Core Viewpoint - ASEAN has become China's largest export destination, with an expanded free trade agreement focusing on nine key areas including digital trade and renewable energy to counteract U.S. tariff measures [2][5][6]. Group 1: Free Trade Agreement Expansion - The free trade agreement between China and ASEAN, effective since 2005, has reduced tariffs and is now being expanded to include digital trade, renewable energy, and streamlined customs procedures [4][5]. - The digital trade aspect aims to digitize settlement and documentation processes, enhancing system interoperability and infrastructure [4][5]. - China is accelerating the expansion of its Cross-Border Interbank Payment System (CIPS) to increase the use of the Renminbi in settlements within ASEAN [4][5]. Group 2: Renewable Energy and Customs Procedures - The agreement will expedite transactions related to new energy vehicles, including electric vehicles (EVs) and photovoltaic power generation, while increasing investments in these sectors [5]. - A new mechanism will be introduced to allow trade applications to be processed at a single window, simplifying customs procedures [5]. Group 3: Trade Dynamics and U.S. Tariffs - As of August 2025, trade between China and ASEAN is projected to account for 17% of China's total trade, remaining above the levels of 2024 [8]. - In response to U.S. tariffs, China is enhancing "roundabout exports" through ASEAN, where components are sent to ASEAN for assembly before being exported to the U.S. [8]. - ASEAN countries are also looking to strengthen ties with China to offset the impact of U.S. tariffs, with some countries seeking to increase exports to China as a substitute for the U.S. market [8].