ASEAN Summit: China, ASEAN sign upgraded free trade pact

US President Donald Trump, who attended the ASEAN event on Sunday, will be nominated for the Nobel Peace Prize by Japanese Prime Minister Sanae Takaichi, the White House said on Tuesday.

Trump is in Tokyo where he met and discussed security issues with Takaichi and signed deals on trade and critical minerals.

Read more here.

The 11-nation ASEAN bloc signed an upgraded version of their free trade agreement with China on Tuesday, expanding cooperation into areas such as the digital and green economies.

Beijing hopes the updated trade deal will strengthen its economic ties with the Southeast Asian bloc and offset the impact of US tariffs.

The bloc has a combined GDP of $3.8 trillion (€3.26 trillion).

China is ASEAN's biggest trading partner, recording $771 billion in bilateral trade last year.

Beijing earlier said so-called 3.0 version of the free trade agreement would pave the way for improved market access in sectors such as agriculture, the digital economy and pharmaceuticals between China and ASEAN.

Both China and ASEAN are also members of the Regional Comprehensive Economic Partnership (RCEP), the world's largest trading bloc, which held its first summit in five years in Kuala Lumpur on Monday.

We are restarting this blog to focus on the third day of the ASEAN Summit.

On Tuesday, China and the Southeast Asian bloc ASEAN, hit by US tariffs, signed an upgraded free trade pact. The deal is expected to include sections on digital, green economy and other new industries.

Meanwhile, US President Donald Trump set to meet Japan's new Prime Minister Sanae Takaichi in Tokyo with the two leaders expected to discuss bilateral trade and defense.

We're pausing the blog now, but we'll be back with the latest news from the ASEAN summit on Tuesday.

US President Donald Trump said Monday that the US and China are close to a trade deal after weekend talks at the ASEAN summit in Malaysia. Trump and Chinese leader Xi will meet Thursday in South Korea — their first meeting since Trump's return to the White House.

European Council President Antonio Costa on Monday said that top Chinese officials will visit Brussels in the coming weeks to discuss Chinese rare earth export curbs. 

Beijing announced limits earlier this month, alarming automobile, electronics and defense manufacturers. The US has threatened a 100% tariff on Chinese goods over the move.

Costa told reporters at the ASEAN summit, "we are very concerned about the trade relationship with China." 

Noting that export controls on critical raw materials were a serious concern, Costa said, "A high-level delegation from China is going to Brussels in the coming weeks, and we hope to address this in the proper way."

"With China, we want to have good trade relations. But in fact, we have some problems that we raised and we need to address," said Costa, who met with Chinese Prime Minister Li Qiang at the summit.

"China knows very well what kind of problems we are facing and what China needs to do to overcome this situation."

US President Donald Trump has touched down in Tokyo, the next stop in his five day tour of Asia. Trump is scheduled to discuss regional economic and security issues with Japan's new prime minister on the visit.

After Air Force One touched down at Haneda Airport, Trump was given a nighttime helicopter ride over Tokyo before being taken to the Imperial Palace to meet Japanese Emperor Naruhito. There, the two posed for pictures.

Trump will discuss trade and security with Prime Minister Sanae Takaichi on Tuesday. The new PM is reported to have put in a government order for a fleet of (for Japan rather impractically large) Ford F-150 pick-up trucks in an effort to please Trump.

The president made a point of mentioning the gesture when speaking with reporters on Air Force One, saying: "She has good taste. That's a hot truck."

Trump's arrival has put Tokyo on alert. Police say anti-Trump protests will be taking place during the visit, while also noting that a knife-wielding man had been arrested outside the US Embassy on Friday.

Donald Trump continues to wheel and deal with world leaders on his Asia junket. Having sat down with Brazil's president, the Japanese prime minister and Chinese president are next on his list. 

On route to Japan on Air Force One, Trump was asked by reporters about two other possible rendezvous — one with Canadian Prime Minister Mark Carney, who will attend the APEC summit; and one with North Korean leader Kim Jong Un.

Speaking of Carney, whom Trump is angry with over unfavorable political ads criticizing his tariffs, the president said, "I don't want to meet with him."

Using the language of a gambler, Trump said, "We're going to let it ride," adding that he is "very happy" with the trade and tariff situation as it is and sees no reason to speak with Carney.

Asked about possibly meeting North Korea's Kim before heading home Trump said, "If he'd like to meet, I'd love to meet."

Though he said he had not yet thought about extending his trip, Trump suggested it would be possible.

The situation in Myanmar continues to cause consternation among ASEAN bloc countries as years of violence under the military junta drag on and its promise of free and fair elections rings hollower than ever. 

Speaking of the situation to reporters on the sidelines of the ASEAN summit, UN Secretary-General Antonio Guterres called the ongoing violence in Myanmar "deplorable," saying the country's behavior threatened regional stability.

