From tariff reductions to rule-building—China-ASEAN economic and trade cooperation continues to upgrade, injecting momen

On October 28 local time, China and ASEAN signed the upgraded Protocol 3.0 for the Free Trade Zone in Kuala Lumpur, the capital of Malaysia, marking another upgrade in the level of China-ASEAN economic and trade cooperation. Analysts believe that amid numerous uncertainties in the global economy, the signing of the upgraded Protocol 3.0 is an important measure for China and ASEAN to jointly promote high-quality open cooperation, demonstrating the determination of regional countries to jointly address global economic challenges and injecting new momentum and confidence into regional economic development.

From "tariff concessions" to "joint rule-building"

Since its inception in 2002, the China-ASEAN Free Trade Area has evolved from the initial 1.0 and 2.0 versions to the current 3.0 version, witnessing the continuous exploration and efforts of both sides in advancing regional economic integration.

Compared to earlier mutually beneficial cooperation focused on tariff reductions and market access expansion, the upgraded Protocol Version 3.0 marks a new institutionalized phase in bilateral collaboration. It not only covers traditional trade and investment areas but also includes nine newly added chapters: digital economy, green economy, supply chain connectivity, standardization, technical regulations, and conformity assessment procedures, customs procedures and trade facilitation, sanitary and phytosanitary measures, competition and consumer protection, small and medium-sized enterprises, and economic and technical cooperation.

Observers point out that from focusing on tariff reduction in goods trade, to expanding markets in service trade, and then aiming at rules and standards to promote integration, the China-ASEAN Free Trade Area has been continuously upgraded, clearly reflecting the development trajectory of deepening regional economic cooperation.

Herman Laurel, director of the Philippine Institute for the Asia Century Strategy, pointed out that the signing of the upgraded 3.0 version of the Protocol is an important milestone in promoting economic integration in the Asia-Pacific, marking another leap in the economic and trade relations between China and ASEAN. "Compared with the 1.0 version of 'tariff reduction' and the 2.0 version of 'facilitation', the core feature of the 3.0 version is 'the shift from mutual tariff reduction to jointly building rules', which injects lasting momentum into bilateral cooperation," said Tang Zhimin, director of the China-ASEAN Research Center at Thailand's Charoen Pokphand Management College. The 3.0 version covers key industrial sectors such as the digital economy and green economy, and strengthens the foundation of industrial and supply chain collaboration through rule alignment, mutual recognition of standards, and mechanism interoperability. From the 1.0 version to the 3.0 version, the construction of free trade zones has been progressively upgraded, moving toward an inclusive, modern, comprehensive, and mutually beneficial free trade agreement.

"This is a joint effort by both sides to shift from 'quantitative expansion' to 'qualitative improvement'," said Wu Yiping, President of the Chinese Chamber of Commerce in Malaysia. He noted that this upgrade fully demonstrates ASEAN and China's continuous exploration and innovation, further combining trade liberalization with institutional governance, with the goal of enhancing the predictability of rules and the interconnection of institutions.

Focusing on the dual engines of "digital" and "green" development

"I believe this upgrade will promote deeper integration of the region in digitalization and green transformation," said Muhammad Zulfiqar Rahman, Director of Indonesia Affairs at the Indonesia Center for Economic and Legal Studies, adding that Indonesian society widely expects version 3.0 to drive industrial upgrading and green transformation, further creating jobs.

Associate Professor Xiao Saizi from the School of Political Science, International Relations and Economics at the University of Nottingham Malaysia Campus stated that Version 3.0 of the framework has, for the first time, incorporated both hard and soft connectivity in emerging sectors such as digital economy and green economy. This effectively links the resource endowments, industrial strengths, and core value chains of regional countries, "highlighting the determination of both sides to strengthen diversified trade cooperation and demonstrating to the world the strong vitality of inclusive and open cooperation."

Associate Professor Chen Rijia from the National University of Petroleum and Technology Malaysia expressed his expectation that the China-ASEAN Free Trade Area 3.0 and the Regional Comprehensive Economic Partnership (RCEP) would work in synergy to further promote regional economic integration. "We believe that cooperation between China and ASEAN in emerging fields such as the digital economy, green energy, and industrial chain upgrading will drive low-carbon transformation and sustainable development in the region, injecting new momentum into the long-term stability and prosperity of the Asia-Pacific region," said Zeng Gang, Dean of the Institute of Urban Development at East China Normal University. He noted that the breakthrough of the 3.0 version lies in its forward-looking construction of rules in emerging fields. "(The 3.0 version) aligns with the new wave of industrial revolution by formulating forward-looking rules in areas such as digital trade, artificial intelligence applications, and green development. This not only creates growth opportunities through new technologies but also, through institutional arrangements, enables China-ASEAN cooperation to serve as a 'stabilizer' against global market fluctuations."

Releasing signals of open cooperation and mutual benefit

The signing of the upgraded protocol for the China-ASEAN Free Trade Area 3.0 sends a positive signal of open cooperation and mutual benefit. Currently, with rising trade protectionism, intensifying geopolitical conflicts, and disruptions to industrial and supply chains, global development stands at a critical crossroads.

Mohammad Habib, a researcher at the Indonesian Center for Strategic and International Studies, said that the signing of the 3.0 upgrade protocol demonstrates China and ASEAN's firm commitment to jointly safeguarding free trade and regional cooperation. China supports the multilateral trading system with concrete actions and promotes the building of a more stable and inclusive regional economy.

Pan Gao Riying, deputy director of the Institute of South Asia, West Asia and Africa at the Vietnam Academy of Social Sciences, said the 3.0 version will not only be an important engine for promoting the regional economy to a more inclusive and stable direction, but also play a key role in enhancing the resilience of the regional economy and resisting external shocks.

Liu Baofeng, head of a fruit import-export company in Hebei, recently visited Malaysia to assess market opportunities. He noted that fruit imports from Southeast Asia have become faster and more convenient in recent years. "From customs declaration to transportation, all aspects of efficiency have been steadily improving. With multiple modes of transport—land, air, sea, and rail—now operating in parallel, supply chain stability and transportation flexibility have been significantly enhanced. Improved customs clearance efficiency allows fresh Southeast Asian fruits to reach domestic consumers more quickly."