ASEAN, China Signal Commitment To Rules-based Trade With ACFTA 3.0

By Mohd Iswandi Kasan Anuar

JAKARTA, Sept 17 (Bernama) -- ASEAN and China will send a strong signal of commitment to a rules-based trading system by signing the ASEAN-China Free Trade Area (ACFTA) 3.0 Upgrade Protocol at their summit in Kuala Lumpur this October, amid rising geopolitical tensions and global uncertainties.

ASEAN Secretary General Dr Kao Kim Hourn said the upgrade would mark a new chapter in the partnership with technology and innovation at the centre of the cooperation.

“ACFTA 3.0 goes further by making technology and innovation central to our cooperation, deepening supply chain integration and regional prosperity,” he said at the 22nd China-ASEAN Expo (CAEXPO) in Nanning, according to a release by the ASEAN Secretariat.

He said the protocol elevates digital cooperation as a core pillar of the trade pact, opening opportunities in e-commerce, digital trade, data governance, and payments.

According to Kao, ASEAN’s digital economy, already one of the world’s fastest-growing at US$263 billion in 2024, is projected to reach US$1 trillion in gross merchandise value by 2030.

The bloc is also on track to substantially conclude a Digital Economy Framework Agreement this year, laying the foundation for a secure and trusted digital ecosystem valued at US$2 trillion.

China, with advances in artificial intelligence, big data, cloud computing, and digital finance, along with support by more than a billion internet users, is a global leader in digital transformation, Kao said.

“By bringing these strengths together, ASEAN and China are well placed to set benchmarks for trusted and inclusive digital ecosystems, shaping standards that could guide wider international practice in the future,” he added.

-- BERNAMA