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Diverging trade strategies at ASEAN
Express Tribune | English | News | Nov. 11, 2025 | Shifting Geopolitical Alliances
At the 28th ASEAN Summit in Kuala Lumpur, two contrasting trade strategies from China and the United States were highlighted. China upgraded its China-ASEAN Free Trade Agreement (CAFTA) to "Version 3.0," a multilateral pact enhancing regional integration with nine new chapters covering digital economy, green economy, and supply chain connectivity. This upgrade builds on the existing free trade agreement, which has significantly boosted bilateral trade from $192.5 billion in 2008 to $982 billion in 2024, and aligns with broader regional frameworks such as RCEP.
In contrast, the United States pursued bilateral trade arrangements with four ASEAN members—Malaysia, Cambodia, Thailand, and Vietnam—without offering tariff reductions. These agreements include economic security clauses requiring alignment with U.S. export controls, sanctions, and investment screening, reflecting a transactional and security-driven approach rather than multilateral integration. The U.S. deals are asymmetrical, lowering ASEAN tariffs on American goods while maintaining higher tariffs on their exports, lacking comprehensive dispute resolution or rules of origin.
CAFTA 3.0 emphasizes institutionalized cooperation, regulatory harmonization, and economic interdependence across ASEAN, supporting digital transformation and green development within a regional economic ecosystem. Conversely, the U.S. strategy focuses on containing China’s influence through selective tariff relief tied to strategic alignment, potentially fragmenting ASEAN unity and fostering dependency. The contrasting approaches define the struggle between a multilateral, inclusive trade model and a bilateral, security-oriented framework, with ASEAN's economic sovereignty hinging on its ability to balance these dynamics for long-term prosperity.