The current global financial and economic crisis is giving new life to initiatives that promotecloser economic integration among East Asian countries.A significant example is the ASEAN-ChinaFree Trade Area (ACFTA),which is set to come into effect around 2010.ACFTA aimsto boost trade between two economies that are partners as well as competitors:ASEAN andChina.In the present paper,we use insights from customs union theory in a qualitativeanalysis considering whether ACFTA would benefit both sides.We also apply a computablegeneral equilibrium model to perform a quantitative analysis of the same issue.Both ourqualitative and quantitative analyses provide grounds for guarded optimism regarding ACFTA’sprospects as a vehicle for strengthening the economic partnership between ASEAN and China. The current global financial and economic crisis is giving new life to initiatives that promote economic growth among East Asian countries. A significant example is the ASEAN-China Free Trade Area (ACFTA), which is set to come into effect around 2010. ACFTA aimsto boost trade between two economies that are partners as well as competitors: ASEAN andChina.In the present paper, we use insights from customs union theory in a qualitativeanalysis considering whether ACFTA would benefit both sides.We also apply a computablegeneral equilibrium model to perform a quantitative analysis of the same issue.Both ourqualitative and quantitative analyzesses grounds forguarded optimism regarding ACFTA’sprospects as a vehicle for strengthening the economic partnership between ASEAN and China.