Key points
- ASEAN is made up of 10 Southeast Asian countries
- It is China’s largest trading partner
- CAFTA 3.0 sends signal in support of free trade
ISLAMABAD: China and the Association of Southeast Asian Nations (ASEAN) countries have fully completed negotiations on the Version 3.0 China-ASEAN Free Trade Area (CAFTA).
The achievement is being hailed as a milestone in bilateral trade cooperation that will inject greater momentum and stability into the world economy.
According to Xinhua News, it was announced during a special online meeting of economic and trade ministers from China and ASEAN on Tuesday.
Open cooperation
CAFTA 3.0 will send a strong signal in support of free trade and open cooperation, said China’s Ministry of Commerce, noting that the agreement will inject greater certainty into regional and global trade, and serve as a model for openness, inclusiveness and win-win cooperation.
ASEAN, made up of 10 Southeast Asian countries, is China’s largest trading partner, with the value of total trade reaching $234 billion in the first quarter of 2025, according to Chinese customs data.
Free trade
The 3.0 version of the free trade area will “inject greater certainty into regional and global trade and play a leading and exemplary role for countries to adhere to openness, inclusiveness and win-win cooperation,” the statement said.
According to Reuters, negotiations began in November 2022, and the agreement covers areas including the digital economy, green economy, and supply chain connectivity, the statement said.
The pact will “promote the deep integration of the production and supply chains of both sides,” it added.
