KUALA LUMPUR, Malaysia (AP) — China signed an expanded version of a free trade agreement Tuesday with the , with Chinese Premier Li Qiang pitching expanded economic ties with his country as an alternative to the protectionist policies of U.S. President Donald Trump.
Li Qiang told an ASEAN-China summit meeting after the signing that closer cooperation could help overcome global economic uncertainties. He said “pursuing confrontation instead of solidarity brings no benefit” in the face of economic coercion and bullying, in a swipe at the U.S.
“Unity is strength,” he said, citing remarks by President Xi Jinping made during a Southeast Asia visit earlier this year.
The signing of the ASEAN-China Free Trade Area 3.0 came on the final day of the annual ASEAN summit and related meetings and was witnessed by Li Qiang and Malaysian Prime Minister Anwar Ibrahim, who is serving as ASEAN chair this year.
It’s the third revision of 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 lowers tariffs on goods and boosting flows of services and investment.
Two-way trade has surged from $235.5 billion in 2010 to nearly $1 trillion last year.
Li stressed “mutual reliance” between China and ASEAN members Brunei, Cambodia, East Timor, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam, calling them “good neighbors and good brothers that are close in geography, culture and sentiment.”
“Unilateralism and protectionism have seriously impacted the global economic and trade order, while external forces are increasing their interference in the region — many countries have been unreasonably subjected to high tariffs,” he said.
“By relying on each other and coordinating our actions, we can safeguard our legitimate rights and interests.”
Southeast Asian political analyst Bridget Welsh said the upgraded pact would benefit both sides, especially in the areas of supply chains and sustainability.
“It also speaks to a global reality that non-U.S. countries are coming together to strengthen trade relationships for their prosperity as a recoupling with the U.S. is ongoing,” she said,
The prospect of a deepening trade conflict between China and the U.S. has risked .
Trump at the ASEAN summit on Sunday announced new economic details with Cambodia, Malaysia, Thailand and Vietnam, though all countries are still subject to new tariffs he has brought in.
Malaysia’s Prime Minister Anwar Ibrahim, whose country holds this year’s rotating chair of ASEAN, stressed at the meeting with China that the bloc seeks friendly relations with all countries.
“The day before we were with President Donald Trump of the United States of America, and today we are back with China,” he said. “And that reflects ASEAN centrality … This is what we consider steady engagement that fosters trust that enables us to work through challenges together.”
There were also signs that tensions between the U.S. and China were cooling ahead of a between Trump and Chinese leader Xi Jinping, which is expected to take place in South Korea on Thursday. Top negotiators from each country said a trade deal was , which could prevent a potentially damaging confrontation between the world’s two largest economies.
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, the 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 lower regulatory barriers.
“ASEAN–China cooperation is important primarily because China has been ASEAN’s largest trading partner for many years. But one must also take note that ASEAN is now equally important to China, making it a two-way relationship in trade,” Malaysia’s Trade Minister Zafrul Aziz said Sunday.
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