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China-ASEAN Free Trade Area upgraded to version 3.0

By Zhang Li | chinadaily.com.cn | Updated: 2025-09-18 20:00
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Kao Kim Hourn, secretary-general of the Association of Southeast Asian Nations (ASEAN), receives a joint interview on Wednesday in Nanning, South China's Guangxi Zhuang autonomous region. [Photo provided to chinadaily.com.cn]

Nanning in the Guangxi Zhuang autonomous region hosted the 22nd China-ASEAN Expo on Wednesday, where an agreement was signed for the Version 3.0 China-ASEAN Free Trade Area (CAFTA).

Kao Kim Hourn, secretary-general of the Association of Southeast Asian Nations (ASEAN), said at the event that the signing would elevate ASEAN-China economic ties, with bilateral trade poised to reach $1 trillion.

Kao noted that the upgrade comes as the two sides already stand as each other's largest trading partners — a relationship that will grow stronger amid global economic uncertainties.

This year's China-ASEAN Expo focused on aligning AI with the 3.0 deal's digital goals, Kao said, adding that it would work with the ASEAN Digital Economy Framework Agreement (DEFA), due next year, to create seamless digital trade.

He highlighted energy cooperation — like ASEAN's $7 billion cross-border power grid — and EV production as key areas, leveraging China's expertise.

Kao also stressed people-to-people ties, noting the first ASEAN-China tourism ministers' meeting next year.

"The expo and CAFTA 3.0 together unlock enormous potential," he said. "We're building shared growth."

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