China and ASEAN officially signed the upgraded China-ASEAN Free Trade Area (FTA) 3.0 Upgrade Protocol on Tuesday during the 47th ASEAN Summit in Malaysia. The agreement marks a significant milestone in regional economic integration and cooperation.
The FTA 3.0 Upgrade Protocol now covers nine major areas, including five newly added sectors: the digital economy, green economy, supply chain connectivity, competition and consumer protection, and support for micro, small, and medium-sized enterprises. This reflects both sides’ commitment to jointly shaping global trade rules and deepening cooperation in emerging industries.
High-Quality Investment and Economic Growth
Experts highlight China’s shift toward high-tech, new energy, and connectivity sectors, which brings value-added investment, sustainable growth, and stronger market competitiveness to ASEAN economies. Trade promotion platforms such as the China International Import Expo and China International Fair for Trade in Services are creating vast opportunities for ASEAN businesses, particularly in Thailand and Malaysia.
Multilateralism and Trade Facilitation
Lin Feng, director-general of the Department of International Trade and Economic Affairs at China’s Ministry of Commerce, emphasized that the signing demonstrates a firm commitment to multilateralism and free trade. He described the FTA 3.0 as a strong example of resisting unilateralism and protectionism, creating an open, inclusive, and rules-based regional market.
Rich Too, CEO of SEEDS Malaysia, noted that the agreement strengthens China-ASEAN trade ties, boosts regional integration, and supports long-term stable growth, particularly amid rising global uncertainties and US-imposed tariffs in the region.
Boosting Cooperation and Future Prospects
The protocol provides new opportunities for China-Malaysia trade cooperation, expanding collaboration in the digital and green economies, infrastructure development, supply chain integration, and talent development. It also emphasizes capacity building, technology exchange, and sustainable development to broaden bilateral trade in both scope and volume.
The agreement complements the Plan of Action to Implement the China-ASEAN Comprehensive Strategic Partnership (2026-2030) and aligns with ASEAN 2045: Our Shared Future and its Strategic Plans. reinforcing regional collaboration in trade facilitation, digital transition, green initiatives, and people-to-people exchanges.
China and ASEAN have been each other’s largest trading partners for the fifth consecutive year. In the first three quarters of 2025, China-ASEAN trade totaled 5.57 trillion yuan ($785 billion), up 9.6% year-on-year, showcasing the resilience and momentum of regional trade amid external uncertainties.
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