CAFTA 3.0 paves way for Guangxi's auto exports to ASEAN

The China-ASEAN Free Trade Area (CAFTA) 3.0 Upgrade Protocol was signed on Oct 28, marking a major step forward in the facilitation of regional trade, the mutual recognition of rules and supply chain connectivity.

For Guangxi's automakers, this protocol creates new opportunities to expand their footprint in the ASEAN market.

Recent developments reflect this momentum. Guangxi Automobile Group held a ceremony in Liuzhou to send its 5,000th vehicle to ASEAN, with the shipment including new energy logistics vehicles, golf carts and compact trucks.

Its vice president Shen Yunxiao emphasized that CAFTA's continuous upgrades have been a major driver, noting the group's cumulative exports to core ASEAN markets – such as Singapore and Vietnam – now exceed 200 million yuan (about $28 million).

Other Guangxi-based automakers are also scaling up. SAIC-GM-Wuling, which sees ASEAN as its most promising global market, has established production and sales networks in nine ASEAN countries, including Vietnam.

Dongfeng Liuzhou Motor, with over 30 years of experience in the region, plans to build knocked-down assembly plants in four nations including Vietnam, aiming for a total annual capacity of 30,000 units.

Liuzhou Bureau of Commerce Deputy Director Xiao Jiayong contextualized CAFTA's impact: the 1.0 version brought tariff relief, the 2.0 version supported new energy vehicles' shift from "product exports" to "technology and brand exports", and the 3.0 version will further drive a transition to localized production and tech cooperation.

CAFTA 3.0 also expands into digital and green economy. Feng Xue, from Guangxi Automobile Group, explained this will cut trade barriers, align standards to boost supply chain resilience, and let automakers participate more in ASEAN's digital and green transformation.