Guterres said the junta had "piled calamity upon calamity" on the country's people since seizing power in a 2021 military coup, adding, "I reiterate my call for an immediate end to the violence, a genuine commitment to inclusive dialogue and a credible path back to civilian rule." 

Despite civil war, the junta has promised a return to democratic rule with elections by the end of the year, but the vote has already seen opposition parties banned, rebel groups and a shadow government boycotting, and military leadership acknowledging that voting will not take place in some parts of the country. 

Diplomatic sources within the ASEAN bloc also told news agency AFP on Monday that election observers will not be sent to Myanmar in December, denying the junta international legitimacy.

On Sunday, ASEAN leaders voiced "deep concern" over the violence gripping Myanmar and warned of "a lack of substantive progress" towards peace.

"The cessation of violence and inclusive political dialogue must precede elections," the bloc added in a statement.

UN special rapporteur Tom Andrews had previously urged ASEAN not to "legitimize the junta's charade" by sending monitors, warning that to recognize the "fraudulent election would be to move Myanmar backward and defend the indefensible."

Although Myanmar remains a member of ASEAN its junta leaders have been barred from the bloc's meetings since the coup.

Brazilian President Luiz Inacio Lula da Silva said on Monday that a trade agreement with the United States could be finalized "within days," following a meeting with US President Donald Trump at the ASEAN summit in Malaysia.

Lula told reporters that the meeting with Trump, at the Association of Southeast Asian Nations (ASEAN) on Sunday, was "surprisingly good" and came with the assurance of an agreement.

A deal between the two nations could ease the tariffs Washington imposed on Brazilian exports.

A 50% tariff was applied to a significant share of Brazil's exports to the US in April in retaliation for what Trump has called a "witch hunt" against former far-right president Jair Bolsonaro.

"I told him that it was extremely important to take into account Brazil's experience as the largest country in South America, as the most economically important country that has almost all of South America as a neighbor," Lula said.

The Brazilian leader said he also expressed willingness to help the US on the issue of Venezuela.

After attending the ASEAN Summit in Malaysia, US President Donald Trump is set to arrive in Japan on Monday, the second stop of his Asia tour.

At Haneda Airport in Tokyo, dozens of people gathered to get a glimpse of the US leader.

Trump will meet Emperor Naruhito on Monday evening, followed by a meeting with Japan's new Prime Minister Sanae Takaichi on Tuesday. Thereafter, the US president will deliver a speech aboard the USS George Washington.

Speaking aboard Air Force One en route from Malaysia, Trump said he planned to talk in Tokyo about the "great friendship" between the US and Japan.

Trump also praised Takaichi, saying he expects the newly elected PM to be "great."

"I hear phenomenal things. (Takaichi) was a great ally and friend of Shinzo Abe, who was my friend," Trump said, referring to the assassinated former Japanese premier.

"That really helps Japan and the United States, I think she's going to be great."

Talks are expected to focus on trade and defense spending, as Washington presses Tokyo to buy more US goods and increase military funding.

The Japanese PM also expressed her enthusiasm for the upcoming visit. "And I told the president that I extremely look forward to welcoming him in Tokyo."

Asian stock markets opened euphorically on Monday hitting record highs in a rise fueled by hope that a trade deal may be in the cards when the leaders of the world's two biggest economies — US President Donald Trump and Chinese President Xi Jinping — hold face-to-face meetings in South Korea on Thursday. 

Markets opened at record highs in Tokyo and Seoul and soared in Sydney, Taipei and Hong Kong.

Monday's strong openings come on the heels of news that Chinese and US officials on Sunday hammered out the framework of a trade deal to be reviewed by Trump and Xi when they meet in South Korea on Thursday.

US and Chinese officials have confirmed their own optimism that a deal pausing higher US tariffs as well as Chinese rare earth export restrictions could be signed by the two leaders.

On Sunday, Trump said of the potential deal, "It's going to be great for China, great for us."

"I have a lot of respect for President Xi and we are going to I think... come away with a deal," Trump added.

The Trump-Xi meeting will take place in South Korea, where the two will attend the Asia-Pacific Economic Cooperation (APEC) summit.

The meeting will be the first between them since Trump's re-election.

Welcome to our coverage of the 47th ASEAN Summit in Malaysia.

On the second day of the summit, world leaders are expected to discuss ways to strengthen economic and trade ties amid looming US tariffs.

On Sunday, US President Donald Trump and Brazil's leader Luiz Inacio Lula da Silva had a "surprisingly good" meeting, raising optimism about a potential US-Brazil trade deal. On Monday, Trump touched down in Japan where he will address US soldiers on a warship and meet with the new prime minister for talks on trade and defense.

Meanwhile, East Timor officially joined the Association of Southeast Asian Nations, ASEAN, on Sunday, becoming the regional bloc's 11th member.