ASEAN, made up of 10 Southeast Asian countries, is China's largest trading partner, with the value of total trade reaching $234 billion in the first quarter of 2025, according to Chinese customs data.
Negotiations began in November 2022, and the agreement covers areas including the digital economy, green economy, and supply chain connectivity, the statement said.
China has intensified engagement with ASEAN since U.S. President Donald Trump announced hefty import tariffs on countries around the world and targeted China with even heavier levies. Some of the levies have since been delayed while China and the U.S. agreed this month to pause some of their tariffs.
The formal signing of the trade agreement is expected to take place before the end of the year. The ASEAN-China Free Trade Area was first signed in 2002 and came into force on January 1, 2010.
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