# AIIB (Asian Infrastructure Investment Bank) news



## ahojunk

*AIIB updates*

Twenty-one Asian countries that are willing to join the AIIB as founding members signed an MOU in Beijing on Oct. 24, which specifies the authorized capital of the AIIB is 100 billion U.S. dollars and the initial capital is expected to be around 50 billion dollars.

The 21 countries are Bangladesh, Brunei, Cambodia, China, India, Kazakhstan, Kuwait, Laos, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, the Philippines, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan and Vietnam.

Beijing will be the host city for the AIIB's headquarters.

Reactions: Like Like:
1


----------



## cirr

Welcome onboard，Indonesia* *

*Indonesia becomes founding member of AIIB*

CCTV.com

11-26-2014 17:23 BJT


Video：Indonesia becomes founding member of AIIB - CCTV News - CCTV.com English

Indonesia has signed a Memorandum of Understanding on launching the Asian Infrastructure Investment Bank.

*Southeast Asia's largest economy is the 22nd founding member of the bank*. The country's finance ministry says Indonesia fully supports the AIIB and is looking forward to participating in the establishment process.

The finance ministry also says the Asian Infrastructure Investment Bank is in line with the country's growth strategy and is conducive to regional development.

Reactions: Like Like:
5


----------



## TaiShang

That was bound to happen. Those who celebrated that India and SK were absent are 50% more sorry now. 

When will they be 100% sorry? Time will tell. LOL.

Reactions: Like Like:
3


----------



## cirr

Now if we, through the AIIB, can make the pan Asian expressway(motorway) network as dense and extensive as East China's:

Reactions: Like Like:
3


----------



## cirr

TaiShang said:


> That was bound to happen. Those who celebrated that India and SK were absent are 50% more sorry now.
> 
> When will they be 100% sorry? Time will tell. LOL.



South Korea will most probably join in the 1st half of 2015.

Reactions: Like Like:
3


----------



## ChineseTiger1986

*US anger at Britain joining Chinese-led investment bank AIIB

US statement says of UK membership that it is ‘worried about a trend of constant accomodation’ of China, in a rare public breach in the special relationship*





_Chinese finance minister Lou Jiwei at the signing ceremony of the Asian Infrastructure Investment Bank, Beijing, October 2014. Photograph: Takaki Yajima/AFP/Getty Images_

The White House has issued a pointed statement declaring it hopes and expects the UK will use its influence to ensure that high standards of governance are upheld in a new Chinese-led investment bank that Britain is to join.

In a rare public breach in the special relationship, the White House signalled its unease at Britain’s decision to become a founder member of the Asian Infrastructure Investment Bank (AIIB) by raising concerns about whether the new body would meet the standards of the World Bank.

The $50bn (£33.5bn) bank, which is designed to provide infrastructure funds to the Asia-Pacific region, is viewed with great suspicion by Washington officials, who see it as a rival to the World Bank. They believe Beijing will use the bank to extend its soft power in the region.

The White House statement reads: “This is the UK’s sovereign decision. We hope and expect that the UK will use its voice to push for adoption of high standards.”

George Osborne – who has discussed the decision to become a founder member of the investment bank with his US counterpart, Jack Lew – has been the driving force behind developing closer economic ties between Britain and China. The chancellor has led the way in encouraging Chinese investment in the next generation of civil nuclear power plants in the UK and he ensured that the City of London would become the base for the first clearing house for the yuan outside Asia.

The US administration made clear in no uncertain terms its displeasure about Osborne’s decision to join the AIIB. A US official told the Financial Times: “We are wary about a trend toward constant accommodation of China, which is not the best way to engage a rising power.”

Britain was unsurprised by the decision of the US administration to air its concerns in public after the formal announcement that the UK would join the new investment bank. Sources said, in addition to the talks about British plans between the chancellor and the US treasury secretary, British and US officials have been in regular contact ahead of the announcement. UK officials say that, by joining the bank as a founding member, Britain will be able to shape the new institution.

In its statement to the Guardian, the White House national security council said: “Our position on the AIIB remains clear and consistent. The United States and many major global economies all agree there is a pressing need to enhance infrastructure investment around the world. We believe any new multilateral institution should incorporate the high standards of the World Bank and the regional development banks.
“Based on many discussions, we have concerns about whether the AIIB will meet these high standards, particularly related to governance, and environmental and social safeguards … The international community has a stake in seeing the AIIB complement the existing architecture, and to work effectively alongside the World Bank and Asian Development Bank.”

Human rights groups and others have complained that the UK has become too willing to placate China – particularly in light of its muted comments over the tight restrictions set out for voting rights in Hong Kong – but Thursday’s remarks seem to be focused on the bank.

“I think the US has had its questions about the UK posture towards China on other issues and I suppose this announcement probably triggered renewed concern in Washington about overall British politics vis-à-vis China. But [we] don’t normally arbitrate these things in public and I’m a little unsure as to why the US has chosen to pick a fight with the UK on this bank at this time, because I thought it had somewhat softened its posture on the bank. It’s a bit surprising to me,” said Matthew Goodman, senior adviser for Asian economics at the Center for Strategic and International Studies.

Goodman said the US had legitimate questions about the AIIB when it was first announced last summer, such as the governance of the institution, its lending standards and procurement rules.

“Notwithstanding that, I think they should have been more willing to engage in discussion with China and others about the institution. There’s a big infrastructure gap in Asia, existing institutions are not filling it and China has the wherewithal to contribute on the right terms.”

Some surmised that the US was responsible when Australia backed away from signing up to the bank at the Asia-Pacific Economic Cooperation summit in Beijing last autumn, after widespread speculation a deal was on the cards.

“The US did reach out to Australia, Koreans and others to consult about questions and concerns, and that’s been interpreted as leaning on allies not to join the bank,” said Goodman.

As the world’s second largest economy, China has grown increasingly frustrated that it does not have more influence at the IMF and World Bank, and sees little prospect of more say regarding the Japanese-backed Asia Development Bank.

US anger at Britain joining Chinese-led investment bank AIIB | US news | The Guardian

Reactions: Like Like:
4


----------



## cirr

The US showing its true colour.

Again!

Reactions: Like Like:
1


----------



## Tom99

*US anger at Britain joining Chinese-led investment bank AIIB
*


> Britain has announced plans to become the first major Western country to join a Chinese-led development bank, drawing a concerned response from the US.
> 
> The $50bn (£33.6bn) Asian Infrastructure Investment Bank (AIIB) has been feted by Beijing as a way of financing regional development, and is seen as a potential rival to US-based institutions such as the World Bank.
> 
> Chancellor George Osborne said Britain would join discussions with other founding members to set out the institution’s governance and accountability structures later this month, in a move to bolster relations with China.
> 
> “Forging links between the UK and Asian economies to give our companies the best opportunity to work and invest in the world’s fastest growing markets is a key part of our long-term economic plan,” Mr Osborne said in a statement.
> 
> “Joining the AIIB at the founding stage will create an unrivalled opportunity for the UK and Asia to invest and grow together.”





> The US administration made clear in no uncertain terms its displeasure about Osborne’s decision to join the AIIB. A US official told the Financial Times: “We are wary about a trend toward constant accommodation of China, which is not the best way to engage a rising power.”





> “The US did reach out to Australia, Koreans and others to consult about questions and concerns, and that’s been interpreted as leaning on allies not to join the bank,” said Goodman.





> The bank has support from countries including India, Singapore, Malaysia, Cambodia, Pakistan, the Philippines, Uzbekistan and Vietnam. However, several major economies allied to the US, including Japan, South Korea and Australia, have declined to become founding members.



First USA is angry at Vietnam and now it is angry at UK.

USA, along with Japan, pressured Australia and South Korea not joining at the beginning, but now Australia is rethinking of joining after UK.

I think China, as a founding member, should make an example with one of those countries ( Australia, South Korea or Japan) and keep it from joining, forever.

Reactions: Like Like:
7


----------



## Chinese-Dragon

LOL I don't get it, America is always asking to borrow money from us, why do they have a problem when we lend to other people?

Reactions: Like Like:
11


----------



## Beast

Chinese-Dragon said:


> LOL I don't get it, America is always asking to borrow money from us, why do they have a problem when we lend to other people?


US is just a petty little spoil brat. Their flip flop policy will never win any friends. Those so called allies they have just trying to get some goodies. Once no more goodies, they will left US to rot.

Reactions: Like Like:
5


----------



## TaiShang

US has become a pretty angry nation.

They are angry at everything.

Better not to get too cozy with them these years.

Reactions: Like Like:
4


----------



## ahojunk

Money talks. 

Now, Britain has broken ranks and decided to join AIIB. Why wouldn't Britain join, when there is $100 billion waiting there. Britain should look after its own interests. Likewise, the Americans look after its own interests, not others. The US can no longer go around telling other countries what to do.

It's getting interesting. I wonder which other European country is next. I think Australia or South Korea may jump the queue.

If China put another $100 billion making the size of AIIB to $200 billion, many more countries would be queuing to join.
.

Reactions: Like Like:
5


----------



## Abu Zolfiqar

By getting angry it begs the REAL question......are these organizations like IMF truly development/macro-economic assistance institutions or are they tools of foreign policy and leverage

I've always viewed the IMF with suspicion and i have great reasons for that. It's kind of like the intensive care unit at a hospital. It's always the absolute last resort (least desirable option) which every developing country DESPISES - b/c of the intrusive - sometimes counter-productive conditions they attach before disbursement. 

self-respecting countries need macro-economic stability and a large part of that is judged by the foreign exchange reserves position....at the same time they need not be in the debt/slavery trap where they end up being forced to undertake new loan programs in order to finance old ones. 

I hope the Chinese realize that and take a different course of action when designing this new bank



Chinese-Dragon said:


> LOL I don't get it, America is always asking to borrow money from us, why do they have a problem when we lend to other people?



you do raise a good point there......i guess the only difference is that while America is in huge debt, buying its debt its still worthy and pays returns. China-US relationship has been quite symbiotic in that sense. As long as US is still the "main superpower" this will keep going on.

Reactions: Like Like:
1


----------



## Tom99

Chinese-Dragon said:


> LOL I don't get it, America is always asking to borrow money from us, why do they have a problem when we lend to other people?



USA doesn't want competitions or institutions that's outside of its dominating influences or control. An American always heads the World Bank, an European always heads the IMF and a Japanese always heads the Asian Development Bank, even though these are supposedly international institutions. 

With the AIIB , it will give developing countries a choice to choose a source of loan and money. It is this competitions that scares the USA. Also, AIIB will also lessen some influences of Asian Development Bank and that's its controller, Japan, is against it.

In the end, AIIB will be good for developing countries as it give them a fair-er institutions which they can borrow loans/money from.

Reactions: Like Like:
3


----------



## ahojunk

UK submits application to join AIIB | Business Spectator

*UK submits application to join AIIB*
Paul Pennay

The UK officially lodged an application to join the Asian Infrastructure Investment Bank (AIIB) yesterday, according to a statement from China's Ministry of Finance.

The ministry said that the application will be considered in keeping with due process and in consultation with the other founding members.

If all goes to plan, the UK will be recognised as a founding member of the bank by the end of March.

The ministry said that it welcomed the UK's decision to apply to join the bank.

Lou Jiwei, China's Finance Minister, recently said that 27 countries had expressed a willingness to become founding members of AIIB.

When the bank was officially founded in October 2014, 21 countries agreed to become founding members, including China, India and Singapore.

Since then, Indonesia, New Zealand and other countries have joined the bank, according to an article in The Paper, 

The cut off date for becoming a founding member of the AIIB is March 31, 2015.

-------------------------------------------------
*
My comments*:-

The clock is ticking to be a founding member - have to join by 31 March 2015. The pressure is on. 

Today, the Australian Treasurer Joe Hockey says Australia will now consider joining AIIB. 

Initially, Australia turned down the invitation by China to become one of the founding members of the AIIB, saying that Australia would like to see more transparency in the governance of the bank. All of a sudden, with the clock ticking, this is no longer an issue because Britain has applied to join.  My friends, may I remind you that "*Money Really Talks*". All of a sudden, the news regarding AIIB in my country Australia is now sounding more and more positive. This is how the media works. Before that, there were so much doubts about AIIB.

All Asean countries are on board.

Central Asian countries such as Kazakhstan, Tajikistan, Uzbekistan are in. I am wondering why Russia has not joined yet.

Mongolia is already in.

New Zealand is already in.

Hong Kong has announced that they will join.

China has extended an invite to Japan.

My money is that South Korea will also jump ship and join.

Each passing day, the Americans are looking more and more silly. They will be the only one left which has not join.

This is getting more and more exciting in seeing how all these pan out. So much about trying to encircle and contain the rise of China.

Reactions: Like Like:
6


----------



## Aepsilons

Hehe, wise and pragmatic decision by the British. 



ahojunk said:


> UK submits application to join AIIB | Business Spectator
> 
> *UK submits application to join AIIB*
> Paul Pennay
> 
> The UK officially lodged an application to join the Asian Infrastructure Investment Bank (AIIB) yesterday, according to a statement from China's Ministry of Finance.
> 
> The ministry said that the application will be considered in keeping with due process and in consultation with the other founding members.
> 
> If all goes to plan, the UK will be recognised as a founding member of the bank by the end of March.
> 
> The ministry said that it welcomed the UK's decision to apply to join the bank.
> 
> Lou Jiwei, China's Finance Minister, recently said that 27 countries had expressed a willingness to become founding members of AIIB.
> 
> When the bank was officially founded in October 2014, 21 countries agreed to become founding members, including China, India and Singapore.
> 
> Since then, Indonesia, New Zealand and other countries have joined the bank, according to an article in The Paper,
> 
> The cut off date for becoming a founding member of the AIIB is March 31, 2015.
> 
> -------------------------------------------------
> *
> My comments*:-
> 
> The clock is ticking to be a founding member - have to join by 31 March 2015. The pressure is on.
> 
> Today, the Australian Treasurer Joe Hockey says Australia will now consider joining AIIB.
> 
> Initially, Australia turned down the invitation by China to become one of the founding members of the AIIB, saying that Australia would like to see more transparency in the governance of the bank. All of a sudden, with the clock ticking, this is no longer an issue because Britain has applied to join.  My friends, may I remind you that "*Money Really Talks*". All of a sudden, the news regarding AIIB in my country Australia is now sounding more and more positive. This is how the media works. Before that, there were so much doubts about AIIB.
> 
> All Asean countries are on board.
> 
> Central Asian countries such as Kazakhstan, Tajikistan, Uzbekistan are in. I am wondering why Russia has not joined yet.
> 
> Mongolia is already in.
> 
> New Zealand is already in.
> 
> Hong Kong has announced that they will join.
> 
> China has extended an invite to Japan.
> 
> My money is that South Korea will also jump ship and join.
> 
> Each passing day, the Americans are looking more and more silly. They will be the only one left which has not join.
> 
> This is getting more and more exciting in seeing how all these pan out. So much about trying to encircle and contain the rise of China.



Indeed. Money talks, let the investments come in, I say!

Reactions: Like Like:
3


----------



## Yizhi

aw...the Brits...
why am i not surprised at all....

Reactions: Like Like:
4


----------



## Aepsilons

Yizhi said:


> aw...the Brits...
> why am i not surprised at all....



In history, Britain always yearned to tap into the Chinese economy. Are we not surprised of current policy ?

Reactions: Like Like:
3


----------



## grand

Tom99 said:


> USA doesn't want competitions or institutions that's outside of its dominating influences or control. An American always heads the World Bank, an European always heads the IMF and a Japanese always heads the Asian Development Bank, even though these are supposedly international institutions. With the AIIB , it will give developing countries a choice to choose a source of loan and money. It is this competitions that scares the USA. Also, AIIB will also lessen some influences of Asian Development Bank and that's its controller, Japan, is against it.
> 
> In the end, AIIB will be good for developing countries as it give them a fair-er institutions which they can borrow loans/money from.


the US has control of the world bank, has veto power in the IMF, controls ADB through japan so it doesnt want others to challege these institutions.


----------



## Keel

It is not a zero sum game for the above mentioned financial institutions isnt it?
The establishment of AIIB is a blessing for those places in need of funding.
The Americans lives up to their ugly name by intervening in the process

Asian Infrastructure Investment Bank - Wikipedia, the free encyclopedia






Finest Chinese porcelain dinner set from 景德镇 Jing Dezhen


----------



## cnleio

A Bretton Woods moment in Asia 
China is trying to clone IMF and the World Bank. The world should notice






China is experiencing its Bretton Woods moment. Flush with a huge pile of cash, Beijing is on a bank-creation spree. Last year it took the lead in forming the Brics (Brazil, Russia, India, China and South Africa) Bank. In 2013, it announced plans to create the Asian Infrastructure Investment Bank (AIIB). It has tied up close to $110 billion in both projects. On Thursday, Britain signalled its intent to become a founding member of AIIB. This is another signal of the global financial and political realignments that are underway. As expected, the reaction from the US has been cold.

Officially, AIIB is expected to meet the infrastructure investment needs of the Asian region. Last year, China doubled its contribution to the bank from the original $50 billion to $100 billion. This amount dwarfs its share in the Brics Bank which stands at $10 billion.

While the Brics Bank is limited to five countries, AIIB will have a wider membership. So far, 22 countries, including India, have joined the bank. Most of the bank’s members are concentrated in Asia, Central Asia and the Middle East. AIIB is open to all countries, but three key nations in the Asia-Pacific have not signed up: Japan, South Korea and Australia. This is a story in itself.

The proposed banks are China’s answer to the International Monetary Fund (IMF) and the World Bank. China’s claims should be taken with a pinch of salt as unlike IMF and the World Bank, Beijing’s geopolitical goals are too enmeshed with the economic aims of these banks. Unlike the Brics Bank—where each country has one vote each and the share capital of a country cannot be increased without unanimous approval of all members—AIIB is a different creature. Negotiations on its operating rules are yet to be finalized and it is not clear if it will adhere to the one member, one vote rule as in the case of the Brics Bank. If it does have an equal vote pattern, it will constrict China’s goals.

Three issues merit attention: the size and structure of these banks, their lending priorities and territorial reach. Far from being alternatives to IMF and the World Bank, these institutions have different goals.

First, consider the magnitude involved. In AIIB, China is the dominant partner. It began with a promise of $50 billion as its share. Last year it promised to double it to $100 billion. While this will be quite smaller than that of the $165 billion Asian Development Bank (ADB), let alone IMF and the World Bank, this does give very considerable heft to China in lending across countries and political influence.

The latter point is key to the exercise. Unlike the Bretton-Woods institutions, that service all countries with development problems and the management of temporary balance of payments problems, the goals of the China-led banks are much more limited. These are straightforward lending banks and specifically infrastructure lending institutions. This is a much more specialized task as compared to managing global financial frictions and development. Any institution with these goals requires much greater membership and acceptability—which IMF and the World Bank have. The corollary is clear: with greater scope of lending by China comes much greater political leverage. This is reinforced by the membership structure of these banks: IMF and World Bank have 188 members; AIIB has just 22.

Finally, these banks have the potential to shift the world’s political and economic centre of gravity away from the West to China. This point lies in the future but the seeds are being sown now. Britain’s eagerness to join AIIB is an indicator of things to come. The great failure of these western institutions lies in their unchanging nature. It is a travesty that countries such as Italy should have greater voting rights than India; France more than China. It is this inability to change with the time in tune with economic realities that is letting China have its way. The losers will be western countries and the wider world.

The world’s poor countries need infrastructure and that requires money. The West does not have enough of it to lend, China does. But along with that opportunity to benefit come many strings. IMF may be infamous for insisting on “reform conditionalities” but these have stood the test of time. When China lends, an army of Chinese workers, companies and political nudging come with the package. Countries such as India should be aware of that.

Read more at: http://www.livemint.com/Opinion/L2LTKEPrR8XvMWzcnLFPpK/A-Bretton-Woods-moment-in-Asia.html?utm_source=copy

Reactions: Like Like:
5


----------



## cnleio

Defying US, European allies say will join China-led bank
The move is seen as a diplomatic blow for the United States, reflecting European eagerness to partner with China’s fast-growing economy





German finance minister Wolfgang Schaeuble said Europe’s biggest economy, a major trade partner with Beijing, would be a founding member of the Asian Infrastructure Investment Bank. Photo: Reuters


Paris/Beijing: Germany, France and Italy said on Tuesday they had agreed to join a new China-led Asian investment bank after close ally Britain defied US pressure to become a founder member of a venture seen in Washington as a rival to the World Bank.

The concerted move to participate in Beijing’s flagship economic outreach project was a diplomatic blow for the United States, reflecting European eagerness to partner with China’s fast-growing economy, the second largest in the world.

The concerted move to participate in Beijing’s flagship economic outreach project was a diplomatic blow for the United States, reflecting European eagerness to partner with China’s fast-growing economy, the second largest in the world.

It comes amid prickly trade negotiations between Brussels and Washington, and at a time when EU and Asian governments are frustrated that the US Congress has held up a reform of voting rights in the International Monetary Fund due to give China and other emerging economies more say in global economic governance.

German finance minister Wolfgang Schaeuble said Europe’s biggest economy, a major trade partner with Beijing, would be a founding member of the Asian Infrastructure Investment Bank.

A French finance ministry official told Reuters that Paris “confirms France’s participation and highlights agreement between Germany, France and Italy” on the matter, first reported by the Financial Times.

The Italian Treasury said the Europeans had agreed to work to ensure the new institution “follows the best standards and practices in terms of governance, safeguards, debt and procurement policies”.

French foreign minister Laurent Fabius told reporters: “We are indeed considering this idea positively. We are looking at the precise modalities internally in France, then we’ll have the opportunity to discuss it with other European countries.

“You have seen that the British have already joined. We have been working on this prospect for quite some time,” he added.

The AIIB was launched in Beijing last year to spur investment in Asia in transportation, energy, telecommunications and other infrastructure. It was seen as a rival to the Western-dominated World Bank and the Asian Development Bank.

Washington has questioned whether it will have high standards of governance and environmental and social safeguards.

It is seen as a key vector to spread Chinese “soft power” in the region, possibly at the expense of the United States. The World Bank is traditionally run by a US nominee and Washington also has the most influence at the IMF.

China said earlier this year a total of 26 countries had been included as AIIB founder members, mostly from Asia and the Middle East. It plans to finalise the articles of agreement by the end of the year.

*‘High watermark’*

China’s state-owned Xinhua news agency said South Korea, Switzerland and Luxembourg were also considering joining. An Indian government official said New Delhi had also heard that Luxembourg, an EU member, as well as non-EU Switzerland planned to participate.

Chinese foreign ministry spokesman Hong Lei would not comment on which countries had applied, and repeated that the bank would be “open, inclusive, transparent and responsible”.

Washington’s top diplomat for east Asia signalled on Tuesday that concerns about the AIIB remained, but the decision on whether to join was up to individual nations.

“Our messaging to the Chinese consistently has been to welcome investment in infrastructure but to seek unmistakable evidence that this bank ... takes as its starting point the high watermark of what other multilateral development banks have done in terms of governance,” US assistant secretary of state for East Asian and Pacific Affairs Daniel Russel said in Seoul.

“Every government can make its own decision about whether the way to achieve that goal is by joining before the articles of agreement are clarified or by waiting to see what the evidence looks like as the bank starts to operate.”

Visiting Beijing, European Parliament President Martin Schulz said he welcomed the involvement of four EU nations, but added: “Such new organisations must answer to the requirements of international standards. That is quite important.”

A government official in India, one of the countries that has joined, said the members of the AIIB would meet in Almaty, Kazakhstan, on 29-31 March to discuss the articles of agreement.

China has said 31 March is the deadline for accepting founder-members into the organisation.

Japan, Australia and South Korea remain notable regional absentees from the AIIB, although Australian Prime Minister Tony Abbott said at the weekend he would make a final decision on membership soon.

South Korea has said it is still in discussions with China and other countries about its possible participation.

Japan, China’s main regional rival, has the biggest shareholding in the Asian Development Bank (ADB) along with the United States. By convention, the Manila-based bank is headed by a Japanese.

Japan is unlikely to join the AIIB, but ADB head Takehiko Nakao told the Nikkei Asian Review that the two institutions were in discussions and could work together.

“We’ve begun sharing our experience and know-how,” Nakao was quoted as saying. “Once the AIIB has actually been established, it’s conceivable that we would cooperate.” Reuters

Read more at: http://www.livemint.com/Politics/1LxE5ap2gsyxQ7bRvnzPWM/Defying-US-European-allies-say-will-join-Chinaled-bank.html?utm_source=copy

_ Glad to see BeiJing chose a SMART & BEST way ... China will go further ! _

Reactions: Like Like:
11


----------



## About.to.be.banned

Good going China.

Though you would need to do more than form a bank to erode Western hegemony on finance. Dollar dominated international economy is greatest strength of US (not military), and if trends are any indication, dollar is going to reign supreme for at least half a century.

Though if supremacy of dollar could be eroded, it would be beneficial for all countries (including EU ,though to a lesser extent) as US would not be able to export its inflation overseas.As of today, US is only country where monetary easing does not ruin value of your currency.

Reactions: Like Like:
4


----------



## cnleio

2015.03.31 is the endline to apply for member of AIIB, just see whether Britain, France, Germany going in ?






Current formal member nations

Reactions: Like Like:
3


----------



## TaiShang

*Beijing set the deadline.* Let's see who else is going to make a last minute decision

Reactions: Like Like:
2


----------



## cnleio

TaiShang said:


> *Beijing set the deadline.* Let's see who else is going to make a last minute decision


Before 03.31, If France & Germany + Russia can join AIIB ... i think new Asia Bretton Woods can work ! China will get a great achievement, and it will affect future world economy.

Reactions: Like Like:
5


----------



## Bussard Ramjet

cnleio said:


> 2015.03.31 is the endline to apply for member of AIIB, just see whether Britain, France, Germany going in ?
> View attachment 203926
> 
> 
> 
> Current formal member nations
> 
> View attachment 203927



South Korea and Australia haven't decided yet. 

Though it is very likely that Australia will wanna be part of it. Korea don't know, because they have been giving mixed signals.


----------



## cnleio

Bussard Ramjet said:


> South Korea and Australia haven't decided yet.
> 
> Though it is very likely that Australia will wanna be part of it. Korea don't know, because they have been giving mixed signals.


Just yesterday, the AIIB official website showed S.Korea & Australia as formal member of AIIB ... but news does't prove it yet, recent days will read official voice.

Reactions: Like Like:
3


----------



## Bussard Ramjet

Also, don't get complacent. This is nowhere near any Bretton woods. This is an event of as much significance as the founding of the Asian Development Bank, NOT the world bank. 

Though I would like to see a collapse of Bretton Woods, there is much more to it. Bretton Woods agreements also included and oversaw US dollar as reserve currency, and the overall US financial hegemony. 

This is standard case of Americans overblowing "threat" to raise alarm etc. The way they do with their military. China should not be complacent, and keep going ahead.



cnleio said:


> Just yesterday, the AIIB official website showed S.Korea & Australia as formal member of AIIB ... but news does't prove it yet, recent days will read official voice.



Don't know about the "official site," especially since the bank is basically at the stage of consideration. There needs to be a discussion on its rules, and then the functioning of the bank. 

Trust me, I follow these news widely, and there has been no official announcement of any sort, neither from China or the respective countries. Abbot did indeed say that he will decide by the end of the week. Let's see.

Reactions: Like Like:
1


----------



## TaiShang

It is mostly the Western press that blows stuff out of proportion, be it pro or con. A lot of disinformation and rhetorical and abstract analyses that edge toward madness. 

Just like what happened with the Myanmar issue. 

China is as resolute and cool-headed as it has always been.

China wants to "economize" the issue while the US side likes to "securitize" it. The regular dichotomy. 

**

*AIIB not a gamble between China, US*
Global Times Published: 2015-3-17 23:13:01

The China-initiated Asian Infrastructure Investment Bank (AIIB) has met with US resistance since the very beginning. China would not have been so determined if it were several years ago.

The UK applied to become a founding member of the AIIB last week, followed by a few other European and Asian countries that have the same intentions. Prospects for the AIIB seem promising. Many analysts believe that the current situation proves the US lacks the ability to contain a rising China. As China has won the race around the AIIB, it has also gained some important rights for the future.

*But China will not turn the issues around the AIIB into a gamble between China and the US. China will not respond to such speculation that its "One Belt, One Road" initiative is a countermeasure to the US pivot to Asia strategy. An approach that sets the US as an adversary is contrary to China's doctrine.*

*Both the "One Belt, One Road" initiative and the AIIB are China's grand strategies to enter the international community. The comments and interpretation of the outside world cannot all be complimentary or help promote Sino-US mutual trust. China is bound to face a dubious US.*

China's development requires it to stick to the principles of independence and take measures that may be deemed "assertive" by the outside world.

Since the concept of the AIIB has been proposed, it has attracted 21 founding members. A number of countries have also showed their interest, and when the UK made an application, many more followed suit, even though the US remains at odds. 

*But the AIIB has brought more positive aspects to China's diplomacy. China's endeavor does not lead to extreme tension between China and the US, but gains more cooperation and understanding from European and Asian countries. *

One reason is that the AIIB fits the interests of most countries. The US tries to contain it with a geopolitical mind-set, but it lacks a strong case. 

As the Chinese economy develops with a growing scale and it interacts with the world more, it is bound to take more initiatives. As long as China seeks joint development and this is not aimed at the US, the world will eventually understand it and cooperate with it.

*The favorable news about the AIIB points to a promising future for the "One Belt, One Road" initiative. It is a compliment to China's diplomacy. Chinese society will gain confidence and accumulate experience about how the country can play its role in a complex international environment.*

Many people are worried that China's diplomatic environment may be *manipulated by the US*, but the evolution of the AIIB shows that *China is its own master*. Perhaps the US may become a member of the AIIB one day. As China develops smoothly, this is not that impossible.

Reactions: Like Like:
4


----------



## AViet

Why is the name of the bank "Asian Infrastructure...". Certainly China want more influence in the world, rather than in Asia only. Why not something like "International Investment bank" etc.


----------



## Bussard Ramjet

AViet said:


> Why is the name of the bank "Asian Infrastructure...". Certainly China want more influence in the world, rather than in Asia only. Why not something like "International Investment bank" etc.



Because this is ONLY for Asia. Not for outside world.


----------



## cnleio

AViet said:


> Why is the name of the bank "Asian Infrastructure...". Certainly China want more influence in the world, rather than in Asia only. Why not something like "International Investment bank" etc.


As far as i knew, the infrastructure investments to nations through Asia to Europe ... a new "Silk Road" project to invest local infrastructures on different nations.

To all nations, inside this circle...

Reactions: Like Like:
2


----------



## Jlaw

Should have called it International China Monetary fund (ICMF)

Reactions: Like Like:
2


----------



## Bussard Ramjet

Jlaw said:


> Should have called it International China Monetary fund (ICMF)



Why may I ask?



cnleio said:


> As far as i knew, the infrastructure investments to nations through Asia to Europe ... a new "Silk Road" project to invest local infrastructures on different nations.
> 
> To all nations, inside this circle...
> View attachment 203987



No this is Asian Bank, which implies that it wouldn't be used for any thing outside Asia. Rather, I would suggest that most of its loans would go to South East Asia and for the Maritime Silk Route.


----------



## Kiss_of_the_Dragon

I'm wondering if Russia is also part of AIIB or can it join if not?

Reactions: Like Like:
2


----------



## Lux de Veritas

Everyone World bank, IMF, ADB and BIS are white man financial weapon of terror, to put developing nations in debt and to shape them into capitalism.

It is good that finally they are seeing competitor.


----------



## TaiShang

*Why Europe dismisses U.S. concerns and to join AIIB*
_2015-03-19 08:44 Xinhua Web Editor: Gu Liping_

Asian Infrastructure Investment Bank (AIIB).

Experts say the development is a diplomatic and financial success for China, which is behind the new financial institution, and shows how Europe is prepared to look east for trade deals.

The news comes amid increased pressure on the United States to relinquish its domination of the International Monetary Fund (IMF), and coincides with Chinese and European concerns over America's dominance of trade in the Pacific.

European Commission spokesperson Mina Andreeva welcomed the new European cooperation with Beijing.

"Under-investment in infrastructure is a global challenge," she said, adding that "in Asia, as in Europe, there are extensive needs for investment. Increased investment in Asia's infrastructure is highly welcome and is also a business opportunity for EU companies."

Her declaration came after U.S. Secretary Treasury Jack Lew had urged caution over AIIB membership. "Whoever joins the new AIIB should first make sure it adheres to rigid standards," he said. "They must protect workers and the environment. There must be no corruption."

But a joint statement by the foreign and finance ministers of Germany, France and Italy said they would work to ensure the AIIB "follows the best standards and practices in terms of governance, safeguards, debt and procurement policies."

A spokesman for the Chinese Foreign Ministry said the new bank would be "open, inclusive, transparent and responsible."

The AIIB was launched in Beijing last year to spur investment in Asian transport, energy, telecommunications.

China said earlier this year a total of 26 countries had been included as AIIB founding members, mostly from Asia and the Middle East. The participation of the four biggest European economies is particularly significant.

European finance pundits have welcomed the news. Professor Stefano Gatti, a banking expert at Milan's Bocconi Business School, told Xinhua that China's status as an emerging economic power was behind European willingness to participate in the venture.

"I think this new joint venture is simply about European countries wanting to invest in a huge emerging economy," he said. "I don't see anything suspicious or shady, or any political interference."

Nonetheless, some senior U.S. officials still see the AIIB as a Chinese ploy to reduce its influence over the international banking system. The United States has sought to persuade regional allies such as Australia, South Korea and Japan to snub the bank. However, Australian Prime Minister Tony Abbott said at the weekend he had yet to make a final decision on whether or not to join.

While Japan is unlikely to join the AIIB, the Japanese head of the Asian Development Bank, Takehiko Nakao, has said that the two institutions were in discussions and might work together.

Unusually, the United States even appeared to criticize Britain, one of its closest allies, for becoming a founding member of the AIIB. But significantly, the British government shrugged off the U.S. unease. "There will be times when we take a different approach," a spokesperson for British Prime Minister David Cameron said.

British finance minister George Osborne hailed the country's participation. He said that joining the AIIB at the founding stage would create "an unrivalled opportunity for the UK and Asia to invest and grow together," underlining that this was one diplomatic mission in which the United States had not got its own way.

Another British government official, who would not be named, said that with Britain's long-term participation in the European Union in doubt, it made sense to cement trade ties with China and the Asian markets.

Meanwhile, the Obama administration has upped pressure on the U.S. Congress to approve reforms that would allow emerging powers such as China to have more say in the running of the IMF.

"Critically, we are seeking Congressional approval of the IMF quota and governance reforms," Lew told a hearing of the House of Representatives financial services committee on Tuesday. "Our international credibility and influence are being threatened," he admitted.

Lew noted that due to delays in introducing reforms, emerging-market powers were making parallel multilateral financial institutions of their own.

As a result, BRICS nations announced their own development bank in 2014, and now, he said, China had launched the AIIB.

Italy's leading business newspaper Il Sole 24 Ore has also criticized the U.S. "contradictory position."

It noted that the United States had "reacted badly to the participation of several European countries, including Italy, in the AIIB. But if the United States paralyzes the international system that it leads, there's no surprise in European nations trying to build their own bridge with Beijing for growth and development."

Reactions: Like Like:
1


----------



## hans

Russia is running out of cash, probably not..



Kiss_of_the_Dragon said:


> I'm wondering if Russia is also part of AIIB or can it join if not?



Yes, good to see a competitor..



Lux de Veritas said:


> Everyone World bank, IMF, ADB and BIS are white man financial weapon of terror, to put developing nations in debt and to shape them into capitalism.
> 
> It is good that finally they are seeing competitor.

Reactions: Like Like:
1


----------



## YoucanYouup

I guess the countries that most members of PDF belongs to are join in AIIB, like Pakistan India Vietnam Philippines, etc

Reactions: Like Like:
1


----------



## Lux de Veritas

The white man club like IMF, world bank will never change the status quo to allow China more voice. One way to overcome this is to wait for a long time and reform from within.

The alternative is to set up China's own shop and set whatever rules China would like to set.

Reactions: Like Like:
1


----------



## sicsheep

Im actually glad Japan didnt join, I hope S.K joins soon, 

you know we thought no EU country would join, but Obama really helped us with his state of union speech. 

where he said "But as we speak, China wants to write the rules for the world’s fastest-growing region. That would put our workers and our businesses at a disadvantage. *Why would we let that happen? We should write those rules*" 

He was just assumed no foreign country ever watches his speech lol

Reactions: Like Like:
3


----------



## YoucanYouup

Kiss_of_the_Dragon said:


> I'm wondering if Russia is also part of AIIB or can it join if not?


