China signs expanded version of FTA with ASEAN

Kuala Lumpur: China signed an expanded version of a Free Trade Agreement (FTA) with the Association of Southeast Asian Nations as both face increased protectionism from the United States, and Chinese Premier Li Qiang emphasised his country's close ties with the region.

“Unity is strength,” Li Qiang told an ASEAN-China summit meeting after the signing, stressing that closer cooperation could help overcome global economic uncertainties. 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. Southeast Asian political analyst Bridget Welsh said the upgraded pact would benefit both sides, especially in the areas of supply chains and sustainability.