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China and ASEAN Sign ACFTA 3.0, Expanding Trade Deal to Digital, Green and Supply Chains

Leaders urge rapid ratification to unlock benefits for businesses.

Overview

  • China’s Wang Wentao and Malaysia’s Tengku Zafrul signed the upgrade at the 47th ASEAN Summit in Kuala Lumpur on Oct 28, witnessed by Li Qiang and Anwar Ibrahim.
  • The protocol broadens the pact to cover the digital and green economies and supply chain connectivity, and adds commitments on competition policy, transparency and consumer protections.
  • Singapore’s MTI said the update aims to streamline customs processes and protect online and cross‑border consumers, opening opportunities in areas such as artificial intelligence and fintech.
  • Officials and commentators framed the move as a regional response to US tariff pressures, even as Washington and Beijing discuss a negotiators’ framework that could adjust tariff levels.
  • ASEAN leaders, including Singapore’s Lawrence Wong, called for swift ratification, while analysts warned about a sizable Chinese trade surplus with ASEAN and potential pressure on Southeast Asian SMEs.