Russia has joined bank of the brics nations and now Russia is worried about Ukraine,maybe they will join soon

Reactions: Like Like:
1


----------



## AndrewJin

YoucanYouup said:


> Russia has joined bank of the brics nations and now Russia is worried about Ukraine,maybe they will join soon


Russia will at last, but now they are too into their own tough affairs.

Reactions: Like Like:
2


----------



## Guynextdoor2

NOTHING will happen. I said 8 months ago that BRICS bank will become a joke. I'm saying now that this will also be a joke- like the ADB. China thinks that it's just a matter of putting up the cash, it's not. China is incapable of the sophisticated politics that is needed to bring up such institutions like the IMF or World Bank. It sets out with the crude objective of creating rubber stamp institutions and these turn out to be just that- joke ruber stamp institutions.


----------



## cnleio

Guynextdoor2 said:


> NOTHING will happen. I said 8 months ago that BRICS bank will become a joke. I'm saying now that this will also be a joke- like the ADB. China thinks that it's just a matter of putting up the cash, it's not. China is incapable of the sophisticated politics that is needed to bring up such institutions like the IMF or World Bank. It sets out with the crude objective of creating rubber stamp institutions and these turn out to be just that- joke ruber stamp institutions.


India joined this joke too, a formal member nation of AIIB ... as far as i knew.

Reactions: Like Like:
4


----------



## Yizhi

MOSCOW (Sputnik) — Luxembourg’s Finance Ministry confirmed Tuesday the country's bid to become a member of the Asian Infrastructure Investment Bank.
"I can confirm that Luxembourg has submitted its candidacy to become a prospective founding member of the AIIB,” ministry's spokesman said in phone call with Sputnik news agency.

Luxembourg Seeks Membership in Asian Infrastructure Investment Bank / Sputnik International

Luxembourg is in.

Reactions: Like Like:
3


----------



## cirr

Yizhi said:


> MOSCOW (Sputnik) — Luxembourg’s Finance Ministry confirmed Tuesday the country's bid to become a member of the Asian Infrastructure Investment Bank.
> "I can confirm that Luxembourg has submitted its candidacy to become a prospective founding member of the AIIB,” ministry's spokesman said in phone call with Sputnik news agency.
> 
> Luxembourg Seeks Membership in Asian Infrastructure Investment Bank / Sputnik International
> 
> Luxembourg is in.



Luxembourg is a nation of bankers。So it is only natural that the country has come onboard。

Reactions: Like Like:
3


----------



## Edison Chen

*Luxembourg Submits Application to Join AIIB: Official*

Luxembourg's Finance Minister says the country has submitted an application in a bid to become a prospective founding member of the China-led Asian Infrastructure Investment Bank.

The minister says that as more and more Asian banks have settled in Luxembourg, his country expects to further play a significant financial role between Asia and Europe.

Meanwhile, Taiwan is willing to join the bank if invited, according to Taiwan's finance chief Chang Sheng-for.

Chang adds that Taiwan's participation would open up a good channel for Taiwan investment.

Britain became the first European country to join the Asian Infrastructure Investment Bank last week.

France, Italy and Germany have since announced they're applying to join the bank as founding members.

Applications to join the Asian Infrastructure Investment Bank remain open until the end of this month.

So far, around 30 countries have applied to be founding members.

The 50-billion US dollar initiative is expected to be formally established by the end of the year.

Luxembourg Submits Application to Join AIIB: Official


----------



## AndrewJin

cirr said:


> Luxembourg is a nation of bankers。So it is only natural that the country has come onboard。


Bank, steel and....stamps

Reactions: Like Like:
2


----------



## TaiShang

*AIIB embodies new major power relations*
Published: 2015-3-19 0:23:01

US Secretary of the Treasury Jacob Lew on Tuesday urged Congress to approve an agreement to reform the IMF. The agreement, which was reached in 2010, has been passed by many countries since then except the US, as the reform plans are believed to step on the interests of some US groups.

Lew's warning is obviously driven by the application of some European countries to join the China-led Asian Infrastructure Investment Bank (AIIB). If US lawmakers can change their way of thinking because of the competition from China, both the US and the world will benefit. 

The US advantages mostly lie in its military strength and discourse power. Besides its huge nuclear arsenals, its conventional warfare systems also have strategic deterrence at the global level. As for its discourse power, the US media has the ability to infiltrate its values and concepts into the world. These media outlets are a means to maintain the influence of US values. It is hard to make political arguments with the US.

Therefore, American society has long considered itself as the global leader. The country has become unaccustomed to any challenges in key sectors.

However, the US cannot prevent diversity and innovation emerging from other parts of the world. Trying to get free from US dominance or exceed the US does not mean a confrontational scenario. 

The US has to accept some competition that it feels uneasy about. Washington will see this as a challenge, but it has the ability to bear it. Although the US resists the AIIB, no sharp conflicts have occurred between China and the US. Washington seems to have a more benign tolerance toward economic competition than toward a military race.

That the AIIB breaks US containment provides an important lesson. The US cannot resist everything it dislikes but which is welcomed by most other countries. This will not challenge US military strength, and the US media cannot badmouth it too much. 

It is unrealistic to wish for no rivalry between China and the US. But the rivalry can be positive and interesting. A new type of major power relations will sooner or later face a rising China, which is the foundation for both countries to adopt innovative ways to handle their competition.

China may have to wisely leverage between the two advantages of the US. China is developing its own military might, but does not aim at racing with the US. It is also engaged in developing its soft power by convincing the world with its successful experiences.

The evolution of the AIIB has landmark significance. It brings a new momentum to China's opening-up. It also creates room for understanding China-US competition. Finally, the AIIB points to a bigger picture of what China's "One Belt and One Road" initiative entails.

Reactions: Like Like:
1


----------



## Reashot Xigwin

*Jakarta will compete with Beijing to host AIIB*

(Reuters) - Indonesia's finance minister said on Monday the country will seek to host the headquarters for the Asian Infrastructure Investment Bank (AIIB), a new multi-lateral lender that is led by China with Beijing wanting the role for itself.

"It is our aspiration to have headquarters in Jakarta, but of course we will have to compete with Beijing on that," Bambang Brodjonegoro, speaking on the sidelines of the Credit Suisse Asian Investment Conference in Hong Kong.

A number of countries have said they would participate in the new bank slated to start operations by the end of the year.

(Reporting By Saikat Chatterjee; Writing by Anne Marie Roantree; Editing by Simon Cameron-Moore)

Indonesia will compete with Beijing on HQ for AIIB -Fin Min| Reuters


----------



## ChineseTiger1986

Pretty much an impossible mission.

Reactions: Like Like:
1


----------



## Reashot Xigwin

ChineseTiger1986 said:


> Pretty much an impossible mission.



Its also pretty much doesn't change anything. Beijing will still control the Bank regardless if it will be build in Antarctica.

Reactions: Like Like:
1


----------



## Genesis

Reashot Xigwin said:


> Its also pretty much doesn't change anything. Beijing will still control the Bank regardless if it will be build in Antarctica.


that's the misconception I see in people, China won't be looking to CONTROL, the bank, certainly we will milk it for all it's worth, since we are putting our money were our mouth is and writing checks our *** will cash.

However, this bank is the prelude to the world bank, our world bank.

So, don't look for us to advance our interest too much, and we certainly would play by the rules, while making some of our own.

American concerns are unfounded, at least the concerns they publicly voiced.


Right now it looks like it could happen, very unlikely to be in Indonesia, but maybe we will change our mind and put a friendly nation or a neutral or an accountable nation, like Australia on the throne, and get relations up with ASEAN, or Indo and friends, by putting it in Indonesia.

We never know.

Reactions: Like Like:
5


----------



## Bussard Ramjet

ChineseTiger1986 said:


> Pretty much an impossible mission.



Actually, it will be great for Chinese soft power push. Indonesia will feel included in the new institutions that China is creating. Also, being based there will keep down whispers of utter Chinese dominance in the bank. 

I think it should be seriously considered.

Reactions: Like Like:
1


----------



## Jlaw

It's quite simple but why is it so hard for people to understand? If I'm the guy responsible for starting a company and I put the most capital upfront, I will be the CEO and have the HQ where I want.

Unless Indonesia put up more money than China, this isn't going change.

Reactions: Like Like:
3


----------



## Bussard Ramjet

Jlaw said:


> It's quite simple but why is it so hard for people to understand? If I'm the guy responsible for starting a company and I put the most capital upfront, I will be the CEO and have the HQ where I want.
> 
> Unless Indonesia put up more money than China, this isn't going change.



No, if you are the majority shareholder you are ENTITLED to put it wherever you want. But would you necessarily want to do that? 

Also, the Japanese-funded Asian Development Bank is actually located in Manila. Not that I'm suggesting you do that. But due consideration should be given to the idea.

Reactions: Like Like:
1


----------



## powastick

Bussard Ramjet said:


> No, if you are the majority shareholder you are ENTITLED to put it wherever you want. But would you necessarily want to do that?
> 
> Also, the Japanese-funded Asian Development Bank is actually located in Manila. Not that I'm suggesting you do that. But due consideration should be given to the idea.


I think you never been to Jakarta.


----------



## Huaren

those who pay(most) get to make the decision, one of the main reasons for setting up the institution is because in existing world bank/development bank even if newly rising developing nations are increasingly capable of rising the shares, unjustified decisions will still be made for them and their money, which is why nations like China are being put at disadvantage. AIIB is a meaning to break the circle of stagnation, and decision will be shared according to contribution.

Reactions: Like Like:
2


----------



## Tom99

*Korea asks China for the AIIB headquarters* 

from koreajoongangdaily



> According to government sources, the Korean government made a request to the Chinese government in April saying it “wants to establish the AIIB headquarters in Seoul or Songdo International City.”



Well, it seems like South Korea is going to have a competition. 

However, as this is a multinational bank , any member is welcome to their voice spoken. But how and why should the HQ be in SK or Indonesia instead of China though? Have Indonesia or SK lay out the benefit in doing so for all members? Also, why wasn't Indonesia willing to become a founding member in the first instance and only joined in after all the hard works have been doing by other members?

In SK's instance, it can't even decide to become a member without permission from USA. How can the AIIB HQ be in such country? 

It is almost as laughable as if the Philippine demands it to hold the HQ. Well, at least the Philippine was among the first founding members.

Reactions: Like Like:
3


----------



## Jlaw

Tom99 said:


> *Korea asks China for the AIIB headquarters*
> 
> from koreajoongangdaily
> 
> 
> 
> Well, it seems like South Korea is going to have a competition.
> 
> However, as this is a multinational bank , any member is welcome to their voice spoken. But how and why should the HQ be in SK or Indonesia instead of China though? Have Indonesia or SK lay out the benefit in doing so for all members? Also, why wasn't Indonesia willing to become a founding member in the first instance and only joined in after all the hard works have been doing by other members?
> 
> In SK's instance, it can't even decide to become a member without permission from USA. How can the AIIB HQ be in such country?
> 
> It is almost as laughable as if the Philippine demands it to hold the HQ. Well, at least the Philippine was among the first founding members.



thats the downside of having too many partners with different national interests involved. The bank will be delayed.


----------



## opruh

The headquarters is welcome here in Manila

Reactions: Like Like:
2


----------



## StarCraft_ZT

South Korea also attempted to convince Beijing of the advantages of setting up the headquarter in Seoul.

Reactions: Like Like:
2


----------



## Huaren

StarCraft_ZT said:


> South Korea also attempted to convince Beijing of the advantages of setting up the headquarter in Seoul.


was that their "condition" to become member? or did they plan to do it without joining up (maybe eventually after "convincing" US)? This is no game.

Reactions: Like Like:
1


----------



## Beast

Reashot Xigwin said:


> Its also pretty much doesn't change anything. Beijing will still control the Bank regardless if it will be build in Antarctica.


I agree with ur statement. China may show gracious by letting Indonesia friend to host the HQ. Just like how Manila act as Asian bank for Japan.

Reactions: Like Like:
6


----------



## TaiShang

South Korea, too much under US pressure. If HQed in SK, the US will do every spin to undermine it.

If an ASEAN nation is to be picked, then, other members will probably question the rationale. I am not against the idea (Indonesia is a friend just as other ASEAN friends), but, I guess, the stakeholders may find it more comfortable the HQ to be placed in the leading and largest shareholding nation.

Reactions: Like Like:
2


----------



## TaiShang

Obama abandons allies on AIIB - China.org.cn

By Kevin P. Gallagher




_China's Finance Minister Lou Jiwei (C) signs a document, with the guests of the signing ceremony of the Asian Infrastructure Investment Bank at the Great Hall of the People in Beijing October 24, 2014. [Photo / Agencies]_


The Barack Obama administration is looking increasingly left behind as it defies its closest allies and the US president's own party on foreign economic policy in Asia. The Obama administration rebuked the United Kingdom for agreeing to participate in negotiations for the Asian Infrastructure Investment Bank, even though the new institution would fill a major gap in Asian infrastructure needs.

*At the same time, Obama abandoned his own party in an attempt to ram through authority to finalize the Trans-Pacific Partnership agreement, a trade deal with Pacific Rim countries that would bring little economic benefit and high economic cost either to Asia or the United States.*

In the wake of the global financial crisis of 2008-9, China offered its newly acquired financial prowess to help boost Western-led financial institutions such as the International Monetary Fund and the World Bank. Although the Obama administration backed reforms at these institutions that would have given China more say, it has done little to counter an intransigent US Congress that, under Republican leadership, has failed to pass those critical reforms.

*Already stuffed with low-yielding US Treasuries in need of a higher return, China has decided to go its own way. That is why China is establishing the AIIB with an initial capital of $50 billion and a Silk Road Fund with $40 billion. Both are aimed at investing in infrastructure projects in Asia and beyond. In 2014, China also established the New Development Bank, along with Brazil, Russia, India and South Africa. This institution has an initial capital of $100 billion.*

These moves, intended to diversify the global funding landscape, come on top of financing that China's own development banks already provide across the world. The China Development Bank has $100 billion in capital and more than $1 trillion in assets.

*China's more intense global engagement — generally something not just welcomed, but demanded by the US government and politicians in Congress alike — does have some surprising consequences in the real world: The China Development Bank and the Export Import Bank of China now provide more loans to Latin American governments than the World Bank and the Inter-American Development Bank — and more loans to Asia than the World Bank and the Asian Development Bank.*

*In this light, China-backed finance has the potential to be nothing short of a 21st century “Marshall Plan”, and couldn't come at a better time. Western-backed financial institutions have not been able to increase their capital in proportion to the growing needs in the world. According to some estimates, development banks fall short of providing lending for poverty alleviation by $175 billion a year.*

The World Economic Forum projects that by 2020 about $5.7 trillion will need to be invested each year into green infrastructure in developing countries. Not only will this require shifting the current $5 trillion into a greener direction, there will be need to increase $700 million more each year to make the shift happen.

Washington can hardly complain about its sideline status. It was invited to take part in the AIIB. *Not joining it is a choice made by the US government. But the US has not only refused to play, it has lobbied Australia, the Republic of Korea, Indonesia, as well as European countries not to join in.* The UK has decided — and so have France, Germany and Italy — that it would be foolish not to be part of these efforts. Australia is now considering joining in as well. Others are bound to follow and leave the US standing alone.

*Obama's official complaint is that the AIIB will not replicate the transparency and anti-corruption norms, as well as the safeguards for social and environmental protection found in Western banks. This claim doesn't even pass the laugh test. Negotiations for the AIIB are not even underway yet — and the US move means it is foregoing an active role in the negotiations where these issues will be on the table.*

The US has long demanded that other major countries share the burden of global initiatives and institution building. Now that China has stepped up to the plate, Obama is passing up an opportunity for the US to take part in a legacy-making 21st century “Marshall Plan”.

*On top of that, he is alienating Asians, Western allies and his own party. The US government should be embracing the AIIB and abandoning the TPP, not the other way round.* Hopefully, our global allies and Obama's own party will help him see the light.

_The author is a professor of global development policy at Boston University's Pardee School for Global Studies./The Globalist_

Reactions: Like Like:
5


----------



## supermeson

either in Beijing, or a much smaller country with less power. definitely not Indonesia or Korea

Reactions: Like Like:
1


----------



## bobsm

財政部副部長:亞投行總部將設北京
[2015-03-25]	
【文匯網訊】據財政部網站消息，籌建亞投行首席談判代表會議主席、財政部副部長史耀斌今日表示，根據去年10月簽署的籌建亞投行備忘錄，各方已一致同意將總部設在北京。
3月25日，記者就外界普遍關心的亞投行籌建熱點問題採訪籌建亞投行首席談判代表會議主席、財政部副部長史耀斌。
對於「亞投行未來是否會在其他國家設立區域中心」，史耀斌表示，*根據去年10月簽署的籌建亞投行備忘錄，各方已一致同意將總部設在北京*。關於是否在其他國家設立區域中心以及未來高管設置等問題，各方將根據未來亞投行業務開展情況協商確定。

http://news.wenweipo.com/2015/03/25/IN1503250082.htm



Based on the memorandum signed last October, all parties have agreed the bank will be headquartered in Beijing.

Reactions: Like Like:
3


----------



## 帅的一匹

Beast said:


> I agree with ur statement. China may show gracious by letting Indonesia friend to host the HQ. Just like how Manila act as Asian bank for Japan.


not gonna be possible

谁会买鞭炮给别人放，总部肯定要设在北京。

Reactions: Like Like:
1


----------



## Shotgunner51

My suggestion (1) Hong Kong (2) Boao (3) Singapore (4) Jakarta (5) Kuala Lumpur


----------



## Huaren

Shotgunner51 said:


> My suggestion (1) Hong Kong (2) Boao (3) Singapore (4) Jakarta (5) Kuala Lumpur



Shanghai > all of them

Reactions: Like Like:
2


----------



## Shotgunner51

Huaren said:


> Shanghai > all of them



As a Shanghainese working in the financial sector I am fully confident for the job, though I still make these 5 suggestions considering the convenience for other members of AIIB.



Shotgunner51 said:


> Thanks! As a Shanghainese working in the financial sector I am fully confident for the job, though I still make these 5 suggestions considering the convenience for other members of AIIB.

Reactions: Like Like:
1


----------



## 帅的一匹

Shotgunner51 said:


> As a Shanghainese working in the financial sector I am fully confident for the job, though I still make these 5 suggestions considering the convenience for other members of AIIB.


Shanghai is the best choice, as I'm a Shanghainese too.

Reactions: Like Like:
1


----------



## topgun047

Shanghai already has the HQ of BRICS Bank so it should step aside on the principle of fairness.

And since India is second largest investor in AIIB so why not Mumbai,Chennai or New Delhi ?

Seriously though its foregone conclusion IMO that the bank will be based in Shanghai since China is moving mountains of cash and influence to transform Shanghai as major commercial centre to rival, and in time, eclipse the likes of New York and London.

Its a part of China's long term plan to erode Dollar's status as world's reserve currency.


----------



## Shotgunner51

wanglaokan said:


> Shanghai is the best choice, as I'm a Shanghainese too.



哝阿丝上海宁呀，嘎巧棒了一道，都册来嘎嘎三无。。。

Back to topic, either Singapore or HK is more international than rest of the incumbents, and either Jakarta or KL is convenient for dealing with Muslim countries (which might be largest recipients of AIIB money). These 4 will dilute the China image of AIIB, and that's not bad at all, I like low profile.

From Shanghai's POV, addition of AIIB HQ here wouldn't make much a difference, given Shanghai's already giant size finance sector. If China will host the HQ, Boao is a nice place.


----------



## bobsm

*AIIB to be headquartered in Beijing: official* 

(ECNS) - The China-led Asian Infrastructure Investment Bank (AIIB) will be headquartered in Beijing, Shi Yaobin, China's Vice Minister of Finance, said in a statement published Wednesday on the Finance Ministry's website.

Shi said that relevant parties have reached a consensus, according to a memorandum of understanding signed last October on the setting-up of the AIIB.

As to whether the AIIB will establish regional centers in other countries and the placement of its future senior executives, Shi said that relevant parties will hold consultations on these and other issues regarding the bank's operations in the future.

Britain, France, Germany, Italy, Luxembourg and Switzerland have officially applied to join the AIIB.

All countries interested in the AIIB are welcomed to join, Shi said.

AIIB to be headquartered in Beijing: official

Reactions: Like Like:
1


----------



## Shotgunner51

bobsm said:


> *AIIB to be headquartered in Beijing: official*
> 
> (ECNS) - The China-led Asian Infrastructure Investment Bank (AIIB) will be headquartered in Beijing, Shi Yaobin, China's Vice Minister of Finance, said in a statement published Wednesday on the Finance Ministry's website.
> 
> Shi said that relevant parties have reached a consensus, according to a memorandum of understanding signed last October on the setting-up of the AIIB.
> 
> As to whether the AIIB will establish regional centers in other countries and the placement of its future senior executives, Shi said that relevant parties will hold consultations on these and other issues regarding the bank's operations in the future.
> 
> Britain, France, Germany, Italy, Luxembourg and Switzerland have officially applied to join the AIIB.
> 
> All countries interested in the AIIB are welcomed to join, Shi said.
> 
> AIIB to be headquartered in Beijing: official



Beijing again? Looks like Beijing will soon be too crowded not just for residents but for travelers too!


----------



## LittleFish

The city where the HQ will be established will be a new financial center, no doubt. Obviously our leaders think this opportunity should be reserved because if the HQ is set up in Beijing, then Beijing will grow to be another world financial capital, then we have 3 world-class financial center: HK, Shanghai and Beijing, and this will increase our economic power, so our leaders won't give up the chance. The timing is precious and we have to make good use of it so that we can be strong enough to resist any financial attack launched by US if US gathers all her force to attack us in the future. A little pity for Indonesia but we have to do so.



sicsheep said:


> I think headquarter should have been in Taipei.


然后再被学运的那伙人强行赶走？


----------



## bobsm

LittleFish said:


> 然后再被学运的那伙人强行赶走？



Good point. Plus, I think Beijing will be able to handle security issues a great deal better than others.

Reactions: Like Like:
2


----------



## TaiShang

sicsheep said:


> I think headquarter should have been in Taipei.



LOL. Only if Taipei signs the reunification agreement.

The bank will most likely HQed in Beijing. A capital city is never too small to host international institutions. It is a prestige as well as a matter of convenience for China's diplomats.


----------



## LittleFish

bobsm said:


> Good point. Plus, I think Beijing will be able to handle security issues a great deal better than others.


Yeah, if placed in Jakarta then security is really a problem.


----------



## Hasbara Buster

*Snubbing US, South Korea Decides to Be a Founding Member in China’s AIIB*

South Korea released a statement on Thursday saying it has decided to seek founding member status at the China-led Asian Infrastructure Investment Bank (AIIB), despite US objections.

The decision makes South Korea the latest in a number of US allies to dismiss Washington’s opposition, and join China’s planned development bank.

Joining the AIIB as a founding member, according to a statement released by Seoul’s finance ministry, would help strengthen South Korea’s influence in the international banking sector, as well as provide more opportunities for domestic firms to participate in in large-scale regional infrastructural projects.







Washington Fails to Prevent Allies From Joining Asian Development Bank

Slowing economic growth in the country has increased pressure on the Asian Tiger to seek new sources of economic expansion, and the government has faced domestic criticism for not providing enough support for overseas deals.

As the statement noted, Seoul expects "the AIIB to help expand business opportunities for South Korean firms with expertise in the construction, telecommunication and transportation sectors…by creating huge infrastructure-building market."

South Korea had voiced similar concerns to the US regarding the AIIB’s governance, with the latter concerned about China using the bank as a means to exert influence over the Asia-Pacific region. The foreign ministry statement indicated that significant progress has been made in addressing the issue, saying that "The government will make efforts in close cooperation with the major countries to help the AIIB possess a high level of standards in the areas of responsibility, transparency, governing structure and debt sustainability."

While China is South Korea’s biggest trading partner, Seoul has had to carefully consider its decision to join the AIIB, particularly as it attempts to balance its economic goals with its long-standing military alliance with the US. Complicating the situation is the possible deployment of a US missile defense battery in South Korea, which Beijing is strongly opposed to, and the US claims would ensure protection from North Korean missiles.






Australia Mulls Joining Chinese Investment Bank

Twenty-one countries signed up to join the AIIB as founding members initially, with seven countries, including South Korea, following suit. Among those countries are the US’s European allies France, the UK, Germany, and Italy. The decision of US allies to join the China-led initiative indicates a failure in the Obama administration’s efforts to lobby against the Bank.

The Obama administration is concerned the bank will increase China’s political and financial clout in the region, and has suggested that it would lower international development standards. However, with key regional allies like Australia indicating that they are close to joining the AIIB, it appears as though the US’s warnings do not merit similar concerns to their allies.


Read more: http://sputniknews.com/news/20150326/1020058655.html#ixzz3VbyKGysT

Reactions: Like Like:
4


----------



## opruh

I predict more countries will join.

Reactions: Like Like:
1


----------



## ChineseTiger1986

*Breaking News!!! Russia and Brazil will join the AIIB*

Finally, the rest of the BRICS members are coming as well, and this bank will be no longer Asian, but to become the Global Infrastructure Investment Bank soon. 

Russia to apply for China-led infrastructure bank AIIB – Deputy PM — RT Business

Brazil says will join China-backed Asia investment bank| Reuters

Reactions: Like Like:
23


----------



## cirr

*Taiwan backs joining China-led infrastructure bank*

AFP . Taipei | Update: 18:30, Mar 27, 2015

Taiwan’s leader said he is in favour of joining the Asian Infrastructure Investment Bank in comments published Friday, making it the latest economy to express interest in joining the Beijing-backed institution.

It was not immediately clear if the island could actually join the AIIB, as the mainland has long opposed allowing Taiwan to join any international organisations that confer sovereignty upon it.

President Ma Ying-jeou’s remarks came after the bank, which the United States has opposed, has attracted several potential new members this month, including staunch American allies Britain and South Korea.

“I am in favour of joining (AIIB) in principle,” Ma told the Taipei-based China Times newspaper.

“We should not stay on the sidelines. (We) should actively participate in it.”

He explicitly linked potential membership in the AIIB to Taiwan’s bids to join other proposed multinational free-trade blocs, such as the Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership (RCEP).

“We hope to participate in regional economic integration and many countries that will benefit from AIIB are members of RCEP or are in the Asia-Pacific region,” he said.

It was not immediately clear whether Beijing would allow any application by Taiwan, which it regards as part of its territory awaiting reunification.

*‘Welcome all countries’*

This week Beijing’s vice finance minister, Shi Yaobin, said it “welcomes all countries” to join the bank, which it has touted as a tool for financing regional development alongside other lenders such as the World Bank and the Japan-led Asian Development Bank.

Beijing’s foreign ministry referred enquiries by AFP to the finance ministry, which did not immediately respond. Calls to the Taiwan Liaison Office were not answered.

Ma acknowledged the hurdle of statehood in the interview, the newspaper said, but claimed those obstacles could be discussed when former vice president Vincent Siew and Chinese President Xi Jinping meet Saturday at the Boao Forum, an annual gathering of political and economic leaders.

Taiwan’s involvement in international agreements is often curtailed by China, which considers it part of its territory awaiting reunification. They split in 1949 at the end of a civil war.

It has, however, joined international organisations in the past under different names. The International Olympic Committee refers to it as “Chinese Taipei”, and it is known as the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu at the World Trade Organization.

Ties have improved rapidly between China and Taiwan since Ma and his Beijing-friendly Kuomintang (KMT) party came to power in 2008.

The KMT, however, is tipped to lose power in next year’s presidential polls to the China-sceptic Democratic Progressive Party (DPP).

The opposition grouping expressed reservations over the AIIB on Friday. Spokesman Cheng Yun-peng said the government “should evaluate why is it necessary and ensure that Taiwan will join with an identity that won’t hurt our dignity or affect the overall national development”.

Britain, Germany, France and Italy have all said they intend to join the $50 billion bank, despite scepticism about the AIIB in Washington and Tokyo.

South Korea on Thursday became the latest country with close ties to the US to say it would also seek membership.

Taiwan backs joining China-led infrastructure bank

Reactions: Like Like:
10


----------



## xunzi

Welcome aboard to our Russian friend!

Reactions: Like Like:
13


----------



## VelocuR

Great Russia!

BRICS is now officially failed ???

Reactions: Like Like:
5


----------



## ChineseTiger1986

VelocuR said:


> Great Russia!
> 
> BRICS is now officially failed ???



Nope, the relationship between the AIIB (GIIB or WIIB in the future) and the BRICS Bank are always co-existent just like the World Bank and the IMF.

Reactions: Like Like:
12


----------



## ptldM3

This will piss certain people off

Reactions: Like Like:
9


----------



## VelocuR

ChineseTiger1986 said:


> Nope, the relationship between the AIIB (GIIB or WIIB in the future) and the BRICS Bank are always co-existent just like the World Bank and the IMF.



That's huge development, awesome news, mate





ptldM3 said:


> This will piss certain people off



Are you really Russian? Seem Jordanian to me, hope Jordanian pilot is safe.

Reactions: Like Like:
2


----------



## ChineseTiger1986

ptldM3 said:


> This will piss certain people off



China does not seek the monopolistic veto power in the future WIIB, unlike the US has for the World Bank.

And as more new members keep joining, our share will gradually decrease in percentage, so it will make it looks more fair in play than the World Bank which is basically a personal playground for the US.

Reactions: Like Like:
13


----------



## ptldM3

VelocuR said:


> That's huge development, awesome news, mate
> 
> 
> 
> 
> 
> Are you really Russian? Seem Jordanian to me, hope Jordanian pilot is safe.






I'm not Jordanian, my flag is in honor of a fallen Jordanian pilot.

Reactions: Like Like:
5


----------



## 大汉奸柳传志

Come on！Let's invite South Africa in and call it a merge with _BRICS Development Bank _
That one is just for show anyway，AIIB is the real deal

Reactions: Like Like:
4


----------



## ChineseTiger1986

utp45 said:


> Come on！Let's invite South Africa in and call it a merge with _BRICS Development Bank _
> That one is just for show anyway，AIIB is the real deal



South Africa and Argentina should hurry!

Reactions: Like Like:
6


----------



## sicsheep

i think a huge set of infrastructure project in Russia far east could give 30 more year growth. too bad Japan got left out

Reactions: Like Like:
4


----------



## ahojunk

Dear President Xi Jinping,

AIIB (or is it now called WIIB) is your bank. Please fund 50% of the capital and hold 50% of its share. You have done all the hard work and you must not allow others to jeopardise it. Don't dilute your share.

Increase the capital to $200 or even $300 billion, as this will indicate that China is really serious about infrastructure investment. Don't just stop in Asia. You have Eurasia just next door, good friends in South America and Africa who also need some funds for their infrastructure.

Please rename AIIB to World Infrastructure Investment Bank (or Global IIB) as soon as possible and extend the invite to South America and Africa. The change of the name will make the bank more inclusive.

Lastly, China should reward the UK, because they were the one who open up the floodgates. Before that, there were a lot of "wait and see" from other countries. London sounds like a good location for your European branch office and London can host the RMB clearing too.

Thank you.

Reactions: Like Like:
8


----------



## ChineseTiger1986

sicsheep said:


> i think a huge set of infrastructure project in Russia far east could give 30 more year growth. too bad Japan got left out



We cannot stop some people if they want to be the leftover of the world.

Reactions: Like Like:
5


----------



## yusheng

It is said that in the China only designed 15 to 20 board seats, perhaps only 3 seats reserved for "outside" (i.e., the european countries) members, this will result seven European countries quarrel and struggle to enter the board of directors.

Reactions: Like Like:
4


----------



## AndrewJin

ahojunk said:


> Dear President Xi Jinping,
> 
> AIIB (or is it now called WIIB) is your bank. Please fund 50% of the capital and hold 50% of its share. You have done all the hard work and you must not allow others to jeopardise it. Don't dilute your share.
> 
> Increase the capital to $200 or even $300 billion, as this will indicate that China is really serious about infrastructure investment. Don't just stop in Asia. You have Eurasia just next door, good friends in South America and Africa who also need some funds for their infrastructure.
> 
> Please rename AIIB to World Infrastructure Investment Bank (or Global IIB) as soon as possible and extend the invite to South America and Africa. The change of the name will make the bank more inclusive.
> 
> Lastly, China should reward the UK, because they were the one who open up the floodgates. Before that, there were a lot of "wait and see" from other countries. London sounds like a good location for your European branch office and London can host the RMB clearing too.
> 
> Thank you.





yusheng said:


> It is said that in the China only designed 15 to 20 board seats, perhaps only 3 seats reserved for "outside" (i.e., the european countries) members, this will result seven European countries quarrel and struggle to enter the board of directors.


I think the only eligible members in Europe are UK and Germany.

Reactions: Like Like:
4


----------



## ChineseTiger1986

yusheng said:


> It is said that in the China only designed 15 to 20 board seats, perhaps only 3 seats reserved for "outside" (i.e., the european countries) members, this will result seven European countries quarrel and struggle to enter the board of directors.



We will have to redesign everything.

Initially, it was only expected to rival to the ADB, but now it seems that many countries were getting fed up by the WB, so they wanna push our AIIB into a new WIIB, so we have to take the new consideration.

Reactions: Like Like:
4


----------



## ahojunk

yusheng said:


> It is said that in the China only designed 15 to 20 board seats, perhaps only 3 seats reserved for "outside" (i.e., the european countries) members, this will result seven European countries quarrel and struggle to enter the board of directors.



Yes, I think that is reported in the news.

UK should be given a seat. They were the one who opened the floodgates. Before that, everyone else was afraid of pissing off the Americans and adopting a "wait and see" position. As such, UK should be rewarded. This will show the world that China really means business and it's good to be China's friend.

Reactions: Like Like:
5


----------



## ChineseTiger1986

ahojunk said:


> Yes, I think that is reported in the news.
> 
> UK should be given a seat. They were the one who opened the floodgates. Before that, everyone else was afraid of pissing off the Americans and adopting a "wait and see" position. As such, UK should be rewarded. This will show the world that China really means business and it's good to be China's friend.



Yep, the initial goal for us to set up the AIIB is to fully unleash our production overcapacity by helping to build up the infrastructure for the developing nations in Asia.

For now, the goal remains unchanged, but the target has been expanded from Asia through the rest of the world.

Reactions: Like Like:
2


----------



## liubang

Sigh, I can't post thread. I hope chinese members will address my own ignorance because I don't know jack about the banking.

1) What is the biggest benefit to China with all these countries joining?
2) What if the USA joined after holding out until the last minute, does that benefit China or not?
3) What if the USA doesn't join at all, what is the consequence of that to the Americans?

Thank you.


----------



## ChineseTiger1986

AndrewJin said:


> I think the only eligible members in Europe are UK and Germany.



The bigger is better, we can help the entire Europe to renew their decayed infrastructure with our tremendous production overcapacity.

Meanwhile, our manufacturing and technology capability will strengthen by several folds again.

And don't be surprised that our GDP growth will go back to 8-10% again.



liubang said:


> Sigh, I can't post thread. I hope chinese members will address my own ignorance because I don't know jack about the banking.
> 
> 1) What is the biggest benefit to China with all these countries joining?
> 2) What if the USA joined after holding out until the last minute, does that benefit China or not?
> 3) What if the USA doesn't join at all, what is the consequence of that to the Americans?
> 
> Thank you.



1) To help others to renew their infrastructure with China's production overcapacity.
2) No problem, China is welcoming anyone to join, whether the US or Japan.
3) Too bad, they can keep enjoying their decaying infrastructure.

Reactions: Like Like:
4


----------



## liubang

ChineseTiger1986 said:


> 1) To help others to renew their infrastructure with China's production overcapacity.
> 2) No problem, China is welcoming anyone to join, whether the US or Japan.
> 3) Too bad, they can keep enjoying their decaying infrastructure.



hmmm very confused with this post. I wished some more details on it in term of global influences. China had gain another great step with this AIIB. I want to know more about the political/foreign policy insights of China and the USA. Because after all this is a chess game between the 2 of them.

Just found an article on the diplomat titled, "What the AIIB Means for the US-China Power Transition." I gonna read it. But it would be written from the western perspective. I am looking for replies that are liking to this but from a chinese perspective.

Reactions: Like Like:
1


----------



## yusheng

for the time being, AIIB focus on the investment on Aisa infrastruction development, after all, lots of Asia countries suffers lack of infrasttruction if compared to the European, American. 

the countries out of Aisa want to enter AIIB because they believe such a bank, led by China, will bring profits, and they want to share the profits ; on the other hand, European countries themselves lack momey to renew their infrastruction too, entering the bank gives them another chance to raise money.

