ASEAN-China Forge Stronger Economic Ties Amid Global Trade Tensions

China and the Association of Southeast Asian Nations have expanded their free trade agreement to bolster economic ties in response to growing protectionism from the United States. The improved ASEAN-China Free Trade Area 3.0 emphasizes cooperation in digital trade and sustainability, aiming to lower trade barriers and enhance regional integration.

China has strengthened its economic alliance with the Association of Southeast Asian Nations by signing an expanded version of their free trade agreement. As both regions encounter increasing protectionism from the United States, particularly under Chinese Premier Li Qiang's endorsement, the newly enhanced ASEAN-China Free Trade Area 3.0 aims for greater regional cooperation.

The signing took place during the annual ASEAN summit, a significant event witnessed by Premier Li and Malaysian Prime Minister Anwar Ibrahim, the current ASEAN chair. This third revision of the agreement is poised to lower tariffs and boost the exchange of goods and services across a market exceeding two billion people, marking a pivotal step since the deal's original signing in 2002.

Besides reinforcing economic ties, the updated pact introduces a broader scope of integration, covering digital trade and the green economy, crucial for small and medium enterprises in ASEAN countries. This move not only looks to benefit both parties amid US-China tensions but also prepares for a more sustainable future, as highlighted by Southeast Asian analysts.

(With inputs from agencies.)