China, ASEAN to submit upgraded free trade deal to leaders in October, says China's foreign minister

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China and the Association of Southeast Asian Nations (ASEAN) have concluded talks on an upgraded version of their Free Trade Area agreement, referred to as "Version 3.0", and plan to present it for final approval to their respective leaders in October 2025. The announcement was made by China’s Foreign Minister Wang Yi on Saturday following his participation in the East Asia Summit in Kuala Lumpur, Malaysia.


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Talks for this new version of the trade pact began in November 2022 and wrapped up in May 2025. The upgraded agreement aims to modernize the existing China-ASEAN Free Trade Area, which was originally established in 2010. Unlike earlier versions, this 3.0 upgrade introduces cooperation in emerging areas such as the digital economy, green development, and supply chain resilience. Both sides also agreed to implement a new five-year action plan, which will guide collaboration in over 40 sectors. These include trade facilitation, investment, technology sharing, infrastructure, environment, and education. According to China’s Ministry of Foreign Affairs, this step signifies a deepening of economic ties and mutual commitment to sustainable development across the Asia-Pacific region. This deal is expected to further solidify China's role as ASEAN’s largest trading partner, a position it has held for over a decade, and support ASEAN’s ambition of becoming a cohesive regional economic community.


In addition to economic cooperation, China and ASEAN have agreed to intensify negotiations on a Code of Conduct (CoC) in the South China Sea, aiming to complete the framework by 2026. Foreign Minister Wang Yi said both sides are committed to managing territorial disputes peacefully and reducing the risk of conflict in the resource-rich waters. The South China Sea remains a major flashpoint in the region, with China, Vietnam, the Philippines, Malaysia, and Brunei all laying competing claims. The proposed Code of Conduct seeks to formalize a set of rules to prevent confrontations, improve communication, and encourage the peaceful resolution of conflicts. This development comes amid rising maritime tensions, with several ASEAN countries expressing concern over China’s growing presence and military activity in disputed waters. The code is expected to provide legal and diplomatic clarity, helping to prevent miscalculations and incidents at sea. Wang Yi emphasized that the agreement reflects a shared interest in maintaining peace, stability, and freedom of navigation in the region. While previous efforts to finalize the code have stalled over disagreements on scope and enforceability, the renewed momentum signals progress in China-ASEAN diplomacy. By pursuing both economic and security agreements, China and ASEAN are taking steps toward a more comprehensive strategic partnership, balancing trade and geopolitical concerns in one of the world’s most dynamic regions.

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