What's Happening?
ASEAN is working to deepen its trade relationship with China, as highlighted during the China-ASEAN Industry Ministerial Roundtable Meeting. Dr. Kao Kim Hourn, Secretary-General of ASEAN, emphasized the importance of industrial cooperation and regional integration. ASEAN aims to enhance its industrial base and integrate into global value chains, focusing on green industries, digital manufacturing, and resilient supply chains. The upgraded ASEAN Trade in Goods Agreement (ATIGA) and the ASEAN-China Free Trade Area (ACFTA) are set to address emerging trade issues and promote sustainability and innovation.
Why It's Important?
Strengthening trade ties with China is crucial for ASEAN's economic growth and competitiveness. The region's focus on industrial cooperation and integration into global value chains can drive economic development and job creation. The upgraded trade agreements aim to reduce barriers, enhance trade resilience, and support sustainable practices, benefiting both large firms and SMEs. This collaboration can also help ASEAN navigate geopolitical uncertainties and shifting supply chains, ensuring its continued relevance in the global economy.
What's Next?
The upgraded ATIGA and ACFTA agreements are expected to be signed during the upcoming ASEAN-China Summit. These agreements will facilitate deeper economic integration and cooperation in emerging industries. ASEAN's Industrial Project-Based Initiative will focus on joint projects in advanced manufacturing and green technologies, aligning with the ASEAN Community Vision 2045. The partnership with China offers opportunities to strengthen regional value chains and foster innovation-driven growth.
