(Economic Observer) China-ASEAN Free Trade Area Version 3.0 promotes regional industrial integration development

On October 19, in Nanning, the leaders of China and the ten ASEAN countries announced a significant milestone: they have effectively concluded negotiations for the 3.0 version of the China-ASEAN Free Trade Agreement. They confirmed their commitment to accelerate legal reviews and domestic procedures, aiming for the signing of an upgraded protocol by 2025. Business and academic experts widely view this as a pivotal step toward fostering a more conducive environment for innovative regional economic development and enhancing industry integration.

In an interview on the same day, Zhou Mi, a researcher at the Chinese Ministry of Commerce’s International Trade and Economic Cooperation Research Institute, stated that amid the growing uncertainty in the global economic landscape, the completion of the China-ASEAN Free Trade Area 3.0 negotiations sends a clear message: both China and ASEAN are willing and capable of strengthening their economic and trade investments. The joint statement announcing the substantial conclusion of these negotiations signifies that all parties have confirmed their respective rights and obligations. Once the related provisions come into effect, they are expected to drive regional industry integration and contribute to global economic recovery.

Zhou noted that the 3.0 version of the China-ASEAN Free Trade Agreement will expand cooperation into emerging sectors such as the digital economy and green trade, in addition to enhancing standards and regulatory alignment to promote trade facilitation. This development reflects current trends in regional cooperation and serves as an important reference for establishing more stable and effective global collaboration mechanisms.

In June of this year, the seventh round of negotiations for the 3.0 version took place in Nanning, Guangxi, successfully addressing chapters related to standard technical regulations, competitive and consumer protection, and supply chain connectivity. Yang Chunying, the Director of the Guangxi Zhuang Autonomous Region’s Department of Commerce, highlighted that during this round, ASEAN delegates conducted on-site research specifically on standards for new energy vehicles and batteries, which significantly propelled the negotiation process.

Hussain Mizar, the Senior Director of the Malaysian Standards Bureau, remarked that China possesses an advanced and comprehensive infrastructure ecosystem for the formulation, testing, certification, and measurement of electric vehicle standards, serving as a valuable model for ASEAN countries.

Li Guanghui, Academic Dean of the China-ASEAN Economic Institute at Guangxi University, expressed that the construction of the 3.0 version of the China-ASEAN Free Trade Area will foster the development of new industry chains, value chains, and supply chains that are better suited to an open regional economy, thus addressing modern international trade dynamics and global challenges more effectively.

Wu Yiping, the Deputy President of the Malaysian Chinese Chamber of Commerce, encouraged ASEAN small and medium-sized enterprises to actively engage in the development of the 3.0 version of the Free Trade Area and to reap its benefits.

Xu Tiancai, Chairman of Singapore’s Yuxin International Group, emphasized that ASEAN businesses can optimize their supply chain layouts through joint ventures or technological collaborations, enabling them to allocate production processes more efficiently among member countries, reduce production costs, and expand their sales areas.

Xiang Dongsheng, General Manager for the Asia-Pacific Region at Guangxi LiuGong Machinery Co., stated that the 3.0 version of the Free Trade Area will streamline the market access process for high-tech products and enhance corporate responsiveness to market demands. He added that LiuGong plans to expand its production bases and establish after-sales service centers in Indonesia, Thailand, and Malaysia, while also strengthening collaborations with local parts suppliers to promote new electric loaders and intelligent construction machinery.

Qin LiKui, Chairman of Guangxi Modern Logistics Group, noted that his company will concentrate on the ASEAN market and expedite the development of foundational infrastructures like the Nanning Airport Cold Chain Logistics Park and the China-ASEAN International Aquatic City.

Yang Chunying concluded by stating that Guangxi will deepen its economic and trade cooperation with ASEAN, promoting the upgrading and development of open platforms like the China-Vietnam Smart Port, the China-ASEAN Fruit Trading Center, and the Guangxi-Brunei Economic Corridor.