AsianFin — China is pressing the Association of Southeast Asian Nations (ASEAN) to finalize and sign an upgrade to their free trade agreement (FTA) before the end of 2025, as Beijing accelerates efforts to secure alternative export markets in the face of escalating U.S. tariffs.
Vice Commerce Minister Yan Dong said on Monday that talks on the FTA upgrade were concluded in May, clearing the path for deeper trade integration between the world’s second-largest economy and the 10-member ASEAN bloc.
The enhanced pact is expected to broaden market access across a range of sectors, including agriculture, pharmaceuticals and the digital economy. It also aligns with Beijing’s strategy to showcase itself as a “more open” major economy, in contrast with Washington’s increasingly protectionist stance under President Donald Trump, whose administration continues to impose punitive trade curbs across Asia.
ASEAN collectively ranks as China’s largest trading partner, with bilateral trade topping $911 billion in 2023, according to Chinese customs data. Strengthening ties with Southeast Asia has become a critical priority for Beijing, particularly as its exporters grapple with U.S. tariffs that have raised costs for Chinese goods ranging from electric vehicles to solar products.
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