Latest news with #ASEAN-ChinaFreeTradeArea
Barnama
4 days ago
- Business
- Barnama
RCEP, ACFTA Key To Unlocking ASEAN-China Trade Potential - ASEAN Sec-Gen
BUSINESS From Kisho Kumari Sucedaram HUANGSHAN, June 5 (Bernama) -- Stronger grassroots implementation, simplified processes for businesses, and closer public–private partnerships are key to unlocking the full potential of regional trade pacts, according to ASEAN Secretary-General Dr Kao Kim Hourn. Kao was referring to the Regional Comprehensive Economic Partnership (RCEP) and the ASEAN-China Free Trade Area (ACFTA). He said the frameworks of both are complementary and critical in expanding market access, fostering resilient supply chains and enhancing regional competitiveness. 'Strong public–private partnerships are essential not only to help businesses integrate into regional value chains, but also to support them in scaling up operations and contributing to more responsive policymaking,' he said at the 2025 RCEP Local Governments and Friendship Cities Cooperation (Huangshan) Forum held here today. Kao also noted that micro, small and medium enterprises (MSMEs), the backbone of the ASEAN economy, often face barriers in accessing financing and navigating complex regulations. In this regard, he encouraged local authorities to support MSMEs through targeted outreach, advisory services and simplified administrative processes. He commended the proactive efforts of cities and local governments in facilitating trade adoption through policy dialogues, capacity building and incentive schemes that are essential for helping businesses navigate technical trade rules and realise the benefits of both RCEP and ACFTA.
Asia Times
31-05-2025
- Business
- Asia Times
ASEAN-GCC-China summit: a civilized vision in a fractured world
The inaugural ASEAN-GCC-China Summit held in Kuala Lumpur on May 27, 2025, may have passed with minimal fanfare in the Western press, but in the corridors of regional diplomacy, it marked a tectonic shift. More than just a diplomatic novelty, the summit signaled a concerted effort to reimagine global cooperation from the perspectives of three enduring civilizations—Southeast Asia, the Arabian Gulf and China. Each region brings to the table not only vast economic potential but also a deep civilizational ethos. Their alignment is not one of ideology or strategic confrontation; rather, it is rooted in a desire to resist the deepening fragmentation of the global order. What comes next, therefore, is not merely about policies or agreements but about shaping the architecture of a multipolar future through mutual respect, pragmatic trade and institutional innovation. With the summit hosted under Malaysia's ASEAN chairmanship, the message was deliberate: this is a partnership driven by regional voices, not external dictates. Prime Minister Anwar Ibrahim made it clear that the gathering was not a geopolitical bloc but a 'platform of mutual convergence.' It is a subtle yet significant distinction. The summit did not yield grandiose communiqués or sweeping defense pledges. Instead, it focused on the pragmatic: trade flows, free trade negotiations, investment corridors and digital and green economy cooperation. In a world overrun by war rhetoric, sanctions and tariff threats, the emphasis on cooperation and long-term planning was notable. But what are the tangible takeaways—and what lies ahead? ASEAN, the Gulf Cooperation Council (GCC) and China collectively represent a market of over two billion people and a combined GDP of nearly US$25 trillion. Yet, despite this heft, their intra-regional trade remains surprisingly low. Currently, trade between the GCC and ASEAN remains minute. GCC is but the 7th trading partner of ASEAN. However, it is up to the two of them to improve themselves. Similarly, while China is a key trading partner for both regions, much of the engagement remains bilateral, not triangulated. That is poised to change. Among the key priorities outlined during the summit were: The advancement of a GCC-China Free Trade Agreement, with negotiations expected to conclude by mid-2026. The upgrade of the ASEAN-China Free Trade Area (ACFTA) to its 3.0 version, incorporating digital trade, ESG standards, and green technology collaboration. The proposed development of joint industrial zones, such as a GCC-funded logistics hub in East Malaysia, which would serve as a strategic maritime node connecting the Strait of Malacca to the Arabian Gulf. These economic plans aim to diversify trade dependencies and reduce the outsized reliance on Western markets. Notably, they offer ASEAN and GCC states an opportunity to deepen south-south cooperation—long viewed as a slogan more than a strategy. The Kuala Lumpur Summit was also the unofficial launchpad for ASEAN's Vision 2045, a comprehensive blueprint crafted to guide the region into its second half-century. This vision focuses on: Strategic autonomy – ensuring ASEAN can maintain equidistance in the US-China rivalry while advancing its own security and economic priorities. Institutional deepening – upgrading the ASEAN Secretariat, creating more binding dispute settlement mechanisms, and improving the implementation of regional frameworks. Proactive external engagement – especially with emerging powers, such as the