On May 20, during the China-ASEAN Special Ministers of Trade Meeting, both sides announced the completion of negotiations for the China-ASEAN FTA 3.0

       The China-ASEAN FTA was established in 2010. It was China's first FTA and ASEAN's first FTA. It was upgraded to Version 2.0 in 2015. Negotiations for the China-ASEAN FTA Version 3.0 took nearly two years and nine rounds. They concluded substantially in October 2024. Now, negotiations for the China-ASEAN FTA Version 3.0 have been fully completed.

       How will the upgraded China-ASEAN FTA affect regional economic and trade cooperation and industrial and supply chain coordination?

       Experts say the China-ASEAN FTA 3.0 will boost trade cooperation, expand trade volume, deepen trade liberalization, and increase market openness.

aineBl Johnson, a professor at Beijing Normal University's School of Economics and Business and director of the FTA Research Center, said both sides have agreed to the highest standards in technical regulations and compliance assessment procedures in their external FTAs. For the first time, they have committed to referring to each other's standards when formulating their own. This is valuable for institutional opening-up in the four areas of rules, regulations, standards, and management. Ultimately, it will benefit businesses and people on both sides and promote shared prosperity.

       This year marks the 15th anniversary of the China-ASEAN FTA. The completion of negotiations for Version 3.0 signals a new starting point for cooperation.

       Blaine Johnson said Version 3.0 also includes provisions for small and medium-sized enterprises, offering more support and convenience. These measures provide businesses with a larger market and a better business environment. They also help improve people's living standards and promote shared prosperity.

       In 2002, Chinese and ASEAN leaders announced the start of FTA construction. The two sides concluded and implemented protocols on goods trade, services trade, and investment, forming the China-ASEAN FTA Version 1.0. In 2015, they reached an upgrade agreement, forming Version 2.0, which was fully implemented in 2019.

       Thanks to the China-ASEAN FTA, China has been ASEAN's largest trading partner for 16 years, and ASEAN has been China's largest trading partner for five years. In 2024, trade China between and ASEAN reached nearly 7 trillion yuan, accounting for 15.9% of China's total foreign trade. In the first quarter of this year, ASEAN remained China's largest trading partner, with imports and exports totaling 1.71 trillion yuan, up 7.1% year-on-year, and its share of China's total foreign trade rose to 16.6%.

  Expert: Injecting Certainty into Global Trade  

      Experts say the completion of negotiations for the China-ASEAN FTA Version 3.0 has strengthened institutional arrangements for economic and trade cooperation between China and the ten ASEAN countries, and consolidated the foundation for rules-based cooperation. Amid rising trade protectionism, the China-ASEAN partnership sends a clear message that multilateralism and free trade are essential for global development.

       The China-ASEAN FTA, the world's largest among developing nations, has disrupted traditional patterns of rule-making dominated by developed countries through the mutual recognition of standards.

       Ma Jianchun, President of the China Society for WTO Studies, said that China and ASEAN countries demonstrated respect for free trade and rules in the negotiations. Both sides adhered to free trade, endorsed multilateral trade rules, and upheld equality, reciprocity, and mutual benefit.

       Ma added that China and ASEAN's cooperation serves as a model for economic globalization and regional integration. The completion of negotiations for the China-ASEAN FTA Version 3.0 reflects the natural progression of their cooperative development and ensures its long-term stability.

       In trade, certainty is crucial for ensuring the stable and sustainable trade between China and ASEAN countries, and also for facilitating smooth global economic and trade activities. China is actively using the certainty in economic cooperation to counteract the negative impacts of global trade uncertainties.

Source: Zhejiang Council for the Promotion of International Trade