China’s Expanding FTA Network: Unlocking New Opportunities for Global Investors

China’s FTA framework is reshaping global trade and unlocking new opportunities for foreign investors. With 23 FTAs signed and a growing focus on digital and green sectors, China offers a strategic gateway to Asia and beyond.

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As global trade faces increasing uncertainty, China continues to champion multilateralism and free trade by accelerating its high-level opening-up. Central to this strategy is the development of a comprehensive Free Trade Agreement (FTA) framework that spans five continents and includes some of the world’s most dynamic economies. For foreign investors and businesses, China’s FTA network is more than a diplomatic achievement. It’s a gateway to new markets, streamlined operations, and long-term growth.

China’s FTA landscape is growing rapidly

China’s FTA footprint has grown significantly in recent years. As of 2025, the country has signed 23 FTAs with 30 countries and regions, including major economies in Asia, Latin America, and Europe. These agreements cover a wide range of sectors and increasingly incorporate high-standard provisions on digital trade, green economy, and investment protection.

The Regional Comprehensive Economic Partnership (RCEP), which includes China, ASEAN, Japan, South Korea, Australia, and New Zealand, stands out as the largest economic bloc globally. In 2024, China’s trade with FTA partners exceeded RMB 19 trillion (US$2.6 trillion), marking a 6.3 percent year-on-year growth. This reflects not only the scale of China’s trade but also the effectiveness of its FTA strategy in driving economic integration.

Countries/Regions Having FTAs with China
FTA	Countries	Status
China-Belarus Service and Investment Agreement	Belarus	Signed
China-Serbia FTA	Serbia	Signed and effective
China-Ecuador FTA	Ecuador	Signed and effective
China-Nicaragua FTA	Nicaragua	Signed and effective
RCEP	ASEAN (10), China, Japan, South Korea, Australia, New Zealand	Signed and effective
China-Cambodia FTA	Cambodia	Signed and effective
China-Mauritius FTA	Mauritius	Signed and effective
China-Maldives FTA	Maldives	Signed and effective
China-Georgia FTA	Georgia	Signed and effective
China-Australia FTA	Australia	Signed and effective
China-Korea FTA	South Korea	Signed and effective
China-Switzerland FTA	Switzerland	Signed and effective
China-Iceland FTA	Iceland	Signed and effective
China-Costa Rica FTA	Costa Rica	Signed and effective
China-Peru FTA	Peru	Signed and effective
China-Singapore FTA	Singapore	Signed and effective
China-New Zealand FTA	New Zealand	Signed and effective
China-Chile FTA	Chile	Signed and effective
China-Pakistan FTA	Pakistan	Signed and effective
China-ASEAN FTA	Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam	Signed and effective
Mainland and Hong Kong Closer Economic and Partnership Arrangement	Hong Kong	Signed and effective
Mainland and Macao Closer Economic and Partnership Arrangement	Macao	Signed and effective
China-Taiwan ECFA	Taiwan	Signed and partly suspended since 2023

 

FTAs under Negotiations
FTA	Countries	Status
China-Honduras FTA	Honduras	6 rounds negotiations + early harvest arrangement signed
China-GCC FTA	Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman	11 rounds negotiations
China-Japan-Korea FTA	Japan, South Korea	16 rounds negotiations
China-Sri Lanka FTA	Sri Lanka	6 rounds negotiations
China-Israel FTA	Israel	8 rounds negotiations
China-Norway FTA	Norway	14 rounds negotiations
China-Moldova FTA	Moldova	2 rounds negotiations
China-Panama FTA	Panama	5 rounds negotiations
China-Korea FTA second phase	South Korea	11 rounds negotiations
China-Palestine FTA	Palestine	1 round negotiation
China-Peru FTA Upgrade	Peru	7 rounds + substantive negotiations completed
China-Switzerland FTA Upgrade	Switzerland	1 round negotiation

 

