September 1, 2026 (InvestinChina.asia) — Bilateral trade between China and ASEAN surged 24.7% year-on-year to US$744.41 billion in the first seven months of 2026, accounting for 21.8% of China’s total foreign trade, officials announced at a State Council Information Office press conference in Beijing on Tuesday.
The press briefing, led by Vice Minister of Commerce Yan Dong, previewed the 23rd China-ASEAN Expo (CAEXPO) and China-ASEAN Business and Investment Summit, to be held in Nanning, Guangxi Zhuang Autonomous Region, from September 17 to 21. The events carry the theme “CAFTA 3.0 Opportunities, Better Life.”
A Milestone Year for China-ASEAN Relations
2026 marks the fifth anniversary of the China-ASEAN Comprehensive Strategic Partnership, the inaugural year of the China-ASEAN Comprehensive Strategic Partnership Action Plan (2026–2030), and a critical year for implementing the freshly signed China-ASEAN Free Trade Area (CAFTA) 3.0 Upgrade Protocol.
In 2025, China-ASEAN bilateral trade surpassed the US$1 trillion threshold for the first time, reaching US$1.05 trillion, up 7.4% year-on-year. China has remained ASEAN’s largest trading partner for 17 consecutive years, while ASEAN has been China’s largest trading partner for six consecutive years.
Investment and Infrastructure
By July 2026, cumulative two-way investment between China and ASEAN, together with completed engineering contract revenue by Chinese enterprises in ASEAN, had both exceeded US$515 billion. Landmark projects are progressing smoothly:
- Malaysia’s East Coast Rail Link project is more than 94% complete
- Indonesia’s Jakarta-Bandung High-Speed Railway (HSR) has cumulatively transported over 15 million passengers
- The China-Laos 500 kV interconnected power grid project has formally landed
CAFTA 3.0: Expanding the Horizon
The newly signed CAFTA 3.0 Upgrade Protocol extends bilateral free-trade cooperation and regional economic integration into emerging domains including digital economy, green economy, standards alignment and supply-chain connectivity. Vice Minister Yan Dong said both sides are accelerating domestic ratification procedures to bring the protocol into force as early as possible, creating an inclusive, modern, comprehensive and mutually beneficial free-trade agreement.
“The signing of the 3.0 Upgrade Protocol fully demonstrates the shared commitment of China and ASEAN to firmly supporting multilateralism and free trade,” Yan said, “injecting greater confidence and momentum into regional and global economic growth.”
The 23rd CAEXPO will feature an expanded exhibition area of 170,000 square meters — 10,000 square meters larger than last year — with a new “South A Community” zone added alongside the two existing exhibition areas. The expo will focus on promoting high-quality regional growth through free-trade area development and showcasing new achievements in China-ASEAN economic and trade cooperation.
Summit Highlights AI and Legal Services
The parallel China-ASEAN Business and Investment Summit, to be held September 17–18, will emphasize four distinctive features:
- High-level leadership: Leaders from China and ASEAN nations, government officials, international organization heads and business association representatives will jointly build a high-end platform for government-business interaction
- Pragmatic cooperation: Events include the China-ASEAN Business Leaders Forum and China-Philippines Business High-Level Dialogue
- AI application: Venue facilities, thematic settings and agenda advancement will all highlight the deep integration of AI with the real economy, releasing AI cooperation case studies and promoting AI deployment in manufacturing, healthcare and agriculture
- Commercial legal services: The China-ASEAN Commercial Legal Forum will explore new pathways for Hong Kong-ASEAN commercial legal cooperation, establish a “one-stop water dispute resolution center” for the Pinglu Canal, and host international dispute-resolution seminars
A Model of Mutually Beneficial Cooperation
Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, noted that the China-ASEAN partnership has become a model of mutually beneficial cooperation between economies at different stages of development, with market forces and government guidance working in tandem. He attributed the robust trade growth to shared commitment to open markets and a more stable institutional framework, which has built confidence among businesses even as the international trade environment becomes more complex.
In the first half of 2026, China’s intermediate goods trade with ASEAN reached 2.86 trillion yuan, up 24.5%, accounting for two-thirds of total bilateral trade value — a clear indicator that the two sides have moved beyond simple goods trade toward deep upstream-downstream supply-chain integration.
“Bilateral trade with Vietnam approaches US$300 billion, and with Malaysia nearly US$200 billion,” noted Wang Liping, Director-General of the Department of Asian Affairs at the Ministry of Commerce. “With Vietnam, Malaysia, Indonesia, Thailand and Singapore, our bilateral trade all exceeds US$100 billion.”
Looking Ahead
As global trade uncertainty rises, the China-ASEAN relationship stands as a deliberate and pragmatic choice in favor of free trade and economic globalization. The upcoming CAFTA 3.0 framework is expected to provide a stronger institutional foundation for future cooperation, creating platforms for dialogue on cross-border data flows, green cooperation and standards alignment.
For the international business community, the message is unambiguous: with trade surpassing US$1 trillion annually and growing at double-digit rates in 2026, the China-ASEAN economic corridor has become one of the most dynamic and resilient regional blocs in the global economy — a beacon of multilateralism at a time when fragmentation threatens the international trading system.
The 23rd CAEXPO, opening in Nanning on September 17, will once again serve as the premier gateway for businesses worldwide to tap into this extraordinary growth story.