ASEAN-China Economic Ties Set to Deepen With Upcoming ACFTA 3.0 Agreement

KUALA LUMPUR, July 10 (Voice of Malaysia): Economic relations between ASEAN and China are poised to reach a new milestone with the anticipated signing of the ASEAN-China Free Trade Area (ACFTA) 3.0 agreement later this year.

Malaysia’s Foreign Minister, Datuk Seri Mohamad Hasan, highlighted the significance of the upgraded agreement during his opening remarks at the ASEAN Post-Ministerial Conference with China. The meeting was held as part of the ongoing 58th ASEAN Foreign Ministers’ Meeting (AMM) and related sessions currently taking place under Malaysia’s ASEAN Chairmanship for 2025, themed ‘Inclusivity and Sustainability.’

“In this context, the signing of the ASEAN-China Free Trade Area 3.0, scheduled for later this year, comes at an opportune moment,” said Mohamad. “It aligns with ASEAN’s objective to strengthen economic cooperation and resilience in the face of a rapidly evolving global trade environment.”

Established in 2010, the original ACFTA stands as one of the world’s largest free trade agreements, encompassing a combined market of over two billion people. Its primary goal is to eliminate tariffs and reduce trade barriers between ASEAN member states and China, thereby fostering deeper economic integration, enhancing investment flows, and reinforcing supply chain connectivity throughout the region.

Datuk Seri Mohamad noted that ASEAN and China have maintained their positions as each other’s largest trading partners for the past four consecutive years. In 2024, bilateral trade reached US$770.94 billion—marking a 10.61 percent increase from the previous year.

Despite this upward trend, he cautioned, “We must remain vigilant to the threat to an open, fair, and rules-based trading system.”

The ACFTA 3.0 upgrade is expected to modernize the agreement by addressing emerging trade issues and enhancing digital trade, sustainability, and inclusive growth—key priorities under Malaysia’s ASEAN Chairmanship.

The upcoming agreement signals a new chapter in ASEAN-China economic relations, reaffirming both sides’ commitment to robust and forward-looking cooperation in a challenging global landscape.