Post by : Rameen Ariff

Singapore Prime Minister Lawrence Wong has called on Southeast Asian and Chinese leaders to swiftly ratify the newly upgraded ASEAN-China Free Trade Agreement (ACFTA 3.0) to unlock greater regional opportunities and growth. Speaking at the ASEAN-China Summit 2025, Mr Wong emphasized that effective implementation of the deal would create stronger economic cooperation, enhance trade connectivity, and benefit millions across the region.

The ASEAN-China Free Trade Agreement, first established in 2002 and operational since 2010, marked China’s first major trade pact and ASEAN’s first agreement with an external partner. The latest ASEAN-China Free Trade Agreement 3.0 upgrade — finalized in May 2025 — aims to expand collaboration into new and fast-growing areas like the digital economy, green energy, and supply chain resilience.

Mr Wong said the upgraded ASEAN-China Free Trade Agreement would remove trade barriers, boost regional supply chains, and help businesses across ASEAN nations and China access new growth sectors. “The upgrade will further strengthen supply chain connectivity and open doors in future growth areas,” he stated, describing the agreement as a “significant achievement” for the region.

According to Singapore’s Ministry of Trade and Industry (MTI), the new ASEAN-China Free Trade Agreement 3.0 includes stronger rules against unfair trade practices, ensuring fair competition and better protection for consumers — both online and offline. It also introduces measures to improve investment cooperation and foster sustainable economic practices.

Since 2010, trade between ASEAN and China has grown by over 220%, with total trade reaching US$777.2 billion (S$1 trillion) in 2024. China remains ASEAN’s largest trading partner and the third-largest investor, contributing US$19.3 billion in foreign direct investment last year. Major traded goods include electrical machinery, mechanical appliances, fuels, and medical equipment.

Prime Minister Wong urged both ASEAN and China to deepen cooperation beyond trade and focus on strengthening digital connectivity, green growth, and infrastructure. He highlighted the ASEAN Power Grid as an example of regional collaboration that could enhance energy resilience, reduce carbon emissions, and generate long-term benefits for all member states.

Mr Wong noted that China, being the world’s largest renewable energy producer, could play a vital role in supporting ASEAN’s sustainability goals. “Singapore will continue to work with China to promote sustainable growth through initiatives like the Third Country Training Programme,” he said.

Addressing the broader geopolitical context, the Singapore Prime Minister stressed that maintaining peace and trust in the South China Sea is crucial for continued prosperity. “There will always be differences in views, but we all agree that peace, stability, and freedom of navigation are essential,” he added. He encouraged efforts to establish a substantive and effective Code of Conduct, aligned with international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS).

ASEAN and China will celebrate 35 years of dialogue relations in 2026. Mr Wong expressed confidence that the upgraded ASEAN-China Free Trade Agreement would serve as a cornerstone for inclusive and sustainable regional growth. “If ASEAN and China continue our joint efforts, we can drive lasting prosperity for all our peoples,” he concluded.

On the sidelines of the summit, Mr Wong also met Vietnamese Prime Minister Pham Minh Chinh for the 2nd Singapore-Vietnam Annual Leaders’ Meeting, where both leaders reaffirmed their Comprehensive Strategic Partnership and discussed collaboration in renewable energy, digital technology, and agri-trade.

The summit also featured high-level dialogues between ASEAN and partners like New Zealand and Australia, emphasizing shared goals in digital transformation and green transition initiatives.

#Global