China announces new free trade agreement with ASEAN amid tariff disputes with US

In light of the ongoing tariff conflicts between the United States and China, Chinese Ambassador to the Philippines Huang Xilian has announced that negotiations for an updated version of the China-ASEAN Free Trade Agreement (FTA) have concluded successfully. This new agreement, known as version 3.0, builds upon the prior version 2.0 and seeks to strengthen trade relations between China and the member countries of the Association of Southeast Asian Nations (ASEAN).

"That’s why we are very happy that the negotiation of version 3.0 of the China-ASEAN Free Trade Agreement has been substantially concluded; it is a significant advancement from version 2.0," Huang said.

He shared his satisfaction with the completion of the discussions, adding that the new agreement will further facilitate free trade among China and ASEAN nations. He expressed optimism that version 3.0 will be signed soon, reflecting the mutual aims of China and ASEAN members to support free trade and uphold a just international economic landscape.

"It will further promote free trade between China and ASEAN member states, and we hope that version 3.0 will be officially signed in the near future to highlight the common aspiration of China and ASEAN countries in safeguarding free trade and ensuring a fair and open international economic order," Huang said.

Regarding the effects of US tariff policies, Huang indicated that the Philippines should primarily concentrate on the repercussions of these tariffs on China and other nations.

US President Donald Trump has imposed the heaviest tariffs the US has levied in more than a century, reserving the heaviest blow for China, on which he raised levies on imports to 145%. Beijing has responded by imposing 125% levies on American goods bound for China.

Huang said Trump’s actions are obvious violations of World Trade Organization (WTO) guidelines, and that such tactics are detrimental to all involved, including China.

Despite the US push for increased tariffs on imported items, Huang underscored the significance of establishing the free trade agreement among China, the Philippines, and other ASEAN member states. 

"ASEAN is the largest trading partner of China, and China is the largest trading partner of all ASEAN member states. We have a significant stake in a free and fair international trading system. Both China and ASEAN member states are also engaged in the China-ASEAN free trade agreement, and we are also members of the ASEAN Economic Community," he said.

Huang further conveyed that both China and ASEAN have a mutual interest in protecting free trade and addressing shared challenges together. "Trade wars have no winners," he said, and cautioned that "protectionism leads to a dead end." Instead of perceiving the economic achievements of China and the US as threats to each other, he emphasized the potential for collaborative opportunities that could benefit both economies.

As the region anticipates the rollout of the new FTA, the focus remains on partnership and shared growth amid the complexities of global trade dynamics. — BM, GMA Integrated News