China, ASEAN sign FTA 3.0 Upgrade Protocol

China and ASEAN on Tuesday officially signed the upgraded China-ASEAN Free Trade Area (FTA) 3.0 Upgrade Protocol, marking a major step forward in regional economic integration and injecting confidence and momentum into global economic growth.

According to China's Ministry of Commerce (MOFCOM), witnessed by Chinese Premier Li Qiang, Malaysian Prime Minister Anwar Ibrahim and other ASEAN leaders, Chinese Commerce Minister Wang Wentao and Malaysian Minister of Investment, Trade and Industry Tengku Zafrul Abdul Aziz signed the China-ASEAN FTA 3.0 Upgrade Protocol on behalf of China and ASEAN respectively in Kuala Lumpur, Malaysia.

The MOFCOM said the upgrade of the China-ASEAN FTA 3.0 fully embodies both sides' solemn commitment to jointly uphold multilateralism and free trade, as well as their firm determination to build an open, inclusive, rules-based regional integrated market and a mutually beneficial, win-win, and resilient regional industrial and supply chain system.

It will create abundant market and industrial cooperation opportunities for enterprises in both regions and beyond, inject confidence and momentum into regional and global economic growth, and serve as an important model for countries to jointly address international economic and trade challenges, the MOFCOM noted.

The 3.0 Upgrade Protocol covers nine major areas, adding five new ones: digital economy, green economy, supply chain connectivity, competition and consumer protection, and support for micro, small and medium-sized enterprises. The two sides will now complete their respective domestic approval procedures to ensure the protocol takes effect as soon as possible, according to the MOFCOM.

Deeper integration

The Protocol builds on the China-ASEAN FTA 1.0 and 2.0 as well as the RCEP framework. According to MOFCOM, it features three major highlights. It expands cooperation into emerging areas by adding five new chapters on the digital economy, green economy, supply chain connectivity, competition and consumer protection, and micro, small and medium-sized enterprises (MSMEs) - marking a breakthrough in China-ASEAN trade practice and reflecting both sides' shared commitment to advancing international trade rules.

It also raises the overall level of openness, setting the most ambitious commitments yet in goods, services and investment while establishing a comprehensive framework that links traditional "at-the-border" facilitation with "behind-the-border" cooperation in digital, green and supply chain sectors, injecting new momentum into regional growth, according to the ministry.

In addition, the Protocol promotes inclusive development by including competition, consumer protection, MSME support and technical cooperation, ensuring fair competition, protecting consumer rights, and helping less-developed members enhance capacity so that all can share in the benefits of regional growth, the MOFCOM said.

"The signing of the Upgrade Protocol is a milestone in regional integration," Liao Bin, executive chairman of the ASEAN-China Association for the Promotion of Industrial Cooperation and Development, told the Global Times. "By emphasizing digital, green, and supply chain cooperation, the agreement focuses on areas with the greatest potential for shared growth," Liao added.

Loh Wee Keng, chairman of the Malaysian Chamber of Commerce and Industry in China, told the Global Times that the signing of the Upgrade Protocol injects new momentum into regional growth by strengthening multilateralism, reducing trade barriers and creating a more stable environment for businesses across the region.

Loh highlighted the digital economy and supply chain connectivity as the two most notable aspects of the deal. The digital economy, he said, will reshape industries across the board, while closer supply chain integration will advance trade and investment flows within ASEAN. For Malaysian enterprises, the upgraded protocol opens new opportunities for collaboration with Chinese digital firms and allows small and medium-sized enterprises easier, lower-cost access to the Chinese market.

Zhou Shixin, director of the Institute for Foreign Policy Studies at the Shanghai Institutes for International Studies, told the Global Times that the upgrade marks a shift from traditional trade and investment toward a new phase driven by advanced technology and deeper industrial integration. He said closer cooperation in frontier sectors such as semiconductors will help both sides achieve higher-quality growth.

"For ASEAN, China represents a vital opportunity for development; for China, ASEAN is an indispensable partner," Zhou said, noting that the upgraded framework enables both sides to expand market scale, boost investment and job creation, and accelerate industrial upgrading that benefits businesses and people across the region.

Defending multilateralism

Premier Li Qiang on Tuesday urged China and ASEAN countries to unite more closely for self-strengthening, fend off external disruptions, and defend their legitimate rights and interests through mutual reliance and coordinated actions, amid new changes in the current international landscape, according to Xinhua.

Addressing the 28th China-ASEAN Summit, Li also called on both sides to gather greater synergy and promote steady economic growth through addressing each other's needs and deepening cooperation, Xinhua reported.

Analysts said the upgraded Protocol not only strengthens China-ASEAN integration but also sends a positive signal for global trade cooperation amid rising protectionism.

Zhou said the Protocol has become a global model for regional trade and economic cooperation. The upgrade not only deepens bilateral relations but also demonstrates a shared commitment to open cooperation amid the wave of deglobalization.

An official from MOFCOM said on Tuesday that at a time when a certain country is unilaterally imposing tariffs and provoking trade wars, severely disrupting the international economic and trade system, the signing of the Protocol fully demonstrates the shared commitment of China and ASEAN to firmly uphold multilateralism and free trade. It is an important model for countries to jointly resist protectionism and unilateralism while addressing international economic and trade challenges together.

"The upgrade of the China-ASEAN FTA 3.0 demonstrates the right direction of free trade and multilateralism, reflects China's firm determination and will as a responsible major country to promote free trade and investment, and further showcases China's role as an open country," Xu Liping, director of the Center for Southeast Asian Studies at the Chinese Academy of Social Sciences, told the Global Times on Tuesday.