Trilateral CPEC Expansion and China-ASEAN Free Trade Agreement: Shaping Asia-Pacific’s Geoeconomic Landscape
Introduction
The Asia-Pacific region witnessed two landmark developments in the past 18 hours that are poised to reshape its geopolitical and economic trajectory. First, China, Pakistan, and Afghanistan reached a trilateral agreement to expand the China-Pakistan Economic Corridor (CPEC) northward into Afghanistan, integrating the war-torn nation into Beijing’s Belt and Road Initiative (BRI) and signaling a new phase in regional connectivity and influence. Second, China and the Association of Southeast Asian Nations (ASEAN) completed negotiations on the upgraded China-ASEAN Free Trade Area (CAFTA) 3.0, embedding digital trade, green development, and supply chain resilience into the region’s economic framework. These twin moves not only reinforce China’s centrality in the region’s economic architecture but also intensify strategic competition and cooperation across Asia-Pacific.
This report provides an in-depth analysis of both developments, exploring their origins, strategic motivations, regional reactions, and the far-reaching implications for connectivity, security, and economic integration in Asia-Pacific.
