ASEAN China Sign Landmark Free Trade Area 3.0 Upgrade in Kuala Lumpur

China and the Association of Southeast Asian Nations (ASEAN) have signed the upgraded ASEAN-China Free Trade Area (ACFTA) 3.0 Upgrade Protocol during the 47th ASEAN Summit in Kuala Lumpur, marking a significant advancement in regional economic integration. The upgraded agreement enhances tariff reductions and addresses emerging trade areas such as digital trade, green economy, e-commerce, supply chain connectivity, and sustainable development, aiming to modernize the existing framework and improve market access, investment protection, and regulatory harmonization. This trade pact, originally established in 2010, covers over two billion people and a combined GDP exceeding $20 trillion, with China remaining ASEAN's largest trading partner amid a complex global economic environment. The protocol also promotes cooperation on micro, small and medium enterprises (MSMEs) and sustainable energy, strengthening economic resilience and inclusivity in the region. The signing was witnessed by key leaders including ASEAN Secretary-General Kao Kim Hourn, Chinese Premier Li Qiang, and Malaysian Prime Minister Anwar Ibrahim, underscoring the mutual commitment to fair trade and digital transformation. This move is part of China’s broader strategy to deepen engagement with ASEAN and counteract global trade barriers such as U.S. tariffs.