China and ASEAN further cementing ties

China and the Association of Southeast Asian Nations, buoyed by the recently completed negotiations on the Version 3.0 China-ASEAN Free Trade Area, will further deepen regional economic integration amid the shocks of unilateralism and protectionism on global supply chains, officials and experts said on Monday.

Emerging industries such as artificial intelligence and cross-border e-commerce are poised to serve as catalysts for China and ASEAN to scale up their economic cooperation going forward, they said ahead of the 22nd China-ASEAN Expo to be held later this month.

"China and ASEAN will maintain close communication and actively advance their respective domestic ratification procedures to push for the formal signing of the Version 3.0 China-ASEAN Free Trade Area by the end of this year," Vice-Minister of Commerce Yan Dong said at a news conference in Beijing.

China has maintained its position as ASEAN's largest trading partner for 16 consecutive years, while ASEAN has been China's largest trading partner for the past five years, Yan's ministry said.

As of July 2025, cumulative two-way investment between China and ASEAN had surpassed $450 billion, with the two sides actively expanding cooperation in emerging areas such as the digital economy, e-commerce and green development, the ministry added.

China and ASEAN will prioritize the development of digital infrastructure, accelerate cross-border e-commerce and drive innovation in the digital economy realm, Yan said, adding that the two sides will also leverage cutting-edge technologies such as AI and big data to empower industrial transformation and upgrading.

During the upcoming China-ASEAN Expo scheduled to be held from Sept 17 to 21 in Nanning, Guangxi Zhuang autonomous region, a new 10,000-square-meter AI pavilion will be established for the first time, featuring the participation of nearly 200 leading AI enterprises and startups, including Huawei, Alibaba Cloud and iFlytek.

"ASEAN countries are at a critical juncture of their digital transformation, and they have a strong desire to deepen cooperation with China," said Lu Xinning, vice-chairman of Guangxi.

The Chinese government has recently designated Guangxi as the location for the China-ASEAN AI innovation cooperation center, and the center has already signed cooperation agreements with eight ASEAN countries, including Vietnam, Lu said.

Geographical proximity, cultural affinity and regional development strategies have positioned Guangxi as a critical nexus in China-ASEAN AI cooperation.

The autonomous region serves as China's gateway to Southeast Asia, making it an ideal test-bed and demonstration zone for collaborative AI projects, Lu added.

The foundation for China-ASEAN AI collaboration is being laid through high-level institutional support.

The State Council, China's Cabinet, issued a guideline on deeply implementing the "AI Plus" initiative in late August, emphasizing global cooperation as a key component.

This policy direction aligns with ASEAN's own digital transformation goals, creating a framework for mutually beneficial partnerships, said Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation.

The Version 3.0 China-ASEAN Free Trade Area, set to be signed and take effect within the year, further establishes digital economy as a new field and direction for cooperation, Zhou said, adding that the collaboration also helps democratize AI benefits across the region. China is working to help ASEAN and other Global South countries bridge digital and intelligent divides.