ASEAN and China Sign Upgraded Free Trade Agreement

The Association of Southeast Asian Nations (ASEAN) and China have signed an upgraded version of their free trade agreement aimed at strengthening cooperation in emerging industries such as the digital and green economy.

The new “3.0” version of the agreement was finalized at an ASEAN leaders’ summit in Kuala Lumpur, Malaysia. The updated deal builds on the original ASEAN–China Free Trade Agreement, which first came into force in 2010.

ASEAN, an 11-member regional bloc, is China’s largest trading partner. Bilateral trade between the two reached about $771 billion last year, according to ASEAN data. Negotiations on the upgraded deal began in November 2022 and concluded in May this year.

The agreement is expected to improve market access and expand cooperation in sectors such as agriculture, pharmaceuticals, digital services, and green technologies. Analysts say the move also reflects Beijing’s effort to deepen ties with Southeast Asia as it faces growing trade tensions with the United States under the tariff policies of President Donald Trump.

Both China and ASEAN are also members of the Regional Comprehensive Economic Partnership (RCEP), the world’s largest trading bloc covering nearly one-third of the global population and about 30% of global GDP. Malaysia hosted an RCEP summit this week, the first in five years.

Some analysts view the strengthened regional trade frameworks as a potential buffer against US tariffs, though they note that RCEP’s provisions remain less comprehensive than some other international trade agreements due to differing interests among member states.

Source: Newstimehub