China Signs Expanded ASEAN Trade Pact, Positioning Itself as Alternative to U.S. Protectionism

China and ASEAN have agreed to an expanded free trade pact aimed at boosting trade and investment across one of the world’s fastest-growing regions. Premier Li Qiang framed the deal as a show of unity and a counter to what he described as global “economic coercion and bullying,” a clear swipe at Washington’s trade policies.

The new ASEAN-China Free Trade Area 3.0 was signed at the bloc’s annual summit in Kuala Lumpur, attended by Li and Malaysian Prime Minister Anwar Ibrahim. The agreement builds on the original 2002 pact and now covers areas such as digital trade, green growth, and easier access for small and medium-sized enterprises.

Trade between China and ASEAN has surged from 235 billion dollars in 2010 to nearly 1 trillion dollars last year, making the two sides each other’s top trading partners. Li described ASEAN members as “good neighbors and good brothers,” stressing that cooperation could protect regional economies from external shocks.

However, not all leaders were convinced. Philippine President Ferdinand Marcos Jr. welcomed the economic benefits but warned that “cooperation cannot exist alongside coercion,” referencing ongoing tensions in the South China Sea. He criticized recent Chinese actions near disputed waters and called for “meaningful engagement” based on international law.

Despite political friction, analysts say the new trade framework could strengthen supply chains and regional sustainability efforts. Bridget Welsh, a Southeast Asia political analyst, said the pact “reflects how non-U.S. economies are deepening ties to secure prosperity while global realignment continues.”

ASEAN leaders emphasized their goal of maintaining balance between the world’s two largest economies. Anwar noted that ASEAN’s engagement with both Washington and Beijing demonstrates its central role in regional diplomacy.

The upgraded trade pact is expected to enhance economic integration among ASEAN’s ten members and China by streamlining customs procedures, reducing tariffs, and opening new avenues for investment. While territorial disputes remain, regional governments appear eager to separate political tensions from trade — keeping economic cooperation with China at the heart of ASEAN’s growth strategy.