France, Germany and Italy are the latest western countries to sign-up for the China-led Asian Infrastructure Investment Bank. That brings the number of founding members to over 30. The new Asian lender was set up to fund energy, transport and infrastructure projects in the region. CCTV’s Jin Yingqiao has more.
- China says the AIIB will be efficient and transparent, able to learn from the past mistakes made by the international banking community.
- While the AIIB is a newcomer, those negotiating to join say it meets the same standards other established global lenders.
- While there are reportedly more than 30 countries already signed on, China’s state-owned Xinhua news agency says that number could grow further, with South Korea, Switzerland and Luxembourg also considering joining the bank.
US urged allies against joining China-backed bank
The Eurozone’s three largest economies are following Britain’s lead and joining the Asian Infrastructure Investment Bank. Washington sees the China-led institution as a rival to the World Bank.
CCTV’s Jack Barton filed this report from Brussels.
US urged allies against joining China-backed bankThe Eurozone's three largest economies are following Britain's lead and joining the Asian Infrastructure Investment Bank. Washington sees the China-led institution as a rival to the World Bank. CCTV's Jack Barton filed this report from Brussels.
- The Eurozone’s three largest economies have all agreed to follow Britain’s lead and join the China-led Asian Infrastructure Investment Bank.
- The moves come as a blow to Washington, which had been pressuring other western countries to resist joining the new institution.
- Germany, Italy and France are to join the Asia Infrastructure Investment Bank, which emerged as a potential rival to the Washington-based World Bank and the Asia Development Bank.
- Joining the infrastructure investment bank is also being seen as a pragmatic way to boost financial ties with China and to potentially access lucrative tenders issued by the institution.
AIIB, IMF & ADB
International Monetary Fund (IMF) welcomes the creation of Asian Infrastructure Investment Bank (AIIB), an IMF spokesman in Washington said on Wednesday.
“We welcome all initiatives that seek to strengthen the network of multilateral lending institutions and increase the available financing for infrastructure and development, including the newly created Asian Infrastructure Investment Bank,” an IMF spokesman in Washington reported by Sputnik.
China and other emerging economies, including BRICS, have long protested against their limited voice at global financial platforms, including the World Bank, International Monetary Fund and Asian Development Bank, according to the BRICS Post.
However, the US Congress failed to pass proposed IMF reforms in December 2014.
The AIIB offers an alternative to the Asian Development Bank (ADB). The ADB was established in 1966 and now has 67 members including 48 from Asia and the Pacific, but it is seen by many in the region as overly dominated by Japan and the US, which are by far its biggest shareholders with 15.7 percent and 15.6 percent respectively (compared with China’s 5.5 per cent). The Asian Development Bank Institute published a report in 2010 which said that the region requires $8 trillion to be invested from 2010 to 2020 in infrastructure for the region to continue economic development.
The president of the ADB, Takehiko Nakao, said in a statement that there were “huge infrastructure financing needs” in Asia and said that the establishment of the AIIB is an understandable step. He said that when AIIB is established, ADB will be willing to consider appropriate collaboration and at the same time urged that AIIB adopt international best practices in such areas as procurement and social safeguards on lending arrangements.