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This study, framed by the institutional backdrop of the Regional Comprehensive Economic Partnership (RCEP), systematically analyses the institutional innovations and practical challenges of the China-ASEAN Free Trade Area 3.0 (CAFTA 3.0) in the realms of goods trade, services trade, and investment rules. RCEP underpins CAFTA 3.0’ rule upgrades through its cumulation of rules of origin, negative-list approach, and investment facilitation provisions, while CAFTA 3.0 seeks to propel the digitalization and green transformation of regional cooperation by introducing dedicated chapters on the digital economy and the green economy. Despite breakthroughs in rule depth and inclusiveness, implementation of CAFTA 3.0 faces multiple challenges, including the digital divide within ASEAN, non-tariff barriers such as technical trade measures, and external institutional competition – exemplified by the EU’s Carbon Border Adjustment Mechanism (CBAM) and the US Indo-Pacific Economic Framework (IPEF). This paper proposes differentiated pathways for rule compatibility, comprising a ‘positive-list + modular’ mechanism for digital trade, a ‘mandatory emission reduction + fund linkage’ model for the green economy, and a multi-tiered dispute settlement framework, with the aim of offering legal solutions that balance efficiency and sustainability in Asia-Pacific economic integration.
Lh et al. (2025) studied this question.