It is common to argue that the emergence of China has significantly changed the functioning of the “Flying Geese Model”, such that vertical specialisation now occurs within China as opposed to the earlier experience of Asia where specialisation was across the network of various Asian economies. However, it is important to note that given the immense size and diversity within China itself, together with the openness of the Chinese economy, this development is not inconsistent with the “Flying Geese Model”, in which the key central idea is that vertical specialisation based on different comparative advantages can result from diversity in different stages of development. For example, Kwan, C. H., 2002, "The Rise of China and Asia's Flying-Geese Pattern of Economic Development: An Empirical Analysis Based on US Import Statistics", REITI Discussion Series 02-E-009 provides further discussion on this debate. For more detailed evidence of strengthened financial systems, refer to Aziz, Zeti A., 2007, "Asia is Moving Forward: Ten Years after the Crisis", prepared for the ADB International Symposium in Manila. The ASEAN countries have agreed to enact zero tariff rates on virtually all imports by 2010 for the original six AFTA signatories, and 2015 for the four newer ASEAN members (Vietnam, Laos, Myanmar and Cambodia). EA-9 refers to EA-10 excluding Japan. World Bank, 2006, "Dancing with Giants. China, India and the Global Economy", Eds, L, Alan Winters and Shahid Yusuf.

The importance of regional financial collaboration was recognised, not only to provide a platform for regional development through channelling part of the high savings in Asia to be invested in Asia, but also as a safeguard against the vagaries of global markets. Extensive efforts have now been put in place in the areas of surveillance, liquidity support arrangements, crisis management framework, the development of financial markets and other financial infrastructure, capital account liberalisation, financial services liberalisation, development of regional payment and settlement systems, as well as training and capacity-building. Broadly, economic and financial surveillance, aimed at identifying regional risk sources and vulnerabilities have been undertaken to enhance vigilance as prevention to potential financial crises and enable prompt corrective actions. Several forums, including the Executives' Meeting of East Asia and Pacific Central Banks (EMEAP), ASEAN and ASEAN+3, undertake extensive discussions on these issues. An integrated regional crisis containment, management and resolution framework has also been established, which is also complemented with mutual support arrangements and liquidity support mechanisms, such as the Chiang Mai Initiative (CMI) launched 2000. The CMI, comprising of the ASEAN Swap Arrangement and a network of bilateral swap arrangements among the ASEAN+3 countries, makes available financial resources in a timely manner to members facing temporary balance of payments and short-term liquidity constraints. It was first agreed in 2005 that the CMI would be multilateralised in all main components of the arrangement, and more recently in 2009, the total size of the facility has been increased to USD120 billion.