Upgraded FTA will contribute more to win-win cooperation between China, ASEAN

The substantial conclusion of the Version 3.0 China-ASEAN Free Trade Area (FTA) upgrade negotiations was recently announced.

This signified a further deepening of economic and trade cooperation between China and ASEAN, representing a significant step of the two sides in leading the economic integration in East Asia, and sending a positive signal of the two sides jointly upholding the free trade system.

The deepening of economic and trade cooperation between China and ASEAN will inject new impetus into the building of a closer China-ASEAN community with a shared future.

Photo taken on Sept. 27, 2024 shows the 21st China-ASEAN Expo held in Nanning, south China's Guangxi Zhuang autonomous region. [People's Daily Online/Zhu Xiaoming]

The China-ASEAN FTA 3.0 takes into account modern trade practices. It has achieved groundbreaking outcomes and will bring new opportunities to all parties involved.

This upgraded version covers nine areas, encompassing existing fields under the China-ASEAN Free Trade Agreement as well as emerging areas with significant cooperation potential.

The China-ASEAN FTA 3.0 for the first time included chapters on connectivity in digital economy, green economy and supply chains with the highest standards of all their respective economic and trade treaties.

These outcomes will comprehensively expand the mutually beneficial cooperation between China and ASEAN in emerging areas, further match the two sides' standards and rules, bring the two sides together to build a safe, stable, unimpeded and effective supply chain cooperation network, and bring the mutually beneficial cooperation between the two sides to a new level.

The upgraded FTA cooperation will bring stronger and more sustainable development momentum for both sides - two major markets with over 1.4 billion and 600 million people, respectively.

Thanks to the China-ASEAN FTA, China has maintained ASEAN's largest trading partner for 15 consecutive years, while ASEAN has been China's largest trading partner for 4 consecutive years.

Currently, the issue of global insufficient demand is becoming more prominent, making markets a scarce resource in economic development. With nearly a quarter of the world's population, the super large market is the biggest support for both sides to promote economic prosperity.

The upgraded version of the China-ASEAN FTA will promote a closer and more organic integration and connectivity between the two major markets of China and ASEAN, which will undoubtedly generate more significant economies of scale, industrial agglomeration effects, and development spillover effects.

Thai daily necessities are sold at the 21st China-ASEAN Expo held in Nanning, south China's Guangxi Zhuang autonomous region, Sept. 27, 2024. [People's Daily Online/Zhu Xiaoming]

ASEAN Secretary-General Kao Kim Hourn said that through the upgrade of the FTA, trade, investment and tourism of the two sides will further grow, bringing positive and significant development and transformation to economic cooperation between ASEAN and China.

The substantial conclusion of the Version 3.0 China-ASEAN FTA upgrade negotiations demonstrated the two sides' firm commitment to multilateralism and free trade. China and ASEAN are working together to uphold the free trade system, enhance connectivity in production and supply chains, foster new drivers of high-quality development, advance regional economic integration, and continue to serve as a vital engine of global economic growth and a beacon of solidarity and cooperation.

United Nations secretary-general Antonio Guterres praised the China-ASEAN FTA 3.0, stating that this upgrade will promote global free trade and economic growth.

Singaporean Prime Minister Lawrence Wong views the upgraded FTA as a significant step, especially in an era where protectionism is on the rise around the globe. He said this move sent a clear and important signal to the world that free trade and mutually beneficial market cooperation are crucial.

Continuously expanding high-level opening up is necessary to promote Chinese modernization. Building a globally-oriented network of high-standard free trade areas is a crucial step in establishing a new system for higher-level open economy.

China attaches great importance to the Version 3.0 China-ASEAN FTA upgrade negotiations, actively proposing draft texts on emerging areas such as connectivity in digital economy, green economy and supply chains, which has played a positive and constructive role in reaching consensus in the negotiations.

The first vessel of a container shipping route run by Chinese state-owned multinational conglomerate COSCO Shipping from Yantai, east China's Shandong province, to Southeast Asia sets sail from the Yantai port, Aug. 15, 2024. [People's Daily Online/Tang Ke]

In the future, China will steadfastly promote high-level opening up, build a high-level, institutionalized agenda of opening up, promote connectivity in the Asia-Pacific region, maintain stable and smooth regional industrial and supply chains, and inject momentum into the economic recovery and sustainable development of the Asia-Pacific region.

Open cooperation is the trend of history, and mutual benefit and win-win cooperation are the aspiration of the people. China is willing to work together with ASEAN to continuously promote practical cooperation in various fields, so as to provide more solid support for the common prosperity of the region and the world.

The views don't necessarily reflect those of Qiushi Journal.