China advances Free Trade Area of the Asia-Pacific at APEC meeting in Dalian

China advances Free Trade Area of the Asia-Pacific at APEC meeting in Dalian

China is advancing efforts to implement the Free Trade Area of the Asia-Pacific (FTAAP) at this year's Asia-Pacific Economic Cooperation forum, seeking to strengthen regional economic cooperation amid growing global trade uncertainties. The push comes during the Third Senior Officials' Meeting held in Dalian from August 27-28, 2026, which attracted over 2,300 Chinese and international delegates attending nearly 130 thematic meetings and activities, making it the largest such gathering to date.

The FTAAP initiative, originally proposed by the APEC Business Advisory Council in 2004 and acknowledged by APEC Economic Leaders in 2006 as meriting serious consideration, has gained renewed momentum under China's hosting of the forum. In 2014, APEC Leaders endorsed the Beijing Roadmap for APEC's Contribution to the Realization of the FTAAP, followed by the Lima Declaration in 2016 instructing officials to implement necessary works toward eventual realization of the agreement.

"We have heard strong calls from the business sector to reinforce openness," said Chen Xu, Chair of the 2026 APEC Senior Officials' Meeting. "This includes advancing early deliverables toward the Free Trade Area of the Asia-Pacific, strengthening regional connectivity, and fostering closer public-private cooperation."

The significance of such an agreement spans the 21 APEC member economies—including Australia, Canada, Chile, China, Hong Kong China, Indonesia, Japan, Republic of Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, The Philippines, Russia, Singapore, Chinese Taipei, Thailand, the United States, and Vietnam—which collectively accounted for 61 percent of global nominal GDP and 46 percent of global trade in 2024.

Business sector recommendations

The APEC Business Advisory Council put forward recommendations to accelerate digitalization of cross-border trade, strengthen supply chain cooperation, and improve access to digital infrastructure. The council also encouraged development of responsible and innovation-friendly artificial intelligence to enable small and medium-sized enterprises and developing economies to participate more actively in the digital economy.

These recommendations align with the APEC Putrajaya Vision 2040, adopted by Leaders in 2020, which aims for an open, dynamic, resilient and peaceful Asia-Pacific community by 2040 through three economic drivers: trade and investment; innovation and digitalization; and strong, balanced, secure, sustainable and inclusive growth.

Five-year review of implementation plan

Delegates conducted the first five-year review of the Aotearoa Plan of Action, developed in 2021 by the 21 APEC member economies as an implementation plan for the Putrajaya Vision 2040. The review, scheduled to occur every five years in 2026, 2031, and 2036, aims to ensure APEC's collective actions better address developments in artificial intelligence, demographic changes, energy transitions, and cybersecurity, while continuing to strengthen supply chain resilience, digital trade, connectivity, and capacity building.

APEC Secretariat Executive Director Eduardo Pedrosa urged the next phase of cooperation to focus on generating tangible economic impacts. "APEC is at its best when cooperation translates into practical improvements in how our economies connect, trade and respond to change," Pedrosa said, expressing hope that the Dalian meeting outcomes would translate into concrete measures to make the Asia-Pacific region more competitive, resilient, and prepared for future challenges.

This marks the third time China has hosted APEC, having previously done so in 2001 and 2014. The Dalian meeting represents the third Senior Officials' Meeting China has convened in 2026, following gatherings in Guangzhou in February and Shanghai in May, as part of the APEC 'China Year' activities. The outcomes from these discussions will lay the groundwork for the APEC Economic Leaders' Meeting scheduled for November 18-19, 2026 in Shenzhen, where key decisions on FTAAP and other deliverables are expected to be finalized.