The Version 3.0 China-ASEAN Free Trade Area (FTA), expected to be signed in 2025, will strengthen cooperation in the region by reducing trade barriers and creating new opportunities in the digital and green economies, according to a Malaysian expert on industrial and trade policy.
City mayors from across China and ASEAN countries are currently gathering in Nanning, capital of south China's Guangxi Zhuang Autonomous Region, for a dialogue that opened on Thursday. A key topic is enhancing trade and investment, with a particular focus on Urban Openness and Cooperation.
According to Jaideep Singh, an analyst at the Institute of Strategic and International Studies in Malaysia, the digital economies that cities in the region increasingly depend on could profoundly benefit from the upgraded FTA. He outlined his expectations for the agreement in a recent online interview with China Global Television Network (CGTN).
"I think for ASEAN FTA 3.0 to be, first, effective; second, modern; and third, fit for purpose. It should aim to deepen not just liberalization, but more importantly, the ASEAN FTA 3.0 should try to promote cooperation between ASEAN member states and China in the digital economy. ASEAN FTA 3.0 should include provisions to promote things like paperless trading, invoicing, electronic certificates, etc," Singh said.
"But with regard to non-tariff measures, I think the ASEAN FTA should also redouble efforts to reduce non-tariff measures in the region. And I think, so far, the recent statements that have come out indicate that ASEAN FTA 3.0 will endeavor to reduce these non-tariff measures," he added.
The analyst also noted the upgrades will help the green economy grow, especially in emerging areas like the electric vehicle sector. This is also in line with the development plans of ASEAN countries, such as Malaysia.
"I think another area would be, for example, the green economy. The ASEAN FTA could potentially unlock new corridors of growth and new opportunities for growth in areas like renewable energy or electric vehicles, which would align with Malaysia's recent policy documents, like the New Industrial Master Plan 2030 and the national energy transition framework," he said.
China has been ASEAN's largest trading partner for 15 consecutive years, and 2025 marks the 15th anniversary of the China-ASEAN FTA.
Upgraded China-ASEAN FTA to reduce trade barriers, unlock new economy opportunities: expert
