China and the ASEAN bloc of Southeast Asian nations signed an upgrade to their free trade agreement on Tuesday, with leaders hailing the deal which spans the digital and green economy, and other new industries.

Beijing is hoping to use an expanded free trade deal to portray itself as the bloc’s alternative to the United States.

The US today expressed its support for Asean countries in facing regional challenges, particularly in the South China Sea, during an informal session

U.S. Defense Secretary Pete Hegseth spoke on Friday with counterparts from China and India, beginning a series of face-to-face meetings at an ASEAN defence summit in Malaysia, as Washington seeks to boost regional security ties.

The free trade area covers a combined market of more than 2 billion people, lowers tariffs on goods, and boosts flows of services and investment.View on euronews

Beyond trade, cooperation between ASEAN and China can also be stepped up in areas such as connectivity and the green economy, says Singapore Prime Minister Lawrence Wong.

Chinese Premier Li Qiang on Tuesday called for unity and coordination between China and ASEAN countries, citing “greater risks and challenges” posed by rising protectionism and external interference in the region.

China pressed on Monday for open trade and stronger economic ties at a regional summit in Malaysia dominated by the shadow of steep U.S. tariffs, as Canada's premier expressed readiness to meet U.S. President Donald Trump to defuse trade tensions.

Welcome to Foreign Policy ’s Southeast Asia Brief.

It’s the second upgrade of the ASEAN-China Free Trade Area (ACFTA) that was first inked in 2002 - making it then China’s first free trade agreement and ASEAN’s first with a major external partner. It then came into effect in 2010, with negotiations for the first upgrade starting in September 2014 and coming into force since 2019.