bilaterals.org logo
bilaterals.org logo

China-ASEAN

In November 2001, China and the 10-member Association of South East Asia Nations (ASEAN) began negotiations to set up a free trade area.

One year later, a framework agreement for the planned FTA was signed. The FTA, a zero-tariff market of more than 1.7 billion people, has been targeted to come into force in 2010 for the six original ASEAN members (Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand) and in 2015 for the other four (Burma, Cambodia, Laos and Vietnam). Implementation of the framework agreement would occur in stages. For instance:

 An early harvest programme covering trade in goods came into force in July 2005.
 Negotiations on a dispute settlement mechanism were finalised in 2004 for implementation in 2005.
 Negotiations on trade in services were completed and an agreement signed in January 2007, for implementation in July 2007.
 The China-ASEAN investment agreement was to be signed at the ASEAN Summit in Thailand in December 2008.

Separately, China signed a bilateral FTA with ASEAN member Singapore in October 2008. Beijing has also been hammering out a lot of separate, smaller and more specific bilateral deals with ASEAN neighbours, such as the infamous Philippine-China investment agreements (the subject of huge corruption scandals in the Philippines in 2007), harmonised food safety standards with Thailand (to facilitate agricultural trade) and numerous arrangements with the Mekong Delta countries.

Politics around the China-ASEAN deal are delicate as ASEAN states want to avoid China’s domination and yet build their economies by interacting with China, especially given the slowdown in demand from the US and European markets. At the same time, China is moving up the manufacturing value-chain losing need for primary products that ASEAN states produce while its search for raw materials such as minerals and oil has rapidly gone global. Finally, the coming into force of full-scale zero-tariff farm trade with China from 2010 onward has raised many fears in the ASEAN world.

last update: May 2012
Photo: MangAndri Kasep / CC BY 2.0


Vegetables not included in ‘early harvest’ deal with China
Vegetables are not included in the Early Harvest Program (EHP) agreement the Philippines and China signed just this Wednesday, April 27, according to Trade and Industry Secretary Juan B. Santos, even though raw and unprocessed agricultural products are covered by the agreement.
EHP reaps fruit of its success
China and the Association of Southeast Asian Nations (ASEAN) are making encouraging progress with the early harvest programme (EHP), which the two economies launched in January 2004.
Return to negotiating table for ‘early harvest’ deal eyed
Negotiations for the proposed Early Harvest Program (EHP) may soon resume as the Philippines and China expressed interest in forging a memorandum of understanding (MOU) on the project.
ASEAN and China sign ’dirty’ FTA
ASEAN on Dec. 2 signed a free trade agreement (FTA) with China, a move that has grabbed the world’s attention. The agreement won’t take force until 2010. But since it involves a realignment in the region’s integration, it has caused a domino effect.
Viewpoint: Is ASEAN irrelevant?
Drastic imbalance is likely to be the result of the China-ASEAN FTA. But the blame for this is not China’s. The responsibility is largely ASEAN’s. We had 30 years to build an ASEAN house, and we blew it.
Sino-Asean free trade pact a bane to RP, says Ibon
An economic research group warned an upcoming free trade agreement between China and the Association of Southeast Nations will have adverse effects on the country’s economy.
Indonesia courts the Dragon
Trade liberalization and a push toward enhancing trade and economic cooperation between the 10-nation Association of Southeast Asian Nations (ASEAN) and China are high on the agenda of the new administration of President Susilo Bambang Yudhoyono.
China to speed up FTA process with ASEAN
The Chinese government is willing to speed up the process of the China-ASEAN free trade area (FTA) and promote comprehensive and substantive bilateral cooperation.
Sino-ASEAN FTA nears final stage
Leaders of China and the ASEAN (Association of Southeast Asian Nations) countries are expected to sign a package of free trade deals late next month, enabling the two parties to formally implement a China-ASEAN free trade area (FTA) starting from 2005.
China-ASEAN free trade area: Origins, developments and strategic motivations
This 2003 paper is a political study of the origins, developments and motivations on the Chinese side of the FTA, demonstrating its political, strategic, intellectual and economic basis.