FTAs under Consideration
FTA	Countries
China-Colombia FTA Joint Feasibility Study	Colombia
China-Fiji FTA Joint Feasibility Study	Fiji
China-Nepal FTA Joint Feasibility Study	Nepal
China-Papua FTA Joint Feasibility Study	Papua
China-Canada FTA Joint Feasibility Study	Canada
China-Bangladesh FTA Joint Feasibility Study	Bangladesh
China-Mongolia FTA Joint Feasibility Study	Mongolia

How China’s FTA network compares to other emerging markets

Compared to other emerging regions, China’s FTA framework is broader in geographic reach and increasingly ambitious in scope, especially with recent upgrades and mega-regional agreements like RCEP. While ASEAN FTAs offer deeper regulatory integration, and Latin America and Africa FTAs are more resource-driven, China’s evolving approach, particularly its inclusion of digital and green economy provisions, positions it as a strategic partner for foreign investors seeking long-term growth and regional connectivity.

FTA Frameworks: China vs. Vietnam vs. India
Aspect	China	Vietnam	India
FTA coverage	23 FTAs signed, 10 under negotiation; includes RCEP, bilateral FTAs with Latin America, ASEAN, and Belt & Road partners	19 FTAs (16 in effect); includes CPTPP, EVFTA, RCEP, ASEAN+1 FTAs; highly diversified partner base	13 FTAs signed; key FTAs with ASEAN, Japan, South Korea; negotiations underway with EU, UK, USA
Strategic orientation	Global outreach with emphasis on regional integration and Belt & Road connectivity	Deep integration into global supply chains; proactive in signing high-standard FTAs	Cautious and selective; prioritizes strategic autonomy and domestic industry protection
Standards and depth	Increasing inclusion of digital economy, green economy, and services (e.g., China-Singapore 4.0, China-ASEAN 3.0)	New-generation FTAs include investment protection, services liberalization, and institutional reforms (e.g., CPTPP, EVFTA)	Earlier FTAs were shallow; newer ones (e.g., India-Korea CEPA) include investment and competition policy, but services and procurement remain limited
Investor benefits	Broad market access; integration into regional value chains; growing openness in services and investment	Preferential access to 55 markets; strong FDI inflows; improved legal and business environment; CPTPP and EVFTA offer high-standard access	Mixed results; FTAs have led to trade deficits; low utilization by exporters; regulatory unpredictability hampers investor confidence
Challenges	Varying regulatory depth across FTAs; limited coverage of labor and environmental standards	SMEs face competition pressure; compliance with high standards needed; institutional capacity still developing	Infrastructure bottlenecks; complex bureaucracy; labor rigidity; opted out of RCEP due to domestic concerns
China+1 positioning	Anchor economy in RCEP; key FTA partner for ASEAN and Belt & Road countries	Leading beneficiary of China+1 strategy; strong infrastructure, labor flexibility, and FTA access attract global firms	Lagging behind in China+1; struggles with execution, infrastructure, and policy consistency

How China’s FTA network benefits foreign investors

China’s FTA framework offers a range of tangible benefits for foreign enterprises seeking to enter or expand in the Chinese market. These advantages span trade facilitation, investment liberalization, and participation in emerging sectors.

Preferential market access reduces costs

One of the most immediate benefits of FTAs is tariff reduction or elimination, which lowers the cost of exporting goods to China. For example, under the China-Chile FTA, Chilean wine and cherries have gained widespread popularity in China, with bilateral trade increasing 7.5 times since the agreement took effect. Similarly, the China-ASEAN FTA has enabled a surge in tropical fruit imports from Southeast Asia. Products like durian, mango, and coconut have become staples in Chinese supermarkets, improving consumer welfare while boosting incomes for ASEAN producers.

Investment facilitation improves legal certainty

Modern FTAs increasingly include investment chapters that provide legal certainty and protection for foreign investors. These provisions typically cover fair treatment, dispute resolution mechanisms, and transparency in regulatory processes. Singapore’s experience is illustrative. As a long-standing FTA partner, it has become China’s largest source of new investment for 11 consecutive years. In 2024 alone, Singapore’s actual investment in China grew by 10.8 percent, supported by the upgraded China-Singapore FTA (Version 4.0), which enhances openness in services and investment sectors.

