China and ASEAN started their dialogue in 1991. With their economic links becoming closer, their trade volume jumped from 6.3billion U.S. dollars in 1991 to 18.44 billion dollars in 1995 and more than 20 billion dollars in 1996.
In December 1997, leaders of the two sides issued a joint declaration at the first China-ASEAN summit in Kuala Lumpur, establishing guidelines and common policies to build their relationship in the 21st century.
Bilateral trade volume continued to grow, registering 27.2 billion dollars in 1999, 39.52 billion dollars in 2000, more than 40 billion dollars in 2001.
In November 2002, Chinese Premier Zhu Rongji and leaders of the 10 ASEAN nations at the sixth China-ASEAN summit signed the landmark Framework Agreement on ASEAN-China Comprehensive Economic Cooperation, kick starting the process of establishing a free trade zone. Under the agreement, the free trade zone was to be completed by 2010.
In November 2004, China and the ASEAN signed a free goods trade agreement and dispute settlement agreement at the eighth China-ASEAN Summit in Vientiane, capital of the Laos, which regulated that, from July 2005, China and ASEAN countries would gradually reduce tariffs on more products.
In the same year, bilateral trade reached a record 105.9 billion dollars, exceeding the 100-billion-dollar target a year ahead of schedule.
The two sides began reducing tariffs at the start of 2005. In that year, their trade topped 130 billion dollars, more than 15 times the 1991 total.
In 2007, their trade reached a new high, registering 202.6 billion dollars. In 2008, it grew to 231.12 billion, maintaining14 percent growth despite the global financial crisis.
On Aug. 15, 2009, China and ASEAN member states signed an investment treaty at the eighth trade ministers' meeting, and started to open investment markets to each other, signaling the wrap-up of major negotiations of the process.
on Jan. 1, 2010, China and ASEAN launched the China-ASEAN Free Trade Area (CAFTA) with an aim to boost trade cooperation and two-way investment between China and the 10 ASEAN nations.
The free trade area incorporates China and Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.
The China-ASEAN free trade agreement, covering a combined population of 1.9 billion and a combined gross domestic product close to 6 trillion dollars, is the world's third largest free trade area.
At the 16th ASEAN-China Summit on 9 October 2013, Chinese Premier Li Keqiang proposed to start negotiations on an upgraded version of the China-ASEAN Free Trade Area (CAFTA). China suggests to launch negotiations as soon as possible on an upgraded CAFTA. China encourage both sides to take more steps to open up such areas as trade in goods, trade in services and investment cooperation so as to further advance trade and investment liberalization and facilitation.