China and ASEAN Complete Negotiations on Version 3.0 of China-ASEAN Free Trade Area

On May 21, China's Ministry of Commerce announced that the Special China-ASEAN Economic and Trade Ministers' Meeting was held virtually on May 20. During the meeting, ministers from both sides jointly declared the comprehensive conclusion of negotiations on Version 3.0 of the China-ASEAN Free Trade Area (CAFTA 3.0).

Launched in November 2022, the CAFTA 3.0 negotiations spanned nearly two years and included nine formal rounds of talks, culminating in substantial conclusion by October 2024. With strong coordination and joint efforts from the respective economic and trade ministries, both sides have now fully completed the negotiations, marking a key step toward signing the upgraded protocol.

A representative from China's Ministry of Commerce stated that CAFTA 3.0 will serve as a strong signal in support of free trade and open cooperation. China and ASEAN are each other's largest trading and key investment partners and remain staunch supporters of economic globalization and multilateralism. The 3.0 upgrade is a flagship achievement in bilateral economic and trade cooperation and symbolizes the shared commitment to preserving and advancing free trade. Amid growing uncertainties and challenges in the global economy and trade environment, the conclusion of these negotiations reflects global development trends, underscores the vitality of open cooperation, and injects greater certainty into regional and global trade. It also sets a positive example for countries pursuing openness, inclusiveness, and mutual benefit.

The 3.0 version is designed to be an inclusive, modern, comprehensive, and mutually beneficial free trade agreement, introducing nine new chapters covering:

① Digital Economy

② Green Economy

③ Supply Chain Connectivity

④ Technical Regulations, Standards, and Conformity Assessment Procedures

⑤ Customs Procedures and Trade Facilitation

⑥ Sanitary and Phytosanitary Measures

⑦ Competition and Consumer Protection

⑧ Micro, Small and Medium-sized Enterprises (MSMEs)

⑨ Economic and Technical Cooperation

These additions will enable both sides to promote broader and deeper regional economic integration under new circumstances, further facilitating the integration of industrial and supply chains between China and ASEAN. The upgrade carries significant pioneering value.

The agreement is also expected to strongly promote the building of a China-ASEAN community with a shared future. As two major developing economic blocs, China and ASEAN will use CAFTA 3.0 to expand mutual openness, strengthen cooperation in emerging sectors and new quality productive forces, and establish a robust institutional framework for a mega-sized market. This will provide sustained momentum for the construction of a China-ASEAN community of shared prosperity and development.

Next, both sides will actively advance their respective domestic signing and ratification procedures, with the goal of officially signing the CAFTA 3.0 Protocol by the end of this year.