China Pressures ASEAN for Comprehensive Trade Agreement Upgrade

China pushes ASEAN to sign an upgraded free trade agreement amid U.S. tariffs, boosting access in agriculture, digital economy, and pharmaceuticals. Beijing aims to position itself as an open economy compared to U.S. protectionism. China's exports to ASEAN have surged, making the bloc its top export destination.

China is urging the Association of Southeast Asian Nations (ASEAN) to agree on an upgrade to their free trade agreement by year's end, as announced by Vice Commerce Minister Yan Dong. This effort comes as Beijing looks to diversify its exports amid ongoing U.S. tariffs.

The negotiations for the upgrade concluded in May, enabling improved market access in sectors such as agriculture, the digital economy, and pharmaceuticals between China and ASEAN. This is part of China's strategy to present itself as a 'more open' major economy while U.S. trade policies, under President Trump, continue to impose restrictions on the region.

China's exports to ASEAN surged by 22.5% to $57.1 billion, making it Southeast Asia's top export destination. This rise helps offset a 33.1% reduction in U.S. shipments. Both China and ASEAN are part of the Regional Comprehensive Economic Partnership (RCEP), though it is considered less ambitious. Beijing also seeks to join the CPTPP, posing a challenge for its members due to China's influence.

(With inputs from agencies.)