GCC, and reinforcing ASEAN centrality in larger fora like the East Asia Summit. Vision 2045 is not a mere wish list. It builds upon the Hanoi Declaration (2020), Labuan Bajo Statement (2023) and the Vientiane Strategic Plan (2024). With Malaysia at the helm in 2025, the vision gains additional traction through Kuala Lumpur's technocratic rigor and Anwar Ibrahim's moral authority as a regional elder statesman. Of course, visions without execution are hallucinations. The challenge ahead is to translate these long-term ambitions into actionable strategies. The next few years will be crucial. First, ASEAN will need to finalize the ASEAN Digital Economy Framework Agreement (DEFA) and integrate it with GCC digital governance standards—no small feat given the wide variations in data protection laws and digital infrastructure across the three regions. Second, the industrial cooperation plans require political will and institutional capacity. While Chinese financing is ample and Gulf sovereign wealth funds are liquid, the on-ground realities in some ASEAN states—including land acquisition, corruption and bureaucratic inertia—can derail even the most ambitious projects. Third, all parties will need to navigate the increasingly delicate geopolitical terrain. While the summit stressed that 'no side is being taken,' the optics of GCC and Chinese leaders standing together under the ASEAN banner could trigger anxieties in Washington, Brussels, and Tokyo. Defensive signaling—whether through naval exercises, tariff regimes or investment restrictions—is not inconceivable. To pre-empt this, ASEAN must reinforce its position as a convenor, not a competitor. Malaysia's leadership in proposing an ASEAN-US Special Summit, free from preconditions, is a step in the right direction. If successful, it will help offset suspicions that ASEAN is drifting into a China-led orbit. What makes this trilateral platform unique is its underlying civilizational approach. ASEAN represents a model of pluralistic coexistence and flexible institutionalism. The GCC, despite internal differences, offers resource wealth and religious significance. China, with its Confucian legacy and economic clout, brings scale and technological ambition. Together, these regions can forge a model of cooperation distinct from the Atlanticist framework, one that privileges consensus over coercion, trade over tariffs and resilience over rivalry. However, none of this is guaranteed. The structural weaknesses are real and glaring. Intra-ASEAN trade is still below 25%. The GCC is facing generational transitions and potential instability in oil prices. China's domestic economy is rebalancing under stress. But in aligning their trajectories, these regions signal that interdependence is still possible in an era of decoupling. The upcoming East Asia Summit in October 2025, also to be held in Kuala Lumpur, will be a key test. It offers an opportunity to link this trilateral vision with the broader Indo-Pacific community. More importantly, it could set the stage for embedding these civilizational dialogues into permanent economic institutions. The ASEAN-GCC-China Summit is not a full circle yet. It is the beginning of a spiral—open-ended, evolving and fraught with uncertainties. But it is also a reminder that amid the cacophony of conflict and competition, quiet diplomacy, anchored in historical awareness and mutual respect, can still illuminate the path forward. Phar Kim Beng, (PhD) is professor of ASEAN Studies, International Islamic University Malaysia and senior visiting fellow, Homerton College University of Cambridge Luthfy Hamza is senior research fellow, Institute of Internationalization and ASEAN Studies
Barnama
25-05-2025
- Business
- Barnama
ASEAN-China Trade Deal Upgrade To Boost Investment, Trade — ASEAN Sec-Gen
By Nurul Hanis Izmir KUALA LUMPUR, May 25 (Bernama) -- The upgraded ASEAN-China Free Trade Area (CAFTA) 3.0 agreement, set to be signed later this year, marks a key milestone in strengthening trade, investment and connectivity between the two economic powers, ASEAN Secretary-General Dr Kao Kim Hourn said. He said the finalisation of CAFTA 3.0 was both timely and critical amid global economic uncertainty. 'Both ASEAN and China have been working on the upgrade for some time. Last year, both sides reached substantial outcomes, but only this year have we been able to finalise the full upgrade to version 3.0,' he told a pool media interview here today. Kao is leading the ASEAN Secretariat delegation to the 46th ASEAN Summit, the 2nd ASEAN-Gulf Cooperation Council (GCC) Summit, and the inaugural ASEAN-GCC-China Summit. He said the update was essential to ensure the FTA remains relevant and responsive to today's trade realities, particularly given the scale of ASEAN-China trade. 'China has been ASEAN's number one trading partner for 16 consecutive years, and likewise, ASEAN has become China's top trading partner over the past five to six years. 'That reflects the strength of our economic ties,' he said, adding that the upgraded agreement is expected to open up greater opportunities for businesses on both sides by enhancing trade facilitation, investment flows and tourism connectivity. Kao noted that together, ASEAN and China represent a market of two billion people.
