Recently, the negotiations for the upgraded Version 3.0 of the China-ASEAN Free Trade Area have reached a significant conclusion. This milestone indicates a deepening of economic cooperation between China and ASEAN, marking a substantial step in jointly leading economic integration in East Asia while sending a positive signal about both parties’ commitment to maintaining a free trade system. The enhanced cooperation is poised to inject new momentum into the construction of a closer China-ASEAN community of shared destiny.
The upgraded Version 3.0 reflects modern trade practices and has achieved several groundbreaking results that will create new opportunities for all involved. This upgraded agreement spans nine areas, encompassing existing fields of cooperation and emerging sectors with immense potential. For the first time, China and ASEAN have established chapters on digital economy, green economy, and supply chain connectivity at the highest level in their respective trade agreements. They have also reached agreements on advanced standards, technical regulations, and conformity assessment procedures. These enhancements will significantly expand mutual cooperation in emerging areas and facilitate a seamless integration of standards and regulations, contributing to a secure, stable, and efficient regional supply chain network that promotes win-win outcomes between China and ASEAN.
With populations of over 1.4 billion and 600 million respectively, the upgraded free trade area will provide robust and sustainable development momentum for both parties. Benefiting from the China-ASEAN Free Trade Area, China has maintained its position as ASEAN’s largest trading partner for 15 consecutive years, while ASEAN has been China’s top trading partner for the past four years. In light of growing global demand shortages, markets are becoming a scarce resource for economic growth. With a combined population representing one-quarter of the world’s total, the vast market size of China and ASEAN is the strongest foundation for mutual economic prosperity. The upgraded free trade area is expected to foster even closer and more organic integration between these two significant markets, generating notable effects in economies of scale, industrial clustering, and development spillover. ASEAN Secretary-General Lim Jock Hoi expressed optimism that the upgraded free trade area will lead to further growth in trade, investment, and tourism between ASEAN and China, significantly advancing economic cooperation.
The completion of the Version 3.0 upgraded negotiations reflects both parties’ strong support for multilateralism and free trade. China and ASEAN’s commitment to maintaining a free trade system, enhancing supply chain connectivity, and nurturing new momentum for high-quality development will further advance regional economic integration, ensuring the region remains a crucial engine for global economic growth and a bastion of solidarity and cooperation. United Nations Secretary-General António Guterres praised the upgraded China-ASEAN Free Trade Area, noting that it will promote global free trade and economic growth. Singapore Prime Minister Lawrence Wong emphasized that upgrading the free trade agreement is a significant step, especially in an era of rising global protectionism; this move sends a clear and important message to the world about the importance of free trade and mutually beneficial market cooperation.
Expanding high-level openness is an essential requirement for advancing China’s modernization. Building a high-standard free trade zone network that is globally oriented is a critical initiative for establishing a new system of higher-level open economy. The Chinese side has placed great importance on the negotiations for the Version 3.0 upgrade, proactively proposing suggestions in emerging fields such as digital economy, green economy, and supply chain connectivity, which have played a constructive role in reaching a consensus. Moving forward, China will steadfastly promote higher-level openness, creating a systematic model for external engagement, facilitating connectivity in the Asia-Pacific region, ensuring stability in supply chains, and injecting vitality into the economic recovery and sustainable development in the Asia-Pacific.
Open cooperation is the historical trend, and mutual benefit is the direction of public sentiment. China is willing to work together with ASEAN to continuously advance practical cooperation in various fields, providing a solid foundation for mutual prosperity in the region and the world.
