SHANGHAI – China and ASEAN have agreed to submit an upgraded free trade deal to their leaders for approval this October. The announcement came from Chinese Foreign Minister Wang Yi during a press briefing in Kuala Lumpur. Talks for the so-called “3.0 version” of the free trade zone began in late 2022 and were completed earlier this year in May.
The new pact goes beyond traditional trade. It focuses on modern priorities such as the digital economy, green development, and better supply chain links. Officials believe the upgrade will make regional trade smoother and more resilient. It also marks a key step in deepening China-ASEAN economic ties.
In addition to the deal, both sides agreed on a five-year action plan. This plan outlines cooperation in over 40 fields, including technology, trade facilitation, healthcare, and energy. The agreement is seen as a roadmap for stronger long-term collaboration between the two regions.
Wang Yi also highlighted progress on security talks. China and ASEAN aim to finish negotiations next year on a code of conduct for the South China Sea. These talks hope to manage rising tensions over overlapping maritime claims among several ASEAN members and China.
This upgraded trade pact and ongoing dialogue mark a significant shift in regional diplomacy. It shows China and ASEAN are not only expanding their economic cooperation but also trying to manage conflicts through structured talks and strategic agreements.