中文版
Riding the Wind of China-ASEAN FTA 3.0: Advancing Cross-Border Supply Chain Connectivity
Introduction
On May 20, at the Special Meeting of China-ASEAN Ministers of Economic Affairs, China and the 10 ASEAN member states jointly announced the full completion of negotiations for the China-ASEAN Free Trade Area (CAFTA) 3.0 Upgrade. Building on over two decades of CAFTA development, this milestone paves the way for signing an upgraded protocol, marking a new historical phase in economic and trade cooperation.
On May 20, at the Special Meeting of China-ASEAN Ministers of Economic Affairs, China and the 10 ASEAN member states jointly announced the full completion of negotiations for the China-ASEAN Free Trade Area (CAFTA) 3.0 Upgrade. Building on over two decades of CAFTA development, this milestone paves the way for signing an upgraded protocol, marking a new historical phase in economic and trade cooperation.
Deepening China-ASEAN Economic Ties
ASEAN has been China’s largest goods trading partner since 2020, with bilateral trade nearing ¥7 trillion ($970 billion) in 2024 (15.9% of China’s total foreign trade). China has remained ASEAN’s top trading partner for 16 consecutive years, while ASEAN has held the same position for China for five years running. In Q1 2025, ASEAN’s share of China’s foreign trade rose to 16.6%, solidifying its role as the nation’s leading trade partner.
Against the backdrop of global protectionism and unilateralism threatening multilateral trade, CAFTA 3.0 carries special significance. Both China and the 10 ASEAN countries are WTO members and steadfast supporters of economic globalization and multilateralism. The agreement underscores the vitality of free trade and open cooperation, injecting certainty into regional and global markets and setting a benchmark for inclusive, win-win collaboration.
CAFTA 3.0: Innovating for the Future
CAFTA 3.0 embodies the principles of inclusivity, modernization, comprehensiveness, and mutual benefit, with new chapters covering:
- Digital economy and green economy
- Standards, technical regulations, and conformity assessment
- Customs procedures and trade facilitation
- Sanitary and phytosanitary measures
- Competition policy, consumer protection, and MSME support
- Economic and technical cooperation
Notably, as shared members of APEC (China and ASEAN states Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam), CAFTA 3.0 becomes the first global trade agreement to explicitly prioritize supply chain connectivity—a long-standing APEC focus.
APEC’s Legacy and CAFTA 3.0’s Synergy
Supply chain connectivity has been a core APEC priority since 2009, with leaders committing to:
- At-the-border trade liberalization (e.g., customs efficiency),
- Behind-the-border business environment reforms (e.g., regulatory harmonization),
- Across-the-border supply chain integration (e.g., multimodal logistics).
From 2010–2020, APEC eliminated 13 supply chain “blockages” via public-private partnerships. The ongoing third APEC action plan (2023–) targets five new challenges:
- Low digital efficiency in cross-border procedures (e.g., paper-based trade documents),
- Inadequate multimodal infrastructure,
- Lack of digital cooperation in supply chain ecosystems,
- Gaps in green supply chain practices,
- Limited support for MSMEs in global supply chains.
CAFTA 3.0 aligns with APEC’s goals by committing to:
- Free flow of critical goods and services,
- Enhanced connectivity in supply chain infrastructure,
- Joint resilience against supply chain disruptions.
Enterprises as Catalysts for Connectivity
China-ASEAN enterprises are urged to take a leading role in driving supply chain integration, particularly in:
- Paperless trade (e.g., e-Bills of Lading, e-warehouse receipts, e-invoices),
- Digital supply chain platforms (e.g., e-port systems, e-commerce),
- Green logistics innovations.
These efforts will facilitate cross-border alignment of rules, regulations, and standards, countering “decoupling” risks and strengthening regional supply chain resilience.
CISCE: A Platform for Collaborative Progress
The China International Supply Chain Expo (CISCE), hosted by China Council for the Promotion of International Trade (CCPIT), serves as the world’s first national-level expo focused on supply chains. As regular participants, ASEAN enterprises can leverage CISCE to:
- Address supply chain blockages through joint innovation,
- Showcase best practices in China-ASEAN collaboration,
- Institutionalize frameworks for a resilient regional supply chain and integrated market.
Conclusion
CAFTA 3.0 and CISCE together exemplify China-ASEAN commitment to shared prosperity. By advancing supply chain connectivity and regional economic integration, the partnership not only safeguards against global uncertainties but also accelerates the building of a China-ASEAN community with a shared future.
CAFTA 3.0 and CISCE together exemplify China-ASEAN commitment to shared prosperity. By advancing supply chain connectivity and regional economic integration, the partnership not only safeguards against global uncertainties but also accelerates the building of a China-ASEAN community with a shared future.
About the Author
Yao Weiqun is a member of the CCPIT Expert Committee and Executive Dean of the Shanghai Institute for International Trade Center Strategy at Shanghai University of International Business and Economics.
Yao Weiqun is a member of the CCPIT Expert Committee and Executive Dean of the Shanghai Institute for International Trade Center Strategy at Shanghai University of International Business and Economics.
