Malaysian Prime Minister Datuk Seri Anwar Ibrahim, front right, and Chinese Premier Li Qiang, front left, arriving ahead of the signing ceremony for the Asean-China Free Trade Area 3.0 Upgrade and the Asean-China summit, held as part of the Asean summit in Kuala Lumpur, Malaysia Tuesday, Oct. 28, 2025. - AP
KUALA LUMPUR: China signed an expanded version of a free trade agreement Tuesday (Oct 28) with Asean, with Chinese Premier Li Qiang pitching expanded economic ties with his country as an alternative to the protectionist policies of US President Donald Trump.
Li Qiang told an Asean-China summit meeting after the signing that closer cooperation could help overcome global economic uncertainties. He said "pursuing confrontation instead of solidarity brings no benefit” in the face of economic coercion and bullying, in a swipe at the US.
"Unity is strength,” he said, citing remarks by President Xi Jinping made during a South-East Asia visit earlier this year.
The signing of the Asean-China Free Trade Area 3.0 came on the final day of the annual Asean summit and related meetings and was witnessed by Li Qiang and Malaysian Prime Minister Datuk Seri Anwar Ibrahim, who is serving as Asean chair this year.
It’s the third revision of the long-standing agreement, which was first signed in 2002 and came into force in 2010. The free trade area covers a combined market of more than 2 billion people and lowers tariffs on goods and boosting flows of services and investment.
Two-way trade has surged from US$235.5 billion in 2010 to nearly US$1 trillion last year.
Li stressed "mutual reliance” between China and Asean members Brunei, Cambodia, Timor Leste, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam, calling them "good neighbours and good brothers that are close in geography, culture and sentiment.”
"Unilateralism and protectionism have seriously impacted the global economic and trade order, while external forces are increasing their interference in the region - many countries have been unreasonably subjected to high tariffs,” he said.
"By relying on each other and coordinating our actions, we can safeguard our legitimate rights and interests.”
South-East Asian political analyst Bridget Welsh said the upgraded pact would benefit both sides, especially in the areas of supply chains and sustainability.
"It also speaks to a global reality that non-US countries are coming together to strengthen trade relationships for their prosperity as a recoupling with the US is ongoing,” she said,
The prospect of a deepening trade conflict between China and the US has risked weakening economic growth worldwide.
Trump at the Asean summit on Sunday announced new economic details with Cambodia, Malaysia, Thailand and Vietnam, though all countries are still subject to new tariffs he has brought in.
Anwar, whose country holds this year's rotating chair of Asean, stressed at the meeting with China that the bloc seeks friendly relations with all countries.
"The day before we were with President Donald Trump of the United States of America, and today we are back with China,” he said. "And that reflects Asean centrality ... This is what we consider steady engagement that fosters trust that enables us to work through challenges together.”
There were also signs that tensions between the US and China were cooling ahead of a planned meeting between Trump and Chinese leader Xi Jinping, which is expected to take place in South Korea on Thursday. Top negotiators from each country said a trade deal was coming together, which could prevent a potentially damaging confrontation between the world’s two largest economies.
Officials said the Asean-China Free Trade Area 3.0 is expected to broaden integration across the region by covering new areas such as digital trade, the green economy, sustainability and support for small and medium-sized enterprises, which make up the majority of Asean businesses. The agreement is designed to make trade benefits more accessible, improve market entry for smaller players, streamline non-tariff procedures and lower regulatory barriers.
"Asean-China cooperation is important primarily because China has been Asean’s largest trading partner for many years. But one must also take note that Asean is now equally important to China, making it a two-way relationship in trade,” Malaysia’s Trade Minister Tengku Datuk Seri Zafrul Aziz said Sunday. - AP
