September 20, 2026 | CAFTA · ASEAN · China-ASEAN Expo · RCEP · digital economy · green economy
Asia Economic Research Institute (AERI)
The 23rd China-ASEAN Expo (CAEXPO) and China-ASEAN Business and Investment Summit opened in Nanning, Guangxi, on 17 September 2026 under the theme "Sharing 3.0 Opportunities, Creating a Better Life". It was the first CAEXPO convened since the signing of the China-ASEAN Free Trade Area (CAFTA) 3.0 Upgrade Protocol in October 2025, and the event was designed around the new opportunities the protocol creates.
According to Xinhua News Agency, bilateral trade between China and ASEAN grew from roughly USD 100 billion in 2004 to USD 1.05 trillion in 2025 — the first time the figure surpassed the trillion-dollar mark. For January to July 2026, two-way trade reached USD 744.41 billion, a year-on-year increase of 24.7 per cent. Member states are currently advancing domestic ratification procedures to bring the 3.0 Upgrade Protocol into force.
The CAFTA has iterated through several generations. Version 1.0, completed in 2010, brought tariff-free treatment to more than 90 per cent of products. Version 2.0, fully in force from 2019, widened services liberalisation and investment market access. The 3.0 Upgrade Protocol signed in October 2025 extends cooperation into digital economy, green economy, standards and conformance, and supply chain connectivity.
ASEAN Secretary-General Kao Kim Hourn said in Nanning on 17 September that the 3.0 version "expands our cooperation into increasingly important areas such as the digital economy, the green economy and supply chain connectivity," adding that the FTA and the Regional Comprehensive Economic Partnership (RCEP) are mutually reinforcing and lay a more solid foundation for deeper regional economic integration.
The Ministry of Commerce's research institute, releasing the RCEP Regional Cooperation Outlook 2026 Annual Report at the Expo on 17 September, noted that the 3.0 protocol covers nine areas, including customs procedures and trade facilitation, standards and technical regulations, the digital economy, the green economy, and supply chain connectivity. The digital economy chapter builds a full-chain framework covering both "hard connectivity" and "soft connectivity"; the green economy chapter defines, for the first time, terms such as green economy, clean energy and sustainable finance and identifies eight priority cooperation areas; the supply chain connectivity chapter focuses on market opening, trade facilitation, infrastructure connectivity and technological innovation, and establishes a crisis response mechanism.
Infrastructure featured prominently. The Pinglu Canal, 134.2 kilometres in length, entered operation on 16 September 2026. Xinhua reported that it shortens the water route from southwest China to ASEAN by more than 560 kilometres and reduces comprehensive logistics costs by 18 to 30 per cent. A dedicated Pinglu Canal exhibition zone was set up at the Expo.
On the China-Laos Railway, cumulative freight volume had surpassed 90 million tonnes as of 18 August 2026, reaching 19 countries and regions, with the range of goods carried expanding from just over ten categories at launch to more than 4,000.
The Expo introduced a "South A Community" real-world application zone and, for the first time, an "AI Supermarket" bringing together more than 70 companies and over 500 products adapted to ASEAN markets. Also for the first time, an ASEAN Demand Exhibition listed nearly 90 cooperation needs spanning city management and industrial park development. Organisers reported that an "AI plus trade matching" model had completed over 8,000 pre-matches, with nearly 2,000 further on-site matches planned during the event.
Guangxi has promoted an AI development path described as "research and development in Beijing, Shanghai and Guangzhou; integration in Guangxi; application in ASEAN," with companies including iFlytek and Qihoo 360 establishing operations.
The Ministry of Commerce report, based on a firm-level survey, found that 55.9 per cent of respondents used RCEP certificates of origin, up about 7 percentage points year on year, and 73.5 per cent had used some form of preferential trade agreement. Some 50.5 per cent recognised RCEP's positive effect on their operations and 57.3 per cent said they planned to expand business within the RCEP region. Among firms considering adjusting supply chain layouts, 73.3 per cent said they would maintain or expand investment in China — a figure rising to 79.8 per cent among foreign-invested enterprises.
Chinese Vice Minister of Commerce Yan Dong said the ministry would work with ASEAN economic and trade authorities to promote the early entry into force of the CAFTA 3.0 Upgrade Protocol. Vietnamese Deputy Prime Minister Pham Gia Tuc and Lao Deputy Prime Minister Saleumxay Kommasith also expressed expectations for its implementation.
Sources: Xinhua News Agency (18 and 20 September 2026); Ministry of Commerce, "China-ASEAN FTA 3.0 Empowering RCEP Cooperation" (18 September 2026); RCEP Regional Cooperation Outlook 2026 Annual Report, Ministry of Commerce Research Institute (17 September 2026). Compiled by the Asia Economic Research Institute (AERI).
The Asia Economic Research Institute (AERI) is a think tank dedicated to regional economic research and cooperation in Asia. Since its establishment, the Institute has made promoting sustainable Asian economic development and facilitating regional economic integration its core mission, providing intellectual support and decision-making references for governments, enterprises, and international organizations through high-quality economic research, policy analysis, and academic exchange activities.