From mutual tariff reduction to joint rule building - China ASEAN economic and trade cooperation continues to upgrade, injecting momentum and confidence into regional economy

On October 28th local time, China and ASEAN signed the Free Trade Zone 3.0 Upgrade Protocol in Kuala Lumpur, the capital of Malaysia, marking another upgrade in the level of economic and trade cooperation between China and ASEAN. Analysts believe that the signing of the 3.0 version upgrade protocol is an important measure for China and ASEAN to jointly promote high-quality open cooperation at a time when the global economy is facing many uncertainties. It demonstrates the determination of regional countries to work together to address global economic challenges and injects new momentum and confidence into regional economic development.

Moving from 'tariff concessions' to' rule building '

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

Compared to the earlier focus on reducing tariffs and expanding market access for mutually beneficial cooperation, the 3.0 version of the upgraded protocol marks a new stage of institutionalization in bilateral cooperation. It not only covers traditional trade and investment fields, but also includes nine new chapters such as digital economy, green economy, supply chain interconnection, standard 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 technological cooperation.

Observers point out that from focusing on reducing tariffs on goods trade, expanding service trade and expanding markets, to targeting rules and standards to promote integration, the China ASEAN Free Trade Area continues to upgrade, clearly reflecting the development trajectory of deepening regional economic cooperation.

Herman Laurel, Director of the Philippine Institute for Strategic Studies in the Asian Century, pointed out that the signing of the 3.0 Upgrade Protocol is an important milestone in promoting Asia Pacific economic integration and marks another leap forward in China ASEAN economic and trade relations. 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 joint construction rules, which injects lasting momentum into the cooperation between the two sides

Tang Zhimin, Director of the China ASEAN Research Center at Thailand Zhengda Management College, stated that the 3.0 version covers the high ground of industries such as digital economy and green economy. Through rule docking, mutual recognition of standards, and mechanism interoperability, it consolidates the foundation of industrial and supply chain cooperation. From version 1.0 to version 3.0, the construction of free trade zones has been upgraded step by step, moving towards inclusive, modern, comprehensive, and mutually beneficial free trade agreements.

This is a joint effort by both sides to promote the transformation from 'quantity expansion' to 'quality improvement', "said Wu Yiping, President of the Malaysian Chinese Chamber of Commerce. This upgrade fully demonstrates the continuous exploration and innovation of ASEAN and China, further combining trade liberalization with institutionalized governance, and shifting the goal towards the predictability of rules and the interconnection of institutions.

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

Experts believe that the 3.0 upgrade protocol covers the core issues of global industrial chain transformation and sustainable economic development, and will expand mutually beneficial cooperation in emerging fields, which is conducive to promoting wider and deeper regional economic integration between both sides.

We believe that this upgrade will promote deeper integration of digitalization and green transformation in the region, "said Mohammad Zulfikar Rahmat, Director of China Indonesia Affairs at the Indonesian Center for Economic and Legal Research. Indonesian society generally expects the 3.0 version to promote industrial upgrading and green transformation, further creating employment.

Associate Professor Xiao Saizi from the School of Politics, International Relations, and Economics at the University of Nottingham Malaysia stated that the 3.0 version for the first time incorporates hard and soft connectivity in emerging fields such as digital economy and green economy into the framework, effectively linking the resource endowments, industrial advantages, and core value chains of countries in the region. This highlights the determination of both sides to strengthen diversified trade cooperation and demonstrates the strong vitality of inclusive and open cooperation to the world.

Associate Professor Chen Rijia from Universiti Putrajaya Malaysia stated that he looks forward to the synergy between the China ASEAN Free Trade Area 3.0 and the Regional Comprehensive Economic Partnership (RCEP) to further promote regional economic integration. I believe that the cooperation between China and ASEAN in emerging fields such as digital economy, green energy, and industrial chain upgrading will promote regional low-carbon transformation and sustainable development, injecting new impetus into the long-term stability and prosperity of the Asia Pacific region

Zeng Gang, Dean of the Urban Development Research Institute at East China Normal University, stated that the breakthrough of version 3.0 lies in the forward-looking construction of rules in emerging fields. In response to the new round of industrial revolution, the 3.0 version has formulated forward-looking rules in areas such as digital trade, artificial intelligence applications, and green development. It not only utilizes new technologies to create growth opportunities, but also forms a 'stabilizer' for China ASEAN cooperation to cope with global market fluctuations through institutional arrangements

Release signals of open cooperation and mutual benefit

Currently, trade protectionism is on the rise, geopolitical conflicts are intensifying, industrial and supply chains are obstructed, and global development is at a critical crossroads. The signing of the China ASEAN Free Trade Area 3.0 Upgrade Protocol sends a positive signal of open cooperation and mutual benefit.

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

Pan Gao Riying, Deputy Director of the South Asia, West Asia and Africa Institute of the Vietnamese Academy of Social Sciences, believes that version 3.0 is not only an important engine for promoting regional economic development towards greater inclusiveness and stability, but also plays a key role in enhancing regional economic resilience and resisting external shocks.

Liu Baofeng, the head of a fruit import and export company in Hebei, recently inspected the market in Malaysia. He said that importing fruits from Southeast Asia has been faster and more convenient in recent years. From customs declaration, clearance to transportation, the efficiency in all aspects is constantly improving. Nowadays, multiple modes of transportation such as land, air, sea, and railway are running parallel, greatly enhancing the stability of the supply chain and the flexibility of transportation. The improvement in customs clearance efficiency allows fresh Southeast Asian fruits to be delivered to domestic consumers faster