The BRICS TimesThe China-ASEAN Free Trade Area (CAFTA) 3.0 upgrade clearly shows China’s and ASEAN’s shared goal. They aim to build an open, inclusive, and rules-based integrated regional market together. This upgrade will create a strong regional industrial and supply chain system that provides mutual benefits. It will also bring more confidence and energy to the regional and global economic growth.
New Opportunities for Economic Cooperation
Chinese Premier Li Qiang stated on Tuesday that the newly signed CAFTA 3.0 upgrade is a new chance. It will help expand and improve the existing bilateral economic and trade cooperation. Premier Li made these comments at the 28th China-ASEAN Summit. The summit was held in Kuala Lumpur on Tuesday morning.
Before the main summit, Li and Malaysian Prime Minister Anwar Ibrahim witnessed the signing. They oversaw the signing of the CAFTA 3.0 Upgrade Protocol.
The Official Signing Ceremony
The signing ceremony took place with the national flags of China and ASEAN members in the background. Chinese Commerce Minister Wang Wentao and Malaysian Minister of Investment, Trade and Industry Tengku Zafrul Abdul Aziz signed their documents. Premier Li and Prime Minister Anwar flanked them during the signing. Afterwards, the Malaysian minister gave the document to ASEAN Secretary-General Kao Kim Hourn.
Beyond Traditional Trade
The upgraded document goes beyond just lowering tariffs and smoothing trade procedures. This new agreement expands cooperation into nine key areas. These include the digital economy and the green economy. Supply chain connectivity is another focus. It also covers standards, technical regulations, and conformity assessment. Furthermore, it addresses sanitary and phytosanitary measures, and customs procedures. Trade facilitation, competition, consumer protection, and small and medium-sized enterprises (SMEs) are also included. Finally, economic and technical cooperation forms the ninth area.
The Chinese Ministry of Commerce confirmed that both sides will now ratify the protocol domestically. This process will ensure the protocol starts and is implemented early.
The original deal was signed in 2002. It became fully effective in 2010. It was later upgraded to CAFTA 2.0 in 2015. The ministry said this new CAFTA 3.0 upgrade highlights China’s and ASEAN’s strong support for multilateralism and free trade. It also reinforces their shared commitment to creating a beneficial and resilient market.
Boosting Growth and Development
The ministry also noted that CAFTA 3.0 will boost confidence and energy for both regional and global economic growth.
Sun Xiao, the secretary-general of the China Chamber of International Commerce, explained the significance. He said CAFTA 3.0 is more than just a simple expansion of the old framework. It is a high-level, comprehensive free trade agreement. He called it inclusive, modern, and mutually beneficial in nature.
He added, “It is not just an expansion of economic cooperation, but also a key step towards helping the region to walk away from the reliance on low-end manufacturing and achieve high-quality development.”
The upgrade offers SMEs better and easier access to the major Chinese and ASEAN markets. Tan Kar Hing, deputy chairman of Malaysia’s Center of Regional Strategic Studies, commented on this. He said, “Local SMEs can now connect directly with regional markets through digital platforms — true ‘local creation, regional expansion.'”
Suwat Techawatanawana, an executive vice president at Kasikornbank, sees quick benefits. He expects industries like food, agriculture, tourism, logistics, and digital e-commerce to benefit first. Suwat stated, “The CAFTA 3.0 will serve as a strong starting point for developing the digital economy, e-commerce, the green economy and sustainability, ultimately fostering connectivity among SMEs across participating countries.”
Professor of economics Yeah Kim Leng called the signing a “timely upgrade.” He sees it as protection from global economic fragmentation. It also addresses rising uncertainties. Furthermore, it is a natural step for advancing inclusive development regionally.
Further Commitments and Future Focus
Premier Li shared more details about CAFTA 3.0 cooperation at the later summit. China will invest more money into the China-ASEAN Cooperation Fund. They will also start the China-ASEAN Digital Academy. China plans to build an artificial intelligence cooperation platform. Furthermore, a center for maritime development and technology cooperation will be established. Li further suggested strengthening cooperation in transportation, the digital economy, and the green economy. Disaster prevention, mitigation, and climate change are also areas for enhanced partnership.
Li announced China’s readiness to better match development strategies with ASEAN countries. They will also fully implement the Plan of Action for the Comprehensive Strategic Partnership (2026-2030). This will strengthen the overall China-ASEAN collaboration structure.
Li also addressed other matters during his speech. He urged speeding up consultations on the Code of Conduct in the South China Sea. He pushed for its quick conclusion. He stressed the need for China and ASEAN countries to unite. They must resist external disturbances. He called on them to defend their rights and interests. This must happen through mutual reliance and coordinated actions amid global changes.
