China and the Association of Southeast Asian Nations (ASEAN) agreed a version 3.0 free-trade agreement that enhances tariff relief, digital trade cooperation and green-economy links. The deal, signed during a summit in Malaysia, coincides with heightened U.S.–China trade tensions and reflects China’s push to deepen regional economic integration. With bilateral trade between China and ASEAN at about $771 billion last year, the pact signals both a diversification of trade strategy and a stance against protectionism. Analysts say this may trigger ripple effects with other major economies rethinking supply-chain partnerships.