Jakarta. China officially upgraded its trade deal with ASEAN on Tuesday as Beijing warned the Southeast Asian bloc of the economic coercion by the United States.

The ASEAN-China Free Trade Area, also known as ACFTA, came into effect in 2010. It has seen some upgrades since then, with the latest update being the second one. The ACFTA 3.0 is expected to encompass green and digital economies, consumer protection, and greater inclusivity for smaller businesses. Under the revised agreement, Southeast Asian firms will enjoy simplified customs procedures when exporting to China and vice versa.

ACFTA 3.0 became one of the major outcomes of the Malaysia-chaired 47th ASEAN Summit that had been going on over the past three days. Chinese President Xi Jinping sent his premier Li Qiang for the closely watched gathering with the Southeast Asian economies.

While the new version of the pact could breathe new life into cooperation, Li reminded ASEAN to close ranks to defend their rights amidst external disturbances in the region, alluding to the tariff assault launched by US President Donald Trump.

“External interference in our region is on the rise. Many countries are slapped with unwarranted high tariffs. Development today faces greater risks and challenges,” Li said in the opening session of the ASEAN-China talks.

“In the face of power politics and economic bullying, we will gain nothing from disunity and confrontation, and will only end up divided and conquered by external forces. The more challenging the situation, the more resolute we should be in maintaining unity and self-reliance.”

Malaysian Prime Minister Anwar Ibrahim called the pact a “spectacular feat”. He also pointed out that the ACFTA was the first trade deal that ASEAN struck with a country outside the bloc. 

Chinese data showed that ASEAN-China trade totaled 5.57 trillion yuan (around $785 billion) in the first three quarters of 2025. This marks a 9.6 percent year-on-year increase.

The Indonesian government reported that bilateral trade with China amounted to nearly $97.2 billion from January to August 2025. However, Jakarta ran a deficit of almost $13.1 billion within that time frame.

The rest of the meeting was not open to press coverage.

Li, however, had repeatedly called the ASEAN economies to oppose protectionism during his time in Kuala Lumpur, although the Chinese politician did not specifically mention Trump’s tariff hikes.

Trump had come to the first day of the ASEAN Summit for Washington’s working session with the 11-strong group before departing for Japan. Despite Trump’s tariff hikes casting a shadow over his ties with the Southeast Asian economies, the joint statement published after the meeting shied away from mentioning the import duties.

Trump’s tariffs on ASEAN members range between 10 percent for Singapore to a whopping 40 percent for Myanmar and Laos. Indonesian goods face 19 percent tariffs when they wish to enter the American market. The Central Statistics Agency (BPS) reported that Indonesia’s US-bound exports had dropped 12.39 percent month-on-month in August. The new import duties officially kicked in on Aug. 7. 

China and the US have been on a back-and-forth tariff war, although the two world’s largest economies are currently on a fragile truce. Both governments are gearing up for the historic Trump-Xi meeting in South Korea this week.

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