ASEAN and China Sign Upgraded Free Trade Agreement to Deepen Regional Integration
ASEAN and China Sign Upgraded Free Trade Agreement to Deepen Regional Integration
KUALA LUMPUR, October 28 — The Association of Southeast Asian Nations (ASEAN) and the People’s Republic of China today signed an upgraded version of their ASEAN-China Free Trade Area (ACFTA 3.0), reaffirming their shared commitment to open, inclusive, and mutually beneficial economic cooperation amid global economic uncertainties.
The upgraded agreement introduces new chapters on the digital economy, green growth, and emerging industries, marking a significant step forward in modernizing the ASEAN-China trade framework to meet the challenges and opportunities of the 21st century.
According to ASEAN statistics, China remains ASEAN’s largest trading partner, with two-way trade reaching USD 771 billion in 2024. The region, with a combined GDP of USD 3.8 trillion, continues to play a vital role in sustaining growth, stability, and connectivity across the Asia-Pacific.
In his remarks at the signing ceremony, ASEAN Chair emphasized that the upgraded ACFTA demonstrates the bloc’s commitment to maintaining an open, rules-based, and resilient multilateral trading system, while deepening regional supply chains and advancing cooperation in sustainable development.
Negotiations for the upgraded agreement began in November 2022 and concluded in May 2025, paving the way for enhanced market access in agriculture, the digital economy, pharmaceuticals, and clean technology.
The ACFTA 3.0 signing took place on the sidelines of the ASEAN Summit in Kuala Lumpur, attended by world leaders including U.S. President Donald Trump, who joined regional discussions on economic resilience and partnership in the Indo-Pacific.
Both ASEAN and China are key members of the Regional Comprehensive Economic Partnership (RCEP) — the world’s largest trading bloc, encompassing nearly one-third of global GDP and population. The RCEP Summit, held earlier this week in Kuala Lumpur for the first time in five years, reaffirmed the shared vision of promoting open markets, sustainable growth, and inclusive economic integration.
ASEAN reiterated that the upgraded free trade agreement represents a milestone in deepening ASEAN-China relations, helping the region navigate global challenges and reinforcing ASEAN Centrality in the evolving regional economic architecture.
