Washington struggles to support AIIB inclusion

Global Business

The United States is unlikely to join the Asian Infrastructure Investment Bank, according to financial experts in Washington. But many of America’s closest allies have chosen to become founding members of the China-led bank, including the United Kingdom, France and Germany. That’s left Washington looking isolated. The AIIB is expected to fund major energy, transportation and telecom projects. CCTV’s Daniel Ryntjes filed this report from Washington.

Washington struggles to support AIIB inclusion

Washington struggles to support AIIB inclusion

The United States is unlikely to join the Asian Infrastructure Investment Bank, according to financial experts in Washington. But many of America's closest allies have chosen to become founding members of the China-led bank, including the United Kingdom, France and Germany. That's left Washington looking isolated. The AIIB is expected to fund major energy, transportation and telecom projects. CCTV's Daniel Ryntjes filed this report from Washington.

Highlights:

  • When the United Kingdom announced earlier this month its inclusion in the Asian Infrastructure Investment Bank, a White House official sharply criticized the decision, exposing a rare policy rift between close transatlantic allies.
  • The U.S. Congress has avoided approving a package of reforms to the International Monetary Fund agreed upon in 2010 which would have given China and other emerging economies a greater say in decision making.
  •  That has contributed to the momentum for the creation of the AIIB as an alternative financing powerhouse, which has in turn raised concerns about a challenge to the Washington based World Bank and the Asian Development Bank.
  • The Obama administration could now lend support to the move by the IMF and World Bank to coordinate expertise and lending standards with the AIIB.

Derek Scissors of American Enterprise Institute on AIIB

CCTV America interviewed Derek Scissors, resident scholar at the American Enterprise Institute.

Derek Scissors of American Enterprise Institute on AIIB

Derek Scissors of American Enterprise Institute on AIIB

CCTV America interviewed Derek Scissors, resident scholar at the American Enterprise Institute.