The third round of negotiations for the 3.0 version of the China ASEAN Free Trade Area was recently held in Kunming, Yunnan. Since the signing of the Comprehensive Economic Cooperation Framework Agreement between China and ASEAN in 2002, the construction of the China ASEAN Free Trade Area has been continuously upgraded, and the degree of market openness has gradually expanded.
From version 1.0 to version 3.0 of the Free Trade Zone, from building "hard connectivity" to strengthening "soft connectivity", and expanding from traditional fields to emerging digital and green fields, China ASEAN cooperation in multiple fields is further deepening and upgrading.
Further upgrading of free trade zones
"Southeast Asian countries welcome the upgrade of the China ASEAN Free Trade Area because it is a truly influential free trade agreement, and its upgrade will have significant effects," reported the Bangkok Post in Thailand.
The China ASEAN Free Trade Area is the first and largest free trade area negotiated by China with foreign countries. It was implemented in 2002 and fully completed in 2010. Under the promotion of various preferential policies in the free trade zone, from 2002 to 2018, the two-way trade between China and ASEAN increased by more than 10 times, and the two-way investment increased by nearly 5 times.
In 2019, the China ASEAN Free Trade Area was upgraded to version 2.0, and both sides further opened up their markets.
In November 2022, China and ASEAN launched negotiations to upgrade the China ASEAN Free Trade Area 3.0, and two rounds of negotiations were held in February and April 2023, covering areas such as trade in goods, investment, digital economy, and green economy.
Foreign media focuses on the orderly progress of negotiations on the 3.0 version of the China ASEAN Free Trade Area, and pays attention to the negotiations as a blueprint for deepening cooperation between the two sides.
Vietnam News Agency said that the third round of negotiations on the China ASEAN Free Trade Area (CAFTA) version 3.0 aims to ensure that the CAFTA will help to further deepen and expand bilateral economic relations and the economic recovery of the region in the post COVID-19 era. The negotiations released a positive signal - ASEAN and China have committed to building the CAFTA to be more suitable for multinational enterprise cooperation, to meet future development needs, and to prepare for addressing various global challenges.
Olamon Sutaweton, Director of the Trade Negotiation Department of the Ministry of Commerce of Thailand, stated that the construction of the China ASEAN Free Trade Area 3.0 version will promote both sides to expand production, strengthen regional connectivity, deepen cooperation in industrial chains, supply chains, and value chains, in order to cope with the complex world economic situation.
At the same time, China and ASEAN are closely cooperating under multilateral cooperation mechanisms such as the Regional Comprehensive Economic Partnership (RCEP) and ASEAN China Japan South Korea (10+3), sharing opportunities for regional economic integration and attracting foreign media attention.
According to Latin American News Agency, on June 2 this year, the Philippine government completed the approval procedure of RCEP, marking the full effectiveness of RCEP in all partner countries. The agreement seeks to promote trade and cooperation by gradually reducing tariffs on goods, simplifying cumbersome business transactions between member countries. Analysts believe that it will become a catalyst for global recovery after the COVID-19 epidemic and help the region move towards the global economic center.
The ASEAN, China, Japan, and South Korea Macroeconomic Research Office recently released a report stating that in 2023, the "10+3" region will achieve a rapid growth of GDP of 4.6%. The return of Chinese tourists will drive the recovery of ASEAN's tourism industry, especially the tourism industries in Cambodia and Thailand. More than ever before, the "10+3" initiative requires continued commitment to free trade and regional economic integration, strengthening cooperation in multiple fields such as climate change, and fully utilizing the opportunities for regional economic growth.
Deep cooperation in multiple fields
This year marks the 20th anniversary of the establishment of the strategic partnership between China and ASEAN, as well as the 10th anniversary of the proposal to build a closer China ASEAN community with a shared future. Foreign media have been paying attention to the fruitful results of deepening cooperation between China and ASEAN in multiple fields in recent years, demonstrating the vitality of sustainable development.
