China updates free trade deal with Asean as US tariff war escalates

China and Asean conclude negotiations to modernise their 15-year-old FTA, even as Beijing and Washington agree to a 90-day tariff truce following weeks of trade retaliation

China and the Association of Southeast Asian Nations (Asean) have concluded negotiations to upgrade their 15-year-old free trade agreement, even as Beijing and Washington navigate a fragile trade truce, South China Morning Post reported.

 

The announcement was made by China’s Commerce Minister Wang Wentao, following a virtual meeting with Asean counterparts. The updated agreement is now awaiting ratification from member states and is expected to be signed later this year.

 

China: ‘Ready to safeguard global supply chains’

 

“China stands ready to work with Asean to ensure the stability of global supply chains, advance shared development and safeguard international fairness and justice,” Wang said.

 

 

The revised agreement introduces provisions across nine new chapters, covering:

 

• Green and digital economies
• Customs procedures
• Supply chain integration
• Cybersecurity and digital payments
• Infrastructure cooperation

 

US–China trade truce after tariff war

 

The move comes amid an ongoing 90-day US–China tariff truce, announced after both nations agreed in Geneva to de-escalate their retaliatory measures.

 

On May 12, Washington and Beijing agreed to:

 

• Reduce US tariffs on Chinese goods from 145 per cent to 30 per cent
• Lower Chinese tariffs on US goods from 125 per cent to 10 per cent

 

These adjustments followed a month-long escalation, triggered by the US announcing “reciprocal tariffs” on over 100 nations on April 2. China responded by imposing additional duties on US-made goods, prompting countermeasures from the Trump administration.

 

Beijing pushes for deeper regional integration

 

Despite the US truce, Beijing is expanding economic partnerships, particularly with Asean and the European Union. The Ministry of Commerce described the new agreement as a “strong message in support of free trade and open cooperation.”

 

The Asean upgrade follows nine rounds of negotiations over the past two years and is seen as a strategic step by China to deepen regional economic ties amid global supply chain disruptions and geopolitical tensions.