Kuala Lumpur: China and the Association of Southeast Asian Nations (ASEAN) have signed an upgraded version of their free trade agreement, expanding cooperation to include digital trade, the green economy, and emerging industries.
The 11-member ASEAN bloc is China’s largest trading partner, with two-way trade reaching $771 billion in 2024, ASEAN data showed. The move marks Beijing’s latest step to deepen economic ties with the region as it faces mounting trade barriers from the United States under President Donald Trump’s administration.
China’s Commerce Ministry said the upgraded agreement fully reflects the solemn commitment of both sides to jointly support multilateralism and free trade.
The upgraded ‘3.0 version’ of the ASEAN-China Free Trade Agreement was signed during a leaders’ summit in Malaysia on Tuesday, attended by Trump at the start of his Asia visit.
Negotiations for the update began in November 2022 and concluded in May 2025, shortly after the United States escalated its tariff measures against several trading partners. The first version of the ASEAN-China FTA came into force in 2010. China has said the new agreement will enhance market access in key sectors such as agriculture, pharmaceuticals, and the digital economy.
Prior to the 28th ASEAN-China Summit, Secretary-General of ASEAN, Dr. Kao Kim Hourn, attended the Signing of the ASEAN-China Free Trade Area (ACFTA) 3.0 Upgrade Protocol. The ACFTA 3.0 marks a major step forward in ASEAN-China economic ties, reflecting a strong, shared commitment… pic.twitter.com/VGsLtGrNdy
— ASEAN (@ASEAN) October 28, 2025
Both China and ASEAN are also members of the Regional Comprehensive Economic Partnership (RCEP), the world’s largest trading bloc, encompassing about 30 percent of global GDP and a third of the global population. Malaysia hosted an RCEP summit in Kuala Lumpur on Monday, the first in five years.
The signing comes amid continuing trade tensions between China and the United States. Since taking office, Trump has imposed major tariffs on Chinese goods. In response, China has tightened export controls on critical minerals, including rare earths, of which it processes over 90 percent of the global supply.
Over the weekend, negotiators from both sides met in Kuala Lumpur and agreed to extend a temporary truce in their trade dispute, setting the stage for further talks between Trump and Chinese President Xi Jinping later this week in Seoul. Following the summit, Chinese Premier Li Qiang urged countries to resist protectionism and work together to strengthen free trade.
“The world must not slip back to the law of the jungle, where the strong prey on the weak. We should more firmly uphold the free trade regime and build a high-standard regional economic network,” Li said at the East Asia Summit.
