KUALA LUMPUR : The signing took place during the 47th ASEAN Summit in Kuala Lumpur on Tuesday, witnessed by Chinese Premier Li Qiang and Malaysian Prime Minister Anwar Ibrahim.

The new agreement, dubbed the “3.0 version” of the China-ASEAN Free Trade Area, expands collaboration in key sectors such as infrastructure, digital transformation, green transition, trade facilitation, and people-to-people exchanges, according to China’s State Council. It marks the most significant upgrade to the regional pact since its inception in 2010.

China and the 11-member ASEAN bloc have grown into each other’s largest trading partners in recent years, a trend accelerated by the “China Plus One” supply chain strategy that gained traction after Trump’s 2018 trade war. Trade between the two regions has surged to $785 billion in the first nine months of 2025, reflecting a 9.6 percent year-on-year increase.

Much of this trade involves integrated manufacturing networks, but Chinese finished goods are increasingly finding new consumers within Southeast Asia. Premier Li Qiang, addressing the summit, hailed the deepening partnership and called for “expanded and higher-quality economic cooperation” under the revamped deal.

In a pointed reference to Washington’s protectionist stance, Li criticized Trump’s escalating tariffs, which economists say have introduced new volatility into global trade systems. The U.S. president, who also attended the ASEAN summit over the weekend, signed separate bilateral trade deals with Cambodia and Malaysia, alongside framework agreements with Thailand and Vietnam. These agreements cemented “reciprocal tariff” rates of 19–20 percent, reflecting Trump’s preference for one-on-one trade negotiations rather than multilateral frameworks.

Tensions between Washington and Beijing remain high ahead of Trump’s expected meeting with Chinese President Xi Jinping in South Korea later this week. The two sides reportedly reached a “framework agreement” on tariffs, as confirmed by U.S. Treasury Secretary Scott Bessent, who said it could help prevent a sharp escalation in trade duties.

Trump had earlier threatened to impose 100 percent tariffs on Chinese imports by November 1, in response to Beijing’s tightened export controls on rare earth minerals.