Win win! Upgrade of China ASEAN Free Trade Area

  The head of the International Department of the Ministry of Commerce of China interpreted that the signing of the protocol fully reflects the joint commitment of China and ASEAN to firmly support multilateralism and free trade. It will inject more confidence and momentum into regional and even global economic growth, and has important demonstration significance for countries to jointly resist protectionism and unilateralism and work together to address international economic and trade challenges. Bloomberg reported that the upgraded version of the China ASEAN Protocol covers nine new areas, including digital economy, green economy, and supply chain connectivity, which represents a potential strategic victory for Beijing. Al Jazeera in Qatar quoted expert comments stating that China and ASEAN can achieve a win-win situation through this. At the 28th China ASEAN Leaders' Meeting held on the same day, Li Qiang stated that China and ASEAN countries should unite and strengthen themselves more firmly, gather greater strength, eliminate external interference, defend their legitimate rights and interests through mutual reliance and coordinated actions, and promote stable economic growth through mutual exchange and deepening cooperation.

Both parties can achieve a win-win situation

The 28th is the third and final day of this ASEAN summit. On the morning of that day, under the joint witness of leaders from China and ASEAN countries, Chinese Minister of Commerce Wang Wentao and Malaysian Minister of Investment, Trade and Industry Zavlu signed the China ASEAN Free Trade Area 3.0 Upgrade Protocol in Kuala Lumpur on behalf of China and ASEAN respectively.

The China ASEAN Free Trade Area is the first free trade area established and negotiated by both sides. In 2002, China and ASEAN began the process of building a free trade zone. The 1.0 version of the free trade zone was fully completed in 2010, and the 2.0 version was upgraded in 2015. The construction of version 3.0 was officially launched in November 2022 and negotiations were fully completed by May 2025.


With the continuous deepening of the construction of the China ASEAN Free Trade Area, China has maintained its position as the largest trading partner of ASEAN for 16 consecutive years, and ASEAN has become China's largest trading partner for 5 consecutive years. The trade volume between the two sides will reach 982.3 billion US dollars in 2024, which is 17 times higher than the initial construction of the China ASEAN Free Trade Area in 2002. The China ASEAN Free Trade Area has played an important role in promoting bilateral trade growth.

The website of "Diplomat" in the United States states that since its implementation in 2010, the free trade zone has significantly expanded the trade volume between ASEAN and China. The Chinese Ministry of Commerce stated that the 3.0 version of the China ASEAN Free Trade Area aims to further expand this scale.

It is reported that compared to the early focus on reducing tariffs and expanding market access for mutually beneficial cooperation, the 3.0 version of the upgraded protocol marks a new stage of institutionalization in bilateral cooperation. It not only covers traditional trade and investment fields, but also includes nine new chapters such as digital economy, green economy, supply chain interconnection, standards and technical regulations and conformity assessment procedures, customs procedures and trade facilitation, sanitary and phytosanitary measures, competition and consumer protection, small and medium-sized enterprises, and economic and technological cooperation. After the signing of the protocol, both parties will follow their respective domestic approval procedures to promote the early entry into force and implementation of the protocol.

Regarding the main content of the protocol, the person in charge of the International Department of the Ministry of Commerce disclosed some details in their interpretation on the 28th: both sides promised not to use environmental standards as a disguised means of trade protectionism and to strive to eliminate trade barriers related to environmental products and services; For the first time, both parties have explicitly stated that they may consider referring to each other's standards when developing their own standards, encourage recognition of each other's qualification assessment results, jointly develop qualification assessment procedures, and prioritize promoting standard cooperation in fields such as new energy vehicles and electronic appliances. Bloomberg reported that the agreement promises to lower trade barriers and promote a green economy, which may help Beijing boost exports.

On the 28th, the Associated Press reported that the China ASEAN Free Trade Area covers a market of over 2 billion people. The report quoted Southeast Asian expert Bridget Welsh as saying that upgrading the China ASEAN Free Trade Area is beneficial for both sides, especially in terms of supply chain and sustainability. "At the same time, this also reflects a current global reality: as countries restructure their relations with the United States, countries other than the United States are cooperating to strengthen their trade relations with each other.

According to expert comments cited by Al Jazeera, upgrading the free trade zone with ASEAN is of great significance to China and an important window of opportunity for ASEAN, which can achieve a win-win situation for both sides. In the first nine months of this year, the bilateral trade volume between China and ASEAN reached 776.7 billion US dollars, a year-on-year increase of 9.6%. The comments suggest that the prosperous development of bilateral trade between China and ASEAN reflects both the trend of integrated manufacturing supply chains and the increasing purchase of Chinese goods by Southeast Asian consumers.

