China, ASEAN seal trade deal upgrade

China and the Association of Southeast Asian Nations (ASEAN) have concluded talks on an upgraded free trade agreement that expands into digital and green economy sectors, China's commerce ministry said Wednesday. The 3.0 version of the ASEAN-China Free Trade Area aims to deepen supply chain integration and boost regional trade resilience amid global uncertainty. ASEAN is China's largest trading partner, with bilateral trade reaching USD234bn in Q1 2025. Negotiations began in late 2022 and the deal is expected to be signed by year-end. The move follows Beijing’s push to strengthen regional ties in response to ongoing trade friction with the US President Xi Jinping’s recent Southeast Asia tour underscored China’s call for unity against unilateralism and protectionism.