ASEAN and China seal free trade deal: A new economic boom!

ASEAN and China seal free trade deal: A new economic boom!

On November 30, 2025, a significant step was taken in the regional economic landscape: the updated ASEAN-China Free Trade Agreement (ACFTA 3.0) was signed. This happened during the 47th ASEAN Summit in Kuala Lumpur. The signatories were Malaysia's Minister of Investment, Trade and Industry, Tengku Datuk Seri Saifull Tengku Abdul Aziz, and Wang Wentao, China's Commerce Minister. Witnesses to the signing included Malaysian Prime Minister Anwar Ibrahim and his Chinese counterpart Li Qiang, accompanied by other leaders of the ASEAN states. [DIPT reports]

The agreement, known as ACFTA 3.0, aims to further strengthen economic ties between ASEAN and China and promote sustainable and inclusive growth. In recent years, the ASEAN-China Free Trade Area has developed into one of the most important trading areas in the world. In 2010, it became the largest free trade zone by population and the third largest by nominal gross domestic product. [Wikipedia offers detailed information]

Focus on digital and green economy

ACFTA 3.0 focuses, among other things, on the digital economy and support for small and medium-sized enterprises (SMEs). This modernization of trade cooperation is not only a sign of progress, but also a response to global economic trends, as Li Qiang emphasized. He noted that China is willing to cooperate closely with ASEAN countries to promote regional unity and combat external interference. “Unity is strength, and cooperation leads to mutual success,” Li Qiang said. [AP News provides background information]

ACFTA 3.0 is seen as an opportunity to modernize trade. Thailand expects positive impulses, especially in the areas of agricultural products and digital goods. However, there are also challenges: competition from Chinese products in the price segment will increase. In order for Thailand to remain competitive internationally, the country must adapt its environmental standards and CO2 reduction in production.

Growth opportunities and challenges

Agreeing on a free trade agreement covering a population of over 2 billion people could prove beneficial. Trade relations between ASEAN and China have grown rapidly in recent years, with bilateral trade rising to nearly $1 trillion from $235.5 billion in 2010. To further promote this trend, Thailand must focus on developing high-quality agricultural products and innovative, value-added products. [DIPT sees future opportunities]

A central theme remains the ability to adapt to new market requirements and digital technologies. As Malaysian Prime Minister Anwar Ibrahim emphasized, the progress in ACFTA 3.0 reflects the shared commitment of ASEAN and China to respond to the current economic uncertainties. It is a time when countries not only have to deal with each other, but also with global changes.