The upgraded and expanded version of the 2022 ASEAN-China Free Trade Area (ACFTA), known as “ACFTA 3.0” was signed on Tuesday, the final day of the 47th ASEAN Summit, and was witnessed by Chinese Premier Li Qiang and Malaysian Prime Minister Anwar Ibrahim, who chairs ASEAN this year.

The 3.0 version of the deal will broaden collaboration on “infrastructure, digital and green transition, trade facilitation and people-to-people exchanges”, according to China’s State Council. It builds on the region’s first free trade pact with China, which came into force in 2010.

During his opening remarks at the ASEAN-China summit following the signing, Li said that closer cooperation could help overcome global economic uncertainties, noting that “pursuing confrontation instead of solidarity brings no benefit” in the face of economic coercion and bullying, in a swipe at the United States.

Since the announcement of US President Donald Trump’s sweeping tariffs in April, China has sought to position itself as the champion of free and open international trade and to expand its trade and investment relationships on this basis.

The upgraded agreement came after the 20th East Asia Summit on Monday, when ASEAN and partner countries, including China, the US, India, Japan and Russia, called for “engagement” to end crises around the globe and reaffirmed its commitment to peace, multilateralism and international law.

On the issue regarding territorial claims in South China Sea involving China and some Southeast Asian nations, Anwar said the summit asserted that the solution must be driven by ASEAN based on international laws, not through “external pressure”.

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