China, ASEAN Sign Upgraded FTA 3.0 Protocol
The pact expands cooperation into digital and green economies, aiming to build an open, rules-based regional market.
On October 28, Chinese Premier Li Qiang, Malaysian Prime Minister Anwar Ibrahim, and other ASEAN leaders witnessed the signing of the China-ASEAN Free Trade Area (FTA) 3.0 Upgrade Protocol in Kuala Lumpur, Malaysia . Chinese Commerce Minister Wang Wentao and Malaysian Minister of Investment, Trade, and Industry Tengku Zafrul Abdul Aziz represented their respective sides at the signing ceremony .The signing of the protocol is a landmark achievement in implementing the important consensus reached by President Xi Jinping and ASEAN leaders at the summit commemorating the 30th anniversary of China-ASEAN dialogue relations . It also represents a significant measure to implement the guiding principles from the Fourth Plenary Session of the 20th Central Committee of the Communist Party of China, focusing on expanding high-level opening up and fostering a new landscape of cooperative共赢 .The upgrade fully demonstrates the shared commitment of both sides to multilateralism and free trade, and their determination to build an open, inclusive, and rules-based regional integrated market alongside mutually beneficial and resilient industrial and supply chains . It is expected to create abundant market and industrial cooperation opportunities for businesses from both sides and worldwide, injecting strong confidence and momentum into regional and global economic growth, while setting an important example for countries to jointly address international trade challenges .
▍A Journey of Deepening Integration
The China-ASEAN Free Trade Area, initiated in 2002, is the first FTA for both parties . The FTA 1.0 was fully completed in 2010, and the 2.0 version upgrade was concluded in 2015, which took full effect in 2019 . The construction of the 3.0 version was officially launched in November 2022, and negotiations were substantially concluded in October 2024 before being fully completed in May 2025 .Driven by the continuous development of the FTA, China has remained ASEAN's largest trading partner for 16 consecutive years, while ASEAN has been China's largest trading partner for five consecutive years . Bilateral trade volume reached $982.3 billion in 2024, a 17-fold increase from 2002 when the FTA was initiated .
▍Nine Key Areas of the Upgraded Protocol
The China-ASEAN FTA 3.0 upgrade encompasses nine key areas, introducing five entirely new fields of cooperation:
digital economy, green economy, supply chain connectivity, competition and consumer protection, and micro, small, and medium-sized enterprises (MSMEs) . It also enhances existing areas like standards, technical regulations, and conformity assessment procedures; sanitary and phytosanitary measures; customs procedures and trade facilitation; and economic and technical cooperation .A key feature of this upgrade is its focus on
"behind-the-border" rules and systemic cooperation frameworks, moving beyond traditional tariff reduction to include digital, green, and supply chain collaborations . The protocol establishes high-level rules for the digital economy, including provisions for the
duty-free treatment of electronic transmissions, cross-border data flow, and personal information protection . In the green economy sector, both parties have pledged not to use environmental standards as disguised trade barriers and to work towards removing obstacles for environmental goods and services .
▍Next Steps Towards Implementation
Following the signing, both sides will proceed with their respective domestic approval procedures to facilitate the protocol's early entry into force . The full implementation of the protocol is anticipated to further deepen regional economic integration, creating a more resilient and inclusive economic community for China and ASEAN .
