China and the Association of Southeast Asian Nations signed the Free Trade Area 3.0 Upgrade Protocol on Tuesday, a milestone that will herald new opportunities for both sides to expand and enhance bilateral economic and trade cooperation.

The protocol was signed in Kuala Lumpur, Malaysia, ahead of the 28th China-ASEAN Summit, in the presence of Premier Li Qiang and Malaysian Prime Minister Anwar Ibrahim.

Building upon the existing China-ASEAN free trade agreements and the Regional Comprehensive Economic Partnership, which is the world's largest free trade agreement and was initiated by ASEAN, the upgrade protocol features expansion of mutually beneficial cooperation in emerging fields, enhancement of alignment in standards and regulations, and promotion of trade facilitation and inclusive development in the region.

Analysts said that at a time when the global economy faces growing uncertainties, the signing of the upgrade protocol is a significant step by China and ASEAN to jointly promote high-level openness and high-quality cooperation. It demonstrates the determination of regional countries to work together to tackle ongoing economic challenges, injecting new momentum and confidence into regional and global development.

Commenting on the signing of the protocol, an official with the Ministry of Commerce said on Tuesday that in the face of severe challenges to the rules-based international economic and trade system, the protocol demonstrates a shared, firm commitment by China and ASEAN to multilateralism and free trade.

The official said that China-ASEAN free trade area cooperation and regional economic integration will move beyond traditional trade and investment liberalization and facilitation, expanding to a host of emerging areas, including the digital economy, the green economy, and industrial and supply chains.

Following the signing of the upgrade protocol, China and the ASEAN member states will proceed with their respective domestic approval procedures to ensure that the protocol can take effect as soon as possible, the official said.

The upgrade marks the latest stage in the evolution of the China-ASEAN free trade area, which was initiated in 2002 and fully implemented as Version 1.0 in 2010. A subsequent Version 2.0 protocol was signed in 2015 and came into full effect in 2019. Negotiations for the Version 3.0 upgrade began in November 2022 and were successfully concluded in May this year.

China has been ASEAN's largest trading partner for 16 consecutive years, while ASEAN has been China's top trading partner for the past five years. Bilateral trade reached $982.3 billion in 2024, representing a 17-fold increase since 2002, according to the Ministry of Commerce.

While addressing Tuesday's summit, Li said that China and ASEAN should take the implementation of the upgrade protocol as an opportunity to step up efforts in promoting trade and investment liberalization and facilitation and to strengthen industrial integration.

China will continue to contribute to the China-ASEAN Cooperation Fund and is willing to work with ASEAN countries to establish a China-ASEAN Digital Academy, set up an artificial intelligence cooperation platform, and establish a maritime development and technology cooperation center, he said.

Amid the changing international landscape, the premier said China and ASEAN member states should be more resolute in uniting and strengthening themselves, fend off external disruptions, and defend their legitimate rights and interests through mutual reliance and coordinated actions.

He called on both sides to achieve greater synergy and promote steady economic growth through meeting each other's needs and deepening cooperation.

Underlining the need to enhance strategic communication and properly handle differences, Li called for accelerating consultations on the Code of Conduct in the South China Sea and striving for an early conclusion.

China will continue to support the resolution of the dispute between Cambodia and Thailand through the "ASEAN way", he said.

Leaders of ASEAN countries attending the summit said that the ASEAN-China relationship has become a model of mutual respect and mutual benefit for win-win results in regional collaboration.

They said the ASEAN countries are willing to strengthen strategic communication with China, enhance political mutual trust, and expand cooperation in areas such as trade and economy, connectivity, the digital economy, green development, energy, education, tourism and crackdown on transnational crimes. Furthermore, ASEAN is committed to working with China to reach an agreement on the Code of Conduct in the South China Sea to make positive contributions to regional peace, security and stability.

On Tuesday, Premier Li also had a bilateral meeting with Prime Minister Anwar, with both pledging to enhance bilateral ties and strengthen multilateral coordination and cooperation.