In addition to the RCEP, China and ASEAN began building their free trade area in 2002, and the 1.0 version was fully established in 2010. The China-ASEAN Free Trade Area 3.0 Upgrade Protocol, signed in October 2025, covers nine areas, including the digital economy, green economy, supply-chain connectivity, customs procedures and trade facilitation. This protocol is still undergoing domestic approval procedures and has not yet entered into force.

　　To support this robust economic and trade cooperation, major infrastructure projects within China are also accelerating. A major new transport link in Guangxi moved a step closer to operation on Wednesday, as the Pinglu Canal began vessel trials ahead of its planned opening in September.

　　Serving as a backbone project of the New International Land-Sea Trade Corridor, the 134.2-km waterway is designed for vessels of up to 5,000 tonnes. It will connect the Xijiang River system with the Beibu Gulf, cutting the inland-water route from parts of southwest China to the sea by more than 560 km compared with routes via Guangzhou Port in neighboring Guangdong Province in south China.

　　The expansion in regional trade comes against a more moderate global outlook. The World Trade Organization"s Goods Trade Barometer, released in June, stood at 101.7, down from 102.3 in January but still above the trend baseline of 100. The WTO Secretariat"s March baseline forecast projected global merchandise trade volume growth of 1.9 percent in 2026.

　　Asian economies, meanwhile, are projected to grow strongly in 2026 and remain a central engine of global expansion despite geopolitical and global economic headwinds, according to the Asia House Annual Outlook 2026.