# China and ASEAN trade deal speeds up business exchanges

- Link: https://www.thailand-business-news.com/asean/329080-china-and-asean-trade-deal-speeds-up-business-exchanges
- Published: 2026-09-19T01:46:00+07:00
- Author: Jessica Lee

China and ASEAN are strengthening economic integration through trade, supply chains,
and consumer markets, driven by CAFTA 3.0 and RCEP agreements that lower trade barriers.
The upcoming 23rd China-ASEAN Expo in Nanning will highlight opportunities in digital
economy, green development, and supply chain connectivity, extending cooperation
beyond traditional trade frameworks.

Trade data shows strong momentum, with China-ASEAN trade reaching 5.95 trillion 
yuan in the first eight months of 2026, up 20.6 percent year-on-year. Companies 
like Ruijie Networks and Futaihua Precision Industry report substantial export and
import growth, while Shandong province cites ASEAN as its largest import source.

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China and ASEAN are deepening economic integration through trade, supply chains,
and consumer markets. CAFTA 3.0 and RCEP agreements lower trade barriers, enabling
easier regional business operations. The 23rd China-ASEAN Expo will highlight opportunities
in digital economy, green development, and supply chain connectivity. China-ASEAN
trade reached 5.95 trillion yuan in early 2026, growing 20.6% year-on-year.

## Key Points

• China and ASEAN are deepening economic ties through trade, supply chains, and 
consumer markets, with CAFTA 3.0 and RCEP expected to lower trade barriers and expand
cooperation into digital economy and green development sectors.

• Chinese companies are increasingly sourcing, manufacturing, and selling within
Southeast Asia while ASEAN businesses gain greater access to China’s consumer markets,
with China-ASEAN trade reaching 5.95 trillion yuan in the first eight months of 
2026, up 20.6 percent year-on-year.

• The 23rd China-ASEAN Expo will highlight opportunities from CAFTA 3.0, with companies
like Ruijie Networks experiencing significant growth, particularly in networking
equipment exports to Singapore, Malaysia, and Indonesia amid rising digital infrastructure
investment.

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## China-ASEAN Economic Integration

### Deepening Trade and Economic Interconnection

China and ASEAN member states are experiencing unprecedented economic convergence
through integrated trade, supply chains, and consumer markets. This deepening relationship
extends beyond conventional cooperation frameworks, driven by two critical agreements:
the **China-ASEAN Free Trade Area 3.0 Upgrade Protocol (CAFTA 3.0)** and the **Regional
Comprehensive Economic Partnership (RCEP)**. Both agreements aim to significantly
lower trade barriers and streamline business operations across regional markets.

The 23rd China-ASEAN Expo in Nanning will showcase opportunities emerging from CAFTA
3.0 while promoting collaboration in digital economy, green development, and supply
chain connectivity. According to experts like Xu Liping from the Chinese Academy
of Social Sciences, production networks have fundamentally reshaped the China-ASEAN
relationship, enabling Chinese companies to source and manufacture regionally while
providing ASEAN businesses greater access to China’s vast consumer markets.

### Modernization Beyond Traditional Trade

**Expanding into Digital and Green Economy Sectors**

CAFTA 3.0, signed in October 2025, represents the latest evolution of cooperation
that began in 2002 and fully implemented in 2010, with upgraded protocols following
in 2015 and 2019. Lin Honghong, vice-chairperson of the China Council for the Promotion
of International Trade, emphasizes that **the agreement extends cooperation into
digital and green economies**, creating unprecedented opportunities for industrial
and supply chain integration. This expansion reflects changing business priorities
and regional development needs, transcending conventional trade and investment frameworks
to address emerging economic sectors that will define future growth.

### Robust Trade Performance and Real-World Success

**Impressive Growth Metrics and Corporate Expansion**

Trade statistics validate the economic momentum. China-ASEAN trade reached **5.95
trillion yuan ($886 billion) in the first eight months of 2026**, representing 20.6
percent year-on-year growth. Regional data demonstrates tangible results: Ruijie
Networks’ ASEAN exports surged 93 percent to 1.44 billion yuan, driven by rising
demand for networking equipment across Singapore, Malaysia, and Indonesia. Similarly,
Futaihua Precision Industry imported over 300 million yuan of Southeast Asian components—
a remarkable 320 percent increase. Shandong province reports ASEAN as its largest
import source at 196.66 billion yuan, demonstrating that **integration extends across
multiple Chinese provinces and sectors**, creating broad-based economic benefits
throughout the region.