Why in News?
China and ASEAN signed the ASEAN-China Free Trade Area (ACFTA) 3.0 Upgrade Protocol in Kuala Lumpur to enhance cooperation in digital economy, agriculture, and pharmaceuticals, aiming to deepen market access and supply chain integration amid rising U.S. tariff pressures.
Description:
- Signed: October 28, 2025, Kuala Lumpur, Malaysia
- At: 28th China–ASEAN Summit
- Parties: China and 11-member ASEAN bloc
- Replaces: ACFTA 2.0 (2015 upgrade; original FTA signed in 2002, implemented in 2010)
Key Features
- Expands cooperation into 9 areas: Digital economy, green economy, supply chain connectivity, standards & technical regulations, SPS measures, customs & trade facilitation, competition & consumer protection, SMEs, and economic & technical cooperation.
- Aims: Reduce trade barriers, boost supply chain resilience, and promote high-quality, rules-based regional trade.
- Sectoral gains: Agriculture, digital commerce, pharmaceuticals, logistics, and tourism.
- Supports SMEs: Easier access to regional markets via digital platforms.
- China’s commitments:
- Increase capital in China–ASEAN Cooperation Fund
- Establish China–ASEAN Digital Academy and AI Cooperation Platform
- Create Maritime Development & Technology Cooperation Center
Significance:
- Reinforces multilateralism and regional integration amid U.S. tariff pressures.
- Enhances China–ASEAN supply chain and industrial cooperation.
- Complements the RCEP framework and aligns with the 2026–2030 Comprehensive Strategic Partnership Plan of Action.
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