The renewed progress by China-ASEAN Expo

Editor's note: Huang Yongfu is a special commentator for CGTN on economic affairs. After earning a PhD in economics, he started his career at the University of Cambridge and then moved on to the UN system. His current interests lie in Sino-U.S. links and global development. The article reflects the author's opinions and not necessarily the views of CGTN.

The 22nd China-ASEAN Expo (CAEXPO) and China-ASEAN Business and Investment Summit are being held in Nanning, Guangxi Zhuang Autonomous Region, from September 17 to 21.

The event, themed "Digital Intelligence and Innovation empower Development – Leveraging ASEAN-China FTA 3.0 new opportunities for an even closer ASEAN-China community with a shared future," has attracted more than 3,200 companies from 60 countries.

A new 10,000-square-meter AI pavilion opens for the first time, featuring nearly 200 leading tech enterprises and startups, including Huawei, Alibaba Cloud and iFlytek. Member countries are accordingly shifting their exhibits from traditional industrial products toward higher value-added products, covering manufacturing, energy, shipping and smart agriculture.

The event carries special weight this year as it marks the 15th anniversary of the China–ASEAN Free Trade Area (CAFTA) and accelerates the signing of the Version 3.0 China-ASEAN Free Trade Area (CAFTA 3.0) protocol. It comes at a critical juncture, as world trade and geopolitics worsen amid rising unilateralism and protectionism from Western powers such as the United States.

To safeguard global supply chain

Owing to geographical proximity and cultural affinity, China and ASEAN are like-minded partners that have stood by each other on the path toward modernization.

Amid rising trade barriers and the U.S.'s "America First" policy, the significance of Southeast Asia in China's neighborhood diplomacy strategy becomes increasingly prominent. The significance of the expo, along with cooperation mechanisms, is amplified as well. The challenge threatens global supply chains, creates uncertainty for investment and undermines the benefits of globalization.

The CAFTA officially took effect in 2010, while CAFTA 2.0 was fully implemented in 2019, after both sides reached an agreement on the upgrade in 2015. The CAFTA 3.0 upgrade will support the high-quality development of the Belt and Road Initiative (BRI), and increase China's engagement with other Global South countries and participation in the reform of the global governance system.

The event, as well as cooperation mechanisms, links the world's second-largest economy China with ASEAN, which is among the fastest-growing regional blocs. The expo serves as a crucial platform for deepening cooperation between China and ASEAN, a model of cross-border openness and cooperation across different development stages and cross-civilization integration, and a landmark achievement for regional and global diplomacy.

China-ASEAN trade has kicked into high gear in recent years. China has been ASEAN's largest trading partner since 2009, while 10-nation group has been China's largest trading partner for five consecutive years. The bilateral trade rose 9.7 percent year-on-year to $686.8 billion between January and August this year. As of July this year, the cumulative two-way investment has exceeded $450 billion.

Driven by closer supply chain connectivity and vast consumer market potential, China and the ASEAN will jointly foster a new paradigm of mutually beneficial cooperation that works for global supply chain resilience.

To promote a community with a shared future of mankind

The Global Governance Initiative, recently proposed by Chinese President Xi Jinping, calls for deeper multilateralism under the United Nations and other global fora. The initiative reflects this inclusive vision. The successful upgrade of CAFTA 3.0 signals a shift toward more inclusive, multipolar global governance.

As the world is fraught with unprecedented challenges associated with U.S. tariffs, participating in multilateral frameworks such as CAFTA 3.0, ASEAN member countries can reduce vulnerability to global uncertainties and benefit from the reorganization of global supply chains.

The CAEXPO demonstrates that cross-regional partnership can offer a counterbalance to unilateralism and protectionism on global supply chain. Rather than building walls, the event aims to create economic corridors, shared markets and development pathways that benefit not just member states but also developing countries worldwide.

The CAFTA 3.0 upgrade shows a strategic opposition by China and ASEAN to United States-led unilateralism and "de-risking" agenda. It underscored a broader alignment of the Global South. It could set an example for the world in terms of an "Asian Solution" to global economic governance and a more resilient and comprehensive community with a shared future.

Beijing is ready to work toward a closer China-ASEAN community with a shared future, jointly defending the common interests of the Global South, bringing more benefits to peoples in the region and contributing to regional and global peace and development.

To boost global trade

China and ASEAN have complementary strengths to leverage: ASEAN consumer demand is surging in areas such as electronics, digital and green products and technologies, while China's industrial capacity, price affordability and supply reliability position make it a natural supplier.

The CAFTA 3.0 upgrade has been seen as a huge development in terms of global cooperation with profound economic and political impacts amid mounting challenges to global trade. It is not just a trade pact, but a stable and reliable economic blueprint for Asia's future. It is not only crucial for promoting regional development but also has the potential to inject much-needed momentum and confidence into the world economy.

The digital economy, which is one of the nine new chapters added to CAFTA 3.0, is poised to serve as catalysts for China and ASEAN to scale up their economic cooperation going forward. China and ASEAN will prioritize the development of digital infrastructure, cross-border e-commerce and cutting-edge technologies such as AI and big data to empower industrial transformation and upgrading.

The future implementation of CAFTA 3.0, together with deeper exchanges under the Regional Comprehensive Economic Partnership and continued collaboration through the BRI, is expected to provide greater certainty for regional and global long-term trade growth.

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