According to an article published on Bloomberg's website, China's emphasis on afforestation and sustainable use of nature has achieved significant results, and this model is being spread to Southeast Asia. Former Executive Director of the United Nations Environment Programme, Eric Solheim, stated that achieving green transformation together is an important part of China ASEAN cooperation. The strong economic ties and friendly relations between China and ASEAN have laid a solid foundation for cooperation in the field of ecological protection. China has announced that it will stop investing in new coal-fired power plants overseas, providing significant opportunities for ASEAN countries to obtain large-scale investments in areas such as solar energy, wind energy, and green hydrogen energy. The concept of "ecological civilization" proposed by China provides unique development concepts and references for other countries.
According to the Australian Loy Interpreter website, the presence of Chinese enterprises is eye-catching in the grand landscape of 100 "smart cities" in Indonesia. This year, some Chinese companies have signed memorandums of understanding with Indonesia regarding investment in various economic sectors, which is conducive to encouraging Chinese investors to invest in the field of smart cities. China is also investing in the development of smart cities in other parts of Southeast Asia. Recent research findings indicate that Chinese companies have invested in two smart city projects in the Philippines over the past decade - New Clark City and New Manila Bay - Pearl City. The China Development Bank has also invested in Thailand, and in 2020, China also supported the construction of the new Yangon urban development project in Myanmar. "Mutual benefit may be a common slogan in international cooperation, but China and Southeast Asian countries' joint construction of smart cities will truly achieve this," the report pointed out.
In the field of new energy vehicles, the hot demand for Chinese electric vehicles in ASEAN countries is also a microcosm of China's economic and trade exchanges with ASEAN. According to an article published on the website of Singapore's Lianhe Zaobao, the total market size of electric vehicles in ASEAN countries will reach nearly 500 million dollars in 2021, and is expected to exceed 2.6 billion dollars by 2027. Chinese car companies had already identified business opportunities several years ago and planted seeds in the Singapore electric vehicle market.
"Soft connectivity" is tighter
The 11th China ASEAN Technology Transfer and Innovation Cooperation Conference will open on July 12th. During this period, a series of activities such as the 5th 10+3 Young Scientists Forum, the 1st China ASEAN Artificial Intelligence Cooperation Forum, and the China ASEAN Technology Docking Conference will provide an exchange platform for deepening ASEAN cooperation. China and ASEAN countries have strengthened their "soft connectivity" in various fields such as education, culture, tourism, and media, attracting attention from foreign media.
"In Luang Prabang in the north of Laos, there are many historic temple buildings, and the whole city has been designated as a world heritage. More and more Chinese people come here for sightseeing." The Nihon Keizai Shimbun recently reported that the recovery of tourism has made great contributions to Laos' economic growth, and the fully opened China Laos railway is the engine. This railway, which connects the capital of Laos, Vientiane, and the capital of Yunnan Province, Kunming, China, has a total length of about 1000 kilometers. International freight trains will start operating in December 2021, and international passenger trains will start operating in April 2023. The plan of the Laotian government includes training tour guides who can speak Chinese, opening more flights connecting major cities in China and Laos, opening up mobile payments, and encouraging private enterprises to actively participate. The Chinese government also provides support for its citizens to travel to Laos.
According to the Bangkok Post website, Thailand and China have jointly launched a training program at Chiang Mai University in Thailand to promote the enhancement of e-commerce skills among Thai vocational college students. The organizer of the training program stated that the characteristic of the "Chinese+Vocational Skills" e-commerce training program is to combine Chinese e-commerce experience with the characteristics of the Thai market. Songpeng, Deputy Secretary General of the Vocational Education Commission of the Ministry of Education of Thailand, introduced that this training program is one of several cooperative projects between Thailand and China. Hao Shumei, Vice President of Yunnan Normal University, who provided support for the training program, stated that the program will further promote the in-depth development of cultural and economic exchanges between China and Thailand.
In recent years, as media exchanges and cooperation between China and ASEAN countries have become increasingly close, China and ASEAN have joined hands to issue a more resounding "Asian voice" on the international stage. Recently, the 2023 ASEAN Partners Media Cooperation Forum was held in Nanning, Guangxi. Kanpei Pilapa, President of the Lao Pat Lao News Agency, stated that media development has moved towards digitization, and ASEAN and China need to work together to promote media innovation, strengthen information exchange, and promote common prosperity and development.
