The Association of Southeast Asian Nations (Asean) and China signed an upgraded free trade deal Tuesday covering the digital and green economy sectors and supply chain connectivity, amid steep US tariffs on the bloc’s members and intensifying trade friction between Beijing and Washington.
The third iteration of the agreement between Asean and China, each other’s largest trading partners, was inked by Malaysian trade minister Zafrul Abdul Aziz, representing Asean, and Chinese Commerce Minister Wang Wentao before the regional grouping and China started their summit in Kuala Lumpur.
In his opening remarks at the summit, Chinese Prime Minister Li Qiang who witnessed the signing together with his Malaysian counterpart Anwar Ibrahim, said the agreement “ushers in new opportunities for expanding economic and trade cooperation.”
“External forces are interfering in the region and many countries have been unreasonably subjected to high tariffs,” Li said without naming the United States.
Total trade between Asean and China amounted to US$770.94 billion in 2024, up 10.61% from a year earlier.
Asean members have been hit with higher tariffs imposed by US President Donald Trump. Trade tensions between China and the United States were rekindled earlier this month after Beijing announced new curbs on exports of rare earth elements essential for high-tech manufacturing.
Asean comprises Brunei, Cambodia, East Timor, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.