China’s Global Free Trade Network Takes Shape, MOFCOM Says

Summary

China has signed 26 free trade agreements with 33 countries and regions since its first FTA with ASEAN in 2002, Vice Minister of Commerce Jiang Chenghua said at a State Council Information Office press conference on 22 October 2026. FTA partners, including Hong Kong, Macao and Taiwan, account for 45 percent of China's total trade and 70 percent of foreign investment attracted, and a global free trade network has taken initial shape, he said. In 2026 China completed upgrade negotiations for its FTA with Switzerland and signed an upgrade protocol to its FTA with Georgia.

Under the China-Switzerland upgraded agreement, products accounting for more than 99 percent of bilateral goods trade will eventually be duty-free, and the deal incorporates new rules on digital trade, artificial intelligence, and trade and sustainable development. China has signed framework agreements on common development economic partnerships with 40 African countries and framework agreements on upgrading economic partnerships with 8 Pacific island countries, and has signed early harvest arrangements with Congo (Brazzaville), Kenya and Seychelles. Customs statistics show that in the first three quarters of this year, China's imports and exports with FTA partners reached RMB 19.55 trillion, up 30 percent, contributing more than 70 percent of the growth in foreign trade.

Jiang said that with global recovery weak and protectionism rising, it is a major task to encourage trading partners to substantially cut tariffs, guarantee market access for services and investment, and harmonise connectivity rules and standards. The Ministry of Commerce will next push for the early entry into force of the China-ASEAN FTA 3.0 and the upgrade protocol to the China-Peru FTA, accelerate FTA negotiations or upgrades with South Korea, New Zealand and Central Asian countries, and seek positive progress on expanding and upgrading RCEP. By the end of 2025, China's outward foreign direct investment stock stood at nearly USD 3.4 trillion, ranking among the world's top three for nine consecutive years.

In the first nine months of this year, outward direct investment across all industries reached USD 128.62 billion, while foreign investment in high-tech industries rose 33.8 percent, accounting for 41.6 percent of the total.

Commentary

The expansion of China's FTA network to 33 countries and regions, covering 45 percent of its total trade, presents both pressure and opportunity for New Zealand small and medium-sized enterprises. Upgrade negotiations for the China-New Zealand FTA are on the Ministry of Commerce's next agenda, but New Zealand's traditional strengths such as dairy and meat face intense competition in the Chinese market from Australia and the European Union. The China-Switzerland upgraded agreement, with its 99 percent zero-tariff coverage and digital trade rules, could offer a reference for New Zealand's high-value agricultural products and digital services.

Notably, China's framework agreements on economic partnerships with 8 Pacific island countries may affect New Zealand's traditional role as a trade hub in the South Pacific. New Zealand SMEs should watch the 33.8 percent increase in foreign investment in China's high-tech industries and look for cooperation opportunities in agricultural technology and green energy, rather than relying solely on primary product exports.

Keywords: free trade agreement, FTA network, Ministry of Commerce, Jiang Chenghua, China-Switzerland upgraded agreement, imports and exports with FTA partners, outward investment stock, RCEP expansion, foreign investment in high-tech industries

Photo by MUHAMMAD NABEEL on Unsplash

Source: Cross Talk