Kuala Lumpur. China on Tuesday signed an expanded version of a free trade agreement with the Association of Southeast Asian Nations (ASEAN), presenting itself as an alternative to US protectionist policies.

Chinese Premier Li Keqiang has called for closer cooperation to overcome global economic uncertainty at the ASEAN-China summit, saying “confrontation instead of unity benefits no one”.

“Unity is power,” Li said, quoting President Xi Jinping earlier quoted him as saying. He criticized U.S. economic coercion and interference and argued that regional cooperation could secure common interests. But Philippine President Ferdinand Marcos Jr. has taken a cautious approach to China, warning that “cooperation cannot be coerced”.

The new agreement is known as the ASEAN-China Free Trade Area 3.0. The agreement will connect a market with a population of more than two billion. It aims to reduce taxes on goods, facilitate investment and service delivery, and strengthen supply chains. The agreement was first signed in 2002 and came into force in 2010.

Two-way trade has increased from $235 billion in 2010 to nearly $1 trillion last year. ASEAN and China are each other’s major trading partners. Lee Qiang called on ASEAN members — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam and East Timor — to make joint progress, describing them as “close brothers” in geography, culture and spirit.

“Unilateralism and protectionism have serious implications for global trade architecture, but we can protect our legitimate rights and interests through mutual trust and coordination,” he said. ’

According to political analyst Bridget Welsh, the updated agreement will deliver regional benefits on supply chains and sustainability. “The agreement also reflects the global reality that non-U.S. countries are turning to new trade partnerships for their prosperity,” he said. ’

Malaysian Prime Minister Anwar Ibrahim reiterated ASEAN’s balanced policy, saying, “Yesterday we were with President Trump, today we are discussing with China – this shows ASEAN’s central role and balanced diplomacy.” ’

President Trump and Xi Jinping are expected to meet in South Korea on Thursday amid escalating trade tensions between China and the United States. ASEAN-China Free Trade Area 3. Under Section 0, emphasis will be laid on digital trade, green economy, sustainability and promotion of small and medium enterprises. This will reduce non-tax barriers and improve market access for small businesses.

But the dispute in the South China Sea has become more heated. Philippine President Marcos expressed grave concern over China’s “dangerous actions and oppression” in the maritime domain, saying “no action in the name of protecting the marine environment can be an invasion of sovereignty.” ’

Marcos pledged to conclude a code of conduct in disputed waters when he assumes the ASEAN presidency next year. Meanwhile, Chinese Foreign Ministry spokesman Guo Jiakou accused the Philippines of “provocations and violations at sea” and said the tensions had escalated.

“The South China Sea dispute is seen by regional countries as a security issue, but it is unlikely to have a major impact on China’s economic relationship,” Welsh said. ’