China, ASEAN Finalize Upgraded Free Trade Deal Amid Escalating US Tariff Tensions

Amid intensifying tariff disputes with the United States, China has announced the successful conclusion of negotiations for an upgraded China-ASEAN Free Trade Agreement (FTA) Version 3.0. The new pact, according to Chinese Ambassador to the Philippines Huang Xilian, builds on previous agreements to deepen economic ties between China and the 10-member ASEAN bloc.

Huang expressed confidence that the deal will be signed soon and said it represents a shared commitment to promoting open trade and a fair international economic order.

“This agreement marks a significant leap from Version 2.0. It’s not just about trade—it reflects a unified effort to support free trade in the face of growing protectionism,” Huang stated.

The timing of the announcement is critical. It comes as U.S. President Donald Trump continues to impose historic tariff hikes on Chinese goods—raising them up to 145%, prompting Beijing to retaliate with 125% levies on U.S. imports. Huang criticized the U.S. measures as clear violations of World Trade Organization (WTO) rules, warning that trade wars hurt all economies involved.

He added that the Philippines and other ASEAN nations should be mindful of the broader impact of U.S. protectionist policies and instead focus on regional cooperation.

China remains ASEAN’s largest trading partner, and vice versa. Both sides are also active members of the ASEAN Economic Community, further underscoring their economic interdependence.

Huang reiterated that protectionist trade policies offer no long-term gains, stating: “Trade wars have no winners, and protectionism leads to a dead end.” He emphasized the need for collaboration, not rivalry, between global powers like China and the U.S.

As the region awaits the formal signing of the updated FTA, both ASEAN and China appear poised to advance shared economic growth amid a challenging global trade environment.