Background
China is intensifying efforts to strengthen trade ties with Southeast Asia as it faces growing tariff pressure from the United States.
What Happened
According to Reuters, Vice Commerce Minister Yan Dong said on Monday that China is pushing the Association of Southeast Asian Nations (ASEAN) to sign an upgrade to their free trade agreement (FTA) before the end of 2024. The upgraded deal, concluded in negotiations this May, will expand cooperation in agriculture, digital trade, and pharmaceuticals.
Why It Matters
Beijing is positioning itself as a “more open” economy in contrast to Washington’s protectionist approach. The pact will give China stronger access to ASEAN’s fast-growing markets while diversifying its exports, helping offset losses from U.S. trade curbs. Last month, Chinese exports to ASEAN surged 22.5% to $57.1 billion, making the bloc China’s top export destination, while shipments to the U.S. dropped 33.1%.
Stakeholder Reactions
Yan Dong emphasized that both China and ASEAN are committed to “multilateral cooperation” to keep regional supply chains stable, indirectly criticizing U.S. unilateral tariffs. Analysts note that while China and ASEAN are already in the Regional Comprehensive Economic Partnership (RCEP), the upgraded FTA carries stronger provisions.
What’s Next
China aims to finalize and sign the FTA upgrade by year’s end. At the same time, Beijing’s bid to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could test the political will of members who originally designed the pact to counter China’s influence.
with information from Reuters
