The inauguration of the dam has also cut off the flow of free water into neighbouring Iran, which has been using the water of the Helmand river and the region's groundwater indiscriminately.
The new canals are now providing irrigation water for 3,000 hectares of land, and the way they are constructed will prevent costly flood damage.
The assistance comes at a critical time as cold weather sets in and farmers face dire economic conditions.
Construction has stopped on Pashdan Dam in Herat province, leaving it only 85% complete and at risk of severe damage if nothing is done soon.
Many are doubting the motivations and goals behind China's provision of humanitarian aid and millions of dollars in financial assistance to the government in Kabul.
The departure of the youth and the elite from Afghanistan will damage irreparably the economy and general development of the country, say observers.
'A generation has been destroyed in the past four months. It will take a hundred years for things to return to the state they were,' said a student of Herat University.
Afghans living in Kunduz and across the country have seen a spike in food and fuel prices as the afghani's exchange rate plummets.
A former police official and a former revenue administrator are among the many Afghans who lost their previous livelihoods and been forced to work in new industries to feed their families.
Many on the Afghan side of the border hope the fuel imports will have a positive impact on prices and slow the country's economic tailspin.