Asean-China

by AKMAR ANNUAR & FARAH SOLHI

ASEAN’S total trade with China surged to US$770.94 billion (RM3.27 trillion) in 2024, a 10.61% increase from the year before, solidifying both sides as each other’s largest trading partner for the fourth consecutive year.

Foreign Minister Datuk Seri Mohamad Hasan said the economic relationship has proven resilient amid global headwinds, adding that the upgrade of the ASEAN-China Free Trade Area (ACFTA 3.0) later this year would offer a timely boost to regional cooperation.

“Through this agreement, ASEAN and China will be able to fortify our economic cooperation and resilience during these challenging times and beyond,” he said during opening remarks at the ASEAN Post-ministerial Conference (PMC) with China in Kuala Lumpur today.

Malaysia currently serves as country coordinator for ASEAN-China Dialogue Relations.

Mohamad described the ASEAN-China partnership as one of the bloc’s “most substantive and dynamic”, built on “mutual trust, shared interests and growing economic interdependence”.

The ACFTA 3.0 negotiations aim to modernise trade rules, streamline customs procedures and enhance digital trade and green economy cooperation. 

The upgrade comes as ASEAN member states seek to diversify supply chains and maintain competitiveness in a volatile global market.

Malaysia, as ASEAN Chair for 2025, is anchoring its regional diplomacy around the theme of “Inclusivity and Sustainability”. 

The country is expected to play a key role in pushing through consensus on new-generation trade provisions.

In a broader context, the PMC — held annually — serve as platforms for ASEAN to engage with major partners. Today’s sessions also included meetings with Australia, India, Japan, the US and others under a rotating coordinate system.

On geopolitical concerns, Mohamad reiterated ASEAN’s call for restraint in the South China Sea, warning that tensions must not be allowed to undermine regional stability or disrupt global trade.

“We must ensure that geopolitical tensions do not escalate or threaten to undermine security and global trade in the South China Sea,” he said.

He added that ASEAN welcomed progress on negotiations for a Code of Conduct (COC) in the South China Sea, expressing hope that a substantive agreement could be concluded in the not-too-distant future.

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