Beijing: China and the Association of Southeast Asian Nations (ASEAN) have signed a new and improved free trade agreement to strengthen their economic ties and support growth across Asia. The deal, called the ASEAN-China Free Trade Area 3.0, was signed during the 47th ASEAN Summit in Kuala Lumpur, Malaysia. It aims to update the earlier trade pact to meet modern economic challenges and opportunities.

This upgraded agreement goes beyond cutting tariffs on goods. It now includes areas such as digital trade, green and clean energy, supply chain cooperation, healthcare, and services. It also plans to make trade between China and ASEAN countries faster and simpler by reducing unnecessary barriers and supporting small and medium-sized businesses.

China and ASEAN already have one of the world’s largest trading relationships. In 2024, trade between them reached about 771 billion US dollars. During the first nine months of 2025, that number grew by almost 10 percent, showing how quickly their economic ties are expanding. ASEAN has remained China’s biggest trading partner for four years in a row.

Chinese officials said the new trade pact shows their commitment to open and fair trade, especially at a time when global protectionism is increasing. The agreement also comes as the United States, under President Donald J. Trump, has reintroduced high tariffs on Chinese goods. Many analysts see this deal as China’s way of building stronger ties in Asia and offering a more stable trade network in response to those U.S. measures.

Leaders from ASEAN countries said the deal would help make the region’s economy stronger and more connected. However, some also pointed out that trade cooperation should be balanced with fair competition and attention to political and security issues, such as tensions in the South China Sea.

Negotiations for this upgraded pact started in late 2022 and were completed earlier this year. It is now ready for implementation, with both sides agreeing to focus on new industries like green technology and digital innovation.

Experts believe the ASEAN-China Free Trade Area 3.0 will make it easier for businesses to operate across borders, create more jobs, and improve supply chains in Asia. It also shows that both China and ASEAN are working together to secure long-term economic stability despite global challenges.

Although some details are still being worked out, the new agreement represents a major step toward closer regional cooperation and a shared vision for sustainable growth in the years ahead.