China seeks upgrade of massive trade zone with Southeast Asian nations amid US hostility
- Beijing says it will approach leaders in the Association of Southeast Asian Nations bloc this week about accelerating the Asean-China Free Trade Area ‘Version 3.0’
- China is looking to upgrade its Southeast Asia trade ties as the US government squeezes it economically through tariffs and curbs on its hi-tech sector
China is expected to start talks with Southeast Asian nations about an upgrade to their giant free-trade zone in a potential boost to the stability of Beijing’s manufacturing supply chains amid mounting rivalry with the United States.
Officials in Beijing have told state-run media they will approach leaders in the Association of Southeast Asian Nations (Asean) bloc this week about accelerating negotiations for what they call the Asean-China Free Trade Area “Version 3.0”. Chinese Premier Li Keqiang is in Phnom Penh this week to meet with the bloc’s 10 members during a series of summits.
“Everything is becoming more strategic these days, and every trade announcement is becoming more tied to geopolitics than ever before rather than to direct flows,” said Jayant Menon, a visiting senior fellow with the ISEAS-Yusof Ishak Institute’s Regional Economic Studies Programme in Singapore.
Singapore, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Thailand and Vietnam comprise Asean, which has a combined population of 685 million and is a growing centre for manufactured goods that are sometimes sent to China for final assembly and re-export. China-Asean trade is valued at US$878.2 billion, the ministry said in September.