• The ASEAN-China Free Trade Area 3.0 aims to expand economic ties and include provisions for environmental protection and digital trade.
• Chinese Premier Li Qiang emphasized the deal's significance as a response to US protectionism.
• The upgrade will support small businesses and facilitate deeper regional integration.
• Trade between ASEAN and China has reportedly surged, making ASEAN China’s largest trading partner.

During the recent ASEAN-China summit in Kuala Lumpur, Singapore Prime Minister Lawrence Wong urged leaders to swiftly ratify an upgraded free trade agreement, known as the ASEAN-China Free Trade Area (ACFTA) 3.0. The agreement, which broadens collaboration in emerging areas, is essential for unlocking economic opportunities across the region, according to Wong. He highlighted the need for effective implementation to facilitate trade and strengthen cooperation between the two parties, emphasizing that the upgraded deal includes commitments against unfair business practices to better protect online and overseas consumers, as reported by Channel News Asia and South China Morning Post.

Premier Li Qiang also underscored at the summit that the upgraded agreement symbolizes China's commitment to fostering multilateral economic ties in the face of ongoing trade tensions with the United States. He argued that strengthening cooperation is crucial for overcoming global economic uncertainties, stating, “pursuing confrontation instead of solidarity brings no benefit.” This sentiment reflects China's broader strategy to position itself in contrast to what it views as a protectionist approach by the US, noted sources from India Times and The Jakarta Post.

The newly signed agreement expands the scope to include digital trade, environmental commitments, and support for small and medium-sized enterprises. This indicates significant steps towards deeper regional integration, as trade aligns more with collective standards across sectors such as electronics and new energy vehicles, which was further clarified by China’s Ministry of Commerce. The provisions seek to promote e-commerce and enhance intellectual property rights for smaller businesses within the region, as outlined by both South China Morning Post and The Jakarta Post.

Trade between ASEAN and China has surged, now approaching US$1 trillion annually. This relationship positions ASEAN as China's largest trading partner and demonstrates the growing economic momentum between the two regions. Li emphasized the need for solidarity among nations amidst external pressures, reaffirming the potential benefits of this enhanced partnership, as reported by India Times and South China Morning Post.