Ambassador Hou Yanqi released her article on Jakarta Post entitled "China and ASEAN Usher in FTA 3.0 Era — Anchoring Shared Prosperity Amid Turbulence" on 15 November 2025. The full text is as follows:

On October 28 in Kuala Lumpur, we witnessed a significant milestone in China-ASEAN relations with the formal signing of the China-ASEAN Free Trade Area 3.0 Upgrade Protocol (CAFTA 3.0). This achievement underscores the solemn commitment of both sides to multilateralism and free trade, reflecting the shared aspirations for prosperity of our 2 billion people. CAFTA 3.0 injects powerful impetus for regional and global economic growth,  against the backdrop of a volatile and turbulent international economic and trade landscape. It demonstrates the strategic resolve of China and ASEAN to build consensus, uphold open markets, and tackle challenges together.

From Vision to Reality: 9 Rounds of Negotiations Secure New Regional Achievement

The path to CAFTA 3.0 epitomizes the strategic guidance of head-of-state diplomacy for China-ASEAN relations. At the Special Summit to Commemorate the 30th Anniversary of China-ASEAN Dialogue Relations in November 2021, Chinese President Xi Jinping proposed to begin work toward a new round of upgrade of the China-ASEAN Free Trade Area at an early date, which set the tone and direction for the historic process for China and ASEAN to build on CAFTA 3.0.

Following thorough preparation and feasibility studies, negotiations were officially launched a year later. Guided by the principles of mutual benefit and friendly consultation, both sides engaged in an intensive negotiation process comprising 9 formal rounds and over 120 working group meetings. In October 2024, Premier Li Qiang and ASEAN leaders jointly announced the substantial conclusion of CAFTA 3.0 at the 27th China-ASEAN Summit, paving the way for its official signing during the 28th China-ASEAN Summit this year. The signing of CAFTA 3.0 coincides with the successful conclusion of the fourth plenary session of the 20th Central Committee of the Communist Party of China. It stands as a groundbreaking measure to implement the session's decisions on expanding high-standard opening up and forging new prospects of win-win cooperation. CAFTA 3.0 has not only emerged as a landmark achievement in the concluding phase of China's 14th Five-Year Plan period (2021-2025), but will also inaugurate a new phase of institutional alignment between China's upcoming 15th Five-Year Plan (2026-2030) and ASEAN’s development vision.

From 1.0 to 3.0: What Makes This Upgrade Fundamentally Different?

CAFTA 3.0 is tailored to new trends in international trade and the priorities of China-ASEAN cooperation. It is future-oriented and people-centred. Both sides commit to explore rules for emerging sectors to facilitate regional economic collaboration and form strategic synergy and deep complementarity with the Regional Comprehensive Economic Partnership (RCEP) Agreement. The characteristics of CAFTA 3.0 include broader scope, higher standards, and greater inclusiveness. Together with the RCEP, it serves as dual engines for the economic integration in our region.

Expanded Scope and Broader Coverage

CAFTA 3.0 encompasses 9 key fields, including digital economy, green economy, supply chain connectivity, standards, technical regulations and conformity assessment procedures, customs procedures and trade facilitation, and sanitary and phytosanitary measures, among others. These fields address core issues related to the transformation of global supply chains and sustainable economic development.

Higher Standards and Closer Collaboration

CAFTA 3.0 represents the highest level of commitment within the respective FTA practices of China and ASEAN. It notably establishes a systematic framework for cooperation. This encompasses both traditional "at-the-border" rules, such as trade facilitation, as well as emerging "behind-the-border" disciplines in digital, green, and supply chains. This comprehensive approach will inject new dynamism into regional economic growth.

Better Inclusivity and Shared Benefits 

CAFTA 3.0 incorporates new chapters like competition and consumer protection, micro, MSMEs, and economic and technical cooperation. By ensuring fair competition for businesses, protecting consumer rights, supporting the development of MSMEs, and enhancing the capacity of the least developed countries to implement the agreement, CAFTA 3.0 enables enterprises and our people across China and ASEAN to benefit more from the sound growth of regional development.

From Bilateral Win-Win to Global Exemplar: Strengthening the Foundation for Collaborative Prosperity

As each other's largest trading partner and important investment destination, China and ASEAN are steadfast supporters of an open and inclusive multilateral trading system. At a time when unilateralism and protectionism severely challenge the international economic order, the signing of CAFTA 3.0 sends a clear message that China and ASEAN are answering economic bullying behaviour with a definitive "N0". Through greater mutual openness, we are demonstrating the robust vitality of free trade, and setting a constructive example for the world.

The year 2026 will mark the fifth anniversary of the China-ASEAN Comprehensive Strategic Partnership. Standing at this new historical juncture, China and ASEAN will collaborate closely toward the expedited entry into force of CAFTA 3.0 and continue to fully and effectively implement the RCEP. Together, we strive to establish a higher-standard integrated regional market and cultivate mutually beneficial industrial and supply chains. These efforts will substantially help us to advance our shared vision of building a home that is peaceful, safe and secure, prosperous, beautiful and amicable, and inject greater stability and certainty into today’s world.

As an ancient Chinese saying goes, “United in purpose and with mutual support, we remain steadfast, now and always.” China will continue to stand firmly with all willing partners, especially ASEAN, to strengthen our collective determination for unity and self-reliance, uphold the principles of multilateralism and mutually beneficial cooperation, and pursue the shared success through openness. Together, we will advance an open global economy and contribute to a brighter future for our region and beyond.