Since the ACFTA’s implementation in 2010, data shows that trade between China and ASEAN has more than tripled, to US$696.7 billion in 2023 from US$235.5 billion.
In the first four months of 2025, bilateral trade totalled 2.38 trillion yuan (approximately US$330.86 billion), reflecting a 9.2 per cent increase compared to the same period last year, according to data from China’s General Administration of Customs.
However, while China’s share of ASEAN trade jumped from 12 per cent in 2010 to around 20 per cent by 2023, ASEAN’s imports from China have surged far faster than its exports there, widening the bloc’s trade deficit to over US$190 billion.
“China’s market and capital are so disproportionately powerful that individual countries and their firms find it difficult to compete in a bilateral setting,” Myers said.
“And there are concerns that ACFTA 3.0 will enable China to deepen this imbalance in its favour over time.”
ON THE GROUND: HOW SMES STAND TO GAIN
Micro, small and medium enterprises (MSMEs) make up the backbone of ASEAN’s economy, but challenges on the ground still remain, especially for smaller firms and start-ups struggling to navigate complex regulatory environments.
“Simplified streamlined processes and stronger grassroots implementation” will be critical going forward, ASEAN Secretary-General Kao said.
“Breaking that initial barrier of awareness and simplifying the process is really key,” said Lee, the Singaporean entrepreneur who also serves on an official MSME committee at the Singapore Business Federation.
“Practical, industry-specific support from government or trade bodies is something that is very crucial,” Lee added.
“And if paperwork seems too daunting, you wouldn’t want to incur any associated costs (and) you’ll just miss out on the advantages.”
