The expected implementation of the Version 3.0 China-ASEAN Free Trade Area agreement later this year will send a strong signal to the world in support of free trade and open cooperation, the Ministry of Commerce said on Wednesday.
Commerce and trade ministers from China and the Association of Southeast Asian Nations jointly announced on Tuesday the official conclusion of talks for this upgraded free trade deal via an online meeting, said the ministry in a statement.
China and the 10 ASEAN member states will expedite their respective domestic administrative and legislative procedures and work toward formally signing the upgraded protocol by the end of this year, said the statement.
At a time when global trade is facing major challenges, the successful conclusion of negotiations between the two sides reflects the broader trend toward openness and cooperation. It underscores the resilience of free trade and brings greater certainty to both regional and global economic landscapes, said the MOC.
China and ASEAN launched negotiations for the upgraded trade deal in 2022. The two sides jointly declared the substantial conclusion of the negotiations in Vientiane, Laos, in October 2024.Following this development, both sides accelerated consultations on the remaining provisions of the upgraded protocol and the chapter on the digital economy.
Huo Jianguo, a researcher at the China Society for World Trade Organization Studies, said this move sends a strong message against unilateralism and protectionism, reaffirming both sides' commitment to free trade and open cooperation.
By jointly advancing supply chain resilience and connectivity, the upgraded agreement offers a powerful response to external attempts at "decoupling" and supply chain disruptions, while promoting greater synergy across regional industrial and supply networks, said Huo.
Version 3.0 covers nine areas, encompassing both existing fields under the China-ASEAN Free Trade Area agreement and emerging sectors with significant potential for cooperation, including the digital economy, green economy, supply chain connectivity, trade facilitation, and economic and technical cooperation, the ministry added.
Building on the foundations of the existing China-ASEAN Free Trade Area agreement and the Regional Comprehensive Economic Partnership, these advancements significantly expand mutually beneficial cooperation in emerging sectors, enhance alignment in standards and regulations, and promote trade facilitation and inclusive development, said Cai Hongbo, director of the Free Trade Zone Research Center at Beijing Normal University.
The upgrade marks a pioneering step toward deeper regional economic integration and reinforces ongoing collaboration between China and ASEAN across industrial and supply chains, said Cai.
In the first four months, ASEAN remained China's largest trading partner, with total trade between the two sides reaching 2.38 trillion yuan ($329.62 billion), up 9.2 percent year-on-year, accounting for 16.8 percent of China's total foreign trade value, said the General Administration of Customs.
Zhejiang Sharbo Electric Appliance Co Ltd, a Ningbo, Zhejiang province-based household appliances manufacturer, welcomed the conclusion of the version 3.0 negotiations as an encouraging development, according to information provided by Ningbo Customs.
"In the past, our exports were primarily focused on traditional markets like Europe and the United States. However, with rising risks of tariff barriers, we have been actively exploring emerging markets. Our air conditioners have already gained a foothold in ASEAN markets such as Thailand, Vietnam and Indonesia," said Gao Feiji, the company's foreign trade director.
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