ASEAN-China cooperation set to reach new heights: ASEAN leader

With the Version 3.0 China-ASEAN Free Trade Area (CAFTA), economic cooperation between ASEAN and China is expected to reach new heights, particularly in new areas like e-commerce, digital trade, and digital payments, which very important, particularly in the context of current global economic dynamics, said ASEAN Secretary-General Kao Kim Hourn.

Kao made the remarks at a group interview during the ongoing 22nd China-ASEAN Expo (CAEXPO) in Nanning, South China's Guangxi Zhuang Autonomous Region. The five-day expo has drawn over 3,200 exhibitors from 60 countries to advance regional openness, innovation and mutually beneficial collaboration, according to Xinhua.

Kao Kim Hourn, secretary-general of ASEAN, speaks to reporters during a group interview in Nanning, South China's Guangxi Zhuang Autonomous Region, on September 17, 2025. Photo: Liu Yang/GT

Kao noted that the CAEXPO has been running for 22 years and has achieved remarkable results.

"From the first CAEXPO to what it is today, I would say that it has had a multiplying effect on trade, investment, tourism, connectivity, among others," he said. "The size of the exposition has increased, more products and services are displayed, more participants, more exhibitions... In other words, it has generated more interest," Kao said, highlighting the expo's contribution to the increasing of trade volume between China and ASEAN.

In addition, CAEXPO brings together key stakeholders, discussing issues that go beyond the traditional issues, including AI and prioritizing enterprises. It will play a large role in the CAFTA 3.0 as well as promote the Regional Comprehensive Economic Partnership (RCEP), the secretary-general said.

"We want to see CAEXPO here to promote people-to-people exchanges, including cooperation in the tourist sector. One of the new mechanisms we set up in China is ASEAN-China Tourism Ministers Meeting. Next year will welcome the first meeting to take place between the two sides," Kao said, noting that by promoting this particular sector, people are able to travel between the two sides to learn to appreciate each other's culture, languages, food, among others.

"I hope the spirit of CAEXPO will continue to grow. At the same time, the most important thing I believe is a lot of trust in the work, in the cooperation, in the spirit of how we work together," he noted.

This year, one of the key aspects of the CAEXPO is AI, which is a key focus of the CAFTA 3.0, he said.

China and ASEAN countries have fully completed negotiations on the CAFTA 3.0 in May, and the upgraded FTA will introduce nine new chapters covering areas such as the digital economy, the green economy and supply chain connectivity, according to Xinhua.

"For ASEAN, we have been negotiating for the ASEAN Digital Economy Framework (DEFA). Next year, we will finalize the application process and the implementation. So, we are on track to want to get together in parallel," Kao said.

"I can see that in China, AI is growing very fast. I believe that it is not confined to any particular sector. AI covers all sectors, when we talk about agriculture, talk about smart farming, in the area of education, where students at all levels of education can take advantage of it for group research and development as well. The same thing was in the transport sector, in health sector and in industries. We should be looking at how we can work together to promote the use of AI to promote our economic cooperation," he noted.

With CAFTA 3.0, the trade volume between China and ASEAN is expected to exceed $1 trillion, Kao said. "That is the direction that we should take, particularly in all areas with digital economy, green economy, blue economy and circular economy."

In US dollar terms, China-ASEAN trade reached $982.34 billion in 2024, according to the Chinese Ministry of Commerce.

Kao also highlighted cooperation potential in various sectors. In the energy sector, ASEAN leaders this year adopted the ASEAN power grid, linking together all the ten countries. "Now China has a lot of experience in what we call mega energy projects. So, this is something that we should work together," he said.

Kao also highlighted the energy transition, including investment in electric vehicle production centers in ASEAN. "And transforming waste into heat solutions, which will make our economy continue to grow, make our people live better, to reduce waste. That is the area where China manages well," he noted.

"I think we should not limit ourselves. Between ASEAN and China, under the current comprehensive partnership, we have cooperated together in all areas, whether in economic pillar, in social cultural sector, and border securities," he said.

Kao also stressed the need for cooperation with China on addressing the impact of climate change. "The natural disaster today is more sever and more frequent, and the use of AI in these areas is more important, particularly to detect and establish the early warning. In this area, the ultimate goal is to save lives and to minimize impact of destruction," he noted.

In order to continue to expand trade volume between the two sides, he noted that the business community should make full use of the upgraded CAFTA as well as the CAEXPO, where the private and business sectors come together, "looking for today's opportunity and tomorrow's possibility."

He added that ASEAN and China should also leverage the RCEP, which is now fully under implementation, noting "enormous opportunities and great potential for expanding trade beyond what we've been doing in the past 22 years."