China and ASEAN Strengthen Economic Ties with Free Trade Area Upgrade

China and ASEAN have further strengthened their economic ties with the signing of the China-ASEAN Free Trade Area 3.0 Upgrade Protocol. This upgrade, signed on October 28, 2025, at the 28th China-ASEAN Summit in Kuala Lumpur, Malaysia, marks a significant milestone in the evolution of the China-ASEAN free trade area. The protocol aims to deepen trade ties and promote inclusive development in the region, covering key fields such as digital economy, green economy, supply chain interconnectivity, and more.

Key Takeaways:

The China-ASEAN free trade area cooperation and regional economic integration will move beyond traditional trade and investment liberalization and facilitation, expanding to emerging areas such as the digital economy, green economy, standards, and industrial and supply chains.
The upgrade protocol explores in-depth cooperation in emerging areas, comprehensively elevates the level of openness, and promotes inclusive development.
The new protocol primarily covers nine key fields, including customs procedures and trade facilitation, standards, economic and technical cooperation, digital economy, green economy, supply chain interconnectivity, competition and consumer protection, and micro, small, and medium-sized enterprises.
The protocol was signed by Chinese Premier Li Qiang and Malaysian Prime Minister Anwar Ibrahim, marking a shared commitment by China and ASEAN to multilateralism and free trade.
The upgrade demonstrates a commitment by China and ASEAN to the rules-based international economic and trade system, despite severe challenges to it.
China has been ASEAN's largest trading partner for 16 consecutive years, while ASEAN has been China's top trading partner for the past five years.
Bilateral trade reached 982.3 billion U.S. dollars in 2024, representing a seventeen-fold increase since 2002.

Statistics:

16 consecutive years: China has been ASEAN's largest trading partner.
5 consecutive years: ASEAN has been China's top trading partner.
$982.3 billion: Bilateral trade between China and ASEAN in 2024.
17-fold increase: Increase in bilateral trade since 2002.
November 2022: Negotiations for the Version 3.0 upgrade began.
May 2025: Negotiations for the Version 3.0 upgrade were successfully concluded.
9 key fields: The new protocol primarily covers fields such as customs procedures and trade facilitation, standards, economic and technical cooperation, digital economy, green economy, supply chain interconnectivity, competition and consumer protection, and micro, small, and medium-sized enterprises.

Sources:

Xinhua via COMTEX, October 28, 2025