiaba Irrigation District: Progress and Timeline
On the 25th, the central arch ring of the Ma’eryan aqueduct—a control node of the Xiangjiaba Irrigation District—was completed and closed. The Xiangjiaba Irrigation District is the first large-scale irrigation district linking the Jinsha River to the Yangtze River.
In February last year, the first phase (step one) of the Xiangjiaba Irrigation District was completed and began conveying water. The currently under-construction first phase (step two) is expected to be completed by the end of 2028. Once finished, water diverted from the Jinsha River will be delivered to 11 counties and districts across four cities: Yibin, Zigong, Neijiang, and Luzhou.
Central Yunnan Water Diversion Project: Largest in Southwest China
The Central Yunnan Water Diversion Project is the largest water resource allocation project in Southwest China. It recently reached new milestones. The Shigu water source project—the leading water source for the overall project—is in its final sprint. The Xianglushan tunnel, the first gateway from the Jinsha River, has now been excavated past the halfway point, with less than 30 kilometers remaining. Builders are using traditional drill-and-blast methods to advance little by little.
As of mid-October, the main water conveyance canal of the first phase of the Central Yunnan Water Diversion Project has been excavated to a cumulative length of 637 kilometers, accounting for 96% of the total length.
Jianghuai Canal: Second North-South Waterway
The Shushan hub of the Yangtze-to-Huaihe Water Diversion Project has achieved a new leap. Its key navigation hub—the Shushan double-line ship lock—has entered trial operation. The double-line lock and the existing single-line lock now operate in parallel with two-way traffic. This upgrade enhances the navigation capacity of the Jianghuai Canal.
As the Yangtze-to-Huaihe Water Diversion Project advances, the Jianghuai Canal has connected with the upstream Shaying River and the downstream Wushen Canal, becoming China’s second north-south water transport corridor. This shortens north-south bulk cargo transport distances by 200 to 600 kilometers.
South-to-North Water Diversion: Central Line’s Yangtze-to-Han River Project
The Yangtze-to-Han River Project, a landmark of the national water network’s main skeleton and artery, has reached a key milestone. Nine super-large diameter hard rock tunnel boring machines (TBMs) are operating simultaneously. The main tunnel excavation has surpassed 40 kilometers, completing one-fifth of the total length.
At the same time, a digital twin platform—the project’s information hub—can collect over 9,000 parameters across seven major categories from the TBMs in real time. This allows tunneling equipment scattered beneath the mountains and dozens of kilometers apart to operate in coordination.
Practical Implications for Foreign Founders
These projects are part of China’s broader infrastructure push. For foreign founders, they signal potential changes in logistics efficiency, water resource management, and regional economic development. If your business relies on inland water transport—especially along the Yangtze or the new north-south corridors—the Jianghuai Canal’s upgraded capacity could reduce shipping distances and costs for bulk goods.
Companies involved in construction, engineering, equipment supply, or water management may find opportunities in these large-scale projects. However, foreign founders should note that participating in such projects typically requires a locally registered entity and compliance with Chinese regulations.
Water availability is also a critical factor for many industries. The completion of irrigation and diversion projects can improve water security in the regions they serve, potentially benefiting agricultural and industrial operations.
Key Takeaways
- Xiangjiaba Irrigation District: First phase step one completed in February last year; step two targeted for end of 2028; will supply water to 11 counties in four Sichuan cities.
- Central Yunnan Water Diversion: 96% of main canal excavated as of mid-October; Xianglushan tunnel over halfway done.
- Jianghuai Canal: Shushan double-line ship lock in trial operation; canal now connects to other waterways, shortening north-south bulk cargo transport by 200–600 km.
- South-to-North Water Diversion (Central Line): Yangtze-to-Han River project’s main tunnel over 40 km excavated (one-fifth of total); digital twin platform coordinates nine TBMs.
These updates are based on official reports and reflect the pace of China’s water infrastructure development. Foreign founders should monitor these projects for supply chain and market opportunities.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.
For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.