• China and ASEAN have finalized negotiations for an upgraded free trade agreement.
• The new deal, known as version 3.0, includes the digital and green economies.
• Total trade between China and ASEAN reached US$234 billion in the first quarter of 2025.
• The agreement aims to enhance supply chain connectivity and cooperation in customs procedures.
• Formal signing of the agreement is expected by the end of the year.

China and the Association of Southeast Asian Nations (ASEAN) have successfully completed negotiations to refine their free trade agreement, incorporating the digital and green economy, as well as emerging industries, according to Channel News Asia and Bangkok Post. The updated free trade agreement is expected to bolster regional trade stability and cooperation, amid mounting trade tensions globally.

ASEAN, comprising ten Southeast Asian nations, has emerged as China's largest trading partner, with total trade valued at **US$234 billion** in the first quarter of 2025, according to Chinese customs data. The upgraded trade deal, referred to as version 3.0, is designed to "inject greater certainty into regional and global trade," fostering "openness, inclusiveness, and win-win cooperation,” as declared in a statement from China's Ministry of Commerce, also cited by South China Morning Post.

Negotiations for this agreement, which began in November 2022, involved nine rounds of discussions and covered key aspects like supply chain integration, digital economies, and customs procedures, as reported by South China Morning Post. The pact aims to enhance cooperation in critical sectors, including cybersecurity and electronic payment systems.

Chinese Commerce Minister Wang Wentao emphasized that the agreement would help stabilize global supply chains and urged against the "misuse of tariffs and economic coercion," referring explicitly to ongoing trade tensions with the United States. He remarked, "There are no winners in a tariff war or trade war," underscoring the urgency of this new economic partnership, according to Channel News Asia, Bangkok Post, and South China Morning Post.

The formal signing of the updated trade agreement is anticipated to occur by the end of this year, reinforcing ASEAN's emerging role as a critical partner in China's foreign investment strategies, particularly in manufacturing, a trend that has intensified since heightened U.S. trade measures began in 2018, according to South China Morning Post and Bangkok Post.