China and Southeast Asian nations have inked an upgraded version of their free trade pact, amidst rising tensions with the US. The 3.0 version of the agreement is aimed at bolstering collaboration on infrastructure development, digital transitions, green technologies, and people-to-people exchanges between the two regions.
As China seeks to strengthen its economic ties in Southeast Asia, the region's largest trade partners, the partnership has been growing steadily over recent years. The China Plus One supply chain, which emerged after US President Donald Trump's trade war with China in 2018, has played a significant role in this growth.
With trade between China and ASEAN amounting to $785 billion in just nine months of 2025 β a year-over-year increase of 9.6 percent β the region is rapidly becoming an integral part of China's economic landscape.
Chinese Premier Li Qiang hailed the upgrade, describing it as "expanded and higher-quality economic cooperation" under the agreement. He praised ASEAN nations for promoting "fruitful results in cooperation in various fields," noting a steady growth in trade volume and closer people-to-people exchanges between the two regions.
Professor Zhiwu Chen of the University of Hong Kong called the 3.0 trade pact "a win-win outcome for both sides." This comes as China seeks to shore up its relationship with ASEAN amidst rising tensions with the US, where President Trump has pursued protectionist policies, including tariffs on Chinese goods.
Li also took aim at Trump's tariffs, which have disrupted global trade and marked one of the most protectionist policy pursued by the US government since the 1930s. "Unilateralism and protectionism have seriously disrupted the global economic and trade order," he said.
At ASEAN, Trump signed trade deals with Cambodia and Malaysia, as well as framework agreements with Thailand and Vietnam. His meetings were notable for a focus on bilateral trade deals hammered out in one-on-one discussions, marking a departure from the regional approach taken by many of his predecessors.
As Trump prepares to meet Chinese President Xi Jinping in South Korea later this week, tariffs and trade barriers are likely to remain a contentious issue. A framework agreement between the two nations is expected to alleviate concerns about potential tariff hikes.
As China seeks to strengthen its economic ties in Southeast Asia, the region's largest trade partners, the partnership has been growing steadily over recent years. The China Plus One supply chain, which emerged after US President Donald Trump's trade war with China in 2018, has played a significant role in this growth.
With trade between China and ASEAN amounting to $785 billion in just nine months of 2025 β a year-over-year increase of 9.6 percent β the region is rapidly becoming an integral part of China's economic landscape.
Chinese Premier Li Qiang hailed the upgrade, describing it as "expanded and higher-quality economic cooperation" under the agreement. He praised ASEAN nations for promoting "fruitful results in cooperation in various fields," noting a steady growth in trade volume and closer people-to-people exchanges between the two regions.
Professor Zhiwu Chen of the University of Hong Kong called the 3.0 trade pact "a win-win outcome for both sides." This comes as China seeks to shore up its relationship with ASEAN amidst rising tensions with the US, where President Trump has pursued protectionist policies, including tariffs on Chinese goods.
Li also took aim at Trump's tariffs, which have disrupted global trade and marked one of the most protectionist policy pursued by the US government since the 1930s. "Unilateralism and protectionism have seriously disrupted the global economic and trade order," he said.
At ASEAN, Trump signed trade deals with Cambodia and Malaysia, as well as framework agreements with Thailand and Vietnam. His meetings were notable for a focus on bilateral trade deals hammered out in one-on-one discussions, marking a departure from the regional approach taken by many of his predecessors.
As Trump prepares to meet Chinese President Xi Jinping in South Korea later this week, tariffs and trade barriers are likely to remain a contentious issue. A framework agreement between the two nations is expected to alleviate concerns about potential tariff hikes.