Reactions: Like Like:
4


----------



## ChineseTiger1986

yusheng said:


> for the time being, AIIB focus on the investment on Aisa infrastruction development, after all, lots of Asia countries suffers lack of infrasttruction if compared to the European, American.
> 
> the countries out of Aisa want to enter AIIB because they believe such a bank, led by China, will bring profits, and they want to share the profits ; on the other hand, European countries themselves lack momey to renew their infrastruction too, entering the bank gives them another chance to raise money.



Yep, now the name Asian is unsuitable for this bank.

More potential customers will only keep strengthening our manufacturing base in both quantity and quality.

Reactions: Like Like:
3


----------



## liubang

Interesting. I just picked the best bits from multiple Diplomat articles.

==========================
From the article, "Meanwhile, the United States has its own reasons to have stalled the reform and expansion of world financial institutions, particularly with regards to China’s involvement. For example, the United States may worry that China has different political values and it may not truly intend to abide by the international rules. As China shows great interest in becoming more engaged in the world financial system, the United States may even worry about the genuine political intentions behind Beijing’s newly found enthusiasm."

"The report found that China generally accepts international rules, and that its role has been changing — from opposing the international system to participating and suggesting reforms, and finally to supporting and defending the system."

"By excluding China, the world’s second largest economy, in Trans-Pacific Partnership negotiations, and by boycotting AIIB, the United States seems to have sent a strong message that it still has the capability to “isolate” China. However, it is the United States that has been more or less “isolated” this time around."

"Option two, which I—along with virtually every other China analyst outside the U.S. government—supported back in October is that the United States join the AIIB. There are several reasons why this is a good idea. It would allow the United States a seat inside the tent where it could be both a positive force for best governance practices and an internal critic if things go awry. It also would likely help ensure that U.S. companies have fair access to the bidding opportunities that will arise from the AIIB’s investment financing. Joining now will be hard to accomplish in a face-saving manner, but the United States could begin by publicly recognizing the need for the financing capabilities in Asia that the AIIB can provide and by moving quickly to work with Australia, South Korea, and Japan to work out common principles of accession."

"Chinese-led resource and infrastructure investment has encountered significant difficulty in a number of countries, including Zambia, Myanmar, Vietnam, Brazil, and Sri Lanka, among others. If the AIIB does not do a better job than China’s own development banks, it will be a stain not only on Beijing but also on all the other countries that are participating."

"Nevertheless, the growing popularity of the AIIB could give China the opportunity to take a more proactive role in its intended plan to build new multilateral world institutions. In fact, the U.S. inadvertently helped facilitate such an opportunity, through its de facto containment attitude in its diplomacy toward China (especially regarding the regional territorial disputes), combined with a negative or even exclusionary policy in current multilateral economic frameworks like the International Monetary Fund and the Trans-Pacific Partnership."

"The irony is that the AIIB became a symbol of China-U.S. competition precisely because that is how Washington framed it. Aside from governance issues, the U.S. was worried the AIIB would undermine its own favored financial institutions, the World Bank and the Asian Development Bank. By encouraging allies to stay away from the initiative, the Obama administration turned a regional infrastructure back into a test case for its global influence – a case that the U.S. is now seen as losing. Gideon Rachman, writing for _Financial Times__, _called Washington’s handling of the AIIB issue a “diplomatic debacle” that “will make America look isolated and petulant.”"

"There are real concerns about the governance structure of the bank, including whether or not China will play an outsized role in determining who gets funding and who doesn’t. Such a set-up would only make it easier for China to wield its economic clout as a carrot (or a stick) to ‘encourage’ desired behaviors in other states. There are also legitimate worries about lax environmental and human rights safeguards for AIIB-funded projects."

"There are no good options left for Washington at this point. If it continues to refuse to join, it will look like a stubborn outlier that refuses on principle to take part in Chinese-led initiatives – even when the regional consensus is clearly that the AIIB is a positive development. If Washington joins on, its lateness will make it clear that the U.S. only changed its policy once it proved unable to sway friendly nations to join its boycott. As Elizabeth Economy pointed out in a recent piece, the best move for the U.S. may be to simply sit this one out – quit pressuring its allies to stay away and, in Economy’s words, “let the AIIB rise or fall on its own merits.”"

Reactions: Like Like:
1


----------



## AndrewJin

liubang said:


> Interesting. I just picked the best bits from multiple Diplomat articles.


Could u pls give me the links?


----------



## liubang

I get more questions now. 

1) What rules didn't China abide in the past?? I could understand why, if you can't win then don't play by the rule. That is one of my philosophy after all.

2) "Chinese-led resource and infrastructure investment has encountered significant difficulty in a number of countries, including Zambia, Myanmar, Vietnam, Brazil, and Sri Lanka, among others." What difficulty is the Diplomat talking about?

3) "There are real concerns about the governance structure of the bank, including whether or not China will play an outsized role in determining who gets funding and who doesn’t." I don't think this happen because China is extremely diplomatic to get all these Europeans to join. With them around, I doubt China won't play fair. 

I hope the bank work well despite the tone of these articles. Competition is healthy.



AndrewJin said:


> Could u pls give me the links?



What the AIIB Means for the US-China Power Transition | The Diplomat

That is the first article I read. The other articles are down at the bottom.

Reactions: Like Like:
2


----------



## yusheng

if necessary, China can upgrate equity capital to 300B, 500b since China now hold more than 1000B US treasury securities, that is why Kissinger at his 92 ran to China to "warn" (or persuade) not to open another international finacial system.

we may see Africa IIB, Latin American IIB in the near future.

Reactions: Like Like:
5


----------



## liubang

I am amuse that North Korea get decline. Sigh, must be suck that no one want you.


----------



## dichoi

yusheng said:


> if necessary, China can upgrate equity capital to 300B, 500b since China now hold more than 1000B US treasury securities, that is why Kissinger at his 92 ran to China to "warn" (or persuade) not to open another international finacial system.
> 
> we may see Africa IIB, Latin American IIB in the near future.



what kind of currency shall be dominated in such banks ? US$ or CNY ?


----------



## ChineseTiger1986

dichoi said:


> what kind of currency shall be dominated in such banks ? US$ or CNY ?



It depends who is the biggest trading partner with most nations, then it should be RMB.

Reactions: Like Like:
5


----------



## Echo_419

ChineseTiger1986 said:


> Finally, the rest of the BRICS members are coming as well, and this bank will be no longer Asian, but to become the Global Infrastructure Investment Bank soon.
> 
> Russia to apply for China-led infrastructure bank AIIB – Deputy PM — RT Business
> 
> Brazil says will join China-backed Asia investment bank| Reuters



Didn't knew Russians didn't join in already


----------



## liubang

dichoi said:


> what kind of currency shall be dominated in such banks ? US$ or CNY ?



My guess is the dollar still. Take the spot light of the yuan.


ChineseTiger1986 said:


> It depends who is the biggest trading partner with most nations, then it should be RMB.



Would that be smart for China?? Putting the yuan out there like that meant you cannot manipulate your currency without the scrutinize gaze of other members.

*I don't know jack about economy really. I just heard on the news a lot and politicians usually say that China manipulate their currency. Dunno what that meant or if it is still a thing*

Reactions: Like Like:
1


----------



## ChineseTiger1986

Echo_419 said:


> Didn't knew Russians didn't join in already



Russia was already appointed with the elite membership in the AIIB long before the European nations.

However, if Russia has announced its membership too early, then this bank could likely be shunned by Europe because of the current strained relationship between the EU and Russia.

BTW, now the political tension between the EU and Russia has the chance to be fully solved thanks to the AIIB (soon becoming the WIIB in the near future).

Reactions: Like Like:
13


----------



## ChineseTiger1986

liubang said:


> My guess is the dollar still. Take the spot light of the yuan.
> 
> 
> Would that be smart for China?? Putting the yuan out there like that meant you cannot manipulate your currency without the scrutinize gaze of other members.
> 
> *I don't know jack about economy really. I just heard on the news a lot and politicians usually say that China manipulate their currency. Dunno what that meant or if it is still a thing*



The US is always the biggest manipulator of currency, not China.

Printing a trillion dollar bill isn't currency manipulation?

Quantitative easing - Wikipedia, the free encyclopedia

Reactions: Like Like:
6


----------



## liubang

ChineseTiger1986 said:


> Russia was already appointed with elite membership in the AIIB long before the European nations.
> 
> However, if Russia has announced its membership too early, then this bank could likely be shunned by Europe because of the current strained relationship between the EU and Russia.
> 
> BTW, now the political tension between the EU and Russia has the chance to be fully solved thanks to the AIIB (soon becoming the WIIB in the near future).



That is pretty smart.



ChineseTiger1986 said:


> The US is always the biggest manipulator of currency, not China.
> 
> Printing a trillion dollar bill isn't currency manipulation?
> 
> Quantitative easing - Wikipedia, the free encyclopedia




It is lol. America totally is a currency manipulator. In the us, the libertarians group are extremely vocal about this. I think we already start to suffer some of the consequences for it.

Reactions: Like Like:
4


----------



## ChineseTiger1986

liubang said:


> That is pretty smart.



Thanks to the US currency manipulation that has fed up a lot of nations.

Otherwise, the AIIB wouldn't be considered as an alternative international financial institution for the world.

Reactions: Like Like:
4


----------



## yusheng

both USD AND RMB, any other currency now, future RMB

"The Chinese currency has gained a stronger footing in the global arena, having been ranked as the world's 14th payments currency with its worldwide use expanding to 15.6 percent, according to the financial services provider SWIFT."
Global yuan use increases - Headlines, features, photo and videos from ecns.cn

Reactions: Like Like:
5


----------



## 大汉奸柳传志

ahojunk said:


> Lastly, China should reward the UK, because they were the one who open up the floodgates. Before that, there were a lot of "wait and see" from other countries. London sounds like a good location for your European branch office and London can host the RMB clearing too.



Definitely.The UK cleaverly demonstrated that，despite the English empire has long gone，they still possess more influence on the world stage than anyone would have thought，and more than their share of GDP figure would indicate.That influence was previously overshadowed by the US，Once they decided to come out of the shadow，People start to see them still a top tier country as they truly are.This time China is not the only winner here

Reactions: Like Like:
4


----------



## liubang

ChineseTiger1986 said:


> Thanks to the US currency manipulation that has fed up a lot of nations.
> 
> Otherwise, the AIIB wouldn't be considered as an alternative international financial institution for the world.



I am not doing an accusation tone. The truth is that China did currency manipulation like the USA printing money. If I remember correctly, it has to do with import/export or whatever. I am not question the method because in the real world, no one play "fair." But I am wondering in term of the interesting of the Chinese economy. I guess China had grown enough that it no longer need such a practice. I really hope by the time I am in my 40s (15 to 20 years from now), asia will be like europe in term of standard of living right now.

Sigh, still can't figure out how to post a thread on this dang forum.


----------



## yusheng

liubang said:


> But I am wondering in term of the interesting of the Chinese economy. I guess China had grown enough that it no longer need such a practice. .



the overall Chinese strategy on economy is "both thriving", we can earn your money only when you are rich! that is why so many countries will follow China today. if China was selfish on economic strategy, no one will follow us.

you can refer to the economic growth in Africa when China entered in though economy is very complicated and effective in longterm.

Reactions: Like Like:
6


----------



## cirr

More deals of this nature will follow the formal establishment in 2015 of the AIIB。

*China, Kazakhstan Sign $23.6 Billion In Deals*

By Reuters on March 27 2015 10:49 PM EDT

(Reuters) - China and Kazakhstan have signed 33 deals worth $23.6 billion covering areas from hydropower to steel, state news agency Xinhua said.

The agreements were reached during a visit by Kazakhstan Prime Minister Karim Masimov to China after a meeting with Chinese Premier Li Keqiang, state news agency Xinhua said late on Friday.

Others areas covered by the deals include oil refining and cars, the report said, without providing further details.

"The inking of the deals show the success of bilateral cooperation, and proves that the two countries' economies are complementary," Xinhua quoted Li as saying.

"China's equipment and technology are cost-effective, which are suitable for countries promoting industrialization," he added.

China, Kazakhstan Sign $23.6 Billion In Deals

Reactions: Like Like:
9


----------



## ChineseTiger1986

utp45 said:


> Definitely.The UK cleaverly demonstrated that，despite the English empire has long gone，they still possess more influence on the world stage than anyone would have thought，and more than their share of GDP figure would indicate.That influence was previously overshadowed by the US，Once they decided to come out of the shadow，People start to see them still a top tier country as they truly are.This time China is not the only winner here



Yeah, I was also pretty shocked to learn this news, and most of us didn't expect that the UK was the first western nation to join.

Reactions: Like Like:
2


----------



## FairAndUnbiased

ChineseTiger1986 said:


> Yeah, I was also pretty shocked to learn this news, and most of us didn't expect that the UK was the first western nation to join.



I actually expected it. UK was first Western nation to recognize PRC. The British elites are smart, they can feel the direction of the wind.

Reactions: Like Like:
9


----------



## ChineseTiger1986

FairAndUnbiased said:


> I actually expected it. UK was first Western nation to recognize PRC. The British elites are smart, they can feel the direction of the wind.



The UK has by far more experience than his son the US who only relies of the brute strength.

Reactions: Like Like:
6


----------



## Edison Chen

Turkey joins too, lol? Why? Atatwolf, what do you want to say?

Reactions: Like Like:
4


----------



## rubyjackass

ChineseTiger1986 said:


> Nope, the relationship between the AIIB (GIIB or WIIB in the future) and the BRICS Bank are always co-existent just like the World Bank and the IMF.


More like ADB and World Bank/IMF



yusheng said:


> It is said that in the China only designed 15 to 20 board seats, perhaps only 3 seats reserved for "outside" (i.e., the european countries) members, this will result seven European countries quarrel and struggle to enter the board of directors.


The voting structure and organization is yet to be decided. The negotiations for that will start after March 31. As of now, each member will get one vote irrespective of their share. That is the general principle.


----------



## cirr

Holland is in，

Reactions: Like Like:
7


----------



## rubyjackass

ahojunk said:


> Dear President Xi Jinping,
> 
> AIIB (or is it now called WIIB) is your bank. Please fund 50% of the capital and hold 50% of its share. You have done all the hard work and you must not allow others to jeopardise it. Don't dilute your share.
> 
> Increase the capital to $200 or even $300 billion, as this will indicate that China is really serious about infrastructure investment. Don't just stop in Asia. You have Eurasia just next door, good friends in South America and Africa who also need some funds for their infrastructure.
> 
> Please rename AIIB to World Infrastructure Investment Bank (or Global IIB) as soon as possible and extend the invite to South America and Africa. The change of the name will make the bank more inclusive.
> 
> Lastly, China should reward the UK, because they were the one who open up the floodgates. Before that, there were a lot of "wait and see" from other countries. London sounds like a good location for your European branch office and London can host the RMB clearing too.
> 
> Thank you.


Sure. China does that and it will be instantly designated as a hegemon by the Western media. The one member-one vote principle is what made this endeavor a success. Otherwise every country like UK would have a reason to not join the bank. Now US looks like a sore loser. It can keep the IMF and WB shares with itself. AIIB is more of a competitor for ADB, not for World Bank as such.


----------



## aliaselin

The specific details about AIIB have not been discussed yet and we still have lots of work to do.

Reactions: Like Like:
3


----------



## cirr

Georgia is in。

Reactions: Like Like:
7


----------



## ahojunk

cirr said:


> Holland is in，





cirr said:


> Georgia is in。



@cirr,
How do you get your news so fast?

Reactions: Like Like:
4


----------



## yusheng

‘’each member will get one vote irrespective of their share. That is the general principle‘’

sound familiar!
it is managment, not democracy; maybe not confirmed the structure of decision making, but China will be dominant that is why THE US don't want to join. and posted fake news:


Foreign Ministry Spokesperson Hua Chunying's Regular Press Conference on March 25, 2015


Q: It is reported that China tried to earn the support of more European countries by promising not to hold any power of veto in the Asian Infrastructure Investment Bank (AIIB). Can you confirm that?

A: I believe that the Ministry of Finance will give an authoritative answer to the question, since it is the competent authorities in charge of the AIIB issue. I understand that all parties are consulting with each other on the charter of the AIIB which covers the decision-making mechanism and allocation of shares. The AIIB initiative is made to promote mutual benefits and complement the current international economic order. A brand-new multilateral development institution will be established in an open, transparent and effective manner. Members of the AIIB will be categorized into those in the region and outside the region. With the gradual increase of its members, the ratio of shares held by each and every member will decrease as a result. The notion of China seeking for or giving up the veto power in the AIIB does not make sense.

Reactions: Like Like:
3


----------



## opruh

Good developments, I hope every continent will have at least one representative here before the deadline.

Reactions: Like Like:
4


----------



## Yizhi

cirr said:


> Holland is in，


wow you are quick!

Reactions: Like Like:
1


----------



## cirr

ahojunk said:


> @cirr,
> How do you get your news so fast?



Australia will formally apply to join the AIIB as a founding member tomorrow 29.03.2015.

Reactions: Like Like:
7


----------



## cirr

Treasury Secretary Jack Lew is holding discussions over the US‘ joining AIIB as a founding member with his Chinese counterpart FM Lou Jiwei。

Reactions: Like Like:
5


----------



## Kiss_of_the_Dragon

The initial design is limited to Asia, now more and more other nation are joining, especially with Russia, this new institution will be a formidable counter weigh to World Bank and IMF politically. US can kiss and said good bye to their unique privilege to manipulate and control World bank with it veto power, reversely US has zero power in AIIB...not even a single voice. Americans want to play zero sum game by excluding China from TTP, now we return them some favor...there still alot of fun to come...

Undo World bank, IMF and ADB 's dictatorship privileges is a must and it's good that China take some initiatives to fix the world's problem.

Reactions: Like Like:
9


----------



## Yizhi

cirr said:


> Treasury Secretary Jack Lew is holding discussions over the US‘ joining AIIB as a founding member with his Chinese counterpart FM Lou Jiwei。



if US squeeze in the last minute while Japan is out .....

Reactions: Like Like:
5


----------



## Kiss_of_the_Dragon

cirr said:


> Treasury Secretary Jack Lew is holding discussions over the US‘ joining AIIB as a founding member with his Chinese counterpart FM Lou Jiwei。


 
it will be fiaso if US keep dragging until the last minutes to annonce to join AIIB and keep Japan out of it.

Some time I'm wondering if Japan is a souvereign nation?? it seems that it doesn't act like one on this affaire, there is no need for Japan to wait for US's nod to jump into this AIIB train

Reactions: Like Like:
10


----------



## Jackdaws

This is good. I wonder why the US has a chip on its shoulder. They have financed some really sick people over the years for strategic reasons.


----------



## cirr

Denmark is in。

Reactions: Like Like:
8


----------



## LittleFish

Just beyond my imagination......so many countries have joined. I don't know how much pressure US lays on Japan, but since CN-JP-KR FTA has shrunk to CN-KR FTA due to US pressure, if Japan again gets left out, then there will be a great loss for both AIIB and Japan. What do you think @Nihonjin1051 ?

Reactions: Like Like:
6


----------



## yusheng

very possible this time , Japan will be sold by its master.

if US took part in, meaning it compromised, this is also a sign that the world will start to wonder whether the rules of the game is changed, the United States began to lose control of the original rules?

The investment bank is an investment bank, there is a return on investment, although relatively low, but also return!This is China's first line of make money.

Second, infrastructure construction, highway, railway, building buildings, ports, which country is good at such building? Then there is the export of Chinese's high-end equipment, such as high-speed trains, such as nuclear power plants, this is the second Chinese money.

third, China is now facing the serious problem of the excess capacity, real estate related industries as well, now we can use this capacity to Asia infrastruction, this is the third way of making money.

fourth, good Infrastructure in other developing countries facilitates local economy in long-term, promotes the economic growth, in return demands more goods from China, this is the fourth China to earn money.

Reactions: Like Like:
5


----------



## Echo_419

ChineseTiger1986 said:


> Russia was already appointed with the elite membership in the AIIB long before the European nations.
> 
> However, if Russia has announced its membership too early, then this bank could likely be shunned by Europe because of the current strained relationship between the EU and Russia.
> 
> BTW, now the political tension between the EU and Russia has the chance to be fully solved thanks to the AIIB (soon becoming the WIIB in the near future).



SL after India,Russia & Brazil only SA is left to join AIIB



LittleFish said:


> Just beyond my imagination......so many countries have joined. I don't know how much pressure US lays on Japan, but since CN-JP-KR FTA has shrunk to CN-KR FTA due to US pressure, if Japan again gets left out, then there will be a great loss for both AIIB and Japan. What do you think @Nihonjin1051 ?



Agreed Japan looses since close US allies like UK & France are also joining 
Also can you post the proposed voting share of all the members here


----------



## Aepsilons

LittleFish said:


> Just beyond my imagination......so many countries have joined. I don't know how much pressure US lays on Japan, but since CN-JP-KR FTA has shrunk to CN-KR FTA due to US pressure, if Japan again gets left out, then there will be a great loss for both AIIB and Japan. What do you think @Nihonjin1051 ?



There are opportunities to be had in the AIIB, and I personally wish Japan to seize this initiative. Japan MUST join this apparatus.

Japan split on joining AIIB bank, caught between US, China - Channel NewsAsia

Reactions: Like Like:
5


----------



## Kiss_of_the_Dragon

Nihonjin1051 said:


> There are opportunities to be had in the AIIB, and I personally wish Japan to seize this initiative. Japan MUST join this apparatus.


 
Japan still has 3 days to decide.  clock is ticking.

Reactions: Like Like:
2


----------



## Aepsilons

Kiss_of_the_Dragon said:


> Japan still has 3 days to decide.  clock is ticking.




I hope it will be realized swiftly.

Reactions: Like Like:
1


----------



## Kiss_of_the_Dragon

I'm still watching Iran....as potential founding member before the deadline.

@SOHEIL

Reactions: Like Like:
9


----------



## Aepsilons

Kiss_of_the_Dragon said:


> I'm still watching Iran....as potential founding member before the deadline.



Can Iran join? Are there any stipulations that prevents her (ergo, sanctions) ? 

Perhaps some of our Iranian friends can clarify with us: @Serpentine @kollang , @SOHEIL, @Abii, @The Last of us, @Shahryar Hedayati et al

Reactions: Like Like:
2


----------



## Globenim

Germany
Austria
Swiss
Louxembourg
France
Britain

Lol thats basically they entire money pot of Europe in an "Asian" Infrastructure Investment Bank

And poor Japan. They may end up singled out with North Korea from global party because of their servedom to Americans...

Reactions: Like Like:
4


----------



## Aepsilons

Globenim said:


> Germany
> Austria
> Swiss
> Louxembourg
> France
> Britain
> 
> Lol thats basically they entire money pot of Europe in an "Asian" Infrastructure Investment Bank
> 
> And poor Japan. They may end up singled out with North Korea from global party because of their servedom to Americans...



Sadly there is truth to what you're saying. In the event our leadership fails to seize this opportunity. Literally, we will be sitting in the side lines with the North Koreans and the Americans.

How ironic it would be, tho, if the US joins at the last minute. lol.

Reactions: Like Like:
1


----------



## Kiss_of_the_Dragon

Nihonjin1051 said:


> Sadly there is truth to what you're saying. In the event our leadership fails to seize this opportunity. Literally, we will be sitting in the side lines with the North Koreans and the Americans.
> 
> How ironic it would be, tho, if the US joins at the last minute. lol.


 
I just don't hope Japan to be left out of AIIB it's after an Asian country and a key player of the region, dont just following US blindly.

Reactions: Like Like:
3


----------



## Serpentine

Nihonjin1051 said:


> Can Iran join? Are there any stipulations that prevents her (ergo, sanctions) ?
> 
> Perhaps some of our Iranian friends can clarify with us: @Serpentine @kollang , @SOHEIL, @Abii, @The Last of us, @Shahryar Hedayati et al



I don't know if it violates any sanctions. If it doesn't Iran will be also a member. I guess the sanctions are the reason we haven't joined yet.

Reactions: Like Like:
5


----------



## Aepsilons

Serpentine said:


> I don't know if it violates any sanctions. If it doesn't Iran will be also a member. I guess the sanctions are the reason we haven't joined yet.



Thanks buddy. On that note, I do hope the sanctions can be removed --- Iran has to be reunited into the Family of Nations. And Soon. There's a massive investment potential in Iran....all 80 million of her. 

Not to mention you guys have the world's 2nd largest Natural Gas Reserves and i think the 3rd largest reserves of petroleum....

Reactions: Like Like:
3


----------



## ahojunk

cirr said:


> Australia will formally apply to join the AIIB as a founding member tomorrow 29.03.2015.



Thank you @cirr. I can go to sleep peacefully tonight. 
As I understand, those Aussie ministers dealing with Finance & Trade wanted to join AIIB but those dealing with security weren't too keen initially. But let's be pragmatic, without money there is no security. You need to have money first before other things.



cirr said:


> Treasury Secretary Jack Lew is holding discussions over the US‘ joining AIIB as a founding member with his Chinese counterpart FM Lou Jiwei。



 I suggest that China don't  the US, but tell them it is now.
Didn't the US accuse UK of "constant accommodation" of China, but now the US is in the same boat. It's the classic of "_*the pot calling the kettle black.*_"



cirr said:


> Denmark is in。



Again, you are the first to announce it here.

Reactions: Like Like:
3


----------



## 大汉奸柳传志

Nihonjin1051 said:


> How ironic it would be, tho, if the US joins at the last minute. lol.


Wait a sec! That could really happen..Jack Lew will visit China during 30-31 and something tells me selling US bond won't be his No.1 priority 

Maybe he will find a way for US Japan and Canada to join AIIB as a package deal，with strings attached of course,American style. And China will most likely say no

Reactions: Like Like:
2


----------



## Azizam

Australia to Join China-Led Development Bank, Says Finance Minister - WSJ

Reactions: Like Like:
4


----------



## mike2000

ChineseTiger1986 said:


> Yeah, I was also pretty shocked to learn this news, and most of us didn't expect that the UK was the first western nation to join.



Actually you shouldnt be that surprised my nationalistic Chinese friend. There are many things you dont know about the U.K. We always look after our interests irregardless of what others might think, we dont give a ****. We are still allkiied with the U.S though, and joining this Bank wont change that for the foreseeable future. We are allies as well because it serves our interests by having the U.S as the worlds sole superpower and a close ally. So dont mistake that for something else. That doesnt means we wont make decisions that we think will best suite our interests. You should by now that we are the best strategists in this world even today. Afterall how do you think a small islands of few tens of millions managed to ruled half the world and even colonised/ruled a billion plus country like India, parts off the Americas, seized/defeated China and ruled hong kong and much of Asian countries Asia etc? loool 

So keep calm and carry on, and dont get ahead of yourselves by claiming the U.S is going to collapse or lose all its allies/influence in Asia, it wont, the only difference is that China will grow more stronger and try to claim some pace for itself. But the U.S will still remain the dominant power in Asia for a long time to come IMO.baring a major revolution in Asia which i dont see happening anytime soon(since many Asian countries seem to look towards the U.S for protection than otherwise.lol). So yes this is just a small step or small chinese drop in a big U.S ocean. China still have long way to be able to really challenge U.S/western dominance in Asia, much less the world. But i believe China is heading in the right direction though, it still has a huge potential, case in point if China was to achieve even half what its Confucian east Asian peers like Japan and South Korea have achived then in terms of productivity per head then it will have at least twice U.S GDP. So still a longgg way to go to reach that true potential.

Reactions: Like Like:
1


----------



## Kiss_of_the_Dragon

Georgia is in 

China welcomes Netherlands, Brazil, Georgia to AIIB - Global Times

Reactions: Like Like:
5


----------



## ahojunk

Kiss_of_the_Dragon said:


> Georgia is in
> 
> China welcomes Netherlands, Brazil, Georgia to AIIB - Global Times



The last few days, the headlines say, "China welcomes country-a, country-b, etc...... to AIIB".

China is putting up the money and is *calling all the shots*. Thank goodness for that! Otherwise, it would just be like another IMF/WB.

China should up the loan capital to $500 billion and rename it the WIIB (World Infrastructure Investment Bank). This will make it bigger than the World Bank and ADB combined. Now, that's something to crow about.

If these countries qualify, China should extend the invite to Chile, Uruguay, Paraguay, Bolivia, Peru, Colombia, Ecuador, Guyana, Surinam, French Guiana and Nicaragua. (Venezuela and the rest may not qualify).

Also, extend the invite to African friends, and there are many who qualify to join the AIIB/WIIB.

I read that South Africa is applying to come on board. China should just put the BRICS bank on the back-burner as the other four BRICS (Brazil, Russia, India, China are already in the AIIB).

Hong Kong is already in. Taiwan is interested. But there is no news on Macao.

Reactions: Like Like:
5


----------



## Beast

cirr said:


> Treasury Secretary Jack Lew is holding discussions over the US‘ joining AIIB as a founding member with his Chinese counterpart FM Lou Jiwei。


China shall ban US from joining it.  We shall tell them bluntly this instituition is anti-US.

Reactions: Like Like:
5


----------



## xunzi

mike2000 said:


> Actually you shouldnt be that surprised my nationalistic Chinese friend. There are many things you dont know about the U.K. We always look after our interests irregardless of what others might think, we dont give a ****. We are still allkiied with the U.S though, and joining this Bank wont change that for the foreseeable future. We are allies as well because it serves our interests by having the U.S as the worlds sole superpower and a close ally. So dont mistake that for something else. That doesnt means we wont make decisions that we think will best suite our interests. You should by now that we are the best strategists in this world even today. Afterall how do you think a small islands of few tens of millions managed to ruled half the world and even colonised/ruled a billion plus country like India, parts off the Americas, seized/defeated China and ruled hong kong and much of Asian countries Asia etc? loool
> 
> So keep calm and carry on, and dont get ahead of yourselves by claiming the U.S is going to collapse or lose all its allies/influence in Asia, it wont, the only difference is that China will grow more stronger and try to claim some pace for itself. But the U.S will still remain the dominant power in Asia for a long time to come IMO.baring a major revolution in Asia which i dont see happening anytime soon(since many Asian countries seem to look towards the U.S for protection than otherwise.lol). So yes this is just a small step or small chinese drop in a big U.S ocean. China still have long way to be able to really challenge U.S/western dominance in Asia, much less the world. But i believe China is heading in the right direction though, it still has a huge potential, case in point if China was to achieve even half what its Confucian east Asian peers like Japan and South Korea have achived then in terms of productivity per head then it will have at least twice U.S GDP. So still a longgg way to go to reach that true potential.


France and Germany aren't very happy with you undercutting them. If you didn't make the first move, no doubt Germany will pull the trigger first but you just undercut them.

Reactions: Like Like:
2


----------



## ahojunk

Beast said:


> China shall ban US from joining it.  We shall tell them bluntly this instituition is anti-US.



I agree 100% with you.

Diplomatically, all China has to do is to tell US Treasury Secretary Jack Lew that China is just too busy handling and processing all the applications. Then, say why don't we discuss later, i.e. after the deadline of 31 March. The US should get the message.

If I am Canada or Japan, I will not only jump in now, but I will dive in. I wouldn't wait for the US approval. They are too busy worrying about their own predicament.

Reactions: Like Like:
4


----------



## terranMarine

currently 45 members, our HSR is getting more crowded each passing day

Can you imagine South Korea and TW already applied and Japan is still watching at the sideline polling US blood pressure. Japan just can't pursue her own foreign policy

Reactions: Like Like:
4


----------



## TaiShang

Taiwan's former VP, 蕭萬長, had a meeting with President Xi yesterday at the BOAO Forum and relayed Taiwan's intent to join the AIIB.

Given its particular status, China wishes to receive Taiwan's request through an appropriate channel (not in the capacity of a state, but, probably as Chinese Taipei). I guess work is being done on this.

Reactions: Like Like:
4


----------



## mike2000

terranMarine said:


> currently 45 members, our HSR is getting more crowded each passing day
> 
> Can you imagine South Korea and TW already applied and Japan is still watching at the sideline polling US blood pressure. Japan just can't pursue her own foreign policy



Well Japan leads the ADB, so of course they will be the last to ever join your bank(if ever at all) which is a real competitor and even more to theirs. So no surprise there to be honest. Its not in their interests to do so, putting aside their reluctance of not wanting to annoy/anger the U.S.


----------



## mike2000

xunzi said:


> France and Germany aren't very happy with you undercutting them. If you didn't make the first move, no doubt Germany will pull the trigger first but you just undercut them.



That's why we are still one of the/if not the world's best strategists, reason Germany despite having more power/capabilities during the second world war,yet lost both world wars still. National interests are always paramount in geo politics and compromises need to be made when appropriate.


----------



## opruh

I'm confident AIIB will at least have 50 members before the deadline.

Reactions: Like Like:
2


----------



## ahojunk

Washington's U-turn on AIIB: Moral epiphany, or Machiavellian ploy?

*Washington's U-turn on AIIB: Moral epiphany, or Machiavellian ploy? *
2015-03-24 16:55 Xinhua Web Editor: Gu Liping

The Untied States has seemingly outgrown its childish paranoia against the Asian Infrastructure Investment Bank (AIIB), but the encouraging development should not be allowed to go to the other extreme: a Machiavellian plot.

Signals have been beamed out of Washington of late that it is adopting a cooperative attitude toward the China-proposed initiative, which marks an apparent change of mind from its earlier suspicion and obstruction.

The U-turn of the world's sole superpower, which has developed an almost instinctive repulsion for whatever it images might turn into a threat to its hegemony, is overdue but still welcome, and also indicative of the attractiveness and all-win nature of the incipient institution.

But *Washington needs to keep its AIIB epiphany pure and clean, and resist the temptation to load it with a Machiavellian ploy to convert the fledgling project into yet another tool for exerting its influence and getting its own way*.

The AIIB is born out of and aimed at satisfying the huge demand for infrastructure investment in fast-growing Asia, a sum that has skyrocketed way out of the capacity of established regional and global lenders.

That means its creation will not only help break the infrastructure bottleneck and boost regional development, but almost certainly bring considerable returns to any party participating in or cooperating with the enterprise.

Thus the AIIB amounts to a new cornerstone to the foundation of the existing financial architecture, further underpinning instead of undermining the system, just as the Asian Development Bank and similar regional bodies have strengthened -- rather than weakened -- global lending and world development.

Another aspect of the AIIB's magnetism is that, as Beijing has insisted in chorus with other participants and aspirants, the AIIB will function as an open and inclusive organization dedicated cooperation and development, not as an arena to wield power and influence.

*Given Washington's record on international affairs and preoccupation with dominance, the U.S. about-face has given rise to speculations that the superpower, since unable to scuttle the AIIB, now attempts to keep the China-initiated financial body on its own orbit by engaging with it*.

Such theory, although easy to understand, is not necessarily true, but it is the United States that bears the onus to clear the air by making a convincing case that it does not have a hidden agenda.

And Washington had better to have waken up with a change of heart, not merely a change of tactic. For the AIIB members will not allow their urgently needed and highly promising project to be reduced to a chessboard of geopolitical game.

Reactions: Like Like:
2


----------



## TaiShang

*Debate: China's investment bank alternative to World Bank?*

PressTV-Can China AIIB bank replace World Bank?

*France, Germany and Italy have announced that they will join the UK in becoming members of the Chinese-led Asian Infrastructure Investment Bank (AIIB).*

In this edition of the Debate, Press TV asks senior political analyst Roger Von Hanwehr from New York City, and author of the "Big Oil & Their Bankers in the Persian Gulf", Dean Henderson from Missouri, about this new investment bank and how it differs from other international banks.

Reactions: Like Like:
4


----------



## ahojunk

*An Indian's view of AIIB. It's an interesting read.*

=============================
AIIB: A morality play for India | Asia Times

*AIIB: A morality play for India*
Author: M.K. Bhadrakumar March 28, 2015

China’s foreign policy fired all eight cylinders on Saturday. There has been a stampede of countries wanting to be founder members of the Asian Infrastructure Development Bank [AIIB] – South Korea, Australia, Brazil, Russia, Netherlands, Switzerland, Georgia and so on. Even Taiwan — if only Beijing could find a way to admit an entity that it considers a part of China. Monday is the deadline for aspiring applicants.

Clearly, the United States’ ‘pivot’ to Asia is in trouble, big trouble, and without the pivot, there is uncertainty how a steady erosion in America’s standing in Asia can be averted. The US has been badly exposed as being at odds with the prevailing sentiment in the Asian region. The AIIB has busted a hole into the US’ ‘pivot’ strategy through which even the Indian elephant can pass. A Trans-Pacific Partnership agreement with the obsessive idea of ‘containment’ of China seems more problematic than ever.

What has happened is seen as a policy failure on the part of the Barack Obama administration and a manifestation of the dysfunctional American political system whereby the Congress could stall for 4 years already the quota reform measure for the International Monetary Fund [IMF] that would have pacified China by granting it a greater voice in the fund. But then, there is much more to it. China is aiming at something much bigger, much more profound in scope and objectives.

