China and the Association of Southeast Asian Nations (ASEAN) on Tuesday (Oct 28) formally signed an enhanced trade deal, as both sides seek to boost ties amid global uncertainties and trade tensions with the United States.
It’s the second upgrade of the ASEAN-China Free Trade Area (ACFTA) that was first inked in 2002 – making it then China’s first free trade agreement and ASEAN’s first with a major external partner. It then came into effect in 2010, with negotiations for the first upgrade starting in September 2014 and coming into force in 2019.
The so-called 3.0 version covers areas such as the digital and green economies as well as supply chain connectivity, among others, with Beijing previously touting the agreement as a pathfinder for improved market access in sectors such as agriculture, the digital economy and pharmaceuticals between China and ASEAN.
The deal was signed by China’s Minister of Commerce Wang Wentao and Malaysia’s Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz, while flanked by Chinese Premier Li Qiang and Malaysian Prime Minister Anwar Ibrahim.
Malaysia is the current rotating chair of ASEAN, which is made up of 11 members, including newly inducted Timor-Leste.
During his opening remarks at the ASEAN-China summit following the signing, Anwar said that the upgraded deal marked an important step in economic cooperation between the two sides.
“I thank my colleagues again in ASEAN and China for this spectacular feat in terms of the FTA as the first ASEAN-China FTA,” he said.
At the same summit, Li said the deal “heralds a new opportunity to expand and enhance bilateral economic and trade cooperation”.
He added that China and ASEAN were “good neighbours and brothers” who “share close ties, are interconnected, and interdependent”.
“As long as we unite and strengthen ourselves, we can unleash shockingly massive energy and overcome any challenge,” he said.
While Li heralded the upgraded trade deal that was signed moments earlier, he stressed that there was a need to pay attention to the new developments in the international landscape.
He warned that unilateralism and protectionism are impacting the international economic and trade order, with external interference in the region on the rise.
While Li did not name any countries, his comments appear to be a veiled reference to the US.
“Many countries are slapped with unwarranted high tariffs,” he added.
“Development today faces greater risks and challenges. In the face of power politics and economic bullying, we will gain nothing from disunity and confrontation, and we will only end up being divided and conquered by external forces,” he said, reiterating similar points he had made during the course of the three-day ASEAN summit.
“The more challenging the situation, the more resolute we should be in maintaining unity and self-reliance. We must defend our legitimate rights and interests through mutual support and coordinated action,” said Li.
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