Sino-ASEAN 2026: Evolving Dynamics on Trade, AI, Infrastructure and South China Sea

2026 is a pivotal year for China-ASEAN ties. This year’s relationship will be driven by trade, digital integration, and maritime negotiations, with the China-ASEAN Free Trade Area (CAFTA) 3.0 upgrade underway and plans for greater digital and AI integration through the Digital Silk Road.

Meanwhile, 2026 is a make-or-break year for the South China Sea Code of Conduct, which has long been a thorn in the side of the China-ASEAN relationship but could see a potential agreement in July 2026. The overall goal? Deeper economic and digital integration while managing key geopolitical frictions.

by Njenga Hakeenah

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