ASEAN and China will not be able to announce the long-awaited upgrade to the ASEAN-China Free Trade Agreement due to divergent views on trade and investment, according to an informed source.
The source stated that ASEAN and China have made substantial progress in discussions on upgrading the ASEAN-China Free Trade Agreement (ACFTA) 3.0, but both sides have yet to resolve issues related to market access in the trade of goods.
Under Lao chairmanship, reaching a substantial conclusion for ACFTA 3.0 is a priority economic deliverable. The chair plans to announce the outcome at the 27th ASEAN-China Summit next week in Vientiane through a joint leaders' statement.
Last year, two-way trade reached US$696.7 billion, while foreign investment amounted to US$17.3 billion. China remains ASEAN’s largest trading partner and was the bloc’s third-largest source of foreign investment.
The source noted that in recent negotiations, the two sides could not agree on a compromise text regarding increased market access in the trade of goods and upgrading the agreement on goods and investment.
The source pointed out that both ASEAN and China failed to deliver a “meaningful package” that would work for all on these two issues. “They decided not to seal the deal in these areas at this moment,” the source reiterated.
Meanwhile, ASEAN and China have also discussed ways to promote e-commerce in the region.
The source indicated that the ASEAN Secretariat has proposed capacity-building plans to support ASEAN e-commerce by encouraging experienced Chinese e-commerce platform enterprises to share their advanced technology and best practices.
Another idea is to promote e-commerce cooperation between China’s local provinces and ASEAN countries to further benefit enterprises and people on both sides.
Chinese Prime Minister Li Qiang will lead a Chinese delegation to the ASEAN-related summits in Vientiane, Lao PDR, on October 9–11, 2024. The 27th ASEAN-China Summit is scheduled for October 10.
