The recent signing of the China–ASEAN Free Trade Area (CAFTA) 3.0 Upgrade Protocol marks a significant advancement in regional economic integration. The agreement was finalized on October 30, 2023, in Kuala Lumpur, with Wang Wentao, China’s Minister of Commerce, and the economic ministers from the ten member states of the Association of Southeast Asian Nations (ASEAN) in attendance. This updated framework builds on the original agreement established in 2010.
The upgraded protocol enhances cooperation in nine critical areas, including the digital economy, green economy, supply chain connectivity, competition policy, and support for micro, small, and medium enterprises. According to China’s Ministry of Commerce, these improvements are designed to lower trade barriers and facilitate increased investment between China and ASEAN nations.
In a multilateral meeting following the signing, Li Qiang emphasized that the upgraded agreement creates “new opportunities for high-quality economic cooperation.” He expressed concern over rising unilateralism and protectionism, stating that such trends have significantly impacted the international economic order. Li highlighted the growing external interference in the region, which he attributed to unreasonable tariffs imposed by certain countries.
He warned that “power politics and economic bullying” pose threats to development, urging regional unity and collaboration among ASEAN and China. Li reiterated China’s commitment to work alongside ASEAN countries to build greater synergy and resist external disturbances, aiming for a stable and prosperous future.
Commentators noted that the CAFTA 3.0 Upgrade Protocol is expected to enhance trade flows and investment facilitation. An economic expert remarked that the agreement will “enable freer flows of goods and capital, and foster an open, fair, and inclusive market benefiting both sides.” The collective effort aims not only to strengthen economic ties but also to promote sustainable growth within the region.
As the world continues to navigate economic uncertainty, the strengthening of the China-ASEAN partnership through the CAFTA 3.0 Upgrade Protocol is seen as a vital step towards ensuring a collaborative and resilient economic environment for all involved nations.
