China-Asean Free Trade Pact Expanded

Published on 5.23.25

  The upgraded free trade area between China and the Association of Southeast Asian Nations (ASEAN) marks a significant development in regional trade, aiming to increase certainty and promote openness. The agreement covers new areas such as the digital economy, green economy, and supply chain connectivity, which are expected to boost economic cooperation between the two parties. Zhejiang Sharbo Electric Appliance Co Ltd, a Ningbo-based household appliances manufacturer, welcomes the conclusion of negotiations, seeing it as an opportunity to explore emerging markets in Thailand, Vietnam, and Indonesia. This is particularly significant for China, its largest trading partner, which has been seeking to strengthen its economic ties with ASEAN. The upgraded free trade area is also seen as a response to the US-China trade tensions that began in 2020 under former President Donald Trump. Chinese President Xi Jinping has been actively engaging with ASEAN nations since his April tour of three Southeast Asian countries, calling for unity against geopolitical confrontation and protectionism. By strengthening its ties with ASEAN, China can improve its relations with its neighbors. China's reliance on Southeast Asian countries has raised concerns about its economic security in the region, but the upgraded free trade area is expected to address this issue by promoting a more open domestic economy strategy and reducing state-sponsored exports.

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