China and ASEAN Conclude CAFTA 3.0 Negotiations, Boosting Free Trade
In a significant move toward enhanced regional integration, China and the Association of Southeast Asian Nations (ASEAN) have successfully concluded negotiations on the China-ASEAN Free Trade Area 3.0 (CAFTA 3.0). The upgraded agreement is expected to be signed within the year, ushering in a new era of economic cooperation and development in Asia.
Chinese Premier Li Qiang recently attended the ASEAN-China Summit in Jakarta, Indonesia, emphasizing China’s commitment to strengthening ties with ASEAN countries. These diplomatic efforts underscore the importance of collaboration in the face of global economic challenges.
The conclusion of CAFTA 3.0 negotiations signals a strong commitment from both China and ASEAN to support multilateralism and free trade. Over the past two decades, the China-ASEAN Free Trade Area has evolved, reflecting the deepening ties and expanding cooperation between the two sides.
China and ASEAN have become each other’s largest trading partners and key investment partners. Since 2013, trade between China and ASEAN has grown at an average annual rate of 7.5 percent. In recent years, bilateral trade reached 6.99 trillion yuan (approximately $970 billion). China is also ASEAN’s second-largest source of foreign investment, with Chinese enterprises actively investing across the region.
The CAFTA 3.0 upgrade introduces new areas of collaboration, expanding into emerging sectors such as the digital economy and green economy. The agreement aims to enhance “soft connectivity” by aligning technical standards, regulations, and conformity assessment procedures. This alignment is expected to reduce trade barriers, lower certification costs for businesses, and foster a more unified and transparent business environment.
Furthermore, the inclusion of provisions supporting micro, small, and medium-sized enterprises will create more opportunities for these businesses to access markets on both sides. By advancing regional economic integration, CAFTA 3.0 is set to open deeper and broader avenues for business cooperation.
Building on this foundation, China and ASEAN are also exploring new models of cooperation with other regional partners, such as the Gulf Cooperation Council (GCC). The recent ASEAN-China-GCC Summit highlighted the potential for diversified economic and trade partnerships, bringing greater stability and growth prospects to the regional and global economies.
As the massive China-ASEAN market continues to take shape, the successful conclusion of CAFTA 3.0 negotiations represents a shared commitment to openness, collaboration, and the pursuit of mutual prosperity.
