China and ASEAN Upgrade Free Trade Agreement Amidst US Trade War

Strategic Insights -

China and the Association of Southeast Asian Nations (ASEAN) have strengthened their free trade agreement, highlighting their growing economic ties in the face of United States President Donald Trump's trade war. The upgraded deal, signed on Tuesday, aims to broaden cooperation in key areas such as infrastructure, digital and green transition, trade facilitation, and people-to-people exchanges. This move comes as trade between China and ASEAN reaches a record high, with $785 billion in transactions for the first nine months of 2025, a 9.6 percent increase from the previous year.

Key Takeaways:

  • The upgraded free trade agreement between China and ASEAN will enhance cooperation in infrastructure, digital and green transition, trade facilitation, and people-to-people exchanges.
  • Trade between China and ASEAN has reached $785 billion in the first nine months of 2025, a 9.6 percent increase from the previous year.
  • China is seeking to strengthen its economic relationship with ASEAN amid rising trade tensions with the US and EU.
  • The deal is seen as a "win-win outcome" for both China and ASEAN, as it addresses their economic needs and allows them to take advantage of the competitive global economic landscape.
  • US President Donald Trump's trade war has disrupted global trade, and his unilateralism and protectionism have been criticized by Chinese Premier Li Qiang.
  • Trump's meeting with Chinese President Xi Jinping is expected to focus on tariffs and trade barriers, with the two sides having reached a framework agreement on tariffs.

Statistics:

  • Trade between China and ASEAN reached $785 billion in the first nine months of 2025, a 9.6 percent increase from the previous year.
  • The upgraded free trade agreement aims to broaden cooperation in infrastructure, digital and green transition, trade facilitation, and people-to-people exchanges.
  • China is ASEAN's largest trade partner, accounting for 15-20 percent of ASEAN's total trade.
  • ASEAN is China's largest trade partner in Southeast Asia, accounting for 20-25 percent of China's total trade.
  • Trade tensions between China and the US have disrupted global trade, with over $500 billion in tariffs imposed by both sides.

Sources:

  • China's State Council
  • Al Jazeera
  • Reuters
  • University of Hong Kong