By tf-lawyer.com In a recent interview regarding the outcomes of the 27th China-ASEAN (10+1) Leaders’ Meeting, it was revealed that substantial progress has been made in the negotiations for the upgraded version 3.0 of the China-ASEAN Free Trade Area. Since the establishment of the Free Trade Area in 2010, and the full implementation of version 2.0 of the trade agreement in 2019, the cooperation between China and ASEAN has continuously evolved, raising expectations for future collaboration.
Achieving these results has not been easy. The upgrade negotiations for version 3.0 formally began in November 2022 and have involved nearly two years of efforts, including nine rounds of official talks and over 100 working group meetings. The parties have made significant gains across nine key areas, encompassing not only existing aspects of the China-ASEAN Free Trade Agreement but also emerging fields such as digital economy, green economy, supply chain connectivity, customs procedures and trade facilitation, as well as competition and consumer protection, and economic and technological cooperation. The outcomes of this upgrade will build upon the current China-ASEAN Free Trade Agreement and the Regional Comprehensive Economic Partnership (RCEP), greatly expanding mutually beneficial cooperation in emerging domains, enhancing integration of standards and regulations, and promoting trade facilitation and inclusive development.
This mutual benefit strategy is a wise move that holds great significance for the economic development of both parties. Thanks to the thriving Free Trade Area, China has maintained its status as ASEAN’s largest trading partner for 15 consecutive years, while ASEAN has been China’s largest trading partner for four years running. In the first eight months of this year, ASEAN continued to be China’s top trading partner, with China’s imports and exports to ASEAN growing by 10% compared to the previous year, outpacing the overall growth rate of China’s foreign trade by four percentage points, and stabilizing the share of ASEAN in China’s total foreign trade at over 15%. The upgrade of the Free Trade Area will provide strong institutional support for the construction of a super-sized market and will further drive trade prosperity, creating more collaborative opportunities and stronger, sustainable growth momentum.
Notably, the upgrade includes many groundbreaking explorations, particularly represented by two significant “firsts.” For the first time, both sides have agreed on the highest level of chapters on digital economy, green economy, and supply chain connectivity within their economic agreements, promoting digital and green transformations. Additionally, a special chapter on competition and consumer protection has been established, along with a dedicated committee to enhance legislative and enforcement cooperation, which will facilitate cross-border consumption and better protect the rights of businesses and consumers, fostering a fair competitive market environment for both parties. These innovative measures are expected to elevate the Free Trade Level between China and ASEAN and will serve as a model for similar collaborations between China, ASEAN, and other trade partners in the future.
In the context of intertwined global disruptions and rising protectionism, the consensus reached by China and ASEAN to upgrade their Free Trade Area underscores their firm commitment to upholding multilateralism and free trade. As United Nations Secretary-General António Guterres noted, this upgrade will promote global free trade and economic growth. We look forward to seeing China and ASEAN work together to contribute more to regional stability and global economic recovery.
