As the US retreats from rules-based trade under Trump 2.0, China and ASEAN’s commitment to an upgraded ASEAN-China FTA (ACFTA 3.0) underscores their support for openness.
While ASEAN’s integration with China has boosted trade and investment, import surges of low-cost products are squeezing ASEAN’s manufacturers and heightening dependence on Chinese capital is raising geopolitical risks.
ACFTA 3.0 could deepen digital and services linkages, but its economic pay-off for ASEAN hinges on technology transfer, local supply-chain integration, and balanced FDI.
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