Signing the Protocol for Upgrading the Free Trade Zone Version 3.0- China and ASEAN Accelerate the Construction of an Integrated Large Market

The Chatuchak Market in Bangkok, Thailand, is filled with hot winds and the scent of charcoal fire and lime. Can WeChat Pay be used? "Chinese tourist Xiaotian noticed that he didn't have enough cash on him when buying fruits, so he looked up and asked. Sure, sure! "The vendor said as he handed her the QR code of Thailand's real-time payment system" PromptPay ". After scanning the code on WeChat, Xiaotian's screen displays the Thai baht amount and the converted Chinese yuan amount. Click to confirm and the payment is successful. Simply scan the QR code to make payment, and there's no need to download foreign software, it's very convenient, "she said.

The digital economy cooperation between China and ASEAN is expected to be further strengthened, making it more convenient for the people of both sides. On October 28th this year, China and ASEAN signed the China ASEAN Free Trade Area 3.0 Upgrade Protocol (hereinafter referred to as the "3.0 Protocol") in Kuala Lumpur, Malaysia, proposing to jointly build an open, inclusive, rule-based regional integrated market that covers nine major areas including digital economy, green economy, supply chain connectivity, competition and consumer protection, and small and medium-sized enterprises, covering the core issues of global industrial chain transformation and sustainable economic development. China has maintained its position as the largest trading partner of ASEAN for 16 consecutive years, and ASEAN has also been China's largest trading partner for 5 consecutive years. Both sides will accelerate the construction of an integrated large market and further upgrade the quality of cooperation, which will provide lasting impetus for promoting the construction of a China ASEAN community with a shared future and promoting common development and prosperity.

Explore new fields, provide broad platforms and opportunities

On October 30, the Bank of Thailand announced that it would establish cross-border QR code payment connections with Alipay, WeChat payment and UnionPay to realize direct retail payment between the two sides. The cooperation between China's payment system and "PromptPay" has covered major commercial districts and scenic spots in Thailand. Previously, Malaysian payment company PayNet has connected with WeChat Pay and other platforms, allowing Chinese tourists to directly scan QR codes and make payments at over 2 million local shops in Malaysia.

The 3.0 version of the China ASEAN Free Trade Area will not only further stimulate two-way trade, investment, and tourism, but also promote digital economic cooperation between the two sides, "said ASEAN Secretary General Gao Jinhong. China has a population of over 1.4 billion, while ASEAN has a population of nearly 700 million. The benefits of digital economic cooperation between the two sides are not simply added up, but are growing exponentially.

Digital payments make cross-border consumption more convenient and diverse, and the digital transformation cooperation between China and ASEAN in the service sector is also accelerating. The cooperation between Thai credit card companies and Huawei Cloud has effectively improved transaction stability and consumer experience; Thailand's healthcare platform introduces an intelligent translation system that supports multilingual services including Simplified Chinese, providing online consultation and integration for Chinese patients; The Singapore Tourism Board has partnered with the Chinese tourism platform Mafengwo to launch an artificial intelligence travel assistant that can generate multi day itineraries and themed routes, allowing Chinese tourists to receive food, accommodation, transportation, and travel advice in Chinese... Yuan Bo, Director of the Asia Research Institute of the Institute of International Trade and Economic Cooperation of the Chinese Ministry of Commerce, stated that the cooperation between China and ASEAN under the framework of the Regional Comprehensive Economic Partnership Agreement mainly focuses on cross-border e-commerce and other fields. The 3.0 version of the protocol will help both sides move from e-commerce to broader emerging fields such as digital economy and artificial intelligence.

The emphasis on cooperation in emerging fields between China and ASEAN also guides new directions for talent cultivation. The China Malaysia Digital Economy Modern Craftsmanship Institute relies on the "Digital Intelligence Center" built by Malaysia's Raman University of Technology to jointly establish teaching and practice bases with Chinese artificial intelligence enterprises. It integrates cutting-edge technologies such as big data analysis and generative artificial intelligence into its courses and training, explores composite talent training models such as "artificial intelligence+cross-border e-commerce" and "artificial intelligence+digital finance", and enhances the ability of ASEAN youth to use artificial intelligence to participate in regional digital economy cooperation through activities such as the China ASEAN College Students' Artificial Intelligence Application Innovation Invitation Competition and the "Chinese+Vocational Skills" Training Camp. Tang Zhimin, Director of the China ASEAN Research Center at Thailand's Charoen Pok é mon School of Management, stated that the 3.0 version of the Protocol emphasizes cooperation in digital economy, green development, and other areas, which will provide a broader platform and opportunities for ASEAN youth.

Establishing a smooth supply chain and promoting the facilitation of economic and trade exchanges

In May of this year, JD Logistics opened an international freight route from Wuhu, China to Hanoi, Vietnam, with a one-way travel time of only about 3 hours, greatly reducing the time for goods exchange between the two places. After the implementation of the 3.0 version of the protocol, relying on the provisions of "standards and technical regulations and conformity assessment procedures", some household appliances and daily necessities can be directly declared in Vietnam with electronic certificates such as China's mandatory product certification and energy efficiency testing, without the need for repeated testing, further reducing logistics time and compliance costs. Manager Pu, a local logistics industry practitioner, said that the "last mile" from outbound to entering the ASEAN market is more smooth, and "mutual recognition of systems allows the clearance speed of Chinese goods to gradually become as efficient as domestic express delivery

The 3.0 version of the protocol emphasizes the co construction and unification of standards, technical regulations, and conformity assessment procedures, which will help ASEAN and China establish more resilient industrial and supply chains, and achieve deeper regional economic integration. Tang Zhimin said that supply chain interconnection will help upgrade from "point-to-point trade" to "regional value chains", with freer production and logistics, lower costs, and more controllable risks in the region.

