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China Signed an expanded version of a free trade agreement with the Association of Southeast Asian Nations as both face rising protectionism United States of AmericaAnd Chinese Prime Minister Li Kiang stressed his country’s close ties with the region.
“Unity is strength,” Li Qiang said at the ASEAN-China summit after the signing. He stressed that closer cooperation can help address global economic uncertainties.
ASEAN-China Free Trade Area 3.0 signed on last day of annual asean The summit and related meetings and witnessed by Li Kiang and Malaysian Prime Minister Anwar IbrahimWho is serving as ASEAN President this year.
It is the third amendment to the long-standing agreement, which was first signed in 2002 and came into force in 2010. The free trade area covers a combined market of more than 2 billion people and reduces tariffs on goods and increases the flow of services and investment.
Two-way trade has grown from $235.5 billion in 2010 to nearly $1 trillion last year.
Southeast Asian political analyst Bridget Welsh said the advanced agreement would benefit both sides, especially in the areas of supply chains and sustainability.
“It also reflects a global reality that non-US countries are coming together to strengthen trade ties for their own prosperity as reconnection with the US continues,” he said.
The fear of deepening trade conflict between China and America threatens to weaken economic growth around the world.
But a US-China trade deal appears to be inching closer, with officials from the world’s two largest economies saying on Sunday they have reached a preliminary agreement for President Donald Trump and Chinese leader Xi Jinping, which they aim to finalize during their high-level meeting.
Trump is scheduled to meet Xi in South Korea on Thursday, the final stop of his Asia tour.
Officials said the ASEAN-China Free Trade Area 3.0 is expected to broaden integration across the region by covering new areas such as digital trade, green economy, sustainability and support for small and medium-sized enterprises, which make up the majority of ASEAN businesses. The agreement is designed to make trade benefits more accessible, improve market entry for smaller players, streamline non-tariff procedures and reduce regulatory barriers.
“ASEAN-China cooperation is important primarily because China has been ASEAN’s largest trading partner for many years. But it should also be noted that ASEAN is now equally important to China, giving it a two-way relationship in trade,” Malaysian Trade Minister Zafarul Aziz said on Sunday.