China Plans to Finalize Free Trade Agreement Update with ASEAN by End of 2025
Chinese Deputy Minister of Commerce, Yan Dong, announced on Monday, September 8, that Beijing intends to complete the update of the free trade agreement with the Association of Southeast Asian Nations (ASEAN) by the end of this year.
The Chinese official explained that the country will work closely with ASEAN to finalize internal ratification procedures and the official signing of the 3.0 upgrade protocol for the China-ASEAN Free Trade Area (CAFTA) before the year’s end.
This agreement, which was signed in 2010 and enhanced in 2019, has been under negotiations since 2022 to incorporate new amendments that address current economic challenges, particularly in the fields of sustainability and supply chain security.
Both sides concluded discussions last May, paving the way for expanded market access in sectors such as agriculture, digital trade, and pharmaceuticals. They also agreed to enhance cooperation in nine areas, including green and digital economies, with a focus on developing digital infrastructure, promoting mobile payment systems, activating cross-border e-commerce, and employing advanced technologies like artificial intelligence and big data.
This development comes amid increasing trade tensions between China and the United States, which has resulted in a 22.5% rise in China’s exports to ASEAN in August compared to the previous year, according to Chinese customs data.
China and ASEAN have been each other’s top trading partners for the past five years, with bilateral trade during the first eight months of 2025 reaching approximately $686.8 billion, an 8.6% increase from the previous year, accounting for 16.7% of China’s total foreign trade.
It is noteworthy that the 22nd China-ASEAN Expo will be held from September 17 to 21 in Nanning, featuring representatives from 45 countries and around 3,200 companies across an exhibition area of 160,000 square meters.
The ASEAN, founded in 1967, consists of ten countries: Malaysia, Myanmar, the Philippines, Singapore, Thailand, Indonesia, Vietnam, Brunei, Cambodia, and Laos.
