ASEAN-China Trade Pact: A New Chapter in Digital and Green Economies

ASEAN and China have signed a significant upgrade to their free trade agreement, aiming to enhance cooperation in digital and green economies. This development marks a strategic effort by China to strengthen ties with its largest trading partner amid global trade tensions.

The updated agreement, known as version 3.0, was finalized at an ASEAN summit in Malaysia. This comes as China counterbalances the hefty tariffs imposed by the previous U.S. administration. ASEAN, with a collective GDP of $3.8 trillion, represents a crucial economic frontier for Beijing.

This upgraded pact is expected to bolster market access across various sectors including agriculture and pharmaceuticals. Both ASEAN and China are integral to the Regional Comprehensive Economic Partnership, the largest trade bloc globally, which remains a significant tool against other international trade agreements.