Malaysian Prime Minister: It is a 'key milestone'

All parties highly praised the upgrading of the China ASEAN Free Trade Area and bilateral relations.

Anwar previously stated that the signing of the upgraded version 3.0 protocol of the Free Trade Area between ASEAN and China is a key milestone that will open a new chapter in the strategic partnership between ASEAN and China, enhance the collective economic resilience of the region, and mark a new stage in regional partnership. At the 28th China ASEAN Leaders' Meeting held on the 28th, the leaders of participating ASEAN countries stated that ASEAN China relations have become a model of mutual respect and win-win cooperation in the region, and are willing to promote the ASEAN China comprehensive strategic partnership to a higher level.

According to ABS-CBN News Network in the Philippines, the upgrade of the ASEAN China Free Trade Area is expected to bring new opportunities and enhance the capabilities of micro, small, and medium-sized enterprises in the region. The Philippine Ministry of Foreign Affairs stated that the 3.0 version of the upgraded protocol has opened up new opportunities for cooperation in important areas of the region in the future.

On the 28th, Luo Weijian, President of the China Malaysia Chamber of Commerce, stated in an interview with Global Times that the signing of the upgraded protocol for the China ASEAN Free Trade Area 3.0 is of great significance. Firstly, it points out the direction for the development of both sides in the fields of digital economy, green economy, and industrial chain interconnection, and provides clear development guidance for enterprises. Secondly, it injects new impetus into regional economic integration, allowing enterprises to focus on developing related businesses without being disturbed by other factors. In addition, the protocol has played an important role in maintaining the multilateral trading system and promoting stable regional economic growth, providing a stable development environment for enterprises.

Xu Liping, a researcher at the Asia Pacific and Global Strategy Research Institute of the Chinese Academy of Social Sciences, told Global Times reporters on the 28th that the 3.0 version of the upgraded protocol is different from the past, and its core highlight lies in the transformation from the past "mutual tariff reduction" model to the current "joint construction rules". Especially in emerging fields, actively promoting the facilitation and liberalization of investment and trade undoubtedly opens up broader cooperation space for both sides. Enterprises in the fields of digital economy and other areas on both sides will benefit significantly. At the same time, in the field of green economy, enterprises in related industries such as new energy vehicles, solar energy, photovoltaics, etc. will also usher in huge development opportunities.

Xu Liping stated that the relationship between China and ASEAN can be regarded as one of the most dynamic and meaningful cooperative partnerships in the entire Asia Pacific region. The signing of the 3.0 version of the upgraded protocol further highlights the unlimited potential of this partnership.

Positive news will spill over to other regional mechanisms

The article by "Diplomatic Scholars" argues that although the negotiations for upgrading the China ASEAN Free Trade Area predated the US tariff war, the negotiations between the two sides became even more important after the US actions. Since the US announced the imposition of so-called "equivalent tariffs" on multiple countries in April this year, China has been committed to positioning itself as a defender of free and open international trade, and expanding trade and investment relations on this basis. The news from Beijing has been warmly welcomed in Southeast Asia. The shared experience of being hit by US tariffs has prompted China, ASEAN, and other countries to strengthen their trade relations to prevent US unpredictability

On the 28th, the European website "Modern Diplomacy" published an article stating that the upgraded version 3.0 of the China ASEAN Free Trade Agreement is a "free trade agreement for the digital and green era". At a time of global protectionism and supply chain restructuring, this upgraded version of the free trade agreement strengthens the economic integration between China and ASEAN. For China, the upgraded agreement will help further enhance its influence and open up markets for its green technology and digital industries. For ASEAN, the agreement will help it further attract investment, improve digital infrastructure, and better expand the Chinese market.

The above-mentioned media believe that the benefits of upgrading the China ASEAN Free Trade Area will also spill over to other regional mechanisms, bringing positive impacts to mechanisms such as the Regional Comprehensive Economic Partnership (RCEP) and the Asia Pacific Economic Cooperation (APEC). The implementation details of the protocol are expected to be finalized in the coming months, and member states are expected to ratify the protocol by 2026.

Zhou Shixin, Director of the Southeast Asian Studies Center at the Shanghai Institute of International Studies, stated in an interview with Global Times on the 28th that the China ASEAN Free Trade Area 3.0 version has surpassed traditional goods trade and basic investment trade, entering a new stage led by high-precision and cutting-edge technology to promote deep integration of industries. The signing of the 3.0 version upgrade protocol marks a new stage of cooperation between the two parties, moving towards a higher level of productivity. In the future, China ASEAN cooperation will be guided by high quality and steadily promote the construction of a community with a shared future.

Cao Shiyun, a special correspondent from Global Times to Malaysia, Li Mengchu, Daye Liu Yang, and Zhen Xiang, reporters from Global Times