China is changing the balance of power in Asia itself. A historic power shift is under way. The document released in Beijing on Saturday on the ‘Belt and Road Initiative’ is breathtakingly ambitious in scope. If half of what it says could be realized, China will have already risen as a great power on the world stage exclusively on terms it set and negotiates for itself.

The stark alternatives sketched by pundits, drawn from European history and World War I as regards the dialectic involving the rise of great powers and the resistance to it by established powers, do not seem to be applicable to the Asian drama. Simply put, the European parallels are grossly inappropriate for contemporary Asia. China’s Asian neighbors are learning to live with China, are willing to engage with it while also preserving their relations with the US. China is comfortable with the idea, too. In strategic terms, China is leaving the US hardly any wriggle room but to take a second good look at Beijing’s standing offer to create a ‘new type of relationship’ between the two big powers.

The ‘Vision’ document titled “Vision And Actions on Jointly Building Silk Road Economic Belt and 21st Century Maritime Silk Road” details the action plan whereby China hopes to change the world political and economic landscape through participating in the development of countries along its proposed Silk Routes. In a nutshell, geo-economics is forcing geopolitics to the margins. By volunteering to share its prosperity with its Asian neighbors, Beijing rubbishes the petard of ‘assertive’ China, which the US has hoisted on the Asian landscape as the raison d’etre of its ‘pivot’ strategy. The document released on Saturday says,

_“The Silk Road Economic Belt focuses on bringing together China, Central Asia, Russia and Europe (the Baltic); linking China with the Persian Gulf and the Mediterranean Sea through Central Asia and West Asia; and connecting China with Southeast Asia, South Asia and the Indian Ocean. The 21st-Century Maritime Silk Road is designed to go from China’s coast to Europe through the South China Sea and the Indian Ocean in one route, and from China’s coast through the South China Sea to the South Pacific in the other._

_“On land, the Initiative will focus on jointly building a new Eurasian Land Bridge and developing China-Mongolia-Russia, China-Central Asia-West Asia and China-Indochina Peninsula economic corridors.”_

The Chinese initiative aims at promoting policy coordination with its partners, facilitating connectivity and investment and trade, financial integration (through building a currency stability system in Asia, for example).

On Saturday, President Xi Jinping inaugurated the annual Boao Forum and in his opening address too, China’s soft power took the centre stage. Xi harped on the need of an Asian community that eschews zero-sum mentality and cold-war mindset. Xi offered that China is willing to sign treaties of good-neighborliness and friendship and cooperation with all its neighbors. “What China needs most is a harmonious and stable domestic environment and a peaceful and tranquil international environment,” Xi said. He committed China to accommodate “the interests of others while pursuing own interests”.

In his speech, Xi presented the Chinese market as the driver of growth for the Asian economies. He outlined that China will import more than $10 trillion worth goods in the coming five-year period and proposes to make investments abroad in excess of $500 billion. Xi visualized that in excess of 500 million Chinese tourists will be making outbound visits during this period.

The Chinese thinking on the AIIB has evolved and it is far too simplistic to view it as a pincer aimed at the heart of the Bretton Woods system or in a spirit of competition with Washington. Clearly, China does not want to destroy the existing international financial system but instead seeks a greater say in its running and management and if that doesn’t happen, China will go its own way. In fact, Xi said China will promote a system of regional financial cooperation, explore a platform for exchanges and cooperation among Asian financial institutions and advance complementary and coordinated development between the AIIB and such multilateral financial institutions as the Asian Development Bank and the World Bank.

In the new matrix, China proposes to give full play to the AIIB and the Silk Road Fund by blending them with the sovereign wealth funds of countries along the Belt and Road and by encouraging commercial equity investment funds and private funds to participate in the key Silk Routes projects. The IMF has already shown interest in collaborating with the AIIB.

The AIIB membership drive has underscored the importance of the European states as Asia’s partner during a period when the region is passing through a major transition. On the one hand, the participation of the European countries ensures that China is obliged to mould the AIIB as an institution of the highest standard in transparency and efficiency. Indeed, the European countries’ participation in the AIIB helps shape its rules but on the other hand, it also offsets US opposition. Put differently, on the bigger plane of the global power dynamic, it also strengthens the Europe-Asia side of the US-Europe-Asia strategic and economic triangle, which dominates the world’s economy and politics today.

From an Indian perspective, Saturday triggered depressing thoughts of despondency.To be sure, the so-called US-India Joint Strategic Vision Statement for the Asia-Pacific and Indian Ocean Region signed during the visit by President Obama to Delhi hardly two months ago has been rendered irrelevant and archaic. Clearly, India, which, notwithstanding its profession of devotion to the ‘Asian Century’, is unable to figure out whether China’s rise is a good thing or not, has been taken for granted by Beijing as a partner in the Belt and Road Initiative. Beijing has left India with no choice but to tag along lest it gets stranded on the Silk Road.

China seems one hundred percent sure that Delhi cannot sustain its zero-sum mindset, when Asian countries all around it – big and small – find it attractive to partake of the Chinese initiative, which they see as inclusive, non-prescriptive, based on market rules and in a ‘win-win’ spirit of mutual benefit out of common development. China’s extraordinary ability in the geopolitical sphere makes Indian diplomacy look provincial and out of touch with the Asian and global realities.

Reactions: Like Like:
5


----------



## Yizhi

*China welcomes Denmark, Australia to AIIB *
English.news.cn | 2015-03-29
BEIJING, March 29 (Xinhua) -- China's Ministry of Finance on Sunday welcomed the decisions of Denmark and Australia to apply to join the Asian Infrastructure Investment Bank (AIIB).

Denmark filed its application letter on Saturday, while Australia followed on Sunday, the ministry said in a statement.

Should all existing members approve the applications, Denmark will become a founding member of the AIIB on April 12 and Australia on April 13, according to the statement.

The AIIB, which will support infrastructure projects in Asia, is expected to be established by the end of this year.

The application deadline is March 31 and the founding members will be confirmed on April 15.

---------------------------------------------------
Danmark, Australia are in.



> There are 45 members as of 28 March 2015. Argentina, Belgium, Canada, Mexico, South Africa, and Ukraine are under consideration of joining the AIIB. The United States and Japan have remained skeptical about the negotiation.

Reactions: Like Like:
6


----------



## TaiShang

Now is the time for the world to adjust to China's global ambition - Telegraph

*It may have become fashionable to talk down China's prospects, but the pace of its expansion remains astonishing*





The Danyang-Kunshan Grand Bridge is the world's longest and runs for 164.8km 

By Liam Halligan

28 Mar 2015

What’s the longest bridge in the world? It’s not San Francisco’s Golden Gate, or Saudi Arabia’s King Fahd Causeway (as a friend insisted when I asked him) or even one of those really long “over the horizon” ones in Scandinavia.

The world’s longest bridge in the world – by far – is the *Danyang-Kunshan Grand Bridge*on the Beijing-to-Shanghai high-speed rail link. Stretching across the Yangtze delta, and completed in 2010, the Danyang-Kunshan is no less than 102 miles long. That’s over 29 times the length of Bromford Viaduct near Birmingham, the UK’s longest bridge. And it’s 116 times longer than the Humber Bridge, our widest single-span crossing.







The world’s second-longest bridge is also in China. The Tianjin Grand stretches over 70 miles long, part of the Beijing-to-Shanghai rail link and also completed in 2010. The third-longest bridge is Chinese too. But the Weinan Weihe Grand Bridge is on the Zhengzhou-Xi’an railway and spans just under 50 miles.

No less than nine of the world’s 12 longest bridges are in China, all of them built over the last decade or so. The longest bridge in America, the 24-mile Lake Pontchartrain Causeway in Louisiana, was opened in 1956.

It’s easy to cite superlatives about China’s development. But the pace at which the People’s Republic is now building bridges, and the record-smashing scale of its ambition, is quite astonishing.

Since adopting market-based reforms in the late-1970s, *China has grown on average by 9.8pc a year*, compared with 2.5pc in America. Back in 1980, the economy was just one 10th that of the US – and still just half, as recently as 2004.

Last October, though, the International Monetary Fund quietly published estimates showing China’s annual GDP at $17.6 trillion (£11.8 trillion), compared with $17.4 trillion in America.

The US remains far richer per head, of course, with the average American commanding an income four times that of their Chinese counterpart. And the IMF’s estimates were on a “purchasing power parity” basis, including cross-border variations in living costs. Despite these qualifications, the symbolism remains enormous. While America had been the world’s largest economy since 1872, when it overtook Britain, the US no longer holds an unequivocal claim to top spot.

It’s fashionable to talk down China...

Yet the growth gulf between China and the West remains vast. Despite enormous “recovery” fanfare, America grew just 2.4pc during the last quarter, only a touch above the sluggish six-year average since the 2008 collapse. The eurozone remains close to recession. And while UK growth could reach 3pc this year, our expansion is far too reliant on rising personal and government debt.

As the Chinese economy keeps out-pacing the West, the country commands ever more geopolitical power – and I’d highlight three very different illustrations of this. Just before his recent Budget, George Osborne, the Chancellor, announced that the UK will become a founder member of the Asian Infrastructure Development Bank (AIIB) – a *China-led financial institution that could one day rival the World Bank*. This drew an extremely barbed response from the US, with a White House official accusing Britain of “constantly accommodating” China.

While this public diplomatic spat between close allies was unusual, what has since happened has been extraordinary. Since Beijing launched the $50bn AIIB last October, US officials have insisted Western countries “could help shape the standards and rules” this institution will adopt “by staying on the outside”.

*America is concerned the AIIB will act as an instrument of Chinese foreign policy, as has the US-led World Bank since it was founded in the aftermath of the Second World War.*

*After the UK defiantly decided to join AIIB, France, Italy and Germany then followed – leaving the US looking isolated. While America views China as a geo-political rival, the two powers now vying for supremacy in the Pacific basin, West European nations are more mindful of its importance as a future trading partner.*

These divergent views burst into the open last week, presenting America with a tough dilemma – remain alone outside the AIIB, or be seen to accept the will of the rest of the world. The answer seems to be acceptance. The Washington-based IMF just announced it would, despite earlier opposition, be “delighted” to co-operate with the AIIB. And Japan, America’s staunchest Asian ally, has also indicated it’s now “happy” to work with the Beijing-based institution too. No matter that Japan currently controls the US-backed Asian Development Bank, the precise body the AIIB is hoping to usurp.

The developed nations, whether they like it or not, must significantly increase their trade with China. The UK, with an external deficit now equal to 6pc of GDP, the second-largest in half a century, has lately become far less vocal about Beijing “human rights abuses”. The AIIB, meanwhile, is part of a concerted Chinese attempt to build a Sino-centric global financial system, as an alternative to America’s hegemony.

*Along with AIIB, there’s also the New Development Bank – widely known as the “Brics Bank” – jointly founded with Russia, India, Brazil and South Africa and located in Shanghai. Then there’s a planned IMF-style contingent reserve facility, together with a further development bank linked to the Shanghai Co-operation Organisation, a six-country Eurasian political, economic and military grouping dominated by China and Russia.*

*At last November’s Asia-Pacific Economic Co-operation (APEC) summit, hosted in Beijing, the Chinese also unveiled a $40bn “Silk Road Fund”, to finance a network of railways and airports linking China with Central Asia – another area where the US has long asserted political and military influence.*

That Beijing should seek to exercise power across Asia, and beyond, is hardly surprising. China isn’t only the world’s growth engine but also bankroller-in-chief to the US government. The Chinese central bank holds an estimated $1,270bn of US Treasuries, up from just $50bn back in 2001.

Anyone who doubts China’s ambition should look beyond the country’s domestic infrastructure development and witness what’s happening in Central America. In 1914, having completed a task abandoned by the French, the US proudly opened the Panama canal. Representing the biggest engineering project on earth, and securing control of a high share of global trade flows, the 48-mile waterway – linking the Atlantic and Pacific and saving a 9,000-mile detour around South America – marked the start of the US world domination.

*Well, with their domestic bridge-building record behind them, the Chinese have now started work on a 170-mile canal that will cut through Lake Nicaragua. This is a direct rival to the Panama transit, and one that will be able to accommodate even larger ships (despite the recent Panama canal upgrade). While there’s scepticism Beijing will hit its 2019 opening target, the chances are high this game-changing canal will be built.*

Then, in the background, there’s ongoing Chinese pressure to dilute the reserve currency status of the dollar – an “exorbitant privilege” which allows the US to print “hard currency” to pay back its debts.

*Last week Premier Li Keqiang quietly asked the IMF to include the yuan in its “special drawing rights” basket – an act that would make it easier for other countries to store their reserves in the Chinese currency. Mindful of the dollar’s unique “reserve currency” status, Washington is likely to resist.*

Yet the shape of the global economy is rapidly changing, a multi-currency reserve system is inevitable and this is a change America must embrace.

Reactions: Like Like:
5


----------



## sahaliyan

Now Egypt is in

Reactions: Like Like:
4


----------



## TaiShang

*More nations set to join AIIB*
_2015-03-30 _http://www.ecns.cn/business/2015/03-30/159830.shtml#comment

*Wide-ranging participation 'good for all': expert*

Denmark, Australia and Russia announced their intention to join the Asian Infrastructure Investment Bank (AIIB) as founding members over the weekend, expanding the list of potential members to 42 countries as of Sunday.

Denmark announced its intention to join the AIIB on Saturday, making it the first Nordic country to do so, according to a press release the Danish Embassy to China e-mailed to the Global Times Saturday.

China's move to establish the AIIB is "a significant and exciting development," Mogens Jensen, Danish minister of trade and development, was quoted as saying in the press release.

Australia has decided to apply to join the AIIB, Australian Finance Minister Mathias Cormann said at the 2015 Boao Forum for Asia, which was held in South China's Hainan Province, Xinhua news agency reported Saturday.

Denmark and Australia have confirmed their desire to join the AIIB and China welcomes their decision, China's Ministry of Finance said in a statement on its website Sunday.

*If all existing members approve the applications, Denmark will be recognized as a founding member of the AIIB on April 12 and Australia on April 13, according to the statement.*

Also at the Boao Forum, Russian First Deputy Prime Minister Igor Shuvalov said Saturday that Russia had also decided to join the AIIB.

Everyone knows that Asia will be a major area of economic growth and membership of the AIIB will be crucial for these countries' future development, Ding Yifan, a research fellow with the Institute of World Development at the Development Research Center of the State Council, told the Global Times Sunday.

*China has said nations have until Tuesday to join the AIIB as founding members of the bank.*

If some countries that are allies of the US have hesitated, they need to take action now, because being a founding member means having a bigger say in the institution, said Ding.

*"Developing countries and emerging economies now account for over 50 percent of the world's economy. Their development requires new multilateral financial institutions," Hu Huaibang, chairman of China Development Bank, said at a panel discussion at the Boao Forum on Saturday.*

There is huge demand for infrastructure in Asia and the countries that have applied to join the AIIB recognize that the mission of the AIIB is to meet this need rather than challenging the US, Xu Hongcai, director of the Department of Information under the China Center for International Economic Exchanges, told the Global Times Sunday, noting a wide range of participation in the AIIB will "be good for all."

The fact that many European countries, including the UK, have joined the AIIB reflects the rise of China's potential in the context of a multilateral initiative, Martin Jacques, an expert with the Department of Politics and International Studies at Cambridge University, said at the Boao Forum. He noted that the AIIB is focused on Asia, but it has already grown into a global institution.

Asia needs $700-800 billion of investment in infrastructure each year, so the AIIB will only be a supplement to existing international financial institutions in funding infrastructure construction in the region, Li Ruogu, former chairman of the Export-Import Bank of China, said at a panel discussion at the Boao Forum Sunday.

The bank, initiated by China last October to spur infrastructure investment in Asia, has been seen by some Western media outlets and scholars as a rival to the Western-dominated World Bank and the Asian Development Bank.

However, rather than being a rival, the AIIB is supplementary to the current financial institutions, Xu said, adding that China can lead to set up a better governance mechanism for the AIIB.

The governance structure of the AIIB has been a source of concern among Western countries.

"The new institution [AIIB] should not clone the governance of old institutions … we have to be innovative in this," Li said.

***

So, China gives no extension to the deadline to accommodate the US or Japan. 

Denmark and Australia might be recognized as founding members (if consensus is achieved)

Reactions: Like Like:
3


----------



## opruh

sahaliyan said:


> Now Egypt is in


First African nation to join

Reactions: Like Like:
2


----------



## ahojunk

sahaliyan said:


> Now Egypt is in



I don't think this is true. I cannot find any news on Egypt joining AIIB.

Can someone post some links?


----------



## sahaliyan

ahojunk said:


> I don't think this is true. I cannot find any news on Egypt joining AIIB.
> 
> Can someone post some links?


From the Chinese minister of finance website
中方欢迎埃及申请作为意向创始成员国加入亚投行
中方欢迎埃及申请作为意向创始成员国加入亚投行
2015年3月30日　来源：国际财金合作司
　　3月30日，埃及正式宣布申请作为意向创始成员国加入亚洲基础设施投资银行（亚投行），并向中方提交了书面确认函。中方欢迎埃方的决定。作为亚投行意向创始成员国首席谈判代表会议的主席，中方正根据多边程序征求现有意向创始成员国的意见。如顺利通过，埃及将于4月14日正式成为亚投行意向创始成员国。

Reactions: Like Like:
4


----------



## ahojunk

sahaliyan said:


> From the Chinese minister of finance website
> 中方欢迎埃及申请作为意向创始成员国加入亚投行
> 中方欢迎埃及申请作为意向创始成员国加入亚投行
> 2015年3月30日　来源：国际财金合作司
> 3月30日，埃及正式宣布申请作为意向创始成员国加入亚洲基础设施投资银行（亚投行），并向中方提交了书面确认函。中方欢迎埃方的决定。作为亚投行意向创始成员国首席谈判代表会议的主席，中方正根据多边程序征求现有意向创始成员国的意见。如顺利通过，埃及将于4月14日正式成为亚投行意向创始成员国。



@sahaliyan 
Thank you. I am convinced.

Egypt intends to apply to be a member.

Now we have East Asia, South Asia, South East Asia/ASEAN, Oceania, Eurasia, Middle East, Europe, South America and Africa (SA, Egypt) as members of AIIB.

This is certainly beyond what China has planned for.

It is high time to rename this bank the WIIB, no more AIIB.

Reactions: Like Like:
3


----------



## 大汉奸柳传志

Finland，Sweden，Norway in
Japan to join by June，unconfirmed

Reactions: Like Like:
5


----------



## Yizhi

AIIB map so far, looks so WIIB..





updated:




*China welcomes Egypt's application to AIIB - Xinhua | English.news.cn*
2015-03-30
BEIJING, March 30 (Xinhua) -- China has welcomed the application of Egypt to join the Asian Infrastructure Investment Bank (AIIB) on Monday, one day before the deadline to join the bank as a founding member.

Reactions: Like Like:
5


----------



## Aepsilons

Yizhi said:


> AIIB map so far, looks so WIIB..
> 
> 
> 
> 
> View attachment 209231
> 
> *China welcomes Egypt's application to AIIB - Xinhua | English.news.cn*
> 2015-03-30
> BEIJING, March 30 (Xinhua) -- China has welcomed the application of Egypt to join the Asian Infrastructure Investment Bank (AIIB) on Monday, one day before the deadline to join the bank as a founding member.





The Ascendancy of China cannot, truly, be denied.... 



utp45 said:


> Finland，Sweden，Norway in
> Japan to join by June，unconfirmed



Yep, just saw it in Japanese media, we will join. Its now in the works.

Reactions: Like Like:
4


----------



## longmenren

@Nihonjin1051
I think Japan can do it before 15 years ago without America,like 大东亚共荣圈，could you understand this word?

Reactions: Like Like:
1


----------



## Aepsilons

longmenren said:


> @Nihonjin1051
> I think Japan can do it before 15 years ago without America,like 大东亚共荣圈，could you understand this word?



In Japanese it is --- 大東亞共榮圏

And I believe that ASEAN + JPN + SK + CN is another form of that same spirit

Reactions: Like Like:
1


----------



## longmenren

like a drama,like a dream


----------



## TaiShang

Nihonjin1051 said:


> In Japanese it is --- 大東亞共榮圏
> 
> And I believe that ASEAN + JPN + SK + CN is another form of that same spirit



Ah, ASEAN+3, my favorite institution in East Asia, which must definitely be crowned with an APT FTA.

Strength in unity.

Reactions: Like Like:
3


----------



## ahojunk

Nihonjin1051 said:


> The Ascendancy of China cannot, truly, be denied....
> :
> Yep, just saw it in Japanese media, we will join. Its now in the works.


Yes, China deserves it, no issues with that.
Thank goodness, Japan has finally come to its senses.



terranMarine said:


> China influence , truly the big boss of Asia



Come on, we support you but there is no need to brag. You are not going to make friends this way.



terranMarine said:


> that's nothing, wait till i broadcast this with a loud speaker



I hope you are joking judging from "  ".

Be humble, let China's actions speak for themselves. 

I know it is difficult to contain our excitements, as it gets more interesting each passing day.

However, there is still a lot of work to do to get this AIIB (WIIB?) up and running.

Reactions: Like Like:
3


----------



## Aepsilons

TaiShang said:


> Ah, ASEAN+3, my favorite institution in East Asia, which must definitely be crowned with an APT FTA.
> 
> Strength in unity.





Absolutely. The ASEAN+3 has a combined economy that exceeds that of the entire European Union , or the United States. China = $10.5 Trillion, Japan = $5 Trillion, ASEAN = $3.6 Trillion. Combined it exceeds $19 Trillion.

Glory unto a united Greater East Asia ! Our region shall be the center of the world. This century shall be a Pacific Century. Mark my words.

Reactions: Like Like:
2


----------



## browser

Developing countries to need access to Chinese capital and if this bank can provide debt financing at rates competitive to those from the World Bank then good for everyone.

Since China has $3tn in reserves, even 5% of that would amount to $150bn and if that's leveraged up then more likely $0.5tn.

Am quite sure countries outside Asia would be keen to access this.


----------



## Keel

browser said:


> Developing countries to need access to Chinese capital and if this bank can provide debt financing at rates competitive to those from the World Bank then good for everyone.
> 
> Since *China has $3tn in reserves*, even 5% of that would amount to $150bn and if that's leveraged up then more likely $0.5tn.
> 
> Am quite sure countries outside Asia would be keen to access this.



*
$4 Tln*

Your assumption is not correct

China's contribution to AIIB is only limited to our %share not the whole of our Fx reserves
_
"In June 2014 China proposed doubling the registered capital of the bank from $50 billion to $100 billion 
Asian Infrastructure Investment Bank - Wikipedia, the free encyclopedia"






_
Chinese Opera

Reactions: Like Like:
1


----------



## Screambowl

I hope as Modi said that this region should have a common currency .. need to work towards that too.


----------



## ahojunk

Australian Professor Hugh White is someone who knows what he is talking about. It's a good read.

------------------------------
AIIB: China outsmarts US diplomacy on Asia bank

The Age - Comment
*AIIB: China outsmarts US diplomacy on Asia bank*
Hugh White
March 31, 2015 - 12:00AM

Canberra's U-turn on the Asia bank suggests Australian politicians finally accept that a new era has dawned in our region's politics.





_One powerful factor has been the collapse of good will between the Obama administration and the Abbott government. Photo: Andrew Meares_

China's new Asia Infrastructure Investment Bank (AIIB) is a very big deal for Asia's economic future, but the way its establishment has played out makes it an even bigger deal for Asia's changing political and strategic order. And Canberra's announcement last weekend that Australia will join the AIIB despite the objections of the United States may come to be seen as marking a historic shift in Australian foreign policy.

For the first time, Australia has unambiguously defied Washington by acknowledging China's claims to a major regional leadership role. The government might not admit it, but they quietly crossed a Rubicon on Sunday.

_"It is quite clear that Obama argued against the AIIB precisely because it would strengthen China's leadership in Asia, and hence erode the US's. He expected loyal allies like Tony Abbott to fall in line."_​
We can see why the AIIB is so significant by looking both at why China has set it up, and why the United States has opposed it. China's motives are partly economic, and the logic for this is clear. To reach its economic potential Asia needs to invest about $1 trillion each year over the next decade on infrastructure of all kinds.





_China's President Xi Jinping (4th from the right) and guests at the Asian Infrastructure Investment Bank (AIIB) launch ceremony at the Great Hall of the People in Beijing last October. Photo: Reuters_

Existing outfits like the World Bank and the Asian Development Bank have neither the money nor the expertise to begin to meet this challenge. *China alone has the money needed to get things moving and the expertise, built up through its extraordinary achievements in developing its own infrastructure over the past decade. No country in history has ever built so much, so quickly*.

That is only half the story. China understands that leading this kind of effort will deliver huge strategic benefits as well, not just consolidating China's position as Asia's economic hub but also building its credentials as the region's political leader too. No one watching its foreign policy over the past decade could doubt how important that goal has become to Beijing.

This is exactly what worries Washington. People there know better than anyone how much the US's leading role in the World Bank and IMF has served US political and strategic interests since World War II. They know that the AIIB can help China contest US primacy in Asia and take a bigger share of regional leadership for itself, and that is precisely what Washington wants to avoid. That is what President Obama's "Pivot to Asia" is all about.

Six months ago, when China first asked Australia and other countries to join the AIIB, President Obama hit the phones, asking them to say "no". In public US officials said it was simply concerned about some technical questions about the way the AIIB would be run. Privately, however, it is quite clear that Obama argued against the AIIB precisely because it would strengthen China's leadership in Asia, and hence erode the US's. He expected loyal allies like Tony Abbott to fall in line.

At first, that is exactly what Abbott did. After speaking to Obama, he apparently reversed a prior cabinet decision and announced that Australia would not join - despite the very clear economic arguments in favour. Now, just a few months later, he has changed his mind. What happened to cause this shift?

One powerful factor has been the collapse of good will between the Obama administration and the Abbott government. Despite the fulsome rhetoric, relations between Washington and Canberra have been quietly cooling for some time, but they went into the deep freeze after Obama used a major speech in Brisbane last November during the G20 to attack the Abbott government over climate change. Not surprisingly, Abbott took this very personally.

Beyond the personal and political atmospherics, there has been a much more important shift under way. Ever since Obama first announced it in a speech to our Parliament in 2011, Australian governments of both parties have accepted the underlying premise of his Pivot to Asia. This was that the US could remain the uncontested leader of Asia, and make no concessions to China's ambitions to play a bigger regional role, even as China's economy overtook America's to become the largest in the world, and its diplomatic and military heft grew too as a result.

This was always an absurd illusion. Much as we might wish that US leadership could last forever, it simply defies the laws of strategic gravity that Asia's economic order could change so radically while leaving its political order unaffected. As China's wealth and power grow, its leadership role in Asia is going to grow too. *Only when the rest of us recognise this essential fact can we start to work out how best to respond to it*.

Over the past couple of weeks, countries around the region and beyond, including close US allies like Britain, South Korea and Australia, have rejected America's concerns and agreed to join the AIIB, knowing full well what that means for Asia's political order. In a fit of anger a senior US official criticised Britain for "accommodating" China's ambitions, and no doubt they are equally dismayed by Canberra's decision.

And no wonder: this is a massive diplomatic defeat for Washington, as so many of its friends reject the logic underlying US policy in Asia, and embrace a future in which China is increasingly acknowledged and accepted as a regional leader in its own right.

America's mistake has been to assume that the appeal of China's economic opportunities would be outweighed by fears of how China would behave as a regional leader, so that countries like Australia would resist the opportunities offered by the AIIB in favour of supporting the US's refusal to make its own accommodation with China. Hopefully they now know better.

Australia's mistake, under recent governments both Labor and Coalition, has been to assume that Washington knew what it was doing and had a credible strategy to respond to China's rise. Hopefully they now know better as well. The *lesson of all this is that Washington needs to think anew about its response to China's rise, and we in Australia need to start thinking for ourselves about it, and stop looking to Washington for answers*.

Of course *this is not about acquiescing in a Chinese bid to dominate Asia* over coming decades. It is about recognising that as wealth and power shifts in Asia, the region needs to build a new order that is dominated neither by the US nor by China, but in which leadership is shared between them. Australia needs to contribute to that process, doing whatever we can to *ensure it works out in our interest*. Sunday's announcement was a vital first step.

*Hugh White is an Age columnist and professor of strategic studies at the Strategic and Defence Studies Centre, ANU.*

Reactions: Like Like:
4


----------



## AbidM

WooHoo go China and the AIIB. From Bangladesh. You guys rock, once again, can't wait for the BCIM corridor to come to fruition, the golden belt linking two of the 'to be' biggest economies! And in the heart of that is Bangladesh woot

Reactions: Like Like:
4


----------



## ahojunk

Taiwan to apply to join China-backed AIIB investment bank| Reuters

*Taiwan to apply to join China-backed AIIB investment bank*
Mon Mar 30, 2015 10:44pm EDT

(Reuters) - Taiwan will submit an application to join the Beijing-led Asian Infrastructure Investment Bank (AIIB) on Tuesday, despite historical animosity and a lack of formal diplomatic relations between the island and China.

In a statement released late on Monday, Taiwan presidential office spokesman Charles Chen said joining the AIIB will help Taiwan in its efforts at regional economic integration and raise the possibility of joining other multinational bodies.

It was not immediately known whether Beijing would accept Taiwan's application to join the AIIB. The bank is seen as a significant setback to U.S. efforts to extend its influence in the Asia-Pacific region and balance China's growing financial clout and assertiveness.

Most countries, including the United States, do not recognize Taiwan due to pressure from China. Taiwan is not a member of the United Nations, the World Bank or the International Monetary Fund.

China set a Tuesday deadline to become a founding member of the AIIB, prompting a rush of nations including Russia, Australia, Denmark and the Netherlands to announce their intent to join. A total of 42 countries have applied, Taiwan's statement said.

The United States has urged countries to think twice about joining the AIIB until it could show sufficient standards of governance and environmental and social safeguards.

China views Taiwan as a renegade province and has not ruled out the use of force to bring it under its control. However, since Taiwan's current president Ma Ying-jeou took office in 2008, enmity has declined considerably and the two sides have signed a number of trade and investment deals.

(Reporting by Jeanny Kao and Michael Gold; Editing by Richard Pullin and Ian Geoghegan)

---------------------------------------
My comment:-
Taiwan has to join the AIIB, it's in their interests. There is no other choice.

Reactions: Like Like:
2


----------



## terranMarine

Taiwan may be a US dog, but she sure is smart enough to know who her true owner is and where her future lies. Japan on the other hand

Reactions: Like Like:
1


----------



## Edison Chen

I find it very interesting...

*Countries rejected[edit]*



 North Korea- A senior representative from North Korea had his request for North Korea to join the AIIB immediately rejected by the alliance's inaugural president, Jin Liqun. He described that North Korea had failed to cope and secure a safe, economic image of their country.[38]

The whole world is giving up North Korea?


----------



## terranMarine

Edison Chen said:


> I find it very interesting...
> 
> *Countries rejected[edit]*
> 
> 
> 
> North Korea- A senior representative from North Korea had his request for North Korea to join the AIIB immediately rejected by the alliance's inaugural president, Jin Liqun. He described that North Korea had failed to cope and secure a safe, economic image of their country.[38]
> 
> The whole world is giving up North Korea?



our unpleasant pet isn't listening to our advice, so it was expected

Reactions: Like Like:
2


----------



## browser

Keel said:


> *
> $4 Tln*
> 
> Your assumption is not correct
> 
> China's contribution to AIIB is only limited to our %share not the whole of our Fx reserves
> _
> "In June 2014 China proposed doubling the registered capital of the bank from $50 billion to $100 billion
> Asian Infrastructure Investment Bank - Wikipedia, the free encyclopedia"
> 
> 
> 
> 
> 
> _
> Chinese Opera



China will also buy bonds issued by AIIB to leverage up the registered capital so the overall contribution would be higher.

Anyways, am sure the details will be out soon.


----------



## xunzi

mike2000 said:


> That's why we are still one of the/if not the world's best strategists, reason Germany despite having more power/capabilities during the second world war,yet lost both world wars still. National interests are always paramount in geo politics and compromises need to be made when appropriate.


No doubt the UK is an experience and old chess player. You don't win two world wars without deep ambition and deep strategic depth. It is something Germany and France still need to learn from the UK.

Reactions: Like Like:
2


----------



## ahojunk

@Nihonjin1051,

Japan says they are not joining. Are they nuts? Japan will lose out being a founding member and with it, all its privileges. 

Come on Japan, please join now or else you may regret later. Japan can influence AIIB more from the inside than being on the outside. 

Don't worry about US, they still think they can call the shots, but unfortunately no one is listening. Thirty years ago, the US was the undisputed king, but not today. 

There is the danger the US may join at the last minute leaving Japan looking like a fool.

-----------------------------
Japan Holds Out on Joining China-Led AIIB as Deadline Arrives - Bloomberg Business

*Japan Holds Out on Joining China-Led AIIB as Deadline Arrives*
Bloomberg Business
by Masaaki Iwamoto & Maiko Takahashi

(Bloomberg) -- Japan held out on joining China’s planned development bank as ministers in Tokyo cast skepticism over its governance on the final day for nations to sign up as founding members.

Japan remains cautious about the prospect of becoming part of the Asian Infrastructure Investment Bank and has yet to get answers from China on questions about the governance of the institution, Finance Minister Taro Aso told reporters in Tokyo on Tuesday. *Foreign Minister Fumio Kishida rejected one report that cited Japan’s ambassador in Beijing as saying the nation may join within a few months*.

The AIIB has the potential to weaken the clout of the almost 50-year-old Asian Development Bank, dominated by Japan and the U.S. Strategic allies of the U.S. from Asia to Europe plan to join the new institution, underscoring the draw of closer commercial ties with China.

“Japan’s stance is totally unchanged,” said Aso. “There has to be totally fair governance. The governing council that represents the member countries needs to audit and approve each case.”

He added that it was important to ensure all lending took into account debt sustainability, the environment and social impact.

The U.K.’s Chancellor of the Exchequer, George Osborne, announced earlier this month that Britain would be first “major western country” to apply for membership. France, Germany and Italy are following suit, as are Australia, South Korea and Russia.

The trend is a blow to Prime Minister Shinzo Abe, who is seeking to carve out a bigger role for Japan on the global stage and bolster security ties with the U.S. and other governments amid a territorial dispute with China.

Japan has held the presidency of the Manila-based ADB, which aims to reduce poverty, since it was founded in 1966 and shares roughly equal voting rights with the U.S. The current president, Takehiko Nakao, was nominated to the post by the Japanese government in 2013, while his predecessor, Haruhiko Kuroda, is now governor of the Bank of Japan.

The $50 billion AIIB, proposed by Chinese President Xi Jinping during a visit to Indonesia in 2013, will initially be less than a third the size of the ADB.

To contact the reporters on this story: Masaaki Iwamoto in Tokyo at miwamoto4@bloomberg.net; Maiko Takahashi in Tokyo at mtakahashi61@bloomberg.net

To contact the editors responsible for this story: Brett Miller at bmiller30@bloomberg.net James Mayger

Reactions: Like Like:
1


----------



## hans

NK means only two things for China..
1: Keep a safety distance from US force in SK.
2: Remind SK not too close to US, like THAAD deployment which threat China security.
If SK finally decide to give up US and turn to China, then NK makes no sense..
Either reunited by SK or reformation..



terranMarine said:


> our unpleasant pet isn't listening to our advice, so it was expected

Reactions: Like Like:
1


----------



## sahaliyan

Finally,Kyrghizstan is in

Reactions: Like Like:
2


----------



## cirr

One of the 1st infrastructure projects funded by the AIIB will be a railway linking Beijing and Baghdad。

Reactions: Like Like:
2


----------



## Keel

browser said:


> China will also buy bonds issued by AIIB to leverage up the registered capital so the overall contribution would be higher.
> 
> Anyways, am sure the details will be out soon.



