China’s expanding Digital Silk Road (DSR) poses a significant challenge to ASEAN’s digital sovereignty, exploiting gaps in the Regional Comprehensive Economic Partnership (RCEP), particularly in data governance and cybersecurity. This influence is magnified by fragmented regulations and varied infrastructure levels across ASEAN Member States, creating geopolitical and economic imbalances. To counter these challenges and internal divisions, ASEAN is developing the Digital Economy Framework Agreement (DEFA). This pivotal initiative aims to establish a legally binding framework for a unified regional digital economy. DEFA is explicitly designed to surpass RCEP by fostering deeper integration, harmonization, and interoperability among members. It addresses areas where RCEP was ambiguous, signaling a move toward more robust, binding rules. By creating a cohesive and progressive digital ecosystem, DEFA is anticipated to provide ASEAN nations with a strategic pathway to manage external influences like the DSR. Ultimately, this agreement seeks to strengthen ASEAN’s relevance and centrality, allowing the bloc to navigate the complexities of the global digital landscape more effectively and secure its own digital future.