Entering JD Logistics' warehouse in Malaysia, workers are efficiently sorting, packing, and shipping in an orderly manner. Malaysia is not only a key logistics hub for companies to expand into Southeast Asia, but also the first stop for many Chinese brands to land in ASEAN. Here, tens of thousands of goods are processed every day, "said the person in charge of JD Logistics. JD Logistics has a warehouse space of about 50000 square meters in Malaysia, serving both local and Chinese customers. The company has also served dozens of local Vietnamese enterprises and Chinese overseas brands in Vietnam, and has reached long-term strategic partnerships with some enterprises.

The automotive industry is highly globalized, and fluctuations in the supply of a screw, a battery, or a chip can all affect the overall situation. After years of development, the cooperation between China and ASEAN in the automotive industry has been upgraded to a deep integration covering upstream resource supply, midstream localized production and manufacturing, and downstream market sales and after-sales service in the industrial chain. SAIC GM Wuling has led 17 Chinese industrial chain enterprises to enter ASEAN and developed over 100 local suppliers in Indonesia; The first overseas new energy vehicle factory of Changan Automobile has also been officially put into operation in the Taizhong Luoyong Industrial Park. With the implementation of policies related to the 3.0 Protocol, the coordinated development of China ASEAN automotive industry will usher in broader opportunities.

The Friendship Port is one of the largest land ports from China to Vietnam and ASEAN countries. With the signing of the 3.0 version of the Protocol, the construction of the China Vietnam Smart Port project has entered the final sprint stage. After completion, the port clearance can be completed 24 hours a day without closing or waiting, greatly improving clearance efficiency. Enterprises upload electronic customs declaration forms, electronic invoices, quarantine certificates and other documents in advance, and the system automatically shares them with relevant departments, achieving "one submission, one inspection, and one release", compressing the previously multi-point and multiple offline processes. A smarter Friendship Port will fully comply with the requirements of the 3.0 Protocol and continue to witness the continuous deepening of economic and trade cooperation between China and ASEAN.

Expected to be more stable, connecting small and medium-sized enterprises to the large market

In the mountains of Kachin State, Myanmar, the morning mist has not yet dissipated, and the grass and fruit harvest season has arrived. Local farmers check the maturity of fruit clusters along the slope. The high altitude and large temperature difference between day and night here make it the most suitable growth environment for grass fruit, which is also the most important economic crop for local families. The fruits picked during the day will be sent to a small processing site at the foot of the mountain for cleaning, drying, and impurity removal before being packaged in traceable standard bags and transported to Yunnan, China through the Ruili Port.

Myanmar Jingpo Urban Development Company is responsible for the export of grass fruits. According to Rui Ruimin, the executive director of the company, some of these grass fruits have entered the Chinese herbal medicine market and are used to make decoction pieces or related drugs, while others have entered the food processing industry and are used in deep processing stages such as braised products, pickled products, and meat seasoning. With the continuous release of the Regional Comprehensive Economic Partnership Agreement and the policy dividends of the China ASEAN Free Trade Area, the company exports an average of 3000 tons of grass fruit to China annually, accounting for 1/5 of the total grass fruit production in Kachin State, creating a large number of job opportunities for the local area and effectively helping farmers in mountainous areas to lift themselves out of poverty and become prosperous.

More and more small and micro enterprises are connecting to the large markets of China and ASEAN, which cannot be separated from the policy support of free trade zones. In the financing process, the Chinese government has partnered with financial institutions to launch measures such as small-scale processing loans and revolving order financing, allowing family workshop producers to expand their initial processing capabilities. At the same time, the traceability standards and plant quarantine certificates implemented by China make it easier for enterprise products to pass customs smoothly. Previously, I was most concerned about the complexity of documents. Now that there is a unified processing window and training on Chinese standards is conducted in advance, it greatly reduces the situation of delays in customs clearance due to lack of understanding of the rules, "said Rui Ruimin.

Having been in the industry for many years, Ruiruimin has witnessed the continuous extension and development of the industrial chain near the port. With the development of grass fruit export business, sorting, drying, crushing, mixing and other processing enterprises gather near the port. The opportunities brought by border trade can stay in the local area, making industry and population the driving force for long-term development of the region, "she said.

At this year's China ASEAN Expo Malaysia exhibition area, the popularity of Cat Mountain King durian ice cream is high. Huang Guoqiang, founder of Malaysia Durian Brother Limited, introduced that last year, Cat Mountain King Durian Ice Cream won the gold medal in the exhibition selection activity of the East Expo, and the orders from China have significantly increased. Nowadays, more and more ASEAN durian plantations and processing plants are included in the Chinese filing list. After the relevant health and pesticide residue testing is completed in the exporting country, it is transmitted to the Chinese port through electronic certificates and data interconnection. Both parties have mutually recognized the test results and strengthened cooperation in qualification assessment, effectively alleviating the pain points of small and medium-sized enterprises in the customs declaration process, such as multiple procedures and long waiting times.

The 3.0 version of the protocol specifically includes a chapter on small and medium-sized enterprises, proposing to help them integrate into the regional value chain through information sharing, financing support, and digital transformation. China's digital economy is booming, with diverse and rich industrial forms. We are also trying to reach more consumers through live streaming and e-commerce. The 3.0 version of the protocol provides guidance in this regard, allowing companies to have more stable expectations and more confidence in making long-term layouts in the Chinese market, and making products more refined and professional, "said Huang Guoqiang.