That is out of the question at the moment
Injection of capital is different from buying bonds. 
Future capitalization is an open question and I am sure we wont exhaust our FX reserve for the bank 
Other than bond issuance there are other ways to increase funds available in AIIB
Devil is in the detail
This is just game 1 of a long match to play






Ancient Chinese Art of Paper Folding

Reactions: Like Like:
1


----------



## mike2000

ahojunk said:


> @Nihonjin1051,
> 
> Japan says they are not joining. Are they nuts? Japan will lose out being a founding member and with it, all its privileges.
> 
> Come on Japan, please join now or else you may regret later. Japan can influence AIIB more from the inside than being on the outside.
> 
> Don't worry about US, they still think they can call the shots, but unfortunately no one is listening. Thirty years ago, the US was the undisputed king, but not today.
> 
> There is the danger the US may join at the last minute leaving Japan looking like a fool.
> 
> -----------------------------
> Japan Holds Out on Joining China-Led AIIB as Deadline Arrives - Bloomberg Business
> 
> *Japan Holds Out on Joining China-Led AIIB as Deadline Arrives*
> Bloomberg Business
> by Masaaki Iwamoto & Maiko Takahashi
> 
> (Bloomberg) -- Japan held out on joining China’s planned development bank as ministers in Tokyo cast skepticism over its governance on the final day for nations to sign up as founding members.
> 
> Japan remains cautious about the prospect of becoming part of the Asian Infrastructure Investment Bank and has yet to get answers from China on questions about the governance of the institution, Finance Minister Taro Aso told reporters in Tokyo on Tuesday. *Foreign Minister Fumio Kishida rejected one report that cited Japan’s ambassador in Beijing as saying the nation may join within a few months*.
> 
> The AIIB has the potential to weaken the clout of the almost 50-year-old Asian Development Bank, dominated by Japan and the U.S. Strategic allies of the U.S. from Asia to Europe plan to join the new institution, underscoring the draw of closer commercial ties with China.
> 
> “Japan’s stance is totally unchanged,” said Aso. “There has to be totally fair governance. The governing council that represents the member countries needs to audit and approve each case.”
> 
> He added that it was important to ensure all lending took into account debt sustainability, the environment and social impact.
> 
> The U.K.’s Chancellor of the Exchequer, George Osborne, announced earlier this month that Britain would be first “major western country” to apply for membership. France, Germany and Italy are following suit, as are Australia, South Korea and Russia.
> 
> The trend is a blow to Prime Minister Shinzo Abe, who is seeking to carve out a bigger role for Japan on the global stage and bolster security ties with the U.S. and other governments amid a territorial dispute with China.
> 
> Japan has held the presidency of the Manila-based ADB, which aims to reduce poverty, since it was founded in 1966 and shares roughly equal voting rights with the U.S. The current president, Takehiko Nakao, was nominated to the post by the Japanese government in 2013, while his predecessor, Haruhiko Kuroda, is now governor of the Bank of Japan.
> 
> The $50 billion AIIB, proposed by Chinese President Xi Jinping during a visit to Indonesia in 2013, will initially be less than a third the size of the ADB.
> 
> To contact the reporters on this story: Masaaki Iwamoto in Tokyo at miwamoto4@bloomberg.net; Maiko Takahashi in Tokyo at mtakahashi61@bloomberg.net
> 
> To contact the editors responsible for this story: Brett Miller at bmiller30@bloomberg.net James Mayger



Well, you seem to be surprised. Semms you dont understand the geo political realities of Asia. Japan as i said will be the last to join(if it ever does at all) the AIIB, simply because its the only country(yes even before the U.S) that has the most to lose out of this. Japan as i said is the leader of ADB, so this bank is obviously a serious threat to Japan's dominance in the region and more. So of course Japan will be more reserved about this than any other country(even more than the U.S), U.S concern only comes secondary to the reasons i mentioned why Japan wont join. Its same reason Japan will be the only country to lose more geo politically if north Korea ever united with the south, reason Japan doesnt want a korean reunification contrary to even China and the U.S.

You need to study the region more to understand what im saying. Seems you dont grap the complex relationship/great game involved in this region.



hans said:


> NK means only two things for China..
> 1: Keep a safety distance from US force in SK.
> 2: Remind SK not too close to US, like THAAD deployment which threat China security.
> If SK finally decide to give up US and turn to China, then NK makes no sense..
> Either reunited by SK or reformation..



To be honest i feel really sorry about North korea at times, it even makes me want to cry. 

Its the most sanctioned country in the world by far, not even Cuba and Iran have undergone such severe sanctions and isolated by the whole world. It has no friends/allies unlike Iran and Cuba did/do. Its basically an island of itself. Seems only my friend niceguy on here likes North Korea.


----------



## Shotgunner51

terranMarine said:


> our unpleasant pet isn't listening to our advice, so it was expected



NK is an ally, both countries will always fight side-by-side, never change.
Kim was just too young, time will make him matured.



mike2000 said:


> To be honest i feel really sorry about North korea at times, it even makes me want to cry.
> Its the most sanctioned country in the world by far, not even Cuba and Iran have undergone such severe sanctions and isolated by the whole world. It has no friends/allies unlike Iran and Cuba did/do. Its basically an island of itself. Seems only my friend niceguy on here likes North Korea.



I share your sympathy (China was like that during 1950-70's) but don't worry about NK people, China will keep providing them the needed life-support. On AIIB, it wouldn't change anything for them even if they are in, let alone NK wouldn't be qualified to join, rules set apply across the board. If financing or infrastructure is needed, bilateral arrangement will suffice.

Reactions: Like Like:
2


----------



## Beast

xunzi said:


> No doubt the UK is an experience and old chess player. You don't win two world wars without deep ambition and deep strategic depth. It is something Germany and France still need to learn from the UK.


I will say british are practical people. It's the practicality that still make them a top 10 countries after so many centuries.

Something talking too much of nationalism is no good. Nationalism must come with strength. Look at the vietnamese, absolutely no strength and yet so much nationalism and pride which cloud their head and make plenty of stupid decision. If vietnam is more rational, I bet they will have a bigger economy than Philippines and Malaysia by now.

Reactions: Like Like:
1


----------



## TaiShang

*Mainland Welcomes Taiwan's Participation in AIIB*
2015-04-01 

The Chinese mainland welcomes Taiwan's participation in the Asian Infrastructure Investment Bank (AIIB) under an appropriate name, said a mainland spokesman on Wednesday.

*The State Council Taiwan Affairs Office has received Taiwan's letter of intent on joining the AIIB and has transferred the letter to the Multilateral Interim Secretariat for the AIIB, according to the office's spokesman Ma Xiaoguang. 

"The AIIB is open and inclusive," Ma said. "We welcome Taiwan to participate in the AIIB under an appropriate name." *

Taiwan's finance and mainland affairs authorities issued a statement on Tuesday announcing the island's letter of intent.

Tuesday was the deadline for such applications pending the agreement of the bank's existing 27 prospective founding members.

The AIIB, an international financial institution aiming to provide support to infrastructure projects in Asia, is expected to be established by the end of this year.


----------



## xunzi

Beast said:


> I will say british are practical people. It's the practicality that still make them a top 10 countries after so many centuries.
> 
> Something talking too much of nationalism is no good. Nationalism must come with strength. Look at the vietnamese, absolutely no strength and yet so much nationalism and pride which cloud their head and make plenty of stupid decision. If vietnam is more rational, I bet they will have a bigger economy than Philippines and Malaysia by now.


I wonder if the UK undercut France and Germany due to France/Germany snub them in the negotiation with Russia over Ukraine? Perhaps, our friend @mike2000 can help answer this.


----------



## TaiShang

*AIIB, a paradigm power shift*
April 01, 2015

- There are but a few hours left for those countries who aspire to befounding members of the Asian Infrastructure Investment Bank (AIIB). Time is up atmidnight.

*As of 6 p.m. Tuesday, 46 countries had applied to be founders of the bank, but the United States and Japan have remained on the sidelines. The financial authority of China's Taiwan said on Tuesday afternoon that the island has submitted a letter of intent on joining the mainland-proposed AIIB. Founders will be finalized on April 15.*

*TIMELINE*

The bank was proposed by Chinese President Xi Jinping in October 2013.

A year later, and 21 Asian nations, including China, India, Malaysia, Pakistan and Singapore had signed an agreement to establish the bank, headquartered in Beijing.

On March 12, 2015, Britain applied to join the AIIB as a prospective founding member, the first major western country to do so. France, Italy and Germany quickly followed suit.

Other nations will still be able to join the bank after the deadline, but only as ordinary members.

Negotiations on the AIIB charter are expected to conclude in the middle of the year and the bank should be formally established by the end of this year.

*BUILDING FOR SUCCESS*

As its name suggests, the AIIB will finance infrastructure--airports, mobile phone towers,railways, roads--in Asia.

There is a yawning infrastructure funding gap in Asia. The Asian Development Bank (ADB) pegged the hole at about eight trillion U.S. dollars between 2010 and 2020.

The World Bank and Asian Development Bank are more focused on poverty reduction and their funds alone are insufficient to bridge the gap, according to Hans-Paul Burkner, chair of the Boston Consulting Group.

*While both the ADB and World Bank focus on a broad range of development programs including agriculture, education and gender equality, the AIIB will concentrate on infrastructure alone.* The IMF, World Bank and ADB have all welcomed the AIIB initiative and see room for collaboration

The bank will have an authorized capital 100 billion U.S. dollars and the initial subscribed capital is expected to be around 50 billion dollars. Although hardly enough to meet demand, it will still be a helpful boost.

*GOOD FOR ASIA; GOOD FOR ALL*

As the first China-proposed multilateral financial institution that has included developed nations as members, the AIIB offers an opportunity to test China's ability to play its role as a responsible country, analysts said.

The initiative followed years of frustrated attempts to reform the existing international financial institutions, which have failed to reflect the changing landscape of global economy.

*The existing economic system, shaped by the Bretton Woods agreement seven decades ago, is dominated by western countries and increasingly unrepresentative of the world's economic architecture. Since the global financial crisis, emerging markets are becoming the main development drivers. Asian countries now make up one third of the global economy.*

As global economic power shifts to emerging markets, it is only fair that they should play a bigger role in global institutions. Burkner said, "if it is not happening, then it is important to create additional institutions which, to some extent, cooperate and compete with existing institutions.

"There will be cooperation and also some healthy competition with the ADB and the World Bank."

Good for Asia; good for the world as a whole.

Jin Liqun, secretary general of the interim secretariat of the AIIB, regards the bank as a complement to, rather than a substitute for, the World Bank and the ADB. It will improve the existing international financial system, not overturn it, Jin said.

*The AIIB is just the start. Jim O'Neil, coiner of the BRICs acronym and former chairman of Goldman Sachs Asset Management, believes there are plenty more areas where China needs to be drawn in.*

With its Belt and Road initiatives, the AIIB and other entities (a joint development bank with BRICs partners Brazil, Russia, India and South Africa, for example) China is trying to make its own development beneficial to the whole continent.

After over three decades of fast expansion, benefiting from globalization and opening-up, China can now share the fruits of its development and build a "community of common destiny" through international and regional cooperation.

*INTO THE UNKNOWN*

*Even after membership is finalized, many questions will remain. How will the AIIB begoverned? What will be the decision-making process be? What lending criteria will itadopt? Will its policies be transparent and address issues like the environment?*

The answers to those questions will determine whether the bank stands or falls.

While details are pending, China has repeatedly stated that the AIIB will uphold high standards and learn from the best practices at existing multilateral financial institutions.

*During an interview with Xinhua, Lou Jiwei said the bank will have a three-tier structure -- a council, a board of directors and management, as well as a supervising mechanism to ensure sufficient, open and transparent policy-making.*

*The prime challenge for the AIIB is how to channel funds to the most productive projects while maintaining security of repayment.*

Zhang Yuyan, chief of the institute of world economics and politics at the Chinese Academy of Social Sciences, a government think tank, believes that, *since infrastructure projects usually have long funding cycles and great potential for waste, sustainable profitability will be the real test of the AIIB.*

Rigorous consultation and skillful management to coordinate and balance various demands and interests among members will be of the essence, Zhang said. This will be challenging at the very least, with so many histories, cultures and development stages on show.

Reactions: Like Like:
3


----------



## Shotgunner51

TaiShang said:


> *Mainland Welcomes Taiwan's Participation in AIIB*
> 2015-04-01
> 
> The Chinese mainland welcomes Taiwan's participation in the Asian Infrastructure Investment Bank (AIIB) under an appropriate name, said a mainland spokesman on Wednesday.
> 
> *The State Council Taiwan Affairs Office has received Taiwan's letter of intent on joining the AIIB and has transferred the letter to the Multilateral Interim Secretariat for the AIIB, according to the office's spokesman Ma Xiaoguang.
> 
> "The AIIB is open and inclusive," Ma said. "We welcome Taiwan to participate in the AIIB under an appropriate name." *
> 
> Taiwan's finance and mainland affairs authorities issued a statement on Tuesday announcing the island's letter of intent.
> 
> Tuesday was the deadline for such applications pending the agreement of the bank's existing 27 prospective founding members.
> 
> The AIIB, an international financial institution aiming to provide support to infrastructure projects in Asia, is expected to be established by the end of this year.



Taiwan is low-profile financial powerhouse:

Forex reserves of over $420 billion, ranks #5 in the world.
With a population of only 23.37 M, forex per capita is $17,875
Taiwan has huge trade surplus.
Addition of Taiwan will largely boost AIIB's capability!

Rank Country Forex Reserve ($ Billion)

1




China 3,945.9
2



Japan 1,261.1
3



Saudi Arabia 734.5
4



Switzerland 585.5
5



Taiwan 420.8 

6



Brazil 362.5
7



South Korea 362.2
8



Russia 352.9

Welcome Taiwan brothers! 歡迎台灣同胞！

Reactions: Like Like:
5


----------



## ahojunk

Washington’s Big China Screw-up | Foreign Policy





*Washington’s Big China Screw-up*

U.S. efforts to oppose a $50 billion China-led infrastructure bank have backfired. Experts explain why.

*By Stephen S. Roach, Zha Daojiong, Scott Kennedy, Patrick Chovanec*
March 26, 2015 - 2:19 pm






_In March alone, France, Italy, Germany, and the United Kingdom have now all agreed to join a major, China-led initiative that could one day rival the U.S.-led World Bank in size and influence. It’s called the Asia Infrastructure Investment Bank (AIIB), and since China formally established the bank in October 2014, it’s attracted dozens of member nations. It’s also raised hackles in the United States, whose officials initially attempted to dissuade countries like the U.K. from joining. But on March 22, U.S. Treasury Undersecretary for International Affairs Nathan Sheets told the Wall Street Journal that his country “would welcome new multilateral institutions that strengthen the international financial architecture.” Is the damage to U.S.-China relations nevertheless done? And how might a China-led AIIB shape the world moving forward? ChinaFile asked several experts to opine. –The Editors_

_Stephen Roach, Senior Fellow, Jackson Institute of Global Affairs:_

In 2005, then-U.S. Deputy Secretary of State Robert Zoellick famously called on China to be a “responsible stakeholder.” He meant that China needed not only to comply with its international commitments, but also to provide public goods to the international community. Well, be careful what you wish for.

Since then China has become much more active in global governance. Chinese occupy leadership positions in a wide range of institutions. In 2013, China helped broker an interim deal in the World Trade Organization’s Doha Round, and in November 2014, China, along with the United States, made a new pledge to limit carbon emissions, creating momentum heading into the United Nations meeting in Paris later this year. But the AIIB is China’s first signature contribution.

China certainly could have done a better job of selling the need for a new development bank. It is still unclear why it would be impossible to improve the quality and quantity of development assistance in Asia through either the Asian Development Bank (ADB) or the World Bank. The arguments that those banks were un-fixable and not open to a greater Chinese role or that China deserves pride of place in a new institution given how much it is contributing leave the impression that the AIIB is a vanity piece or a disguised cash register for Chinese state-owned enterprises.

That said, the United States has performed even worse. Although joining the AIIB was not an option since Congress would not have allocated the funds, the U.S. could have adopted the posture of a friendly outside voice. Instead, it discouraged others from joining in the hope the initiative would collapse or leave China with a small coalition of the willing. They argued that the bank would not follow international best practices, but in reality it appears the U.S. opposed the AIIB simply because it was a Chinese initiative, full stop. Such knee-jerk antagonism gives life to arguments that the U.S. opposes China’s rise and is bent on containing it. Even more important, American bungling fuels the perception that China can drive a wedge between the United States and its allies and that U.S. leadership in Asia is on the wane just when it is needed more than ever.

It’s a shame that China did not provide greater reassurances early on that the bank would not be a tool of Chinese industrial policy and geo-strategic maneuvering, and that the U.S. did not do more to pursue such reassurances and find a way to serve as a constructive supporter. The so-called best practices of existing multilateral aid institutions too often have not translated into sustained poverty alleviation and development. There are many other areas of global governance in need of reform, and we can be sure that the AIIB will not be China’s last major initiative. Let’s hope China and the United States learn from this experience and find ways to identify areas in need of change where they can collaborate or at least not get in each other’s way, instead of being in opposite camps and forcing others in the region and elsewhere to pick sides. Then both countries will be able to justly claim they are truly acting as responsible stakeholders.

"Such knee-jerk antagonism gives life to arguments that the U.S. opposes China’s rise and is bent on containing it."


_Zha Daojiong, Professor of International Political Economy, Peking University:_

That the United States is not going to join the AIIB is in and of itself not a surprise. But the level of fury Washington has put on public display in recent weeks is remarkable in several ways.

First, China has offered to negotiate terms as it established the AIIB. Among other things, Natalie Lichtenstein, a Harvard-educated lawyer who worked at the World Bank for over 30 years, was invited to help prepare the bank’s charter. That gesture alone is indication that China, too, wants the bank to build on the experiences and lessons of existing multilateral development banks. After all, being the AIIB’s largest underwriter, China has the greatest stake in seeing the proposed bank start off with a well-conceived institutional structure.

Second, the AIIB is but one among a number of existing Chinese initiatives linking it to the world economy. For example, the pilot Shanghai Free Trade Zone — and subsequent establishment of similar zones into the provinces of Fujian and Guangdong, and the city of Tianjin — indicates China is serious about further liberalizing its own investment and trade policies.

Concerns in the United States and some allied nations about the AIIB not being an exact copy of the World Bank or the ADB in governance structure are in some ways understandable. But the last thing China and other founding members of the AIIB want is validation of their critics’ and skeptics’ fears.The real test is not so much who is in the AIIB and who is not. Rather, it is whether or not the bank can satisfy its customers and shareholders.

If the United States is concerned about the AIIB’s effect on its soft power, the U.S. can serve itself better by keeping an open mind about the project and looking to collaborate on specific investment projects in the future. For China, it would be ill advised to see Washington’s disapproval of its allies in joining the AIIB as an affront. It’s better to listen. After all, no country has money to burn.

"The real test is not so much who is in the AIIB and who is not. Rather, it is whether or not the bank can satisfy its customers and shareholders."


_Scott Kennedy, Deputy Director of the Freeman Chair in China Studies, Center for Strategic and International Studies:_

The Obama Administration has obviously made a major strategic blunder in resisting the establishment of the AIIB. Many of America’s most loyal allies have rejected the folly of this intransigence. By opting to join this start-up international lending institution, they will be much better positioned to shape the governance of the AIIB as insiders, rather than voicing criticism as outsiders, as the United States apparently prefers. Washington’s Cold-War style criticism of its allies for their “constant accommodation” of China is a new and embarrassing low in the China debate.

It is both ironic and hypocritical that Washington’s response is to circle the wagons around the existing Bretton Woods institutions—the International Monetary Fund (IMF) and the World Bank. The U.S. Congress has repeatedly dragged its feet on IMF reforms. And lending programs of the U.S.-dominated World Bank have done little to address infrastructure deficiencies in any part of the world. The ADB estimates an Asian infrastructure void of some $8 trillion over the 2010 to 2020 period. Clearly new lending capacity is needed to meet this daunting challenge.

Nor does the AIIB pose a threat to more established and experienced international lending institutions. Its initial capital base of $50 billion is less than a third of that which supports the ADB and less than a quarter of that held by the World Bank. Surely, an $80 trillion global economy can afford to support much greater lending capacity than is the case today.

But there is a more sinister aspect of Washington’s resistance to this China-sponsored initiative. It is but the latest in an increasingly worrisome string of anti-China actions. The Obama Administration has focused on the TPP as its signature initiative on trade liberalization; unfortunately, it excludes China, the source of America’s largest trade imbalance. Yet another anti-China currency manipulation bill has been introduced in the U.S. Senate. And there are ongoing frictions over cyber issues, as well as over territorial claims in the China Sea. Suddenly, America’s Asian pivot seems like nothing more than a thinly veiled China containment strategy.

Is the rise of China a risk or an opportunity? Washington is clearly fixated on the threat – all but ignoring the benefits that are likely to come with the emergence of a consumer-led Chinese economy. This shouldn’t be so surprising. History tells us that dominant powers always have trouble with rising powers. Washington is bristling over China’s ascendancy. China, with the baggage of 150 years of a perceived sense of deep humiliation by the West, doesn’t take kindly to that reaction. The AIIB folly only deepens concerns over an increasingly troubled relationship. A rethink by Washington is urgently needed.

"It is but the latest in an increasingly worrisome string of anti-China actions."


_Patrick Chovanec, Managing Director, Silvercrest Asset Management:_

Many of the concerns the U.S. has with China’s AIIB are valid. The problem with developing much-needed infrastructure in Asia is not money—the world is floating in money right now—but selecting and managing projects in way that will deliver the desired results. Given the track record of development lending by China’s existing policy banks (the China Ex-Im Bank and China Development Bank), at best the AIIB risks being merely a vehicle to “buy business” for Chinese companies and absorb China’s huge overcapacity. At worst, it threatens to undermine the “good governance” that is key to the region’s genuine economic development. Many of the U.S. allies who broke ranks to join the bank appear—like the U.K., eager to win China’s “blessing” as an offshore RMB trading hub—to have done so for deeply misguided and even delusional reasons.

All that said, it’s hard to think of a more ham-fisted and ineffectual way to deal with these concerns than the United States employed. It was a classic case of “you can’t beat something with nothing.” The Chinese have accumulated a large pool of savings, and to pretend that Chinese capital won’t play a role in the global economy—with or without U.S. permission—is simply untenable. Issuing a blanket “no” to Chinese capital, rather than offering constructive ideas or alternatives, was never going to fly. Strong-arming allies isn’t going to work if it looks like China has a plan, and the U.S. is just a carping bystander.

The AIIB potentially has flaws. One of two things will happen: either those flaws will become evident, or China will find a way (perhaps working with other member countries) to overcome them. Either way, China has taken the lead and whining about it isn’t a convincing argument.

If the U.S. wants to lead, then lead. Making progress—and a real commitment—to the TPP and the Transatlantic Trade and Investment Partnership (TTIP) is one way to do this. But the Obama Administration, despite pursuing these objectives, has yet to make them a real priority. President Clinton sent Vice President Gore out to debate NAFTA with Ross Perot on live TV. He spent real (and precious) political capital to bat down opposition (much of it within his own party) and ensure congressional passage. By letting pending Free Trade Agreements with South Korea and Colombia twist in the wind for most of his first term, President Obama sent the signal, to friends and foes alike, that his trade agenda wasn’t very important, and certainly not worth fighting for.

Into that leadership void has stepped China, with a different vision for the global economy. Can we really blame our friends for taking them more seriously, if we fail to contest that vision in a more credible way?

"Strong-arming allies isn’t going to work if it looks like China has a plan, and the U.S. is just a carping bystander."

Reactions: Like Like:
8


----------



## TaiShang

ahojunk said:


> Washington’s Big China Screw-up | Foreign Policy
> 
> 
> 
> 
> 
> *Washington’s Big China Screw-up*
> 
> U.S. efforts to oppose a $50 billion China-led infrastructure bank have backfired. Experts explain why.
> 
> *By Stephen S. Roach, Zha Daojiong, Scott Kennedy, Patrick Chovanec*
> March 26, 2015 - 2:19 pm
> 
> View attachment 210278
> 
> 
> _In March alone, France, Italy, Germany, and the United Kingdom have now all agreed to join a major, China-led initiative that could one day rival the U.S.-led World Bank in size and influence. It’s called the Asia Infrastructure Investment Bank (AIIB), and since China formally established the bank in October 2014, it’s attracted dozens of member nations. It’s also raised hackles in the United States, whose officials initially attempted to dissuade countries like the U.K. from joining. But on March 22, U.S. Treasury Undersecretary for International Affairs Nathan Sheets told the Wall Street Journal that his country “would welcome new multilateral institutions that strengthen the international financial architecture.” Is the damage to U.S.-China relations nevertheless done? And how might a China-led AIIB shape the world moving forward? ChinaFile asked several experts to opine. –The Editors_
> 
> _Stephen Roach, Senior Fellow, Jackson Institute of Global Affairs:_
> 
> In 2005, then-U.S. Deputy Secretary of State Robert Zoellick famously called on China to be a “responsible stakeholder.” He meant that China needed not only to comply with its international commitments, but also to provide public goods to the international community. Well, be careful what you wish for.
> 
> Since then China has become much more active in global governance. Chinese occupy leadership positions in a wide range of institutions. In 2013, China helped broker an interim deal in the World Trade Organization’s Doha Round, and in November 2014, China, along with the United States, made a new pledge to limit carbon emissions, creating momentum heading into the United Nations meeting in Paris later this year. But the AIIB is China’s first signature contribution.
> 
> China certainly could have done a better job of selling the need for a new development bank. It is still unclear why it would be impossible to improve the quality and quantity of development assistance in Asia through either the Asian Development Bank (ADB) or the World Bank. The arguments that those banks were un-fixable and not open to a greater Chinese role or that China deserves pride of place in a new institution given how much it is contributing leave the impression that the AIIB is a vanity piece or a disguised cash register for Chinese state-owned enterprises.
> 
> That said, the United States has performed even worse. Although joining the AIIB was not an option since Congress would not have allocated the funds, the U.S. could have adopted the posture of a friendly outside voice. Instead, it discouraged others from joining in the hope the initiative would collapse or leave China with a small coalition of the willing. They argued that the bank would not follow international best practices, but in reality it appears the U.S. opposed the AIIB simply because it was a Chinese initiative, full stop. Such knee-jerk antagonism gives life to arguments that the U.S. opposes China’s rise and is bent on containing it. Even more important, American bungling fuels the perception that China can drive a wedge between the United States and its allies and that U.S. leadership in Asia is on the wane just when it is needed more than ever.
> 
> It’s a shame that China did not provide greater reassurances early on that the bank would not be a tool of Chinese industrial policy and geo-strategic maneuvering, and that the U.S. did not do more to pursue such reassurances and find a way to serve as a constructive supporter. The so-called best practices of existing multilateral aid institutions too often have not translated into sustained poverty alleviation and development. There are many other areas of global governance in need of reform, and we can be sure that the AIIB will not be China’s last major initiative. Let’s hope China and the United States learn from this experience and find ways to identify areas in need of change where they can collaborate or at least not get in each other’s way, instead of being in opposite camps and forcing others in the region and elsewhere to pick sides. Then both countries will be able to justly claim they are truly acting as responsible stakeholders.
> 
> "Such knee-jerk antagonism gives life to arguments that the U.S. opposes China’s rise and is bent on containing it."
> 
> 
> _Zha Daojiong, Professor of International Political Economy, Peking University:_
> 
> That the United States is not going to join the AIIB is in and of itself not a surprise. But the level of fury Washington has put on public display in recent weeks is remarkable in several ways.
> 
> First, China has offered to negotiate terms as it established the AIIB. Among other things, Natalie Lichtenstein, a Harvard-educated lawyer who worked at the World Bank for over 30 years, was invited to help prepare the bank’s charter. That gesture alone is indication that China, too, wants the bank to build on the experiences and lessons of existing multilateral development banks. After all, being the AIIB’s largest underwriter, China has the greatest stake in seeing the proposed bank start off with a well-conceived institutional structure.
> 
> Second, the AIIB is but one among a number of existing Chinese initiatives linking it to the world economy. For example, the pilot Shanghai Free Trade Zone — and subsequent establishment of similar zones into the provinces of Fujian and Guangdong, and the city of Tianjin — indicates China is serious about further liberalizing its own investment and trade policies.
> 
> Concerns in the United States and some allied nations about the AIIB not being an exact copy of the World Bank or the ADB in governance structure are in some ways understandable. But the last thing China and other founding members of the AIIB want is validation of their critics’ and skeptics’ fears.The real test is not so much who is in the AIIB and who is not. Rather, it is whether or not the bank can satisfy its customers and shareholders.
> 
> If the United States is concerned about the AIIB’s effect on its soft power, the U.S. can serve itself better by keeping an open mind about the project and looking to collaborate on specific investment projects in the future. For China, it would be ill advised to see Washington’s disapproval of its allies in joining the AIIB as an affront. It’s better to listen. After all, no country has money to burn.
> 
> "The real test is not so much who is in the AIIB and who is not. Rather, it is whether or not the bank can satisfy its customers and shareholders."
> 
> 
> _Scott Kennedy, Deputy Director of the Freeman Chair in China Studies, Center for Strategic and International Studies:_
> 
> The Obama Administration has obviously made a major strategic blunder in resisting the establishment of the AIIB. Many of America’s most loyal allies have rejected the folly of this intransigence. By opting to join this start-up international lending institution, they will be much better positioned to shape the governance of the AIIB as insiders, rather than voicing criticism as outsiders, as the United States apparently prefers. Washington’s Cold-War style criticism of its allies for their “constant accommodation” of China is a new and embarrassing low in the China debate.
> 
> It is both ironic and hypocritical that Washington’s response is to circle the wagons around the existing Bretton Woods institutions—the International Monetary Fund (IMF) and the World Bank. The U.S. Congress has repeatedly dragged its feet on IMF reforms. And lending programs of the U.S.-dominated World Bank have done little to address infrastructure deficiencies in any part of the world. The ADB estimates an Asian infrastructure void of some $8 trillion over the 2010 to 2020 period. Clearly new lending capacity is needed to meet this daunting challenge.
> 
> Nor does the AIIB pose a threat to more established and experienced international lending institutions. Its initial capital base of $50 billion is less than a third of that which supports the ADB and less than a quarter of that held by the World Bank. Surely, an $80 trillion global economy can afford to support much greater lending capacity than is the case today.
> 
> But there is a more sinister aspect of Washington’s resistance to this China-sponsored initiative. It is but the latest in an increasingly worrisome string of anti-China actions. The Obama Administration has focused on the TPP as its signature initiative on trade liberalization; unfortunately, it excludes China, the source of America’s largest trade imbalance. Yet another anti-China currency manipulation bill has been introduced in the U.S. Senate. And there are ongoing frictions over cyber issues, as well as over territorial claims in the China Sea. Suddenly, America’s Asian pivot seems like nothing more than a thinly veiled China containment strategy.
> 
> Is the rise of China a risk or an opportunity? Washington is clearly fixated on the threat – all but ignoring the benefits that are likely to come with the emergence of a consumer-led Chinese economy. This shouldn’t be so surprising. History tells us that dominant powers always have trouble with rising powers. Washington is bristling over China’s ascendancy. China, with the baggage of 150 years of a perceived sense of deep humiliation by the West, doesn’t take kindly to that reaction. The AIIB folly only deepens concerns over an increasingly troubled relationship. A rethink by Washington is urgently needed.
> 
> "It is but the latest in an increasingly worrisome string of anti-China actions."
> 
> 
> _Patrick Chovanec, Managing Director, Silvercrest Asset Management:_
> 
> Many of the concerns the U.S. has with China’s AIIB are valid. The problem with developing much-needed infrastructure in Asia is not money—the world is floating in money right now—but selecting and managing projects in way that will deliver the desired results. Given the track record of development lending by China’s existing policy banks (the China Ex-Im Bank and China Development Bank), at best the AIIB risks being merely a vehicle to “buy business” for Chinese companies and absorb China’s huge overcapacity. At worst, it threatens to undermine the “good governance” that is key to the region’s genuine economic development. Many of the U.S. allies who broke ranks to join the bank appear—like the U.K., eager to win China’s “blessing” as an offshore RMB trading hub—to have done so for deeply misguided and even delusional reasons.
> 
> All that said, it’s hard to think of a more ham-fisted and ineffectual way to deal with these concerns than the United States employed. It was a classic case of “you can’t beat something with nothing.” The Chinese have accumulated a large pool of savings, and to pretend that Chinese capital won’t play a role in the global economy—with or without U.S. permission—is simply untenable. Issuing a blanket “no” to Chinese capital, rather than offering constructive ideas or alternatives, was never going to fly. Strong-arming allies isn’t going to work if it looks like China has a plan, and the U.S. is just a carping bystander.
> 
> The AIIB potentially has flaws. One of two things will happen: either those flaws will become evident, or China will find a way (perhaps working with other member countries) to overcome them. Either way, China has taken the lead and whining about it isn’t a convincing argument.
> 
> If the U.S. wants to lead, then lead. Making progress—and a real commitment—to the TPP and the Transatlantic Trade and Investment Partnership (TTIP) is one way to do this. But the Obama Administration, despite pursuing these objectives, has yet to make them a real priority. President Clinton sent Vice President Gore out to debate NAFTA with Ross Perot on live TV. He spent real (and precious) political capital to bat down opposition (much of it within his own party) and ensure congressional passage. By letting pending Free Trade Agreements with South Korea and Colombia twist in the wind for most of his first term, President Obama sent the signal, to friends and foes alike, that his trade agenda wasn’t very important, and certainly not worth fighting for.
> 
> Into that leadership void has stepped China, with a different vision for the global economy. Can we really blame our friends for taking them more seriously, if we fail to contest that vision in a more credible way?
> 
> "Strong-arming allies isn’t going to work if it looks like China has a plan, and the U.S. is just a carping bystander."



Some heads should be falling down in Washington. LOL. Obama's regime is definitely very incompetent and anti-business.


***

Reactions: Like Like:
7


----------



## ahojunk

http://www.ft.com/cms/s/0/94728d96-d82f-11e4-ba53-00144feab7de.html

*China-led AIIB attracts rush of applicants*
Tom Mitchell in Beijing
April 1, 2015 7:32 am

Almost 50 countries are poised to join China’s Asian Infrastructure Investment Bank as founding members, after the deadline for submitting applications passed on Wednesday.

According to the Chinese foreign ministry, 47 applications have been received to join Beijing’s rival to the Asian Development Bank and other US-led financial institutions. Some 30 applications have already been approved.

The rush to the AIIB has embarrassed Washington, which initially tried to dissuade applicants, citing potential governance issues at the proposed bank. However, those seeking founding-member status include traditional US allies the UK, Australia, South Korea, Taiwan, France and Germany.

The application from Taiwan, which Beijing regards as a renegade state, was among three submitted on deadline day.

So far among Asia-Pacific nations, only Japan has heeded the pleas from US President Barack Obama.

Taro Aso, Japanese finance minister, on Tuesday said that until the AIIB’s governance standards were secured, “Japan has no choice but to be very cautious about joining”.

“The US thought they’d have more people with them in opposition to the AIIB,” said one Beijing-based western executive. “They misread the situation.”

The bank, which will be headquartered in Beijing, will have initial capital of $50bn.

This week Jack Lew, US Treasury secretary, said Washington remained concerned about the AIIB’s standards but also acknowledged that there was “enough infrastructure need for new and existing institutions”. He added that the US would be willing to work with the AIIB through existing financial institutions such as the ADB and the World Bank.

The defections have put additional pressure on the Obama administration to wrap up talks for the Trans Pacific Partnership trade agreement, which will not initially include China. Success will hinge on Mr Obama’s ability to secure trade promotion authority from the Republican-controlled Congress.

Approval for the TPA would enable an all-or-nothing vote on the TPP agreement, which US executives are confident would pass given the potential boost it could provide to the US economy. Failure, on the other hand, would threaten to further unravel the Obama administration’s much vaunted “pivot” towards the Asia-Pacific region.

US Congressional reluctance to sign off on reforms that would give China and other developing nations more clout at the IMF and World Bank contributed to Beijing’s decision to forge ahead with the AIIB, which will fund projects along a new land and maritime “silk road” linking China to Central Asia and beyond.

Beijing and Washington are squaring off on other fronts, especially over new Chinese banking regulations and a draft counter-terrorism law that would require foreign information technology providers to provide sensitive source code and encryption information to the government.

Last month, China’s foreign ministry denied suggestions by a White House official that the counter terrorism law had been suspended.

During a visit to Beijing on Monday, a senior US Treasury official told reporters that the proposed banking regulations had been delayed by Chinese authorities but the China Banking Regulatory Commission has not confirmed this.

Reactions: Like Like:
4


----------



## ahojunk

Taiwan Applies to Join AIIB Under ‘One China,’ Sparking Protests | The Diplomat

*Taiwan Applies to Join AIIB Under ‘One China,’ Sparking Protests*

Taiwan applies to join the China-led Asian Infrastructure Investment Bank, provoking protests in Taipei.

By J. Michael Cole
April 01, 2015





_Image Credit: Black Island Youth Front_

Dozens of young protesters clashed with police and security guards outside the Presidential Office in Taipei on the evening of March 31 after the government unilaterally announced that Taiwan would join the Asian Infrastructure Investment Bank (AIIB), an international financial institution initiated by China.