BusinessToday
25-05-2025
- Business
- BusinessToday
Region Must Shift From 'BAU' And Adopt Bold Strategies In Tackling Trade Changes
At today's (25 May) 25th ASEAN Economic Community (AEC) Council Meeting, Deputy Minister Liew Chin Tong, chairing the meeting, emphasised the urgency for ASEAN to shift from a 'business-as-usual' approach and adopt bold, forward-looking strategies to weather ongoing geopolitical uncertainties, particularly in light of rising U.S. tariffs and global trade disruptions. 'ASEAN's centrality, neutrality and unity are our greatest strengths. We must build on our diversity and shared commitment to navigate this volatile global landscape,' said Liew. Key Achievements and Announcements Among the significant outcomes was the successful adoption of the Roadmap on Digital Trade Standards , a major economic deliverable led by Laos for 2024. Malaysia also announced the completion of two of its 18 Priority Economic Deliverables (PEDs) for 2025: The conclusion of the ASEAN-China Free Trade Area (ACFTA) 3.0 Upgrade Negotiations. The upgraded ASEAN Trade in Goods Agreement (ATIGA). Both trade agreements are expected to be formally signed at the upcoming 47th ASEAN Leaders' Summit in October 2025, also to be held in Kuala Lumpur. 'These trade upgrades will be pivotal for strengthening intra-ASEAN supply chain resilience and deepening regional integration,' said Liew. Additionally, the Council concluded negotiations on the Enhanced Memorandum of Agreement for the ASEAN Power Grid (APG), a strategic project to boost regional energy security and sustainability. A financing framework is also in the works to attract foreign direct investments into energy-related infrastructure. Blueprint Implementation Nears Completion The meeting also revealed that implementation of the AEC Blueprint 2025—ASEAN's strategic roadmap for economic integration—has reached an impressive 97%. The Blueprint, launched a decade ago, has driven substantial gains in trade liberalisation, MSME development, and digital transformation across the region. Building on that momentum, the Council is preparing to launch the next phase: the ASEAN Economic Community Strategic Plan 2026–2030. The plan will be unveiled alongside the broader ASEAN Community Vision 2045 during this year's summit. Timor-Leste's Entry, Geopolitical Pressures Top Agenda The Council reaffirmed its support for Timor-Leste's accession to ASEAN, calling it a priority under Malaysia's 2025 Chairmanship. Timor-Leste's entry, leaders said, would enhance regional dynamism and inclusivity. The Council also discussed the rising impact of global trade tensions and protectionist policies, following outcomes from recent ASEAN Economic Ministers meetings and the inaugural ASEAN Geoeconomics Task Force meeting held earlier this month. 'The current climate calls for collective action, strategic autonomy, and coordinated policy response. ASEAN must stay united in defending its socio-economic interests,' Liew added. The Council will next turn its attention to the Regional Socialisation of the AEC Strategic Plan on 12 June 2025 in Kuala Lumpur—a session aimed at engaging multi-stakeholders and highlighting the plan's broader economic benefits. As ASEAN's economic stewards prepare to chart the next decade, Malaysia's leadership is steering the bloc toward a future of deeper integration, resilience, and inclusive growth. Related
The Sun
21-05-2025
- Business
- The Sun
China, ASEAN complete negotiations on upgraded free trade deal
HONG KONG: China and the Association of Southeast Asian Nations (ASEAN) have completed negotiations to further refine their free trade area to include the digital and green economy and other new industries, China's commerce ministry said on Wednesday. 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. The so-called 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. 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. China has intensified engagement with ASEAN since U.S. President Donald Trump announced hefty import tariffs on countries around the world and targeted China with even heavier levies. Some of the levies have since been delayed while China and the U.S. agreed this month to pause some of their tariffs. President Xi Jinping took a three-nation tour of Southeast Asia in April to consolidate ties with some of China's closest neighbours, calling on Asian nations to unite against what he called geopolitical confrontation, unilateralism and protectionism. The formal signing of the trade agreement is expected to take place before the end of the year. The ASEAN-China Free Trade Area was first signed in 2002 and came into force on January 1, 2010.
