ASEAN-China economic ties to deepen with ACFTA 3.0

KUALA LUMPUR: Economic ties between ASEAN and China are set to reach new heights with the signing of the ASEAN-China Free Trade Area (ACFTA) 3.0 agreement, earmarked for later this year.

AI Brief

Malaysia's Foreign Minister says the upgraded ASEAN-China Free Trade Area (ACFTA 3.0) is timely amid global trade instability.
The deal aims to deepen economic ties, cut trade barriers, and enhance regional supply chains between ASEAN and China.
ASEAN-China trade hit over $770 billion in 2024, showing strong ties, but leaders stress the need to protect fair trade systems.

Malaysia's Foreign Minister Datuk Seri Mohamad Hasan said the upgraded agreement comes at a critical juncture as ASEAN seeks to fortify economic cooperation and resilience amid an increasingly uncertain global trading environment.

"In this context, the signing of the ASEAN-China Free Trade Area 3.0, scheduled for later this year, comes at an opportune moment," he said in his opening remarks at the ASEAN Post-Ministerial Conference with China, held in conjunction with the 58th ASEAN Foreign Ministers' Meeting (AMM) and related meetings, here on Thursday.

The ongoing 58th AMM and related meetings are being held under Malaysia's ASEAN Chairmanship for 2025, with the theme 'Inclusivity and Sustainability'.

The ACFTA, established in 2010, is one of the world's largest free trade agreements, covering a combined market of over two billion people.

It aims to eliminate tariffs and trade barriers between ASEAN member states and China, promoting greater economic integration, boosting investment flows, and strengthening supply chain connectivity across the region.

Mohamad said ASEAN and China have remained each other's largest trading partners for four consecutive years, with total trade reaching US$770.94 billion in 2024, up 10.61 per cent from the previous year.

"Nevertheless, we must remain vigilant to the threat to an open, fair and rules-based trading system," he said.

-- BERNAMA