Regional value chains offer competitive advantages

China’s FTAs, particularly those with ASEAN and RCEP members, play a pivotal role in facilitating regional supply chain integration. These agreements allow foreign companies to source components from multiple countries within the bloc and export finished products to China under preferential terms, or vice versa. This flexibility supports cross-border manufacturing and distribution strategies, making it easier to optimize production costs and reduce tariff burdens. Such arrangements are especially beneficial for manufacturers and logistics firms aiming to streamline operations across Asia. In 2024, trade between China and ASEAN reached nearly RMB 7 trillion (US$960 billion), representing a nine percent year-on-year increase, significantly outpacing the overall growth rate of China’s foreign trade. Read also: Accessing the RCEP via China – Strategies for European Companies

Emerging sectors are opening up

Recent FTA upgrades reflect China’s commitment to high-standard and future-oriented cooperation. Agreements now include provisions on the digital economy, green development, and cross-border services. For instance, the China-Nicaragua FTA, which came into effect in 2024, introduced a negative list approach for services trade, marking a first in China’s FTA history. This provides greater clarity and openness for foreign service providers, especially in sectors like fintech, education, and healthcare.

The business environment is becoming more predictable

FTAs also contribute to a more predictable and transparent regulatory environment. By reducing non-tariff barriers and aligning standards, they help foreign businesses navigate local compliance requirements more efficiently. Moreover, FTAs often include mechanisms for dispute resolution and regulatory cooperation, which are crucial for businesses operating across borders. These features enhance investor confidence and reduce operational risks.

Case studies show real-world impact

Several bilateral FTAs have delivered tangible results, showcasing how trade agreements can reshape economic relationships and unlock mutual benefits:

• China–Chile: Bilateral trade reached RMB 4,387 billion (US$600 billion) in 2024. Chilean exports such as wine and cherries have gained strong traction in China, successfully capturing niche consumer markets and elevating Chile’s agricultural brand presence.
• China–Costa Rica: Trade volume rose to RMB 552 billion (US$75 billion), marking a 37.7 percent year-on-year increase. The FTA has significantly boosted bilateral commerce, particularly in electronics, medical devices, and agricultural products.
• China–Nicaragua: In the first year of the FTA’s implementation, bilateral trade surged by 48.2 percent. Imports from Nicaragua—including sugar, shrimp, and cotton yarn—grew by more than 220 percent, reflecting the agreement’s immediate impact on market access and trade diversification.

These examples illustrate how FTAs can go beyond tariff reductions to foster deeper economic ties, enhance product competitiveness, and create win-win outcomes for both sides.

China is pursuing new frontiers in FTA development

China is actively pursuing new FTAs and upgrades to existing ones. Negotiations are underway with countries like Honduras, El Salvador, and South Korea, while talks with Switzerland and New Zealand focus on expanding services trade and adopting negative list approaches. China is also seeking accession to CPTPP and DEPA, signaling its readiness to align with high-standard international trade rules. These efforts are expected to drive domestic reforms and open new sectors to foreign participation. The upgraded China-ASEAN FTA (Version 3.0) and the China-Peru FTA now include rules on digital trade, green economy, and supply chain resilience, offering new growth points for foreign businesses in emerging industries.

Conclusion: FTAs are a strategic gateway to China

China’s FTA framework is evolving into a strategic platform for global cooperation, offering foreign investors and businesses a wealth of opportunities. From preferential market access and investment facilitation to participation in digital and green sectors, the benefits are multifaceted and growing. As China continues to expand and upgrade its FTA network, foreign enterprises should stay informed and proactive. Engaging with China through its FTAs not only enhances competitiveness but also positions businesses to thrive in a more integrated and dynamic global economy.

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