China is looking to upgrade a free-trade deal with the Association of Southeast Asian Nations (Asean) this year, underscoring Beijing’s push to diversify exports and lock in closer economic ties with its largest trading partner as global supply chains shift.
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“China will work closely with Asean to complete domestic approval procedures and push for the formal signing of the China-Asean Free Trade Area (Cafta) 3.0 upgrade protocol by the end of the year,” Vice-Minister of Commerce Yan Dong said on Monday.
Talks wrapped up in May, clearing the path for broader market access in agriculture, digital trade and pharmaceuticals between China and Asean’s 10 economies.
Yan added that the two sides had agreed to deepen cooperation in nine areas, including the green economy and digital economy, where Beijing aims to expand digital infrastructure, promote mobile payments, accelerate cross-border e-commerce, and apply frontier technologies such as artificial intelligence and big data to drive industrial upgrades.
The move reflects efforts to safeguard and upgrade Asia’s trade networks in the face of rising US protectionism and mounting global competition, as US President Donald Trump continues to target the region with tariffs.
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President Xi Jinping calls for closer China-Asean trade ties during his Malaysia visit
President Xi Jinping calls for closer China-Asean trade ties during his Malaysia visit
Asean members have offered momentum to China’s trade as it grapples with prolonged trade tensions with the US and sluggish American demand – in August alone, shipments to Asean countries surged by 22.5 per cent, year on year, customs data showed on Monday.