The Framework Agreement for the ASEAN-China Free Trade Area was initiated in 2002. It is the first ASEAN Plus pattern free trade agreement in East Asia. To understand the cultural and historical bonds between China and Southeast Asian States, and contemporary Chinese regional political economy in building the ACFTA, this paper reviews the tributary trade and ancient Chinese diplomacy between China and the neighboring States. The primary purpose of this research is to show how the ACFTA is in the interests of all parties in the course of China’s fast economic and political growth. The following article highlights the ACFTA provisions by examining trading agreements in goods, services and investment in the context of the corresponding WTO provisions. In the end, it suggests the possible resolutions for achieving a win–win and interdependent ASEAN–China Free Trade Area.

Cooperation between China and the ASEAN has become more integrated as their common economic interests have been increasing due to globalization and recent changes in Southeast Asia. The formation and operation of the CAFTA provide incentive for investment and trade between China and the ASEAN. The objective of laws regulating to investment should promote investment, which can be realized through a liberal, facilitative and transparent investment regime. The CAFTA’s investment regime continues along with the same trends of international investment agreements in general. However, in order to encourage regional integration, it needs to be improved in future practice.

Economic globalization and regional economic integration have become the world’s two major trends of the world economy, with most countries pursuing broader economic development of space through the strengthening of national and regional economic and trade ties. The geographic proximity of China and ASEAN nations, both in terms of resources, industrial structure, and industrial and agricultural goods, among other things, is very complimentary, and the growth of economic and trade cooperation has a distinct benefit. Long-term “neighborly and friendly” strategic partnership relationships have provided a solid framework for the growth of economic and trade cooperation. The establishment of the China-ASEAN Free Trade Area can achieve a win-win situation by not only complementing each other and expanding bilateral trade and cooperation on a larger scale, but also strengthening overall competitiveness and its ability to resist risks. Friendly relations between China and ASEAN will be further consolidated and strengthened to improve the Chinese and ASEAN in East Asia and the Asian region’s political status and ability to deal with international affairs. This article proposes solutions to the challenges that exist in the China-ASEAN Free Trade Zone. The establishment of the China-ASEAN Free Trade Area will not only consolidate and strengthen China’s and ASEAN’s already friendly and cooperative relations, but will also further promote China’s and ASEAN’s respective economic development and regional cooperation and competitiveness. Finally, with the construction of the China-ASEAN Free Trade Area, China and ASEAN will enjoy the benefits of economic globalization and regional economic integration even more, face obstacles jointly, and contribute to the growth and stability of Asian and global economies.