### China and ASEAN Strengthen Economic Ties Amid Global Protectionism In a significant move to bolster economic cooperation, China and the Association of Southeast Asian Nations (ASEAN) have signed an upgraded free trade agreement, known as the ASEAN-China Free Trade Area 3.0. This agreement comes at a time when both parties are facing increased protectionist measures from the United States, particularly under the administration of former President Donald Trump. The original agreement, first established in 2002, has evolved through multiple revisions, with this latest iteration aiming to enhance trade relations that have already seen two-way trade grow from $235.5 billion in 2010 to nearly $1 trillion in 2024. The expanded pact is expected to cover new areas such as digital trade, the green economy, and support for small and medium-sized enterprises, reflecting a commitment to deeper integration and collaboration in the region [https://apnews.com/article/asean-china-free-trade-trump-8a9d0f1ed5e87ebba4b5798275cd3605][https://www.scmp.com/economy/global-economy/article/3330635/china-asean-free-trade-pact-gets-upgrade-beijing-touts-regional-ties]. ### Overview of the Expanded Free Trade Agreement 1. **Background and Context** - The ASEAN-China Free Trade Area 3.0 was signed on October 28, 2025, during the annual ASEAN summit in Kuala Lumpur, Malaysia. - This agreement is a response to rising protectionism, particularly from the U.S., and aims to solidify economic ties between China and ASEAN member states [https://www.newindianexpress.com/business/2025/Oct/28/china-pitches-itself-as-alternative-to-us-protectionism-after-signing-expanded-asean-free-trade-pact]. 2. **Key Features of the Agreement** - The pact includes provisions for digital trade, green economy initiatives, and support for small and medium-sized enterprises. - It is designed to lower tariffs on goods and enhance the flow of services and investments between the two regions [https://www.euronews.com/2025/10/28/china-signs-expanded-asean-free-trade-pact-as-alternate-to-us-protectionism]. 3. **Economic Implications** - The agreement is expected to help ASEAN businesses diversify their export markets, although concerns about Chinese overcapacity remain [https://www.straitstimes.com/asia/se-asia/asean-and-china-ink-upgraded-free-trade-pact-amid-us-tariffs-and-chinese-trade-surplus]. - Analysts view this as a strategic move for China to position itself as a viable alternative to U.S. economic influence in the region [https://foreignpolicy.com/2025/10/28/china-asean-free-trade-deal-trump-tariffs-xi-apec]. ### Supporting Data and Evidence - **Trade Growth**: Two-way trade between ASEAN and China has surged from **$235.5 billion in 2010** to nearly **$1 trillion in 2024**, indicating a robust economic relationship [https://www.newindianexpress.com/business/2025/Oct/28/china-pitches-itself-as-alternative-to-us-protectionism-after-signing-expanded-asean-free-trade-pact]. - **Market Size**: The free trade area encompasses a market of over **2 billion people**, highlighting its potential impact on regional trade dynamics [https://www.businesstimes.com.sg/international/asean/china-and-asean-hit-us-tariffs-sign-upgraded-free-trade-pact]. ### Conclusion: A Strategic Shift in Regional Trade Dynamics The signing of the ASEAN-China Free Trade Area 3.0 marks a pivotal moment in regional trade relations, characterized by the following key points: 1. **Strengthened Economic Ties**: The agreement is a clear indication of the commitment between China and ASEAN to enhance their economic partnership amid global protectionist trends. 2. **Focus on New Industries**: By incorporating digital and green economy sectors, the pact aims to modernize trade relations and support sustainable development. 3. **Alternative to U.S. Influence**: This move positions China as a counterbalance to U.S. economic policies, potentially reshaping the trade landscape in Southeast Asia. In summary, the expanded free trade agreement not only reflects the growing interdependence between China and ASEAN but also serves as a strategic response to external economic pressures, paving the way for a more integrated and resilient regional economy [https://www.businesstoday.com.my/2025/10/28/china-asean-sign-landmark-free-trade-area-3-0-upgrade-protocol-in-kl].