China and the ASEAN bloc of Southeast Asian nations signed an upgraded free trade agreement on Tuesday. Leaders said the deal will boost trade in the digital, green, and other emerging industries. ASEAN, a group of 11 nations, is China’s largest trading partner, with $771 billion in bilateral trade last year.
Chinese Premier Li Qiang emphasized the need to accelerate trade liberalization and strengthen industrial integration. He said the agreement will improve supply chains and create new business opportunities. Singapore’s Prime Minister Lawrence Wong said the deal will enhance market access in agriculture, pharmaceuticals, and the digital economy.
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The upgraded FTA, called version 3.0, was negotiated between November 2022 and May 2025. The first agreement came into effect in 2010. Both China and ASEAN are also part of the Regional Comprehensive Economic Partnership (RCEP), which covers nearly a third of the world’s population.
Despite the trade boost, tensions remain in the South China Sea. Philippine President Ferdinand Marcos Jr criticized Chinese military activity in disputed waters. Li stressed the importance of strategic trust and the early conclusion of a regional Code of Conduct. Leaders agreed that stability and freedom of navigation remain essential.
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The move comes as China and the United States continue a trade conflict triggered by tariffs under Trump. China seeks stronger regional cooperation to counter these tariffs while promoting a high-standard free trade network. Li urged countries to uphold free trade and resist protectionism, stressing regional integration as key for growth.