China is speeding up domestic approval procedures for the China–ASEAN Free Trade Area (FTA) 3.0 Upgrade Protocol, following its signing on October 28. The upgrade marks a significant milestone in China–ASEAN cooperation, extending economic integration beyond traditional trade and investment liberalization to include emerging areas such as digital economy, green industries, standards alignment, and supply chain connectivity.

At a routine press conference on November 13, He Yadong, spokesperson for the Ministry of Commerce (MOFCOM), stated that the 3.0 upgrade is expected to promote regional digital technology adoption, facilitate green industry cooperation, enhance supply chain interconnectivity, and align standards and regulations, thereby supporting the integration of regional markets and supply chains. He noted that enterprises are closely monitoring the protocol because of the commercial opportunities it presents.

Officials from MOFCOM highlighted three main characteristics of the upgrade:

1. Expansion into Emerging Areas: The 3.0 version adds digital economy, green economy, supply chain connectivity, competition and consumer protection, and small and medium-sized enterprises (SMEs). The protocol reflects both sides’ commitment to leading international rulemaking and promoting cooperation in new sectors.

2. Enhanced Market Access: Building on already high levels of openness in goods, services, and investment, the protocol establishes a systematic framework for cooperation across both traditional “border-on” areas, such as trade facilitation, and emerging “border-off” areas, including digital economy, green industries, and supply chains. Specific cooperation fields and key measures are defined to support regional economic growth.

3. Inclusive Development: The protocol incorporates provisions on competition, consumer protection, SMEs, and economic-technical cooperation. It aims to ensure fair business practices, protect consumers’ rights, support SME development, and strengthen the capacities of less-developed countries in the region, facilitating benefits for both Chinese and ASEAN enterprises and populations.

Following the signing, MOFCOM published the full protocol text on the China Free Trade Zone Service Network and provided detailed explanations of its content. He Yadong reported that many local governments and enterprises have already started reviewing the new rules to prepare for the protocol’s implementation. The Ministry is accelerating domestic approval procedures and working with ASEAN counterparts to ensure the protocol enters into force as soon as possible.

He urged local authorities and industry bodies to help enterprises understand and utilize the new rules, enabling businesses to take advantage of the opportunities created by the upgraded China–ASEAN Free Trade Area.