After Taipei expressed its interest in joining the AIIB, Beijing said it would welcome Taiwan as long as it joined under the “one China” principle. Beijing’s terms also stipulated that Taiwan must apply through the Taiwan Affairs Office (TAO), the agency under the State Council that handles relations with Taiwan. Beijing does not recognize Taiwan’s sovereignty and regards Taiwan as a province, to be “re-united” by force if necessary. At this writing, the name under which Taiwan applied to join the AIIB remains unknown.

Taiwan’s Mainland Affairs Council (MAC), the government agency in charge of relations with China, faxed the Letter of Intent to the TAO at 7 pm on March 31. The TAO will then transmit Taiwan’s application to the Interim Secretariat of the AIIB.

Critics say that by agreeing to apply with the TAO rather than via the normal channels used to join international organizations, Taipei appeared to be conceding that Taiwan is part of China. The “One China” framework, a precondition for cross-strait exchanges that Chinese President Xi Jinping has vehemently reaffirmed in recent months, enjoys little support among the Taiwanese population, which cherishes its _de facto_ status as an independent country.

President Ma Ying-jeou made the decision to join the AIIB during a meeting with the National Security Council and senior government officials on March 30. His administration issued a statement later that evening announcing that Taiwan was joining the AIIB. The decision — reached after a mere five days — was made behind closed doors. No consultations were held with the legislature, opposition parties, or society, sparking accusations that the Ma administration had once again struck a “black box” agreement with China.

On March 18, 2014, hundreds of activists stormed the Legislative Yuan in Taipei and occupied its main chambers for 24 days after the administration sought to expedite the “black box” Cross-Strait Services Trade Agreement (CSSTA) with China over fears that the agreement would undermine Taiwan’s economy and security.

On Tuesday night, about 30 members of the Black Island Youth Front (黑色島國青年陣線) — one of the many organizations that took part in the Sunflower Movement occupation of the legislature in 2014 — held a protest outside the Presidential Office in Taipei. The protesters were quickly surrounded by several dozens of security staff from the Presidential Office. Some were taken away by police amid minor clashes. At around 11 pm, police began shoving the protesters into buses. If the lead-up to last year’s Sunflower movement is any indication, the spontaneous protest that occurred on the evening of March 31 will be the first of many and could quickly snowball.

Commenting on the government’s sudden announcement, the opposition Democratic Progressive Party (DPP) said, “Taiwan is a democratic society, but our president unilaterally made the decision, and it is a ‘black box’ decision. It blatantly disregards the will of the people and the application was through the TAO. The people of Taiwan will never accept that.”

“We will participate in regional organizations,” the DPP continued, “but we will not neglect democratic procedure, and such behavior cannot damage our hurt our sovereignty and national interest.”

“Joining an international organization is a serious matter, and the Beijing-led AIIB insists on the ‘one China’ principle … our government never carried through the necessary evaluations, and government officials were never questioned. The decision was made by the president and was never reported to the parliament or communicated with society. The administration ambushed all of us,” a DPP spokesperson said.

Responding to the critics, Premier Mao Chi-kuo said that Taiwan had joined under the precondition that “we be respected.” He did not elaborate.

During a brief late-night press conference on March 31, MAC Minister Andrew Hsia was very economical in his comments, saying that joining the AIIB would be “good for Taiwan’s economy.”

The AIIB is regarded as a challenge to existing global financial institutions like the Asian Development Bank and the World Bank and to U.S. influence in the Asia-Pacific. As many as 40 countries have expressed their interest in joining the fledging organization. Some analysts have characterized the Beijing-backed AIIB as “a very big deal for Asia’s economic future … [and] an even bigger deal for Asia’s changing political and strategic order.” The U.S. worries that the AIIB, which will provide development loans within the region, might not meet high governance standards.

Reactions: Like Like:
3


----------



## bobsm

ahojunk said:


> Taiwan Applies to Join AIIB Under ‘One China,’ Sparking Protests | The Diplomat
> 
> *Taiwan Applies to Join AIIB Under ‘One China,’ Sparking Protests*



If these professional protesters get their way, Taiwan is doomed. More and more Taiwanese are looking for jobs in the mainland. These protests just quicken the rate. 

One third of Taiwanese youth hope to work in China: poll | Society | FOCUS TAIWAN - CNA ENGLISH NEWS

Perhaps they also should go and protest the recently elected Taipei mayor, Ko Wen-je ,as well.

Taipei mayor seeks new breakthrough in cross-Straits ties



> "Therefore, it will create an opportunity for me and the Taipei city under my leadership to break the stalemate concerning the cross-Strait relations and let the mainland and Taiwan have better communication and development," Ko said.
> 
> *When asked about the "1992 consensus", Ko said actually no one in the world thinks there are "two Chinas" and therefore "one China" is not a problem.*
> 
> The "1992 consensus" was an agreement reached in 1992 with a core of acknowledgment that the Chinese mainland and Taiwan belong to one and the same China.
> 
> He said agreements already signed between the mainland and Taiwan, as well as the exchange history between both sides, should be respected.

Reactions: Like Like:
3


----------



## ahojunk

Taiwan and Norway sign up to AIIB - BBC News

*Taiwan and Norway sign up to AIIB*
31 March 2015 | Business





_Asian developments: the US fears the Asian Infrastructure Investment Bank could undercut American influence in the region _

*Taiwan and Norway are to join the new Asian Infrastructure Investment Bank (AIIB)*.

They become the last countries to apply to the China-led bank before the Tuesday deadline.

They join more than 40 members, including Australia, South Korea, Britain, France, and Germany that have signed up to the development bank.

The US and Japan have refused to join, with both countries worried about standards of governance.

There are also concerns over whether loans will carry adequate environmental, labour and social safeguards.

The AIIB will help finance construction of roads, ports, railways and other infrastructure projects in Asia.

It was launched with 21 members in October, and will have an initial capital of around $50bn, with China expected to be the biggest stakeholder.





_The original 21 members launched the AIIB in Beijing in October 2014_

*Partnership*

The US has asked that the bank should work in partnership with existing institutions such as the Asian Development Bank (ADB) and International Monetary Fund (IMF).

Many believe the US's real concern is that the AIIB will undercut the IMF and World bank and increase China's influence in the region.

The ADB is traditionally headed by a Japanese official, while the IMF and World Bank are dominated by the US.

Japan's Chief Cabinet Secretary Yoshihide Suga told reporters that Japan is still seeking answers about how the AIIB would be governed.

He said: "As of today, Japan will not join AIIB and a clear explanation has not been received from China."

Founding members who apply before the Tuesday deadline will have the right to create the bank's governance and operational rules.

Countries that join after the deadline will have voting rights, but less say in making the rules.

*Politics*

Both Taiwan and Norway's applications have political complications.

Taiwan is applying as a country although China has, since 1949, recognised it only as part of its own territory.

China's Foreign Ministry spokeswoman Hua Chunying said Taiwan's application should respect China's requirement that the island not be identified as a separate country.

Beijing cut all high-level ties with Oslo after the Nobel Peace Prize went to Chinese dissident Liu Xiaobo in 2010.

However, Norway's Foreign Minister Boerge Brende said: "Norway is a substantial contributor to global development efforts, and wishes to join countries from Asia and other parts of the world in further refining the structure and mission of the AIIB,"

The total number of founding members will be confirmed on 15 April.

Reactions: Like Like:
4


----------



## kuge

i think israel is in too?


----------



## AndrewJin

bobsm said:


> If these professional protesters get their way, Taiwan is doomed. More and more Taiwanese are looking for jobs in the mainland. These protests just quicken the rate.
> 
> One third of Taiwanese youth hope to work in China: poll | Society | FOCUS TAIWAN - CNA ENGLISH NEWS
> 
> Perhaps they also should go and protest the recently elected Taipei mayor, Ko Wen-je ,as well.
> 
> Taipei mayor seeks new breakthrough in cross-Straits ties


I've just watched the latest episode of 新闻追追追 ....For Taiwan's current anti-consortium social atmospere and anti-PRC complex, it's simply impossible. Plus that incompetent administration, I'm very pessimistic about ROC's future.

Reactions: Like Like:
4


----------



## bobsm

AndrewJin said:


> I've just watched the latest episode of 新闻追追追 ....*For Taiwan's current anti-consortium social atmospere and anti-PRC complex, it's simply impossible*. Plus that incompetent administration, I'm very pessimistic about ROC's future.



Yeah, they are well beyond logic and reasoning, which is why I hardly watch local news anymore.

Reactions: Like Like:
3


----------



## Pangu

AndrewJin said:


> I've just watched the latest episode of 新闻追追追 ....For Taiwan's current anti-consortium social atmospere and anti-PRC complex, it's simply impossible. Plus that incompetent administration, I'm very pessimistic about ROC's future.



I think their fear has overpowered their capacity to chart their economic progress that is inevitably tied to us. The more successful we become, the greater their fear, thus even greater resistance.

Reactions: Like Like:
3


----------



## AndrewJin

bobsm said:


> Yeah, they are well beyond logic and reasoning, which is why I hardly watch local news anymore.


But that voice dominates the society....I think any serious political talk-show can not appeal to the general audience.



Pangu said:


> I think their fear has overpowered their capacity to chart their economic progress that is inevitably tied to us. The more successful we become, the greater their fear, thus even greater resistance.


They are losing their final bargaining chip.

Reactions: Like Like:
3


----------



## Yizhi

*Israel applies to join China-backed AIIB investment bank*
Wed Apr 1, 2015 7:45am EDT

TEL AVIV (Reuters) - Prime Minister Benjamin Netanyahu has signed a letter of application for Israel to join the China-led Asian Infrastructure Investment Bank (AIIB), the Israeli Foreign Ministry said on Wednesday.

More than 40 countries, including Australia, South Korea, Britain, France, Germany and Italy, have said they would sign up to the AIIB, with Japan and the United States the two notable absentees.

China set a March 31 deadline to become a founding member of the AIIB, an institution that could enhance Beijing's regional and global influence.

Washington initially tried to dissuade its allies from joining the AIIB, seeing it as a challenge to the World Bank and Asian Development Bank over which the U.S. exerts considerable influence, but changed tack after many signed up for it.

U.S. Treasury Secretary Jack Lew said on Tuesday that Washington would welcome the AIIB as long as it complements existing institutions and adopts high governance standards.

In a statement on its website, the Foreign Ministry said Israel's AIIB membership would open up opportunities to integrate Israeli companies into infrastructure projects it financed.

Israeli companies are increasingly turning to Asia to capture a boom in demand for their technology, as the government urges them to diversify export markets in response to Europe's rising anti-Semitism and potential trade sanctions.

The new bank plans to invest $100 billion in infrastructure projects in Asian countries. Half of that amount has already been budgeted by China.



(Reporting by Tova Cohen; Editing by Jeffrey Heller and Tom Heneghan)
------------------------------------------------





Israel is in!

also Iceland and Portugal









中方欢迎冰岛申请作为意向创始成员国加入亚投行
中方欢迎葡萄牙申请作为意向创始成员国加入亚投行

Reactions: Like Like:
1


----------



## sweetgrape

Guynextdoor2 said:


> Dream more. If you think that UK (perpetual US poochdoggy), Norway, India etc. will take one step against the US simply because they became members of the AI whatever Bank, you're dreaming after smoking lots of Pot.
> 
> We'll worry about our sanitation, you should spend more money on pollution than on such fanciful projects. Last time I checked lots of people die every day due to that @AndrewJin


AIIB is for improve the infrastructure of China and other countries, many companies also can benefit from these, promot the economy, of course, also push internationalization of RMB, join it or not, you decision.

We are not that idiotic think these USA allies that join will become against USA, we just want do business for more money, that's all.

Thank you for you concern on our pollution, we will, we have encough money for it, not less than indian, of course, we have much spare money for our "fanciful" projects, Chinese also have dream, the difference is that, we are working hard for it, and make it true, not just a dream, so Let's dream together.

You said you will buy more in IMF and World Bank, of course, you can, we don't stop you, that's your choice, so, back to working, you should earn more money for it, for your this dream.

Reactions: Like Like:
5


----------



## Guynextdoor2

sweetgrape said:


> AIIB is for improve the infrastructure of China and other countries, many companies also can benefit from these, promot the economy, of course, also push internationalization of RMB, join it or not, you decision.
> 
> We are not that idiotic think these USA allies that join will become against USA, we just want do business for more money, that's all.
> 
> Thank you for you concern on our pollution, we will, we have encough money for it, not less than indian, of course, we have much spare money for our "fanciful" projects, Chinese also have dream, the difference is that, we are working hard for it, and make it true, not just a dream, so Let's dream together.
> 
> You said you will buy more in IMF and World Bank, of course, you can, we don't stop you, that's your choice, so, back to working, you should earn more money for it, for your this dream.



This is a political organization man. What do you expect it to do? Any of the nice things you think it should? I can assure you that in 4 years time we'll all be squabbling around the loans. There'll be loans that India will want for 'disputed regions' that you'll oppose, loans you'll give to Pak that we'll oppose, we'll fight for which position has to go to whom, trust me man- this is how these overtly political organizations end. It was never any different.


----------



## IN-2030

Pangu said:


> Why so negative? India is a founding member too.


Just ignore these retard people

Reactions: Like Like:
2


----------



## sweetgrape

Guynextdoor2 said:


> This is a political organization man. What do you expect it to do? Any of the nice things you think it should? I can assure you that in 4 years time we'll all be squabbling around the loans. There'll be loans that India will want for 'disputed regions' that you'll oppose, loans you'll give to Pak that we'll oppose, we'll fight for which position has to go to whom, trust me man- this is how these overtly political organizations end. It was never any different.


Of course, it is also political organization, so? World Bank and IMF too, so, these can't promot economy developing?

Of course there will be squablling, so? what do you want to explain? you indian lack of toilet, so you don't shit?!
The reality is, we as a sponsor of AIIB, many countries response, include you india,

Reactions: Like Like:
3


----------



## Levina

Guynextdoor2 said:


> I didn't know that.
> 
> Oye @ranjeet @Bang Galore @levina - I think this explains a lot.....


I think you're being too skeptical here.

We all know IMF and World Bank were set up by US of A and Western European countries in the wake of World War II, and were designed to make US and Europe dominant.
I'm not saying AIIB would be diff, but such competition is good to reduce American hegemony.

Reactions: Like Like:
2


----------



## mike2000

xunzi said:


> I wonder if the UK undercut France and Germany due to France/Germany snub them in the negotiation with Russia over Ukraine? Perhaps, our friend @mike2000 can help answer this.



Well it might be, but then again it has more to do with we looking at opur interests first and foremost(which is what any sane/wise country always does, bar small paranoid countries). We are Always after our commercial/economic interests and what others can bring/add into our country, we dont give a **** of which country it comes from. So our interests are paramount, reason we are still the most open country in the west/Europe when it comes to FDI. Money doesnt have colour.

By the way, i was right, Japan wont join(for obvious reasons).

Britain: Europe's top attraction for investors - Business News - Business - The Independent

Reactions: Like Like:
1


----------



## ahojunk

Israel applies to join China-backed AIIB investment bank| Reuters

*Israel applies to join China-backed AIIB investment bank*
Markets | Wed Apr 1, 2015 7:45am EDT
TEL AVIV

(Reuters) - Prime Minister Benjamin Netanyahu has signed a letter of application for Israel to join the China-led Asian Infrastructure Investment Bank (AIIB), the Israeli Foreign Ministry said on Wednesday.

More than 40 countries, including Australia, South Korea, Britain, France, Germany and Italy, have said they would sign up to the AIIB, with Japan and the United States the two notable absentees.

China set a March 31 deadline to become a founding member of the AIIB, an institution that could enhance Beijing's regional and global influence.

Washington initially tried to dissuade its allies from joining the AIIB, seeing it as a challenge to the World Bank and Asian Development Bank over which the U.S. exerts considerable influence, but changed tack after many signed up for it.

U.S. Treasury Secretary Jack Lew said on Tuesday that Washington would welcome the AIIB as long as it complements existing institutions and adopts high governance standards.

In a statement on its website, the Foreign Ministry said Israel's AIIB membership would open up opportunities to integrate Israeli companies into infrastructure projects it financed.

Israeli companies are increasingly turning to Asia to capture a boom in demand for their technology, as the government urges them to diversify export markets in response to Europe's rising anti-Semitism and potential trade sanctions.

The new bank plans to invest $100 billion in infrastructure projects in Asian countries. Half of that amount has already been budgeted by China.

(Reporting by Tova Cohen; Editing by Jeffrey Heller and Tom Heneghan)

Reactions: Like Like:
4


----------



## browser

levina said:


> I think you're being too skeptical here.
> 
> We all know IMF and World Bank were set up by US of A and Western European countries in the wake of World War II, and were designed to make US and Europe dominant.
> I'm not saying AIIB would be diff, but such competition is good to reduce American hegemony.




US and Europe (mainly) were dominant much before WW2 (for 300 yrs). Post WW2 Europe accepted and welcomed US dominance so as to retain the west's status.

Asia has no interest in seeing China as its poster-child.

Call it divide and rule or whatever but Asians have not reached the metal maturity that is required to be the dominant race in the world. Individually maybe but not collectively.

May happen down the road but not yet!

Reactions: Like Like:
1


----------



## ahojunk

http://en.people.cn/n/2015/0401/c90883-8872167.html

*Iceland decides to join China-proposed AIIB*
(Xinhua) 08:36, April 01, 2015

REYKJAVIK, March 31-- Iceland decided to become a founding member of the Asian Infrastructure Investment Bank (AIIB) on Tuesday, according to a statement of Iceland's Ministry of Finance and Economic Affairs.

The statement came at the last minute of the deadline for the submission of application to become AIIB's founding members, which is set on Tuesday.

The AIIB is an international financial institution proposed by China, aiming to support infrastructure projects in Asia.

Countries and regions will still be able to join the bank after Tuesday, but only as common members.

The Memorandum of Understanding on Establishing the AIIB specified that its authorized capital is 100 billion U.S. dollars and the initial capital will be around 50 billion dollars. The paid-in ratio will be 20 percent. As agreed, Beijing will host the AIIB's headquarters.

As a member of AIIB, the Iceland's government will further strengthen the good relations between Iceland and Asian countries and support the new shoots of the current stage, according to the statement published on the website of Iceland's Ministry of Finance and Economic Affairs.

The interest of nations to lend money for infrastructure development in Asia is not least the growing internationalization of the economic system in the world, said the statement.

It is expected that the AIIB will be formally established by the end of 2015, after the prospective founding members have signed and ratified the Articles of Agreement



ahojunk said:


> Israel applies to join China-backed AIIB investment bank| Reuters
> 
> *Israel applies to join China-backed AIIB investment bank*
> Markets | Wed Apr 1, 2015 7:45am EDT
> TEL AVIV
> 
> (Reuters) - Prime Minister Benjamin Netanyahu has signed a letter of application for Israel to join the China-led Asian Infrastructure Investment Bank (AIIB), the Israeli Foreign Ministry said on Wednesday.
> 
> More than 40 countries, including Australia, South Korea, Britain, France, Germany and Italy, have said they would sign up to the AIIB, with Japan and the United States the two notable absentees.
> 
> China set a March 31 deadline to become a founding member of the AIIB, an institution that could enhance Beijing's regional and global influence.
> 
> Washington initially tried to dissuade its allies from joining the AIIB, seeing it as a challenge to the World Bank and Asian Development Bank over which the U.S. exerts considerable influence, but changed tack after many signed up for it.
> 
> U.S. Treasury Secretary Jack Lew said on Tuesday that Washington would welcome the AIIB as long as it complements existing institutions and adopts high governance standards.
> 
> In a statement on its website, the Foreign Ministry said Israel's AIIB membership would open up opportunities to integrate Israeli companies into infrastructure projects it financed.
> 
> Israeli companies are increasingly turning to Asia to capture a boom in demand for their technology, as the government urges them to diversify export markets in response to Europe's rising anti-Semitism and potential trade sanctions.
> 
> The new bank plans to invest $100 billion in infrastructure projects in Asian countries. Half of that amount has already been budgeted by China.
> 
> (Reporting by Tova Cohen; Editing by Jeffrey Heller and Tom Heneghan)



This is a brilliant move by Israel. 

Keep a low profile and wait till the last minute so as to not attract attention or controversies.

Israel may be an ally of US, but Israel is also a good friend of China.

Reactions: Like Like:
7


----------



## terranMarine

Japan could have joined had she waited till the last minute, just speculating


----------



## ahojunk

*Portugal is also in*, at the last minute.

Portugal, Iceland apply to AIIB - China.org.cn

*Portugal, Iceland apply to AIIB *
Xinhua, April 1, 2015

China on Wednesday welcomed the application of Portugal to join the Asian Infrastructure Investment Bank (AIIB) as a founding member.

A statement from the Ministry of Finance said Portugal officially sent its written application to China on Tuesday, the deadline for countries to apply to become AIIB founding members.

Should all existing members approve, Portugal will become a founding member on April 15, said the statement.

In a separate statement, the ministry said Iceland also officially sent its written application to China to become an AIIB founding member on Tuesday. Iceland will likewise become a founding member on April 15, subject to the same conditions.

China, as chair of the AIIB founding members' chief negotiation representatives' conference, is currently soliciting opinions from the existing founding members through multilateral procedures, according to the ministry.

Reactions: Like Like:
3


----------



## TaiShang

*China's AIIB Boom Shows US Influence Over Allies Has Limits*
01.04.2015


*The fact that America's longstanding allies rushed to join China's Asian Infrastructure Investment Bank (AIIB), despite Washington's efforts to discourage them, clearly indicates that the US' influence over its allies has limits, Greg Moore noted.*






47 Countries to Join China-Led Development Bank

*A continued Washington policy aimed at isolating Beijing over the AIIB has only served to isolate the United States, noted Greg Moore, an Associate Professor of International Relations at the School of Public Affairs at Zhejiang University (Hangzhou, China), urging Washington to sign on to the AIIB as a founding member.*

The expert emphasized the fact that US’ longstanding allies rushed to join China's AIIB despite open displeasure expressed by Washington. It has clearly demonstrated that the US’ influence over its allies has limits, Mr. Moore remarked.

"It is clear the US policy of attempting to isolate the Chinese in their establishment of the bank, and to encourage US allies not to join, has failed, and it appears certain that the bank will move forward with or without the United States' blessing," the expert noted. However, according to Greg Moore, the US should grab the chance to join China's AIIB itself.

A decision to sign on to the AIIB would allow Washington to cooperate with its allies, shaping the new institution and holding it accountable to "global standards," the expert stressed, adding that the US"would truly look like a stick in the mud by staying out."

Moreover, by ignoring the China-led bank, the US risks damaging relations with Beijing, Greg Moore noted. Washington would obtain better leverage by being "in the bank" than by staying "outside it," he said.

However, citing prominent American experts Jacob Joseph "Jack" Lew and Daniel Drezner, Greg Moore pointed out that the United States should have bolstered reforming of the Bretton Woods monetary management system earlier: in that case maybe there would have been no market for the AIIB, or at least less support for its launching.

China's Asian Infrastructure Investment Bank is an international financial institution. The AIIB initiative had been announced by Chinese President Xi Jinping and Premier Li Keqiang in October 2013, during a series of visits to Southeast Asian countries.

Aimed to promote 'interconnectivity and economic integration in the region' the bank has already brought together around 47 countries.

The UK, Germany, France, Italy, Switzerland, Turkey, South Korea have announced their plans to join the Beijing initiative. Many international experts consider the bank a potential competitor to the International Monetary Fund (IMF) and the World Bank.



Read more: China's AIIB Boom Shows US Influence Over Allies Has Limits / Sputnik International

Reactions: Like Like:
8


----------



## TaiShang

*Japan likely to break ranks with US over AIIB membership in end*
2015-4-1 

As of Tuesday, the application deadline for the Asian Infrastructure Investment Bank (AIIB), 48 countries and regions in five continents have applied for membership, 30 of which have been appointed as prospective founding members. This financial institution seems to have earned a worldwide support even before it is officially established. However, the AIIB's popularity has caused embarrassment to the US and Japan, who have awkwardly discovered that they are the last holdouts among the major economies. 

*If there is any epigram to characterize what Washington and Tokyo have gone through in the past few weeks, it is Murphy's Law - anything that can go wrong, will go wrong. It seems suitable to describe how the US-led front, which aims at a Western unified passive resistance against the AIIB, has been breached from inside, as the UK, US' most loyal ally, decided to fulfill a pragmatic vision in mid-March by joining the AIIB. Sooner than expected, the front collapsed.*

When the deadline approached, Japan also wavered. According to the Financial Times, Japanese Ambassador to China Masato Kitera told the newspaper that Japan would seek membership in the AIIB by June. However, the statement was soon denied by Japanese Foreign Minister Fumio Kishida, and the country's Finance Minister Taro Aso reaffirmed that Japan remains cautious about the prospect of the institution.

*Contradictory statements from high-ranking government officials only demonstrate Japan's ambivalence. When the AIIB was proposed, Tokyo, abreast of Washington, thought the institution would only be a joke if major economies give it the cold shoulder. Japan is concerned that the AIIB, if successful, would pose a great challenge to the Japan-led Asian Development Bank (ADB). *

However, the dramatic changes in the past two weeks are pushing Japan to have second thoughts: On the one hand, it is unwilling to join the rivaling bank as a reinforcement, even at the cost of losing the status as a founding member; On the other hand, it has been aware that since the "foe" cannot be defeated, it might as well join it, or Japan will only risk being marginalized. 

*Sandwiched between strong calls at home for joining the AIIB and the US pressure of not to join, Japan is trying to adjust its strategy. Tokyo has released nebulous signals to show it won't reject being part of the new bank, but it also has to parrot what the US keeps saying. It won't make a decision until the AIIB presents to the world a desirable architecture, especially a transparent decision-making mechanism.*

The total number of founding members will be confirmed on April 15, and a final meeting before the AIIB's establishment will be convened in May, so Japan's attitude may be variable in the next one or two months. Japan will keep an eye on the preparatory work of the AIIB, and meanwhile struggle to keep pace with the US. 

Its strong desire to reinvigorate its economy by transferring infrastructure capacity will make it realize that the AIIB could be a massive catalyst to its endeavor. 

*But it has to share a consistent stance with the US because when the revision of the Guidelines for US-Japan Defense Cooperation arrives, Japan wants to trade its holdout in the AIIB for the explicit inclusion of the Diaoyu Islands in a new treaty.*

However, there has already been bad blood between Tokyo and Washington. Japanese Prime Minister Shinzo Abe's nationalist shift has caused quite a few inconveniences to the US, which is worried about losing its tight grip on Japan. 

UK's "turning back" has set an example to Japan that in the face of real interests, pragmatism will prevail. After weighing and balancing, Japan will be likely to break ranks with the US, especially when it realizes that Asia's massive need for infrastructure and capital is way beyond what the AIIB and ADB can offer even combined. In this sense, the AIIB will be more of a partner to the ADB instead of a competitor.

@Nihonjin1051

Reactions: Positive Rating Positive Rating:
1 | Like Like:
4


----------



## ahojunk

China's new development bank is becoming a massive embarrassment for Obama | Business Insider

*China's new development bank is becoming a massive embarrassment for Obama*
Mike Bird Apr 1, 2015, 9:43 AM

China’s new development bank, which was announced just five months ago, is becoming a massive headache for the US.

Try as it might, the US government can’t convince its allies to stop joining the Asian Infrastructure Investment Bank (AIIB).

The bank will be a bit like the World Bank, providing loans to developing countries in Asia for infrastructure projects.

Unlike the World Bank, China will hold the reins of the AIIB. The US administration is publicly worried that the institution won’t meet high governance standards, but really seems opposed to the move because it signals a growing Chinese influence in the region, and in global politics.

The US has already endured a series of embarrassments over the bank. It might have been expected that some of the European countries with a cooler relationship with the US would join (which they did). India and Singapore were quick to sign up despite having decent relationships with the US.

But a series of much more embarrassing countries have started to join, leaving the US pretty much totally isolated in its position.

The UK came first. Britain is one of America’s closest allies, but the government has been pursuing an unashamedly warmer relationship with China for several years and was one of the first countries to say it wanted a role in the AIIB.

The front page of the Financial Times the next day, in which anonymous White House sources attacked the British government for “constant accommodation” of China, might have been intended as a warning to others, but it doesn’t seem to have worked.

The embarrassment didn’t end there: South Korea has applied, and America’s other major allies in the region, Japan and Australia, have been warming to the idea of joining.

However, Tuesday brought the most embarrassing event of all. Taiwan, which has no formal relationship with mainland China, is a former enemy of China, and basically only survived the 20th century with its independence because of the assistance of the United States, applied to join the AIIB.

The infrastructure bank isn’t going to be a massive boom for the UK economy, or even for nearer nations like Japan, neither is the US going to do anything to retaliate. The point is that they’re willing to take a very modest improvement in economic and political ties with China in exchange for a small deterioration in ties with the United States. Pretty much _every country_ has decided that this is the right move.

The AIIB is a part of the wider “new Silk Road” initiative by China to deepen trade and investment both in the rest of Asia and the wider world. According to Barclays, it could actually be a positive thing for the region’s stability:

We believe through the building of interdependent relationships based on shared economic interests, this New Silk Road plan should deepen political linkages, improve mutual understanding and foster long-term stability in the region. The agreement to set up the AIIB by countries that have territorial disputes with China suggests potentially lower geopolitical risks and lower probability for military conflicts, in our view.

But the move goes beyond that — it’s a major PR push for China, which the American administration has positioned itself on exactly the wrong side of. So far, that strategy is failing spectacularly for the US.

Reactions: Like Like:
7


----------



## Yizhi

*AIIB Wechat version.*

sorry it's all Chinese.

亚投行“朋友圈”扩至52个 “微信群”里真热闹_国际新闻_环球网























LOL .

Reactions: Like Like:
5


----------



## killerbee1

AndrewJin said:


> Check how much voting right India and China have in IMF and World Bank.





sweetgrape said:


> AIIB is for improve the infrastructure of China and other countries, many companies also can benefit from these, promot the economy, of course, also push internationalization of RMB, join it or not, you decision.
> 
> We are not that idiotic think these USA allies that join will become against USA, we just want do business for more money, that's all.
> 
> Thank you for you concern on our pollution, we will, we have encough money for it, not less than indian, of course, we have much spare money for our "fanciful" projects, Chinese also have dream, the difference is that, we are working hard for it, and make it true, not just a dream, so Let's dream together.
> 
> You said you will buy more in IMF and World Bank, of course, you can, we don't stop you, that's your choice, so, back to working, you should earn more money for it, for your this dream.


just ignore that retard.

Reactions: Like Like:
2


----------



## DoTell

TaiShang said:


> *China's AIIB Boom Shows US Influence Over Allies Has Limits*
> 01.04.2015
> 
> 
> *The fact that America's longstanding allies rushed to join China's Asian Infrastructure Investment Bank (AIIB), despite Washington's efforts to discourage them, clearly indicates that the US' influence over its allies has limits, Greg Moore noted.*
> 
> 
> 
> 
> 
> 
> 47 Countries to Join China-Led Development Bank
> 
> *A continued Washington policy aimed at isolating Beijing over the AIIB has only served to isolate the United States, noted Greg Moore, an Associate Professor of International Relations at the School of Public Affairs at Zhejiang University (Hangzhou, China), urging Washington to sign on to the AIIB as a founding member.*
> 
> The expert emphasized the fact that US’ longstanding allies rushed to join China's AIIB despite open displeasure expressed by Washington. It has clearly demonstrated that the US’ influence over its allies has limits, Mr. Moore remarked.
> 
> "It is clear the US policy of attempting to isolate the Chinese in their establishment of the bank, and to encourage US allies not to join, has failed, and it appears certain that the bank will move forward with or without the United States' blessing," the expert noted. However, according to Greg Moore, the US should grab the chance to join China's AIIB itself.
> 
> A decision to sign on to the AIIB would allow Washington to cooperate with its allies, shaping the new institution and holding it accountable to "global standards," the expert stressed, adding that the US"would truly look like a stick in the mud by staying out."
> 
> Moreover, by ignoring the China-led bank, the US risks damaging relations with Beijing, Greg Moore noted. Washington would obtain better leverage by being "in the bank" than by staying "outside it," he said.
> 
> However, citing prominent American experts Jacob Joseph "Jack" Lew and Daniel Drezner, Greg Moore pointed out that the United States should have bolstered reforming of the Bretton Woods monetary management system earlier: in that case maybe there would have been no market for the AIIB, or at least less support for its launching.
> 
> China's Asian Infrastructure Investment Bank is an international financial institution. The AIIB initiative had been announced by Chinese President Xi Jinping and Premier Li Keqiang in October 2013, during a series of visits to Southeast Asian countries.
> 
> Aimed to promote 'interconnectivity and economic integration in the region' the bank has already brought together around 47 countries.
> 
> The UK, Germany, France, Italy, Switzerland, Turkey, South Korea have announced their plans to join the Beijing initiative. Many international experts consider the bank a potential competitor to the International Monetary Fund (IMF) and the World Bank.
> 
> 
> 
> Read more: China's AIIB Boom Shows US Influence Over Allies Has Limits / Sputnik International

Reactions: Like Like:
3


----------



## frequency

AIIB is a smart move to regulate the dollars. Good move. But China still need to learn some respect.


----------



## Aepsilons

One cannot be too quick to dismiss Japan's efforts in considering the AIIB, as it is evident that the Keidenren (Federation of Business Leaders) have shown interest, as with the ADB leaders, in cooperating with the AIIB in past talks. For a long time, observers expected AIIB to be a competitor to the Asian Development Bank (ADB), the more established bank primarily backed by the U.S. and Japan. The banks would not “compete” in economic terms, as neither of them alone or even working together could finance all of Asia’s infrastructure needs, but there is a sense that the AIIB’s lower standards could undercut local goals that ADB’s more stringent conditions promote. However, on Wednesday, ADP President Takehiko Nakao said that ADB is willing to co-finance projects with AIIB if the latter meets the former’s standards for loans.

The official reason China created the AIIB is because of the massive funding gap for infrastructure projects in Asia. ADB estimates that the gap to be $8 trillion between 2010 and 2020. The ADB has a capital base of around $160 billion and the World Bank $223 billion. AIIB’s starting capital of $50 billion will not solve all the problems, but will be a help make a difference. AIIB will exclusively focus on infrastructure, while ADB and World Bank loans have a wider range of projects, such as those that support environmental protection and gender equality.

There is no reason why the AIIB and the ADB as well as the WB cannot work together, afterall, competition drives excellence and qualitative processes.

Even if Japan is not a founding member, it is inevetible that it will be a member. @TaiShang .



Reference:

ADB chief says could undertake co-financing with AIIB| Reuters

The Economist explains: Why China is creating a new "World Bank" for Asia | The Economist

Reactions: Like Like:
1


----------



## ahojunk

*I am surprised that Hungary has applied to join AIIB. *
*Don't think it is a donor country, so is it interested in getting loans?*
*Don't think it qualifies as it is not an Asian country*.  

-------------------------------------
Hungary to join China-backed AIIB investment bank - PM Orban| Reuters

*Hungary to join China-backed AIIB investment bank - PM Orban*
ASTANA, April 1

(Reuters) - Hungary has decided to join the China-led Asian Infrastructure Investment Bank (AIIB), Prime Minister Viktor Orban said on Wednesday.

More than 40 countries, including Australia, South Korea, Britain, France, Germany and Italy, have said they would sign up to the AIIB, with Japan and the United States the two notable absentees.

"I would like to announce here that we will join the Asian international development bank," Orban, referring to the AIIB, told a news briefing during a visit to Kazakhstan.

"We will follow the example of Kazakhstan," he added, giving no further details.

China set a March 31 deadline to become a founding member of the AIIB, an institution that could enhance Beijing's regional and global influence.

Washington initially tried to dissuade its allies from joining the AIIB, seeing it as a challenge to the World Bank and Asian Development Bank over which the U.S. exerts considerable influence, but changed tack after many signed up for it. (Reporting by Raushan Nurshayeva; Additional reporting by Krisztina Than in Budapest; Writing by Dmitry Solovyov; Editing by Alison Williams)

Reactions: Like Like:
2


----------



## mike2000

browser said:


> US and Europe (mainly) were dominant much before WW2 (for 300 yrs). Post WW2 Europe accepted and welcomed US dominance so as to retain the west's status.
> 
> Asia has no interest in seeing China as its poster-child.
> 
> Call it divide and rule or whatever but Asians have not reached the metal maturity that is required to be the dominant race in the world. Individually maybe but not collectively.
> 
> May happen down the road but not yet!



