China and the Association of Southeast Asian Nations (ASEAN) have signed an expanded version of their free trade agreement (FTA), officially known as the ASEAN‑China Free Trade Area 3.0.
"Unity is strength," said Chinese Premier Li Qiang at the ASEAN-China summit on Monday (October 27th). "Pursuing confrontation instead of solidarity brings no benefit."
Building on a partnership first signed in 2002 and implemented in 2010, the upgraded FTA covers a combined market of more than two billion people. The new framework further reduces tariffs, enhances customs facilitation and promotes cooperation in digital trade and the green economy. This agreement is designed to support the flow of trade and reinforce economic integration between China and Southeast Asia
The move comes amid escalating tariff risks and uncertainty for Southeast Asian exporters facing US trade pressures. Analysts say the strengthened China-ASEAN pact reflects a strategic shift by regional players to diversify trade and reduce over-reliance on the US market.
"Unilateralism and protectionism have seriously impacted the global economic and trade order, while external forces are increasing their interference in the region - many countries have been unreasonably subjected to high tariffs," Mr Li explained. "By relying on each other and coordinating our actions, we can safeguard our legitimate rights and interests."