Kuala lumpur: China and the Association of Southeast Asian Nations (ASEAN) signed an upgraded free trade agreement on the sidelines of the 28th ASEAN-China Summit held in Kuala Lumpur. The ASEAN-China gathering was part of the agenda of the 47th ASEAN Summit.
According to Kuwait News Agency, Malaysian Prime Minister Anwar Ibrahim emphasized that the upgraded agreement is a crucial step for ASEAN in strengthening its ties with China. He praised the agreement as a reflection of a strong and constructive approach to cooperation with ASEAN. Chinese Premier Li Qiang echoed this sentiment, highlighting the agreement as an opportunity to enhance economic and commercial bilateral relations and advocating for more robust and higher-standard free trade systems in the region.
The newly signed agreement updates the 2002 deal, which took effect in 2010, with a focus on boosting economic cooperation and further opening regional markets. Chinese customs data indicates that China has been one of ASEAN's major trade partners for 16 consecutive years, with trade volume in the first three quarters of 2025 reaching USD 785.3 billion, marking a 9.6 percent increase year-on-year. ASEAN statistics reported that trade volume with China amounted to USD 771 billion last year.
The upgraded trade deal was signed amid efforts by the US and China to avoid further trade escalation, following threats by President Donald Trump to impose 100-percent tariffs on Chinese products and introduce additional trade restrictions by November 1. This threat was a response to China's tightened restrictions on exports of rare earth minerals, and discussions were ongoing to extend the customs truce until November 10.
Malaysia is hosting the 47th ASEAN Summit from October 26 to 28, with participation from regional and world leaders. ASEAN, established in 1967, now includes 11 members with the recent admission of Timor-Leste.