Exactly, couldnt have said it better. I said the same thing a while ago on here, it was on a threat where some Chinese and Indians where trying to play victim of being bullied/look down on/ rcaism by the 'west' against poor 'Asians.lool I said the same thing, that Asians themselves hate/are intolerant/racists/resentful of themselves than anything the west has towards them. In fact we are the most tolerant/opened society in the world(after Africans). Asians have too much ego among themselves and will rather see a western country or the U.S remain the dominat power of their region than their 'fellow Asian brother/neighbour'.loool This is a simple fact. So we dont need to do much to play divide and rule at all. They are doing it VERY WELL by themself. We can just give a little helping hand once in a while......ahahahahahah 

So in short, their BIGGEST ennemy is they themselves.

Reactions: Like Like:
1


----------



## ahojunk

Javier Solana is a Spanish physicist and politician. He was the Secretary General of NATO (1995–1999), he was appointed the European Union's High Representative for Common Foreign and Security Policy, Secretary General of the Council of the European Union and Secretary-General of the Western European Union and held these posts from October 1999 until December 2009.

He has an impressive resume and experience; he knows what he is talking about.

The following article was reported in Arab News, perhaps the Arabs also concur.

---------------------------------------------------
China’s role in global governance | Arab News

*China’s role in global governance*
Javier Solana
Published — Thursday 2 April 2015

It is safe to say that the most consequential geostrategic development of the last two decades has been China’s rise. Yet the West has failed to accord China — not to mention the other major emerging economies — the degree of influence in today’s global governance structures that it merits. This may be about to change.

As it stands, China relies on bilateral arrangements to deepen its involvement in countries across Asia, Africa, and Latin America. Backed by $3.8 trillion in currency reserves, China has provided infrastructure investment in exchange for commodities, thereby becoming the world’s largest provider of financing for developing countries, with the *China Development Bank already offering more loans than the World Bank*.

But, given that these bilateral arrangements are executed by state-owned corporations, they often do not adhere to international best practices. The West has therefore urged China to move toward multilateral processes that meet international standards, while doing more to provide global public goods. US President Barack Obama has gone so far as to call China a “free rider” for its failure to fulfill the responsibilities that many would expect of a global power.

But, if Chinese President Xi Jinping’s recent foreign-policy initiatives are any indication, change may be imminent. Last July, China led the *establishment of the New Development Bank* by the five BRICS countries (Brazil, Russia, India, China, and South Africa) and contributed significantly to its $100 billion endowment.

Likewise, at the latest Asia-Pacific Economic Cooperation meeting in Beijing, China spearheaded the *creation of the Asian Infrastructure Investment Bank (AIIB)*. And it has *established a $40 billion Silk Road Fund*, to support its ambitions to re-create the ancient overland and maritime routes connecting Asia to Europe.

In implementing its so-called “one belt, one road” strategy, China will pursue investments affecting some 60 countries –—including in Central Asia, where its portfolio already contains *projects worth more than $50 billion*. The maritime route will include the Indian Ocean, the South China Sea, and the Mediterranean. Together, they will form not just a road, but a network to facilitate the transfer of goods and ideas across Eurasia.

Europe’s role in this initiative is already emerging with the Greek port of Piraeus, operated partly by the Chinese state-owned naval company COSCO, set to be a stop on the maritime route. The Piraeus port will be connected to the rest of Europe by Chinese-financed infrastructure in the Balkans and Hungary, consolidating China’s position as the EU’s main commercial partner.

The New Silk Road initiative reaffirms China’s desire to establish itself as a Eurasian power. Not only will it connect the dynamic economic hubs of East Asia and Western Europe; it will also open access to Central Asian countries, where Russia’s influence is in decline. It could also help to ease territorial tensions between China and its immediate neighbors.

So far, China’s efforts to increase its influence seem to be working — and not just in the developing world. The United Kingdom recently announced its intention to serve as a founding member of the AIIB, triggering a flood of applications from the likes of Australia, Brazil, France, Germany, Korea, Russia, Turkey, and Spain.

In the US, however, such developments are perceived as geopolitical setbacks. This interpretation is fundamentally flawed. After all, China’s decision to bypass the main international financial institutions, which were created in the aftermath of WWII, has been driven by the refusal of the developed countries that lead them to give it a role commensurate with its economic might.

At the Asian Development Bank, for example, Japan and the US each claim around 13 percent of the votes, compared to less than 6 percent for China, and the president is always Japanese.

The fact is that China’s new initiatives are not revisionist, but reactive. If new powers are not given access to the existing global governance structures, they will create structures of their own. This means that the advanced countries have the power to prevent the international order’s fragmentation into ideological and economic blocs — but only if they can overcome their strategic mistrust of China.

The West must still do more not only to welcome China to the table of global governance, but also to accept and cooperate with the institutions that the Chinese are now creating. Only with an open attitude can western leaders ensure that Chinese-led institutions adopt best practices of multi-lateralism and accountability, and that they adhere to international labor and environmental standards. Now is the ideal time to initiate this process. If the EU, the US, and China take this year to align their intentions, based on their shared interests, they will be prepared to make the most of the G-20 summit in China in 2016.

Reactions: Like Like:
3


----------



## liubang

Israel is silly. Don't even bother to listen to the us over aiib and yet dare to go on to USA congress to interfere with diplomacy with Iran.


----------



## ahojunk

*Ann Pettifor: Failure of IMF key to understanding AIIB’s rise*

*Ann Pettifor of Prime Economics argues China is the latest victim of the Washington consensus *

Economist speaks to World Finance about how historically entrenched bias within the IMF towards Asia could be corrected by the AIIB.

Reactions: Like Like:
2


----------



## Jlaw

Guynextdoor2 said:


> Joke Bank, Joke News. China will burn a lot of money for little return, that is the real news.


i somewhat agree with you. any big scale projects that has indian participation is bound to fail. Ie. BRICS bank anyone?

Reactions: Like Like:
2


----------



## ahojunk

.





*Dr. Malmgren: US needs China-backed AIIB infrastructure investment the most*
*
Former White House official discusses the situation the AIIB poses to the US and Western-backed global financial institutions*

World Finance speaks to Dr Pippa Malmgren, author of, Signals: The breakdown of the social contract and the rise of geopolitics about how China will spread its influence globally by investing in global infrastructure projects.

Reactions: Like Like:
1


----------



## Yizhi

Poland could be in. waiting for more details.

Poland seeks to join Asian Infrastructure Investment Bank| Reuters

(Reuters) - Poland plans to join the Asian Infrastructure Investment Bank (AIIB), Deputy Finance Minister Artur Radziwill said on Thursday.

"Poland sent to the secretary of the newly created Asian Infrastructure Investment Bank the so-called endorsement letter," Radziwill said in a statement.

The AIIB has been seen as a potential rival to the World Bank and Asian Development Bank. (Reporting by Pawel Sobczak; Writing by Agnieszka Barteczko; Editing by Pravin Char)

---------------------------------------------------
ADB plans to co-finance projects with China's lenders: China Daily| Reuters

(Reuters) - The Asian Development Bank (ADB) plans to work with China's lenders to co-finance Asian projects outside China, ADB vice-president Stephen Groff was quoted on Friday as saying.

ADB has signed a memorandum of understanding with the China Development Bank (CDB) and Export-Import Bank of China to "look for opportunities outside China," the China Daily newspaper reported from its interview with Groff.

The ADB had not yet identified appropriate projects for co-investment, Groff noted.

The moves toward cooperation come amid the emergence of new institutions such as the China-led Asian Infrastructure Investment Bank, with initial capital of $50 billion.

The ADB has a capital base of S165 billion, while the China Development Bank's total assets stand at $1.6 trillion.

"It can be $1 from the ADB, $1 from the World Bank, $1 from the AIIB, and (we will) encourage multiple additional dollars from other sources," Groff told the newspaper.

"The ADB has a goal of eliminating poverty in the Asia-Pacific region. We aim to achieve this goal largely through infrastructure," he said.

Last month, ADB President Takehiko Nakao said that it could cooperate with the AIIB through co-financing if the ADB's standards for loans were met.



(Reporting by Brenda Goh; Editing by Eric Meijer)

Reactions: Like Like:
5


----------



## ahojunk

*An Australian viewpoint*.

------------------------------------------.
Why the AIIB should not be governed like the World Bank and IMF

*Why the AIIB should not be governed like the World Bank and IMF*
Mike Callaghan
1 April 2015 5:10PM

What is best practice for the governance of the Chinese-initiated Asian Infrastructure and Investment Bank (AIIB)? Australia says this remains a major concern, even though it has finally agreed to become a prospective founding member of the bank.

Appropriate governance arrangements are important, but as Susan Harris-Rimmer has noted, Australia handled the issue of AIIB membership badly. At first it appeared to be succumbing to American pressure. Then it appeared to be caught out by Britain's decision to join in defiance of the US, quickly followed by other European countries. We signed on just before the end of March deadline.

This is not really the image of an independent country showing international leadership. Australia appeared flat footed and totally reactive.

But Australia was right to emphasise the importance of good governance arrangements. The debate seems to have focused on whether the AIIB should have a full-time, resident board of directors representing shareholders. This is the arrangement in the World Bank, IMF and some other international bodies. Australia appears to be supporting a resident board for the AIIB. 

The president of the Asian Development Bank (ADB), Takehiko Nakao, said the AIIB has to follow 'best practice'. In response, Chinese Finance Minister Lou Jiwei said arrangements in the existing multinational banking institutions 'do not necessarily represent best practice'.

He is right.

In fact, there is a lot of scope to reform the governance of the Bretton Woods institutions. The recent focus on the reform of the IMF and World Bank has been on relatively small changes, and mainly in the distribution of their quotas/shares. While important, the real challenge is to change the way these institutions think, make decisions and relate to their shareholders. This will depend on reforms to internal governance – particularly the role and operation of their boards.

The issue of whether international institutions should have resident or non-resident boards is not new. It was the focus of a major debate in 1944 between the founding fathers of the IMF and World Bank – John Maynard Keynes and Harry Dexter White. 

Keynes wanted a high-level, part-time non-resident board which would focus on the strategic direction of the institutions and not be immersed in day-to-day operations. Keynes also thought if directors divided their time between the headquarters of the institutions (he failed to have them based in London or New York rather than Washington DC) and their capitals, this would help avoid undue influence by the US Government. 

But White prevailed and the World Bank and IMF were established with a full-time resident board that met in continuous session. The US wanted the board to be a political check on every decision taken by management and staff.

The ease of travel and communications was also a factor in this debate. In the mid-1940s, international travel was by sea and took many weeks, while communications were mainly by telegraph. There was no opportunity for capitals to closely monitor what was happening in the international bodies.

Things have changed. Capitals can have almost instant access to every policy paper produced by the institutions and can quickly relay their views, questions or concerns.

Notwithstanding the advance in communications, the governance structure of many subsequent multilateral institutions — such as the Inter-American Development Bank, African Development Bank, ADB and European Bank for Reconstruction and Development — followed the Bretton Woods model. 

But not all international bodies have a resident board. The European Investment Bank (EIB) has a non-resident board that is removed from day-to-day affairs. The EIB also has 'outside 'directors who are appointed as experts rather than a representative of a specific country.

The arrangement selected for the AIIB board structure should depend on what is considered to be the role of the board. If the shareholders want the board to be the political counterweight to management and seek to ensure that every decision is consistent with each shareholder's interest, then a resident board deeply engaged in day-to-day activities may be in order. 

But there are trade-offs and inefficiencies. In this set-up, there is a confusing mix of roles and responsibilities between management and the board. Also, a board deeply engaged in the details does not have the same capacity to consider the strategic issues confronting the institution or monitor its overall performance. Moreover, staff know the best way to neuter directors is to swamp them with paper and details.

Best-practice governance arrangements for the AIIB should involve articulating the roles and objectives of the AIIB, preparing clear operating principles and guidelines to achieve these objectives, outlining the roles and responsibilities of management and staff, and having robust review and accountability mechanisms. 

Such an approach is more in line with a high-level, non-resident board. Capitals will need to take a close interest in the activities of the bank, but with modern technology this no longer requires a full-time resident board.

It is to be hoped that the AIIB does adopt best-practice governance arrangements. Who knows, it may be a catalyst to reform the governance of the other development banks.

Reactions: Like Like:
2


----------



## TaiShang

Nihonjin1051 said:


> The banks would not “compete” in economic terms, as neither of them alone or even working together could finance all of Asia’s infrastructure needs, but there is a sense that the AIIB’s lower standards could undercut local goals that ADB’s more stringent conditions promote.



I do not know how they are concerned about something that they have no idea about? Because the details of the workings of the new institution are not out yet. This is more like US-led scare-mongering, which arrests Japanese politicians' hands for some unknown reason.

Besides, what is lower standards? And what is wrong with lower standards? Are they lower than the United Fruit Company funding and training mercenaries to stage a bloody coup in Guatemala and install a dictator? 

"The hell with your high standards," Japan should tell to the US fascist.



Nihonjin1051 said:


> There is no reason why the AIIB and the ADB as well as the WB cannot work together, afterall, competition drives excellence and qualitative processes.



I agree. I guess, the AIIB is bound to raise the standards and fill up the many loopholes in the existing development regime. AIIB is to be an upgrade to the existing system, if not to slowly replace it.

Reactions: Like Like:
4


----------



## TaiShang

*AIIB aims at shared benefits, not vanity*
Global Times Published: 2015-4-3 0:33:01

The application of over 50 economies for founding member status in the China-initiated Asian Infrastructure Investment Bank (AIIB) has surprised the world. It was also followed by some discouraging voices, some of which even emanate from our domestic field of public opinion. Yet experiencing a little chill wind isn't necessarily a bad thing. It will serve as a warning to remind us not to be conceited in the moment of success. 

However, an explanation is still needed for those absurd arguments, in order to set the record straight.

Some are fundamentally rejecting the establishment of the AIIB, claiming it is a vanity project, which will do more harm than good to China. According to an online article promoting this view, there is too much risk over infrastructure investment in developing countries. China should continue to purchase US treasury bonds with our surplus foreign exchange, while arguing that helping the development of developing countries will be nurturing our future competitors. 

*It seems that the person who wrote this article does know a bit about finance, but is absolutely clueless when it comes to the competition of international multilateral financial institutions or the growing process of major powers. The world economy does not follow standard economic theory, but the rules of the "political economy."*

The world has clearly understood that the AIIB will be an important breakthrough in the international orders. Despite the fact that this was not our intention, it is after all a good start for China.

The AIIB is not just a bank with the mission of external development, but it is an international multilateral financial organization with interests- and risk-sharing mechanisms. If the AIIB really is a bum deal, then why have policy makers from so many countries decided to join?

Chinese often lack confidence and are suspicious toward the outside world. Sometimes we even have no idea how to deal with success. With this many nations joining the AIIB, some people are afraid to be fooled by the more experienced game players. Those fears are normal, since we are indeed short of experience. 

Nevertheless, continuing to learn as well as practicing is vital for being a major power. 

All great powers learned their lessons from failures. And we will pay much more if we only act like a parrot and copy others' experience.

China has set up the China Development Bank and Import-Export Bank to encourage Chinese companies to expand in overseas markets. Supporting domestic enterprises to go global with state funds is a common experience shared by the major powers around the world.

Yet the AIIB is not another Chinese "Development Bank" or "Import-Export Bank." And the increasingly high popularity of the AIIB is not for vanity, but reveals a crucial political significance. More challenges will come to the AIIB in the future. There is no point in being humble about our accomplishment, and we will persevere to our utmost to achieve more success in the future.

Reactions: Like Like:
2


----------



## TaiShang

*Stampede to Join China’s Development Bank Stuns Even Its Founder*
By JANE PERLEZAPRIL 2, 2015

China’s new Asian development bank by this week’s deadline, including last-minute applications by countries hardly considered Beijing’s best friends, astonished even the Chinese.

*Few in Beijing had believed that Taiwan, still considered a breakaway territory by China, would want in. Same for Norway, whose relations with the Chinese have been chilly since its decision five years ago to award the Nobel Peace Prize to a Chinese writer.*


But after the deadline, China announced that it had attracted 46 founding members for its Asian Infrastructure Investment Bank. Among the surprises: While China had expected to be joined by its neighbors, the final tally of countries looking to participate included 14 advanced economies of the Group of 20, many of them, like Brazil,France and Germany, from outside Asia.

“Such wide and warm support was unexpected,” said Jin Canrong, professor of international studies at 

American officials seem to see the new institution as an effort to undercut the World Bank and the Asian Development Bank, international financial institutions dominated by the United States and Japan. Obama administration officials have also expressed concern that the new bank, under China’s leadership, would ignore lending protections created to ensure, for instance, that vulnerable populations are not pushed from their land in the rush for development.

By this week, Japan, China’s chief rival in Asia, was the only major Asian ally still standing with the Obama administration, while usually staunch allies like South Korea and Australia had pledged to join, reversing earlier decisions.

The avalanche of countries wanting to join was set off in recent weeks by Britain, one of the United States’ most trusted friends, which concluded that China was such a large export and investment market that it could not afford to stay on the sidelines of one of that country’s pet projects.

That the United States’ allies in Europe and Asia flouted Washington’s appeals not to join the bank has brought a sense of triumph to Chinese officials and scholars who say that China has now demonstrated it can construct a broad-based institution without the United States in the lead.

“This has shown China that you don’t always have to work your way with the United States, that you can work your way with the region and many others outside the region,” said Wu Xinbo, the director of the American Studies Center at Fudan University in Shanghai.* “As long as people think what you are doing is beneficial and that you are providing for the public good, you don’t need U.S. approval.”*

Washington basically undermined itself by failing to allow a bigger voice for China in the World Bank and the International Monetary Fund, said David Daokui Li, a former adviser to the People’s Bank of China who has a Ph.D. in economics from Harvard.

*“The Americans got nervous, saying to its allies, ‘You guys can’t join, they are not dependable,’ ” Mr. Li said. “But in the end, all of America’s best allies ended up joining. We should be the ones most surprised, not the Americans.”*

Washington had warned some major allies not to join. And President Obama took a hard-line stance against China’s attempts to exert power in the region in his State of the Union address this year, said Bonnie Glaser, senior Asia adviser at the Center for Strategic and International Studies in Washington.

*“He said China should not be able to write the rules — the United States should write the rules,” Ms. Glaser said.

Now that the United States has lost the battle, it has softened its position, saying that it will encourage the World Bank and the Asian Development Bank to cooperate with the new bank, provided projects meet certain standards.*

Treasury Secretary Jacob J. Lew flew to Beijing this week to deliver that message to Prime Minister Li Keqiang. Yet the shift to a more constructive position was viewed as late, and the repercussions of what many considered poor handling by Washington were on display at the Boao Forum for Asia in southern China last weekend, where President Xi Jinping spoke about his views on Asia to more than 1,000 delegates, many from outside China.

“I was struck by how much praise there was for China from elsewhere, and how the United States seemed to be absent,” Ms. Glaser said.

Now, the onus is on the Chinese organizers to build an institution that meets transparency, lending and environmental standards, and that fits the demands of many kinds of members with different agendas.

*The interim head of the bank, Jin Liqun, who has worked at the World Bank and the Asian Development Bank, is “an experienced, savvy guy,” said Nicholas R. Lardy, senior fellow at the Peterson Institute for International Economics in Washington. “He’s hiring an able staff of about 40 people, half from China’s Finance Ministry, half recruited internationally. He says he wants to hire the best staff he can get.”*


The last-minute surge to join the bank was considered a major victory for China in a rare public showdown with the United States, which opposed the bank, as the two powers try to outmaneuver each other for influence in Asia. It was also a recognition of economic reality. China has deep pockets, and the institutions backed by the United States have not met the growing demands for roads, railroads and pipelines in Asia.

Reactions: Like Like:
1


----------



## ahojunk

.
AIIB: Chinese cash versus American might | The Japan Times

*AIIB: Chinese cash versus American might*
Noah Feldman
Bloomberg Apr 2, 2015

CAMBRIDGE, MASSACHUSETTS – If you’d never heard the acronym AIIB until this week, don’t blame yourself.

Strictly speaking, the Asian Infrastructure Investment Bank doesn’t even exist yet. But the Chinese-created alternative to the World Bank and International Monetary Fund is turning out to be extremely important. More than 40 countries have applied to join, almost all of them close U.S. allies — and they’ve applied despite aggressive American efforts to discourage them.

The upstart bank is already emerging as a major foreign policy victory for China, one all the sweeter because it’s a direct diplomatic win over the United States.

It raises a very basic question: What’s going on here? How can nations that depend on the American superpower for their security — including protection against China — so cavalierly ignore U.S. interests in favor of the only global state that can credibly challenge U.S. superpower status?

The answer begins with the Chinese gambit of creating a new international financial institution to fund infrastructure projects in Asia.

China’s most salient explanation for creating the bank is that it doesn’t exercise power in the existing international financial institutions commensurate with its global importance and economic heft.

In 2010, IMF members reached an agreement to give more governance authority to China and Brazil, but Congress has never ratified it. World Bank reform that would enhance China’s governance role is no more apparent.

That explanation functions as a useful proxy for an underlying geo-economic reality.

The architecture of the international economic and financial order was crafted in an era before China’s epochal rise. It reflects an older distribution of economic and financial power, one that heavily favors the U.S. and Western Europe. That, of course, is why the U.S. would like to preserve it.

As China was rising, it found it advantageous to join international economic institutions, especially the World Trade Organization, and to adhere, for the most part, to their rules — even if those rules were stacked against China. Now that China has become more economically powerful, it naturally wants to change the rules of the game.

The founding of the AIIB is important because it represents an overt Chinese effort to gain leverage in the arena of international financial institutions — by creating an alternative institution that it would dominate in much the way the U.S. dominates the World Bank and IMF.

The message from China to the U.S. is clear: either concede to us the place we deserve in existing international institutions, or we will go around you and start our own.

Given that the AIIB is functioning as a direct threat to American hegemony in international financial institutions, it’s no surprise that the U.S. would try to discourage its allies from joining. Yet those efforts have been spectacularly unsuccessful.

It’s not just that staunch U.S. allies such as the United Kingdom and Germany have applied to join, which would be bad enough from the American perspective.

Countries that rely wholly on bilateral security treaties with the U.S. to protect themselves against China have applied, too. These include Australia, South Korea and, perhaps most remarkably, Taiwan, which China considers to be a natural part of its own country. Japan, which is so concerned about the Chinese security threat that it’s considering amending the pacifist Constitution, hasn’t applied yet — but one of its ambassadors recently said that it expects to apply in the future.

In the past, countries whose security depended on a superpower didn’t run headlong into the economic arms of the country they feared. During the Cold War, for example, America’s Western European allies didn’t enjoy close trade ties with the Soviet Union.

Similarly, Eastern Bloc countries didn’t form economic bonds with the U.S. Seen through the Cold War lens, it would be almost impossible to picture the kind of institutional embrace of China that has taken place in connection with the AIIB.

But the new era of Cool War operates on very different rules from the Cold War. The essence of the new Cool War is precisely that countries that are geopolitical opponents are simultaneously economic cooperators.

China and the U.S. are the prime exemplars. One is the rising power and the other is the status quo power, so they are locked in a struggle for geopolitical dominance.

Yet the U.S. is China’s most important export partner, and China owns a higher percentage of U.S. government debt than any entity other than the U.S. government itself.

Other countries, including Asian tigers that fear Chinese security dominance, follow suit. South Korea and Taiwan trade extensively with China, as does Japan, not to mention Australia and the Philippines.

These countries participate in the so-called hub-and-spokes Pacific security system, with the U.S. at the center and bilateral security arrangements reaching out to each. And somehow all this is compatible, notwithstanding the appearance of contradiction.

The flight to join the AIIB over U.S. protests is the latest manifestation of the contradiction of Cool War. U.S. security allies feel comfortable deepening their international economic relationship with China, because the U.S. itself has led the way.

We’re now learning that, under the new rules of the game, there’s not much the U.S. can do to discourage them.

--------
_Noah Feldman, a Bloomberg View columnist, is a professor of constitutional and international law at Harvard University, and the author of six books, most recently “Cool War: The Future of Global Competition.”_

Reactions: Like Like:
6


----------



## SelfServeFive

Abe is too afraid of China to join, actually.

Reactions: Like Like:
1


----------



## Galad

Japan has acted like headless chicken concering AIIB.Which is not surprising -USA has too strong hold over Japan.No point to twist reality-for almost 70 years Japan is USA colony.Other of so-called USA "allies" jumped the ship alreaday and joined AIIB.It is a sign for deep rift inside of so-called international comminity.Japan has a choice-break free and join or keep leaving under occupation.But with or without Japanese participation AIIB is here to stay and grow up.
Despite the talks ultimate goal is to boot out WB/IMF out of East Asia and ideally out of Asia.And there are more than enough countries who will take part and actively help reach the goal.WB/IMF as any other Western build and dominated institutions are not tools for help and development,they are tools for control and destruction-Perkins,Klein,Fitts etc have lots to say how the above mentioned organizations "help" the countries.All the other talks for standards,regulation etc are just USA nonsense and BS talking and shame on those of people who parrot them without thinking and make yourself familiar with the dirty affairs in Western financial system.Everyday there are more than examples about behaiviour of "law-abiding" Wall Street/City.

Reactions: Like Like:
4


----------



## ahojunk

.
Germany Becomes AIIB Prospective Founding Member

Germany Becomes AIIB Prospective Founding Member
2015-04-01 21:11:36 CRIENGLISH.com Web Editor: Li

Germany has been approved as a prospective founding member of the Asian Infrastructure Investment Bank, China's Ministry of Finance announced on Wednesday.

The decision was made by discussions among all existing members including China, India, Malaysia, Singapore, Thailand and Kazakhstan.

The total number of prospective founding members has now increased to 31.

The deadline for applications to join as founding members was March 31.
:
:
The final number of founding members will be confirmed on April 15, after the opinions of all founding members are considered.

Founding members have the right to create governance and operating rules for the bank. Countries that join after the deadline will have voting rights only, with less say in the rule-making process.

The AIIB is expected to be established by the end of this year, with a mission to support infrastructure projects in Asian countries.

Reactions: Like Like:
2


----------



## ahojunk

Italy and France officially become founding AIIB members | CCTV America
Italy and France officially become founding AIIB members






_Photo illustration by China Foto Press_.

April 2, 2015

Italy and France have been approved as prospective founding members of the Asian Infrastructure Investment Bank, China’s Ministry of Finance announced on Thursday.

The decision was made by all existing members after discussion, bringing the total number of founding members to 33, the statement said.

The final number of founding members will be confirmed on April 15, after the opinions of all founding members are considered.

Founding members have the right to create governance and operating rules for the bank. Countries that join after the deadline will have voting rights only, with less say in the rule-making process.

The AIIB is expected to be established by the end of this year, with a mission to support infrastructure projects in Asian counties.

Story complied from Xinhua News

Reactions: Like Like:
1


----------



## TaiShang

*Russia to Play Big Role in China-Led Asian Infrastructure Investment Bank*

11:08 03.04.2015

*Russia expects to play a hefty role in the China-proposed Asian Infrastructure Investment Bank (AIIB) which it hopes will become a major driver of Eurasian integration, Foreign Ministry spokesman Alexander Lukashevich said on Thursday.*

Russia to Become Founding State of China-Led Development Bank in Mid-April

“Being part of the Bank’s operations area, Russia will be encouraging investments into infrastructure projects in Siberia and the Far East. We hope that this bank will become instrumental in promoting transcontinental integration,” Alexander Lukashevich told a news briefing in Moscow.

The Asian Infrastructure Investment Bank (AIIB) is an international financial institution proposed by China in 2014 to provide finance to infrastructure projects in the Asia region.

*The new bank plans to invest $100 billion in infrastructure projects in Asian countries. Half of that amount has already been budgeted by China.*

More than 40 countries, including Australia, South Korea, Britain, France, Germany and Italy, have said they would sign up to the AIIB, with Japan and the United States the two notable absentees.

Russia is set to join the AIIB as a founding member on April 14.




Read more: Russia to Play Big Role in China-Led Asian Infrastructure Investment Bank / Sputnik International

Reactions: Like Like:
4


----------



## Reashot Xigwin

*China is not going to let North Korea into its new Asian development bank*
Shane Ferro Markets Apr. 1, 2015, 1:53 AM




Kim Jong Un riding a ski lift.

China is leading an initiative to start a new development bank, Asian Infrastructure Investment Bank. 

North Korea very much would like to join that development bank.

*China’s response? No way.*

According to EmergingMarkets.org, China rejected North Korea’s proposal to join the development bank after the latter country would not provide sufficient evidence of the state of its finances.

North Korea has never revealed much about its finances to the world, but according to Emerging Markets:

“[North Korea] saw membership of the new China-led development bank as a realistic ambition, sources said, given that China regularly and unilaterally lends money to the isolated DPRK regime in return for uranium and other mineral ores.” 

The development bank, however, will make commercial loans and have many members, including various European countries. 

China is not going to let North Korea into its new Asian development bank - Business Insider

Reactions: Like Like:
2


----------



## ahojunk

*The saga for Taiwan's application to AIIB goes on ... they are yet to agree on a "proper name" for Taiwan to use*.

Cross-strait talks in Xian to discuss AIIB bid name - Taipei Times

Cross-strait talks in Xian to discuss AIIB bid name
Fri, Apr 03, 2015





*Minister of Finance Chang Sheng-ford tells a meeting of the legislature’s Finance Committee yesterday that the name under which Taiwan would take part in the AIIB would be on the agenda of a cross-strait meeting on Friday next week.*

The issue of what name the nation might use to join the China-proposed Asian Infrastructure Investment Bank (AIIB) is to be discussed during the next round of high-level cross-strait talks, Finance Minister Chang Sheng-ford (張盛和) said yesterday.

The name issue is to be raised during an upcoming meeting between Straits Exchange Foundation Chairman Lin Join-sane (林中森) and Association for Relations Across the Taiwan Straits (ARATS) Chairman Chen Deming (陳德銘) on Friday next week in the northwestern Chinese city of Xian, Chang told a meeting of the legislature’s Finance Committee.

On Tuesday, Taiwan submitted a letter of intent to join the bank to the interim Secretariat for Establishing the AIIB via China’s Taiwan Affairs Office (TAO), pledging to invest US$200 million.

The office said the following day that it had received the application and that it welcomes Taiwan’s participation under the “proper name.”

Atop the agenda during the Lin-Chen meeting would also be a new Chinese tax law that has canceled preferential taxation for foreign enterprises, foundation Vice Chairman Chou Jih-shine (周繼祥) said on Wednesday.

China issued Notice No. 62 requiring all local governments to “clean up” their investment tax incentives, as the central government is to set up a united investment administration system.

Although the preferential tax policies are offered to businesses owned or controlled by foreign investors, Taiwanese-invested firms will reportedly bear the brunt of the impact from the new requirements, as they have long enjoyed more incentives than other foreign companies offered by local governments in China, Chou said.

The foundation and ARATS are preparing for the 11th round of cross-strait talks by the two semi-official negotiating bodies and expect the talks to be held before the end of this month, though Lin and Chen might not determine the exact time during next week’s meeting, Chou added.

Lin is to lead a 20-member delegation comprising officials from various government agencies to visit China.

They are scheduled to visit Zhengzhou, the capital city of Henan Province, on Tuesday before heading to Luoyang in the province and then Xian, the capital of Shaanxi Province, on Thursday and Friday next week.

Most members of the delegation are to return home after their trip to Xian, but Lin is to travel to China’s Fujian Province to attend a cross-strait economic and trade forum there before returning Taiwan on April 12, Chou said.

-----------
Name issue for Taiwan's AIIB bid on agenda of cross-strait talks｜WantChinaTimes.com

Name issue for Taiwan's AIIB bid on agenda of cross-strait talks
2015-04-03 11:09





_Chang Sheng-ford speaks at Taiwan's legislature, April 2. (Photo/CNA)_

The issue of what name might be used by Taiwan to join the China-proposed Asian Infrastructure Investment Bank (AIIB) will be discussed during the next round of high-level cross-Taiwan Strait talks, finance minister Chang Sheng-ford said Thursday.

Chang said Taiwan cannot give up any chance it gets to take part in international organizations but will make sure to do so under the principles of equality and dignity.

The name issue will be raised during the upcoming meeting between Lin Join-sane, chair of Taiwan's semi-official Straits Exchange Foundation and his Chinese counterpart, Chen Deming of the Association for Relations Across the Taiwan Straits, slated to take place April 10 in the northwestern Chinese city of Xi'an, according to Chang.

On Tuesday, Taiwan submitted its letter of intent to join the AIIB to the interim Secretariat for Establishing the AIIB via China's Taiwan Affairs Office (TAO), pledging to invest US$200 million in the bank.

The TAO said the following day that it had received Taiwan's application and said it welcomes Taiwan's participation under the "proper name."

When asked what name Taiwan might use to join the AIIB, China's foreign minister Wang Yi said last week that the matter can be handled in accordance with "international practice."

Due to China's opposition, Taiwan often has trouble joining international organizations and when it does, it cannot use its official title, the Republic of China. In most cases, Taiwan uses the name "Chinese Taipei."

Speaking during a weekly cabinet meeting Thursday, Premier Mao Chi-kuo reiterated that the government will not compromise the nation's dignity and will pursue fair treatment as a member of the AIIB.

After Taiwan becomes a member of AIIB, its rights and investment in the bank will enjoy the same protection as all the other member countries, Mao said.

Reactions: Like Like:
1


----------



## TaiShang

More From the "How Clueless Can You Get" Wastebasket File.

Now we have the incorrigible Meixin Pei chiming in. Pei, is the inexorable China bashing ex-pat who is the go to "China Man" for flawed analyzes of contemporary Chinese affairs. How China's initiatives to leverage it's vast forex holdings into developmental funds for emerging markets can be misconstrued as "greed-driven diplomacy" is beyond me. The whole idea behind the AIIB, the NDB (BRICS Bank) and the Silk Road Fund is to foster win-win solutions by which everybody profits. China will be opening new markets, but those new markets will also be able to participate in the global economy to a much greater extent than before and profit as well. Everybody gains, nobody loses.

The IMF, WB, AIB neo-liberal model however is to tie developing economies to US apron-strings and make them subservient to US imperial interests. *It is the US model that has been greed driven.* The emerging Chinese global financial order is based on China's decades old, consistent policy of mutual benefit, mutual respect and non-interference or intervention in other nations internal affairs. That model is now being promoted and funded on a scale previously unobtainable. 

The dysfunctional US has now found itself painted into a corner of its own making. It has the appearance of being a real tiger, stalking its prey and poncing on it when ready, but in reality it is a paper tiger being hemmed in on all sides, finding its options more and more delimited. In fact the world is moving on and eventually it will leave the US in the dust.


How the U.S. should counter China’s economic power play - Fortune

Reactions: Like Like:
3


----------



## ahojunk

*For a change, the following is from a Vietnamese expert POV*.

---------------------
Establishment of AIIB to bring myriad of advantages: expert

*Establishment of AIIB to bring myriad of advantages: expert*
2015-04-04 10:13 Xinhua Editor: Wang Fan

The establishment of the Asian Infrastructure Investment Bank (AIIB) initiated by China is expected to bring many advantages to the region, said a Vietnamese expert.

Tran Viet Thai, deputy director of the Institute for Foreign Policy and Strategic Studies, under Vietnam's Ministry of Foreign Affairs' Diplomatic Academy, made the remark in an interview with Xinhua on Thursday about the launch of the AIIB.

The expert held an optimistic view over the establishment of the AIIB, saying that the bank has more advantages than other financial institutions.

"First of all, the Chinese government has showed a strong determination over the establishment of AIIB. Moreover, AIIB has an enormous financial potential. Initially, the bank can use U.S. dollar as its currency. After becoming operationally stable, the bank's loans may be in Chinese Renminbi. Thirdly, being born after the world's other international financial institutions, the AIIB has a chance to learn from the experience of its forerunners. The last advantage is about huge domestic and overseas human resources joining the Chinese banking system," Thai explained.

Forecast to be put into operation by the end of this year, the AIIB is expected to create more capital mobilization channels for countries in Asia in infrastructure development, especially developing countries in the Southeast, Central and Southern Asian regions, according to the expert.

In the past few days, the upcoming establishment of the AIIB has drawn a great deal of attention from experts and analysts worldwide. The number of countries applying to be founding members of the AIIB rose to around 50 by the March 31 deadline.

The AIIB is an international financial institution proposed by the Chinese government. The purpose of the multilateral development bank is to provide finance to infrastructure projects in the Asia region.

According to Thai, one reason that China decided to establish the AIIB is that the country's foreign exchange reserve is at high level and it is ready for the AIIB's development projects.

Thai quoted statistics as showing that as of the end of 2014, the total foreign exchange reserves of China reached around 4 trillion U.S. dollars.

At the same time, interest rates of the U.S. government bonds kept decreasing, so profit from buying U.S. government bonds is not as much as it used to be.

