ASEAN-China Free Trade Agreement Will Be Finalized Soon: PM

Malaysia's Prime Minister Anwar Ibrahim (R) speaks during a bilateral meeting with China's President Xi Jinping on April 16, 2025. (Photo by FAZRY ISMAIL / POOL / AFP)

Malaysia’s Prime Minister Anwar Ibrahim said on Monday that talks to upgrade a free trade agreement (FTA) between China and the Association of Southeast Asian Nations will be finalized soon. Malaysia currently chairs the regional grouping.

The 3.0 version of the 2010 FTA will include a digital economy framework agreement and a bigger focus on e-commerce, agricultural trade, and the wider lowering of trade barriers.

WHY IS THIS IMPORTANT? The announcement arguably reveals the limit of the Trump administration’s attempts to pressure developing countries to limit their trade with China. The FTA will further complicate attempts to target Chinese-made products in third countries.

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