Editor’s note: Song Qingrun is a professor at the School of Asian Studies, Beijing Foreign Studies University. The article reflects the author’s opinions and not necessarily the views of CGTN. It has been translated from Chinese and edited for brevity and clarity.
The year 2025 marks the 15th anniversary of the establishment of the China-ASEAN Free Trade Area (CAFTA), as well as the signing of the Upgrade Protocol for its Version 3.0. Over the past 15 years, CAFTA’s evolution from Version 1.0 to 3.0 has signaled a new phase in China-ASEAN economic and trade cooperation.
Against the backdrop of tariff wars waged by the US and profound transformations in the global economic and trade landscape, the shared commitment of China and ASEAN to free trade and deeper regional cooperation has taken on heightened significance, injecting greater momentum and certainty into both regional and global economic stability.
Over the past 15 years, CAFTA has undergone continuous enhancement, yielding fruitful results in bilateral economic and trade cooperation. Officially completed in 2010, CAFTA was the first free trade area established between China and an external region, and likewise ASEAN’s first with a non-member, aiming to promote cooperation through openness and seek development through partnership.
According to China Customs data, bilateral trade between China and ASEAN totaled $213 billion in 2009, the year before CAFTA’s completion, whereas in 2010, the year CAFTA was established, bilateral trade surged to $292.78 billion, a year-on-year increase of approximately 37 percent. By last year, bilateral trade had reached $982.34 billion, up 7.8 percent year-on-year. ASEAN has remained China’s largest trading partner for 5 consecutive years, while China has been ASEAN’s top trading partner for 16 years in a row.
On the investment front, data from China’s Ministry of Commerce shows that as of July last year, the cumulative two-way investment between China and ASEAN countries had exceeded $400 billion. These achievements are the outcome of both sides’ unremitting efforts to continuously upgrade the CAFTA cooperation mechanism and deepen institutional openness.
Workers inspect cross-border e-commerce imported goods at Luoyang Comprehensive Bonded Zone, Henan Province, China, April 29, 2025. /VCG
The rollout of CAFTA 3.0 ushers in a new chapter in China-ASEAN economic and trade collaboration. Substantive negotiations on this upgrade concluded in October last year, and all 11 member states will sign the Upgrade Protocol this year. This upgrade encompasses 9 key areas, including the digital economy, green economy, and supply chain connectivity.
Specifically, in the digital economy, endeavors will be made to promote both “hard connectivity” in digital infrastructure and “soft connectivity” in systems such as e-invoicing and electronic payments, while incorporating high-level standards for personal data protection and digital trade. As for the green economy, the focus is on 8 priority areas such as green trade, investment, and standards to advance sustainable energy cooperation.
Regarding supply chain connectivity, both sides have pledged to jointly mitigate disruption risks and strengthen coordinated infrastructure development. These transformative cooperative efforts not only respond to the restructuring needs of global supply chains but also drive regional economic integration to new heights through institutional innovation.
Amid rising uncertainty in the global economic and trade landscape, the importance of China and ASEAN as each other’s key economic and trade partners has become increasingly pronounced. Together, the two sides are working to establish a model of open, innovative, and sustainable regional economic cooperation, injecting greater optimism and dynamism into regional and global economies.
At the 27th China-ASEAN Summit on October 10 last year, Singaporean Prime Minister Lawrence Wong emphasized that “this upgrade to the FTA is an important move, especially in this time of growing protectionism in the world”. This sends a clear and powerful message to everyone that free trade and win-win market cooperation remain indispensable.
Customers select Vietnamese golden pillow durians at the 21st China-ASEAN Expo in Nanning, China, September 27, 2024. /VCG
China signed 108 cooperation agreements with Vietnam, Malaysia, and Cambodia in April, including those related to the legal review and domestic procedural coordination for the Upgrade Protocol of CAFTA 3.0. These laid the political groundwork for the formal signing of the Upgrade Protocol of the FTA by all 11 member countries in 2025. For instance, the Joint Statement Between the People’s Republic of China and Malaysia on Building a High-level Strategic Malaysia-China Community with a Shared Futurehighlights that both sides are committed to advancing regional economic integration and will promote the high-quality implementation of the Regional Comprehensive Economic Partnership (RCEP) agreement and look forward to the full conclusion of the ASEAN-China Free Trade Area (FTA) 3.0 for the early signing of the Upgrade Protocol and its timely implementation.
Moreover, the cooperation documents also cover collaborations in a wide array of major projects. These initiatives have established actionable frameworks for China, the three countries, and ASEAN as a whole to work together in key areas such as the digital economy, green economy, and supply chain connectivity. By combining institutional innovation with project implementation, these efforts add real substance to CAFTA 3.0, transforming its institutional design into tangible economic benefits.
In short, amid mounting global instability and uncertainty, the China-ASEAN Free Trade Area has become a vital anchor stabilizing the regional economy. In the future, with CAFTA 3.0 as a new starting point, both sides will continue to promote regional openness and integration and foster economic and trade cooperation. By continually unleashing the immense vitality and potential of a mega market of over 2 billion people, the two sides will inject greater certainty and positive momentum into regional and global economic stability and development. Going forward, China and ASEAN will leverage CAFTA 3.0 as a fulcrum to advance regional economic integration to higher levels, contribute Asian solutions to global economic governance, and provide a strong impetus for building an open world economy.
