Asean’s decision to renew the block Free Trade Agreement (FTA) with China aims to align the pact with current developments in technology, the economy and geopolitics, said Foreign Minister Datuk Seri Mohamad Hasan.
KUALA LUMPUR: Asean’s decision to renew the block Free Trade Agreement (FTA) with China aims to align the pact with current developments in technology, the economy and geopolitics, said Foreign Minister Datuk Seri Mohamad Hasan.
He said the renewed agreement – dubbed the Asean-China FTA 3.0 Upgrade Protocol – would allow both parties to recalibrate their trade and investment relations to reflect present-day realities.
“We undertook the efforts to renew the Asean-China FTA 3.0 so that it can be harmonised with current changes in technology, economy and geopolitics.
“This renewal will allow us to realign our trade and investment relations with China,” he said,” Mohamad told reporters at the sideline of Asean-China summit today.
Earlier, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Aziz and Chinese Minister of Commerce Wang Wentao signed the Asean-China FTA 3.0 Upgrade Protocol, witnessed by Malaysian Prime Minister Datuk Seri Anwar Ibrahim, Chinese Premier Li Qiang, along with other Asean leaders and delegates.
Over the years, Asean and China have expanded and modernised their trade ties to meet evolving economic needs.
The latest upgrade, ACFTA 3.0, signed at the 47th Asean Summit today, further strengthens these relations by broadening tariff reductions, improving market access for key sectors, and enhancing cooperation on critical supply chains, technology, and sustainable trade practices.
For Malaysia, China has remained the country’s largest trading partner for 16 consecutive years, with bilateral trade reaching RM161.98 billion as of April 2025, driven largely by electrical and electronics (E&E) exports.
The upgraded free trade pact is expected to provide Malaysian exporters with better access to China’s market while also encouraging joint investment projects in strategic sectors.
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