Editor's note: Xu Xiujun, deputy director of the National Academy of Chinese Modernization at the Chinese Academy of Social Sciences, and Xu Yingming, head of the international market research institute at the Chinese Academy of International Trade and Economic Cooperation, spoke to People's Daily Overseas Edition about what underpins the resilience of the Asian economy. Below are excerpts of the interview. The views don't necessarily represent those of China Daily.

While economic fragmentation and protectionism are on the rise, Asia has formed a dynamic regional economy that effectively hedges against external risks. In the past three decades, intra-regional trade and investment in Asia have grown markedly, consolidating its role as a "ballast" for global trade.

A complete, high value-added supply chain has taken shape in Asia, covering the manufacturing, packaging and testing of cutting-edge chips as well as key electronic components and servers. Asia is evolving from being the "world factory" to a global hub for artificial intelligence and semiconductors. Investment in AI hardware and data infrastructure is flowing in at an unprecedented pace, injecting strong momentum into industrial upgrading.

Asia also has enormous consumption potential, with excess savings waiting to be unlocked. At the same time, the continent's drive to achieve the green transition of its economy has become a major opportunity for investment, leading to vibrant growth in sectors such as battery manufacturing, electric vehicles and green finance, unleashing new potential for the continent's sustainable growth.

Over the past two years, scientific and technological innovation, especially AI-driven industry chain upgrading, has been the fastest-growing area in Asia's economic development. Two years ago, the semiconductor industry was in a cyclical downturn. But the explosive development of generative AI ushered in a super cycle for Asia. The speed and wide-ranging impact of this shift have made technological innovation the most dynamic factor underpinning Asia's economic resilience.

Countries and enterprises across Asia are racing to build AI infrastructure, driving an exponential surge in demand for AI chips, high-performance memory and servers. Over the past two years, thanks to its deep technological experience and complete industry chain, Asia has emerged as a key pacesetter in the global AI computing power revolution.

In the coming years, Asia will continue to face headwinds, including changes in the global geopolitical structure, the insecurity of trade routes, and barriers to technology cooperation. To overcome these challenges, Asian economies need to continue deepening their intra-regional industry and supply chain cooperation.

They should better align their strategies, further advance infrastructure connectivity, and make logistics and customs clearance smoother and easier. They should also deepen communication and coordination on regional policies, accelerate the green and digital transformation of industry chains, and leverage their powerful consumer markets to boost growth.

Existing frameworks such as the Regional Comprehensive Economic Partnership and Asia-Pacific Economic Cooperation have laid a solid foundation for regional cooperation. Cooperation on emerging issues, including the digital economy and supply chain security, is possible within these frameworks. Version 3.0 of the China-ASEAN Free Trade Area protocol has also made provisions for addressing these issues.

Going forward, China and the Association of Southeast Asian Nations members could consider establishing a regional consultation platform for digital trade rules and an emergency coordination mechanism for supply chain security. They could also jointly develop digital infrastructure and a reserve system for key components, better recognize each other's standards for eco-friendly products and work together to develop green technology.