Illustration: Liu Rui/GT

The Asian economy is stepping into a period of turbulence. The weak export demand, foreign capital exodus, currency devaluation and stocks plunge seem to suggest a recurrence of the Asian financial crisis in 1998.

Yet there is no need to panic. Today's Asia is entirely different from the situation 17 years ago. Its major economies have built up adequate capacity to endure a larger-scale impact from the international financial market. This includes foreign exchange reserves accumulated through readjustment since the beginning of this century and also distinct levels of investment and trade between countries in the region.

In 2000, China only made up 4.4 percent of foreign trade for ASEAN countries, but the share grew to 15 percent last year. During the same period, the share of trading with ASEAN countries in China's foreign trade increased from 8.3 percent to 11.1 percent.

According to 2013 reports by China's Ministry of Commerce, China's investment in the rest of Asia, Latin America and Africa has increased dramatically from 2008 to 2013, and China's Asian investment consisted of 68 percent of its total foreign investment in the period.

The close interaction may have serious implications when unfavorable factors grow in the global economy. But on the other side, it can make regional cooperation more resilient to storms.

The emerging economies in Asia have undergone an unprecedented period of growth and have now entered into a period of deep adjustment. Pressure can be converted into driving force, and internal restructuring and deepening cooperation with the outside can be complementary.

In fact, in the context of global economic downturn, the only path that works may be to improve the cooperation of regional economies.

The sustainable development of Asian economies in the future depends on economic restructuring. It also counts on whether multi-level cooperation in productivity, finance and logistics can be deepened on the basis of trade ties so as to facilitate industrialization and reindustrialization and form a complete industrial chain.

To improve cooperation, current trade negotiations need to yield results as soon as possible. The Regional Comprehensive Economic Partnership initiated by the ASEAN has started well and is expected to reach preliminary agreement by the end of this year.

China is also negotiating with ASEAN to upgrade their free trade agreement (FTA) while the China-proposed Asian Infrastructure Investment Bank will start operating this year. These negotiations and cooperation mechanisms can complement the "One Belt, One Road" initiative. But the key is how to connect the FTAs with building tighter industrial chains and work out rules to guide foreign investment and to consolidate and expand regional industrial chains.

Initial FTAs aim to promote bilateral and multilateral trade through mutual opening. But FTAs at a higher level should focus on building a complete industrial chain in a region to form tighter complementarity.

Asia underwent a financial storm 17 years ago. Economies such as South Korea, Malaysia, Thailand and Hong Kong were hit hard, but they endured the test and gathered experiences of cooperation. Back then, Asian economies obtained far less than Greece did now from the IMF. But they were not defeated. Most importantly, after the crisis Asian economies have really become aware of the importance of enhancing interactions and cooperation in the region.

The author is a senior editor with People's Daily. He is now stationed in Brazil. dinggang@globaltimes.com.cn. Follow him on Twitter @dinggangchina