ACFTA

ASEAN-China Free Trade Area

China is one of the world’s largest economies and most significant global markets, playing a central role in international trade and investment. With a population exceeding 1.4 billion people, it represents the largest consumer market in the world and remains a key economic partner for ASEAN.

China’s economy is highly diversified and industrialised, with strong capabilities in manufacturing, services, and technological innovation. As the world’s second-largest economy, it is a leading exporter of manufactured goods, including machinery, electronics, and industrial products. Its expanding middle class and growing domestic demand continue to support both regional and global economic activity.

Economic integration between ASEAN and China has deepened substantially over the past two decades. The signing of the Framework Agreement on Comprehensive Economic Cooperation in 2002 laid the foundation for the ASEAN–China Free Trade Area (ACFTA), which has since become a key driver of trade liberalisation, investment flows, and regional economic integration.

Under ACFTA, cooperation is structured around three core pillars:

• the ASEAN–China Trade in Goods Agreement, facilitating tariff reduction and elimination across most tariff lines;
• the Agreement on Trade in Services, supporting liberalisation and improved market access in services sectors; and
• the Investment Agreement, promoting and protecting investment through fair and equitable treatment and non-discriminatory practices.