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ASEAN For Business Bulletin - December 2025 ASEAN-China Free Trade Area 3.0: A Strategic Opportunity for ASEAN Businesses


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Over USD 772 billion in two-way trade in 2024. That single figure captures the scale and importance of the ASEAN–China economic relationship and sets the context for the ASEAN–China Free Trade Area (ACFTA) 3.0 Upgrade Protocol, signed on October 28, 2025 in Kuala Lumpur.

The agreement builds on a partnership that began in 2002, when ASEAN and China launched their first-ever free trade agreement with each other. Over more than two decades, ACFTA has evolved into one of the world’s most significant regional trade frameworks, helping to position ASEAN and China as each other’s largest trading partners.

With ACFTA 3.0, the agreement moves beyond its original focus on tariff reduction to reflect how trade and business now operate. The upgraded framework introduces deeper cooperation in digital trade, supply chain connectivity, MSME participation, sustainability, and high-standard trade facilitation. Measures such as more efficient customs procedures, streamlined technical and sanitary standards, and enhanced transparency are expected to reduce costs, minimise delays, and support smoother cross-border production flows across key sectors, including electronics, machinery, automotive parts, and consumer goods.

ACFTA 3.0 also responds to emerging growth areas. New commitments on the digital economy open opportunities in fintech, logistics technology, data-driven services, and innovation fields such as artificial intelligence, big data, cloud computing, and digital payments. At the same time, expanded cooperation on green investment, sustainable finance, renewable energy, and green standards supports ASEAN’s transition toward a more climate-resilient and low-carbon economy.

The December 2025 edition of the ASEAN for Business Bulletin examines ACFTA 3.0 as part of the region’s evolving trade landscape, highlighting key developments and considerations for businesses operating in and engaging with ASEAN.

Download to read full the ASEAN for Business Bulletin of December 2025


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