While looking at the experience of the Asian Development Bank ( ADB), Thai said the appearance of the AIIB lays the foundation to create competitiveness among the existing financial institutions, urging them to boost reforms and increase their operational efficiency.

"The AIIB brings irresistible soft power to many countries," proffered Thai.

The establishment of the AIIB has raised debate all over the world recently. Many think that the launch of the AIIB poses a challenge to the world's existing financial institutions which are under the influence of the United States and Europe.

Some analysts even think that the establishment of the AIIB can contribute to demolish the global economic order that has been maintained for the past 70 years.

Thai expressed his opinion over the debate, saying that, "Nowadays, world order is changing. Emerging countries like China, India, Russia, and South Africa are rising strongly. The G7 has turned into the G20. A new world order is evolving, including new world financial and monetary order. With such change, the countries' reaction is normal."

According to Thai, "Whether the establishment of the AIIB destroys the existing order or becomes a supplement to it, remains a question to be answered. In the near future, after the AIIB comes into operation, the answer to such a question will be found. However, the initial establishment of the AIIB will certainly bring advantages."
.

Reactions: Like Like:
2


----------



## Kiss_of_the_Dragon



Reactions: Like Like:
5


----------



## ahojunk

*Madeleine Albright is spot on with her honest assessment*.

*Now the following is the viewpoint of an investor*.
-----------------------
.
AIIB: The End of American Domination

AIIB: The End of American Domination
Posted By: The Sovereign Investor Posted date: April 01, 2015 06:55:08 PM







*AIIB: The End of American Domination by Jeff D. Opdyke, The Sovereign Investor.*

It goes that a wolf, in one of Aesop’s fables, was passing through a pasture and came upon some shepherds in a hut dining on a haunch of mutton. The wolf approached and said to the shepherds: “What a clamor you would raise if I were to do as you are doing!”

The moral: Men are apt to condemn in others the very things they practice themselves.

Which brings us to the United States government and the hissy fit it’s throwing over the Asian Infrastructure Investment Bank. The affair points, first and foremost, to the hypocrisies endemic in America today. More importantly, it shows that America’s place in the world — and by association, the dollar's place in the world — is diminishing. Those who understand this are in position to prepare for what’s to come.

The infrastructure bank, known as the AIIB, is the brainchild of China. Given China’s wealth, size, new-found global openness and expanding power and influence around the world, the Chinese have begun building doppelgangers of Western institutions that for years have shaped global economic policies. China and Russia, for instance, are behind a push to create a new iteration of the International Monetary Fund that would aid less-developed nations and do so without “the harassment of countries that do not agree with some foreign policy decisions made by the United States and their allies.”

Now comes the AIIB, designed to compete against the World Bank and its Asian offshoot, the Asian Development Bank. The AIIB mission: To finance infrastructure projects throughout Eurasia and Africa.

Like a schoolyard bully no one respects anymore, the U.S. has belittled the AIIB, claiming any Chinese-led lending institution will fail to impose rules and standards that would protect the environment (not that America has such a pristine record of doing so, but that’s neither here nor there).

The U.S. had a chance to join the bank as a founding member. It spurned that opportunity … and then in a fit of ignorance laced with latent jealousy, it told its key allies to spurn the bank, too.

Only … NO ONE LISTENED!

And therein we find a flashing marquee sign pointing to a very painful reality for Americans who blindly buy into the awkward — and fading — notion of American Exceptionalism.

Nothing More Than a Bully

It is no surprise that a rash of more than 20 Central, Southern and Southeast Asian nations have signed on as AIIB members, including America’s regional ally, South Korea. It’s probably no surprise that Russia and Turkey have joined, as have the Saudis and other Middle Eastern nations that are purportedly friendly to America.

But it should come as a shocker that Britain — America’s closest ally — signed on as a founding member of the AIIB … despite Washington’s protestations. It should also cause a mental ripple that Australia, Austria, Brazil, France, Germany, Italy, Luxembourg, Netherlands, New Zealand, Spain and Switzerland have joined. Japan will join, too. Taiwan and Norway are on deck, as well. That leaves the U.S. (and Canada, to a much lesser degree) conspicuously absent.

Why, you have to wonder, is the U.S. playing the role of intransigent narcissist as the rest of world rushes to join a bank that will help lift the living standards of several billion people from Southeastern Asia all the way to West Africa?

Very, very simple. The U.S. dollar.

America fears that the Asian/European economic cooperation necessary inside the AIIB — and the developing-nation acceptance of AIIB investments — will undermine dollar hegemony. For once, the U.S. is right. That is exactly what will happen — and, honestly, is already happening.

America has spent the post-World War II decades imposing its will on the world, in the process pissing off a lot of people, even our friends. Some of that is reflected, even if covertly, in decisions made by Western nations to join the AIIB.

And, yet, anger at America isn’t the only reason, or the best reason, to join the AIIB. Opportunity is — which is exactly what every nation is pursuing when they join the AIIB.

The bank’s footprint covers a (very large) swath of the world where economies and consumers are rapidly emerging. If I’m Britain or Germany — or Australia or Brazil — I absolutely want deep access to those economies, and I don’t care if I disregard the wishes of my friend, because my friend’s wishes run counter to my personal success.

Key Protection

For America, this is the most serious existential threat we face as a nation.

This isn’t just a story about friends snubbing our desires. It’s the story of the knock-on effects here at home of a world in which dollar hegemony recedes into history. Painful repercussions radiate from that.

Because of the size of our national debt — now exceeding $18 trillion — America must constantly rollover boatloads of U.S. Treasury paper, one-third of which we sell globally to fund our profligacy. As demand for the dollar wanes (and the AIIB is just another example of why that will happen), U.S. interest rates must rise in order to attract a similar level of investment from global buyers of our debt.

That, in turn, raises the cost of keeping the lights on in America. It also raises the costs — likely beyond affordability — of keeping U.S. troops stationed in various parts of the world, which ultimately reduces our influence. And it screams through the U.S. economy, leaving in its wake hardship and increasing poverty (and remember: we are a country where fully one-half the population already cannot afford a $500 emergency expense).

The AIIB, and our friends who have joined the bank as founding members, brings into harsh focus the troubling reality that we are now in the midst of an empire’s collapse. It’s hard to see from the inside, and not something most of us want to accept.

But the dots methodically continue to connect. The only protection is having some of your wealth outside the dollar. When the end of the U.S. dollar comes — and it will — the rising value of foreign currencies relative to the dollar will be the only saving grace protecting your lifestyle from the radiating pain.

Until next time, stay Sovereign…

Jeff D. Opdyke

Editor, _Profit Seeker_
.

Reactions: Like Like:
6


----------



## Kiss_of_the_Dragon

*Finance, foreign ministries criticized over AIIB handling*

The Yomiuri Shimbun The government may have been too slow in responding to the envisaged launch of the China-proposed Asian Infrastructure Investment Bank (AIIB), according to some critics.

Some top officials at the Prime Minister’s Office and in the ruling and opposition parties attribute this to overly optimistic views held by the Finance Ministry and the Foreign Ministry about whether other Group of Seven nations would participate in the founding of the AIIB.
Since China proposed establishing the AIIB, the government has distanced itself from moves to be a founding member of the new international financial institution. This has led to a lack of serious discussion within the government and the ruling parties about the AIIB.

Prior to the deadline set at the end of March for entry to the AIIB, four G-7 members — Britain, France, Germany and Italy — and Australia declared plans to join. All this has raised the number of AIIB participants to about 50, making the AIIB an international body Japan cannot afford to ignore.

Prime Minister Shinzo Abe therefore instructed the LDP on Tuesday to hold internal debate on the matter. On Wednesday, the LDP began a joint conference of its party organs, including the Foreign Affairs Division chaired by Kenya Akiba.

In the joint conference, LDP members began debate over whether Japan should join the AIIB. The conference will begin collecting opinions from experts this Tuesday, and the LDP aims to decide on a basic policy about the issue by June, when the AIIB’s charter is to be established.
Some in the LDP have voiced dissatisfaction with the ministries. A senior LDP member said: “The issue is different from what we’ve heard from the government. Was the Foreign Ministry’s awareness low?”

After the AIIB is established, it may be a rival to the Asian Development Bank, which is led jointly by Japan and the United States.

Because many ADB presidents have been chosen from among Finance Ministry bureaucrats, a junior LDP member said the ministry “might have underestimated China’s moves due to excessive fears about a decline in the ADB’s influence.”

An aide to Abe also said: “Both the Finance Ministry and the Foreign Ministry’s explanations were poor. They told us the G-7 countries would not join.”

Opposition parties are increasingly critical of the government’s response to the issue, calling it a diplomatic failure.

Democratic Party of Japan President Katsuya Okada said at a press conference Friday: “It was a big failure that G-7 countries failed to take concerted actions. I regret that Japan’s diplomatic skills are as poor as they have been shown to be on this issue.”
Okada voiced doubts about the reactions of Japan and the United States, and said Japan has the option of participating in the AIIB.

Mito Kakizawa, chairman of the Japan Innovation Party’s policy research council, said at a press conference Friday, “*Did the government pay attention only to the United States, before looking at moves all over the world*?”

He indicated his intention to examine the government’s responsibility for its response, saying, “Discussions and reexaminations are necessary.”
The ADB was established in 1966 at the initiative of Japan and the United States to eliminate poverty in the Asia-Pacific region. Sixty-seven countries and territories, including China and India, belong to the ADB, which mainly extends loans to developing countries.
Japan and the United States are the largest fund contributors to the ADB, and all the presidents of the bank have been Japanese.

Demand for infrastructure investment in Asia from 2010 through 2020 will amount to $8 trillion, according to one estimate. Some experts have said the ADB will not be able to meet this demand alone.

*There are also concerns that if the AIIB functions smoothly, the ADB’s influence in Asia may wane*.

Finance, foreign ministries criticized over AIIB handling - The Japan News

----

Japan can still apply as regular member with observation status instead been a founding member which can enjoy the right to participate and engage on rule setting to the bank...better be late than never...it's not a total lost...歓迎日本 (Kangei Nihon)

Reactions: Like Like:
5


----------



## TaiShang

Commentary by Hellraiser at Chinese Defence Forum:



> Free trade agreements do little since they only involve countries the US has influence. What the US fears about AIIB is that countries not under US influence will be able to use that infrastructure to build an economy. The fact is the more money people have, the more independent a country can be. That's why the US tries to brainwash people into believing that no one can do anything without the US. China is busting that myth and the US has been stymied by how to handle a China being more independent than they wish. The US doesn't want more Chinas out there. You better believe that it's China's to why more countries even US allies are defying the US where before they wouldn't have.

Reactions: Like Like:
6


----------



## ahojunk

.
AIIB to hold first working meeting at end of month｜WantChinaTimes.com

*AIIB to hold first working meeting at end of month*
Huang Hsin and Staff Reporter
2015-04-04 14:27 (GMT+8)





_Jin Liqun speaks at the 2015 China Development Forum in Beijing, March 22. (Photo/Xinhua)_

The China-led Asian Infrastructure Investment Bank (AIIB) will hold its first working meeting in Beijing this month to discuss share distribution and select a bank governor and other officials.

Guangzhou-based 21st Century Business Herald said the first meeting was originally scheduled for March 30, but because more countries than expected applied, it was postponed until the end of April.

According to the latest figures from China's Ministry of Finance, 52 countries, including Taiwan, applied to join the AIIB as founding members before the March 31 deadline.

Among them, the applications of 33 countries have been approved and the remaining applicants will be notified by April 15 if their applications are successful.

Jin Liqun, secretary-general of the Multilateral Secretariat for Establishing the AIIB, said AIIB's authorized capital will be US$50 billion initially and this will eventually increase to US$100 billion.

Asian countries will account for around 75% of the shares, while countries outside of Asia will have around 25%.

Shares will be allocated based on members' gross domestic products, guaranteeing that China will become the bank's largest single shareholder.

Jin said the low ratio of shares for countries outside Asia stems from China's original vision of their roles.

When China first invited developed European countries to join, Jin said, it was not to raise capital but rather to capitalize on their experience in corporate governance and technical support in promoting the development of the AIIB.

As to potential candidates to lead the bank, one Chinese official said a Chinese serving as the AIIB's first governor would have a positive effect, but the mechanism still has to be discussed. There could also be several deputy governor seats.

Some countries have actively lobbied to have one of their nationals be made a deputy governor.

Indonesia, for example, has previously said publicly it should have at least one deputy governor seat because it could be the largest client of the bank given its urgent need for infrastructure development.

Jin Canrong, an expert in international relations, said European countries such as the UK and Germany have not applied to join the bank unconditionally and they are sure to ask for a seat in the management of the bank.

Satisfying the needs of all the members will test China's ability to coordinate.

Reactions: Like Like:
5


----------



## Kiss_of_the_Dragon

*China, Japan And The US -- A Complex Combustible Triangle*
Taro Aso, Japanese Finance Minister and Deputy Prime Minister, announced on 2 April that Japan would not join the Asian Infrastructure Investment Bank (AIIB) out of loyalty to the US. He is the grandson of Shigeru Yoshida. Yoshida, a wily highly capable diplomat, was Japan’s prime minister during the immediate post-World War II years; he was the principal interlocutor with the Supreme Command Allied Pacific, General Douglas MacArthur, and is considered the architect of post-war Japan. After him is named the “Yoshida Doctrine” according to which Japan focuses on economics and to that end forsakes independence in foreign affairs in exchange for being protected militarily by the US. In 1952 the Japan-US security treaty was signed. (See illustration below: Yoshida signing the security treaty.)

Shigeru Yoshida, Taro Aso and indeed all Japan have ample reasons to be highly grateful to the US. Having invaded China, Japan joined Nazi Germany in World War II to fight against the allies, proceeding to bomb Pearl Harbor on 7 December 1941 and expelling all European imperialist powers from their Southeast Asian colonies. Following the two atomic bombs on Hiroshima and Nagasaki in August 1945, Japan surrendered. Four years later, in October 1949, came the “Liberation” in China, as the government of General Chiang Kai-shek was overthrown by the forces of Mao Zedong, Japan was overnight transformed from the US’ erstwhile hated enemy to become its pampered protégé.

American Occupation policy changed 180◦ as war criminals – including the grandfather of Prime Minister Shinzo Abe, Nobusuke Kishi, who also became Prime Minister – were released from prison and brought back into public life. Chiang Kai-shek fled to Taiwan where he set up the government of the Republic of China (ROC) in Taipei in opposition to and conflict with the People’s Republic of China (PRC) in Beijing. Washington recognized the ROC as the legitimate government of China, instructed all its allies to follow suit, and ensured that China’s permanent seat at the UN Security Council should be reserved for the representative from ROC and not PRC!

Whereas some allies broke ranks and established diplomatic relations with Beijing – notably France under de Gaulle in 1964 – Japan meekly followed the US’ lead and recognized Taipei. (Taiwan had been a Japanese colony from 1895 to 1945.) In February 1972, however, Tokyo was shocked to discover that, without any pre-consultation, President Richard Nixon had showed up in Beijing. (It was certainly a surprise, not just to Tokyo; I still remember today exactly where I was and what I was doing when I heard the quite astonishing news.) Having overcome the shock, then Japanese Prime Minister Kakuei Tanaka scurried to Beijing, following which relations between Tokyo and Taipei were officially “normalized”.

Japan was able to thrive under the American nuclear umbrella. From the ruins of defeat it became an economic giant, with a GDP per capita rising from US$3500 in 1950 to US$40,000 in 1983. In the 1980s as Japan’s economy was growing seemingly on anabolic steroids it was predicted by many experts (always beware of experts!) that it would overtake the US within twenty years.

Gratitude can be pretty ephemeral. In the 1980s US-Japan relations became tense arising from “trade friction” (boeki masatsu in Japanese). As Americans were carping on (rather tiresomely and often unjustifiably) about Japan’s trade surplus, Japanese leaders and pundits became convinced they did not really need the US anymore and that Japan was superior. This was epitomized by the 1989 book co-authored by rightist politician, governor of Tokyo, Shintaro Ishihara, and founder of Sony Akio Morita, entitled The Japan that Can Say “No” – “No” to Ieru Nippon). Whereas there was a tradition since the war of anti-Americanism, particularly on the left, known as hanbei (against America), in the 1980s and early 90s there emerged the syndrome known as kenbei (contempt for America), predominantly from the right.

A 1991 article from the Los Angeles Times, “In Japan Scorn for America”, provides choice samplings of comments made by some prominent Japanese. The cineaste Toshiro Ishido said “I have nothing but contempt for America”. Novelist and member of the upper house of the Japanese parliament Akiyuki Nosaka said looking at the United States is like watching “a test run for the decline of the human race.” Fujitsu Chairman Takuma Yamamoto labelled the US a “vegetating nation”. The then director general of the cultural affairs department at Japan’s Ministry of Foreign Affairs Kazuo Ogura, one the US’ harshest critics repeatedly stated: “There is something wrong with American society”. There were of course many kenbei inspired articles in the media and among academia.

With the turn of the century circumstances changed dramatically. In the early 1990s the Japanese economy tanked as it entered its lost decades; the dream of overtaking the US in GDP evaporated. Whereas the Japanese prided themselves (rightly) on their electronic industry, when companies such as Toshiba, Hitachi, NEC, Fujitsu, etc, could rival GE, Westinghouse, Texas Instruments, etc, this was in manufacturing. No Japanese company could rival Microsoft, because it does not exist. While the IT revolution was taking place, the Japanese were out to lunch. Kenbei became unreal.

And then, most important, was the rapid rise of China. Whereas contempt for America was quite recent and ultimately ephemeral, contempt for China was deeply entrenched in the Japanese psyche for over a century; ever since their victory in the 1894-95 Sino-Japanese War. Chinese, in Japanese popular perceptions, were dirty, backward, lazy, etc. I was based in Tokyo in the 1980s and can confirm that the alleged “Chinese challenge” was not taken seriously – a bit, as I would tell my Japanese interlocutors, like the failure of Europeans and Americans to take seriously the “Japanese challenge” in the 1960s and 70s when the label “Made in Japan” was seen to be synonymous with cheap and shoddy. Both reactions reflected myopic racial prejudice.

The rise of China as a great power is one of the most defining transformative realities of the 21st century. The paradigm throughout the second half of the 20th century was that of Japan as the leading nation of Asia, allied to the US. China’s economic and increasingly geopolitical rise is upsetting that pattern. This is uncomfortable for the US; it is extremely uncomfortable for Japan. After all, the US and China were never engaged in war against each other. Japan was at war with both China and the US. Having mistakenly chosen Nazi Germany as a seemingly strong ally to confront the US in the 1930s, after defeat Tokyo chose Washington. This has served Japan extremely well for over half-a-century.

Far from kenbei, current Japanese policy is to side up to the US as much as possible. Thus Tokyo has opted not to join the AIIB as founder member. In the meantime it is actively pursuing negotiations with Washington to conclude the Trans Pacific Partnership (TPP) – which officially includes 12 “partners”, but has basically come down to a US-Japan trade deal – which excludes China. It is presented as part of Washington’s “pivot” to Asia strategy aimed at containing China. (See illustration below)

This Washington-Tokyo two-some to contain China is a highly dangerous potentially combustible policy. While Washington, as I have argued in a previous blog, should be seeking to engage Beijing strategically, constructively and intelligently – whereas its policy to oppose the AIIB and to influence its friends to do like-wise was un-strategic, unconstructive and unintelligent – it should also be encouraging Tokyo to face up to the new realities – and in so doing to face up to the past crimes committed against China.

Unlike Germany and its European neighbors, China is not at peace with its neighbors. Germany’s peace with its neighbors has ensured Western Europe has been at peace for seventy years. For peace to endure in Asia Pacific in the future, Japan must make genuine peace with its neighbors. Just as Shigeru Yoshida recognized after World War II that Japan had to face the new realities and build a solid relationship with its erstwhile great enemy. The new 21st century realities demand that Tokyo build a solid relationship with China. Statesmanship of the Shigeru Yoshida kind is needed. Unfortunately it does not look as if Taro Aso is in a position to fill his grandfather’s shoes.

China, Japan And The US -- A Complex Combustible Triangle - Forbes


----------



## Aepsilons

I believe that Japan will join, irrespective of not being a founding member, the Nation of Japan will most probably join. As much as Japan is cooperative with not only the ADB and the IMF, I believe that joining the AIIB is but a complementary and synergistic process for regional development, something that Japan is committed to.

Looking forward to seeing more progress on this matter.



Kiss_of_the_Dragon said:


> Japan can still apply as regular member with observation status instead been a founding member which can enjoy the right to participate and engage on rule setting to the bank...better be late than never...it's not a total lost...歓迎日本 (Kangei Nihon)

Reactions: Like Like:
1


----------



## Al Bhatti

April 5, 2015

*UAE signs up as founding member of Asian Infrastructure Investment Bank*

The UAE has joined the China-led US$50 billion Asian Infrastructure Investment Bank (AIIB) as a founding member, the government announced on Sunday.

The Abu Dhabi Fund for Development, which has Dh8bn in capital, will represent the UAE government on the AIIB’s board of directors. Founding members have the right to create governance and operational rules for the bank.

The UAE joins fellow AIIB founder members Saudi Arabia, Oman, Qatar, Egypt and Jordan, as well as 29 other countries from Asia and Europe, including the UK, Germany and Russia.

“In the light of joint strategic ties between the UAE and China, and their mutual interests in fuelling growth and infrastructure development in developing countries, both countries have partnered to set up a strong international platform to actively drive development efforts,” said Sultan Al Jaber, UAE Minister of State.

“Being a founding member of AIIB will boost the prime economic role played by the UAE regionally and internationally, by focusing efforts on development projects with great socio-economic benefits.”

The AIIB, which was proposed by the Chinese president Xi Jinping in late 2013, will support infrastructure and development projects across Asia. China is expected to hold around a third of the voting power in the AIIB’s governing council.

Widely regarded as a competitor to the IMF and World Bank, analysts regard the new bank as a Chinese attempt to wrest control of the world’s global economic institutions from the West.

This follows complaints both inside and outside China that the IMF and World Bank are dominated by western countries, who enjoy outsized voting powers in both organisations, as a result of how contributions to the funds are calculated.

The leader of the IMF is traditionally a European, while the World Bank chief has always been an American.

A number of critics, including the Chinese government, have called for the IMF to increase the representation of emerging markets in the institution’s decision-making. Progress has been slow, with the G20 communique from November last year expressing “deep disappointment with the continued delay” to reform of the IMF’s quota system, which determines the voting powers of IMF members. The US Congress has repeatedly refused to sign off on reform to the IMF’s quota system.

The US initially called for its allies not to join the bank, with Jack Lew, the US Treasury secretary, stating that the AIIB would not reach the “highest global standards” for governance or lending. US officials have also expressed worries that the bank forms part of Chinese efforts for the yuan to replace the dollar as the global reserve currency.

Given the long list of US allies who have signed up to the bank, including all of the US-allied governments of the GCC except Bahrain, American worries appear to have been ignored.

“I think we screwed up. We should not have gone about it this way,” said the former US secretary of state Madeleine Albright at a meeting of the Centre for Strategic and International Studies, a Washington-based think-tank.

“Not just the Chinese but others have said that the United States has been too dominant in the World Bank.”

UAE signs up as founding member of Asian Infrastructure Investment Bank

Reactions: Like Like:
5


----------



## ahojunk

*I didn't know that UAE was interested in joining the AIIB. It very cleverly flew under the radar and didn't attract any unwanted attention*.

----------------------------------------
UAE joins AIIB as founding member - Xinhua | English.news.cn

UAE joins AIIB as founding member
English.news.cn 2015-04-06 01:52:54 Editor: Mu Xuequan

DUBAI, April 5 (Xinhua) -- The United Arab Emirates (UAE) said Sunday it has joined the Asia Infrastructure Investment Bank (AIIB) as a founding member, state news agency WAM reported.

Sultan Bin Ahmed Sultan Al-Jaber, UAE Minister of State, said this milestone has been possible due to the wise directives and unlimited support of the UAE's leadership.

"In the light of joint strategic ties between the UAE and China, and infrastructure development in developing countries, both countries have partnered to set up a strong international platform to actively drive development efforts", he said.

"Given Asia has significant infrastructure needs, AIIB will play a pivotal role in promoting Asia's development," Al-Jaber added.

The Abu Dhabi Fund for Development will represent the UAE government on the AIIB's board of directors. Founding members have the right to create governance and operational rules for the bank.

The AIIB, which was initiated by the Chinese President Xi Jinping, aims to accelerate the construction of infrastructure and projects across Asia and in particular along the Belt and Road Initiative.

As of now, there are more than 4,000 Chinese companies registered in Dubai, of which more than 95 percent are small and medium business enterprises.

Last week, Fahad Al-Gergawi, the CEO of Dubai's foreign direct investment office told Xinhua that the UAE had itself "perfectly positioned" to be part of the new Silk Road.





*Abu Dhabi*




*Burj Khalifa, Dubai.*

Reactions: Like Like:
3


----------



## ahojunk

*The following are the views from Australia, taken from this link* - 

Weekend catch-up: Yemen, AIIB, China's regionalism, Great Moderation and more

The AIIB was the other major topic this week, with Susan Harris-Rimmer writing on Australia's decision to join:

_Heaven knows, it is not that existing multilateral development banks have been so perfect in their interventions in our region all these decades. They have improved because they were forced to change by civil society actors. And *the governance of those banks has not represented the reality of shifting power for about a decade*. *The US and Japan have only themselves to blame for that*.


*China should take the safeguards concerns on board, improve them where possible*. In the AIIB, China's global governance reputation will be on the line, and at the same moment China assumes the G20 presidency with the world watching._​
Philippa Brant also wrote on the new bank and China's plans for regional economic integration:

_In a clear case of the US shooting itself in the foot, the AIIB now looks like it is becoming a global institution. With the UK joining up, others did not want to be left out. Russia, Australia, Denmark, Brazil and the Netherlands are the latest to signal intentions to join. In addition to jumping on the bandwagon, there has been recognition that commercial and development cooperation interests will be affected by the AIIB and so it is better to be involved to try and influence the bank's investment decisions from the beginning. 

But *in signing onto the AIIB, countries have implicitly agreed to support China's regional vision*. The challenge will be to *make sure that infrastructure investments really are 'win-win'*._​
Mike Callaghan argued that the best board structure for the AIIB should be non-resident and high-level:

_*Best-practice governance arrangements for the AIIB should involve articulating the roles and objectives of the AIIB, preparing clear operating principles and guidelines to achieve these objectives, outlining the roles and responsibilities of management and staff, and having robust review and accountability mechanisms*. 

Such an approach is more in line with a high-level, *non-resident board*. Capitals will need to take a close interest in the activities of the bank, but with modern technology this no longer requires a full-time resident board._​.


----------



## terranMarine

I didn't know AIIB still accepts new members after the deadline. Guess there might be a seat left for Japan (we shall see)
With the rich UAE joining our initiative bank, who knows we can amass >100 bln

Reactions: Like Like:
3


----------



## Edison Chen

I always feel it laughable when some Vietnamese or Turkish members claim that due to the absence of low cost labor of China, western capital is now switching to better places such as Southeast Asia. The truth is, China used to boost her economy by "low cost labor", now it's through the "capital". Think about it, which one is more profitable or sounds better? To make money by directly selling your physical strength or by your brain and capital? China has passed the primary stage of capital accumulation, now it's our turn to invest in the world, because China hold large amount of foreign reserve, it's an important topic about how to increase our ROA by investment, or it will depreciate. This is all the developed countries have been doing. AIIB and "One belt One road" is the best initiate to increase the ROA or our global investments. Till the end of 2014, China has 6.4 trillion USD foreign assets, 4.6 trillion liabilities. The net asset is 1.8 trillion, looking good, but the deficit of foreign investment return is like more than 30 billion dollars. Because China mainly invests in some low return sovereign debt, but the liability part is direct investment of high return. Hope China can make some changes.

Reactions: Like Like:
11


----------



## Yizhi

*Larry Summers: The Past Month May Go Down as a Turning Point for U.S. Economic Power*
Larry Summers: The Past Month May Go Down as a Turning Point for U.S. Economic Power - Bloomberg Business


Time US leadership woke up to new economic era | Lawrence H. Summers
*Time US leadership woke up to new economic era*
April 5, 2015

This past month may be remembered as the moment the United States lost its role as the underwriter of the global economic system. True, there have been any number of periods of frustration for the US before, and times when American behaviour was hardly multilateralist, such as the 1971 Nixon shock, ending the convertibility of the dollar into gold. But I can think of no event since Bretton Woods comparable to the combination of China’s effort to establish a major new institution and the failure of the US to persuade dozens of its traditional allies, starting with Britain, to stay out of it.

This failure of strategy and tactics was a long time coming, and it should lead to a comprehensive review of the US approach to global economics. With China’s economic size rivalling America’s and emerging markets accounting for at least half of world output, the global economic architecture needs substantial adjustment. Political pressures from all sides in the US have rendered it increasingly dysfunctional.

Largely because of resistance from the right, the US stands alone in the world in failing to approve the International Monetary Fund governance reforms that Washington itself pushed for in 2009. By supplementing IMF resources, this change would have bolstered confidence in the global economy. More important, it would come closer to giving countries such as China and India a share of IMF votes commensurate with their new economic heft.

Meanwhile, pressures from the left have led to pervasive restrictions on infrastructure projects financed through existing development banks, which consequently have receded as funders, even as many developing countries now see infrastructure finance as their principle external funding need.

With US commitments unhonoured and US-backed policies blocking the kinds of finance other countries want to provide or receive through the existing institutions, the way was clear for China to establish the Asian Infrastructure Investment Bank. There is room for argument about the tactical approach that should have been taken once the initiative was put forward. But the larger question now is one of strategy. Here are three precepts that US leaders should keep in mind.

First, American leadership must have a bipartisan foundation at home, be free from gross hypocrisy and be restrained in the pursuit of self-interest. As long as one of our major parties is opposed to essentially all trade agreements, and the other is resistant to funding international organisations, the US will not be in a position to shape the global economic system.

Other countries are legitimately frustrated when US officials ask them to adjust their policies — then insist that American state regulators, independent agencies and far-reaching judicial actions are beyond their control. This is especially true when many foreign businesses assert that US actions raise real rule of law problems.

The legitimacy of US leadership depends on our resisting the temptation to abuse it in pursuit of parochial interest, even when that interest appears compelling. We cannot expect to maintain the dollar’s primary role in the international system if we are too aggressive about limiting its use in pursuit of particular security objectives.

Second, in global as well as domestic politics, the middle class counts the most. It sometimes seems that the prevailing global agenda combines elite concerns about matters such as intellectual property, investment protection and regulatory harmonisation with moral concerns about global poverty and posterity, while offering little to those in the middle. Approaches that do not serve the working class in industrial countries (and rising urban populations in developing ones) are unlikely to work out well in the long run.

Third, we may be headed into a world where capital is abundant and deflationary pressures are substantial. Demand could be in short supply for some time. In no big industrialised country do markets expect real interest rates to be much above zero in 2020 or inflation targets to be achieved. In the future, the priority must be promoting investment, not imposing austerity. The present system places the onus of adjustment on “borrowing” countries. The world now requires a symmetric system, with pressure also placed on “surplus” countries.

These precepts are just a beginning, and many questions remain. There are questions about global public goods, about acting with the speed and clarity that the current era requires, about co-operation between governmental and non-governmental actors, and much more. What is crucial is that the events of the past month will be seen by future historians not as the end of an era, but as a salutary wake up call.
_The writer is Charles W Eliot university professor at Harvard and a former US Treasury secretary_




_*Lawrence H. Summers* is the Charles W. Eliot University Professor and President Emeritus at Harvard University. He served as the 71st Secretary of the Treasury for President Clinton and the Director of the National Economic Council for President Obama._

-----------------------------------------

Reactions: Like Like:
4


----------



## Al Bhatti

Edison Chen said:


> I always feel it laughable when some Vietnamese or Turkish members claim that due to the absence of low cost labor of China, western capital is now switching to better places such as Southeast Asia. The truth is, China used to boost her economy by "low cost labor", now it's through the "capital". Think about it, which one is more profitable or sounds better? To make money by directly selling your physical strength or by your brain and capital? China has passed the primary stage of capital accumulation, now it's our turn to invest in the world, because China hold large amount of foreign reserve, it's an important topic about how to increase our ROA by investment, or it will depreciate. This is all the developed countries have been doing. AIIB and "One belt One road" is the best initiate to increase the ROA or our global investments. Till the end of 2014, China has 6.4 trillion USD foreign assets, 4.6 trillion liabilities. The net asset is 1.8 trillion, looking good, but the deficit of foreign investment return is like more than 30 billion dollars. Because China mainly invests in some low return sovereign debt, but the liability part is direct investment of high return. Hope China can make some changes.



The red part relates to "先富论", right?

Reactions: Like Like:
1


----------



## cirr

Edison Chen said:


> I always feel it laughable when some Vietnamese or Turkish members claim that due to the absence of low cost labor of China, western capital is now switching to better places such as Southeast Asia. The truth is, China used to boost her economy by "low cost labor", now it's through the "capital". Think about it, which one is more profitable or sounds better? To make money by directly selling your physical strength or by your brain and capital? China has passed the primary stage of capital accumulation, now it's our turn to invest in the world, because China hold large amount of foreign reserve, it's an important topic about how to increase our ROA by investment, or it will depreciate. This is all the developed countries have been doing. AIIB and "One belt One road" is the best initiate to increase the ROA or our global investments. Till the end of 2014, China has 6.4 trillion USD foreign assets, 4.6 trillion liabilities. The net asset is 1.8 trillion, looking good, but the deficit of foreign investment return is like more than 30 billion dollars. Because China mainly invests in some low return sovereign debt, but the liability part is direct investment of high return. Hope China can make some changes.



As a matter of fact，these people，especially the Vietnameses，should feel thankful to a China that has advanced to the next level of development，thereby leaving opportunities to those on the lower rungs of the commercial and industrial value chain。

Instead of staying silent as a token of gratitude，these ungrateful people get excited by posting news about low-value added、labour intensive and often polluting manufacturers，foreign or Chinese，exiting China to find a greener patch called under-developed country。

Reactions: Like Like:
3


----------



## Yizhi

*Japan to hold finance dialogue with China, could discuss AIIB*

By Tetsushi Kajimoto

TOKYO (Reuters) - Japan and China plan to hold finance discussions in Beijing in June, which could include topics such as the China-led Asian Infrastructure Investment Bank (AIIB), Finance Minister Taro Aso said on Tuesday.

The talks would mark the first bilateral finance dialogue since Prime Minister Shinzo Abe took office in late 2012 as diplomatic relations have been strained between the two countries over the wartime past and territorial disputes in the East China Sea.

Japan and China have held the finance talks four times since their first meeting in 2006, aimed at deepening financial cooperation. Discussions have included senior officials from the international bureau as well as budget, tax and other bureaus.

No specific agenda has been set for the June meeting, but issues including the AIIB, China's yuan and shadow banking are likely be discussed, Aso told reporters after a cabinet meeting.

"China is becoming a major economic power in Asia. There are various issues to discuss between the two countries, such as the yuan, finance and shadow banking," Aso said.

Asked whether the AIIB would be discussed during the meeting, Aso said: "We've told China the same things (concerns) all along but we did not receive responses from them by the end of March ... We would tell them the same if I discuss the AIIB with (Finance Minister) Lou Jiwei."

More than 40 countries have applied to join the AIIB, with the United States and Japan as notable absentees.

Japan shrugged off the March 31 deadline to become a founding member of the Beijing-based institute, arguing that it would attach greater importance to conditions being met to ensure its credible governance, rather than when to join.

Japan is caught between the misgivings about the AIIB expressed by its biggest ally, the United States, Tokyo's rivalry with Beijing, and the desire of some officials and businesses to partner with the rapid growth of China, the world's second-biggest economy.

The next key juncture is seen at the end of June when participants sign the charter of the AIIB.



(Editing by Chris Gallagher & Kim Coghill)


------------------------------------
Japan could join by June? .

@Nihonjin1051 
bro where have you been? seldom see you around lately.

Reactions: Like Like:
3


----------



## ahojunk

*A post-mortem of Japanese handling of the AIIB affair*.

--------------------

Finance, foreign ministries criticized over AIIB handling - The Japan News

Japan's Finance, foreign ministries criticized over AIIB handling
9:44 pm, April 05, 2015
The Yomiuri Shimbun

The government may have been too slow in responding to the envisaged launch of the China-proposed Asian Infrastructure Investment Bank (AIIB), according to some critics.

Some top officials at the Prime Minister’s Office and in the ruling and opposition parties attribute this to overly optimistic views held by the Finance Ministry and the Foreign Ministry about whether other Group of Seven nations would participate in the founding of the AIIB.

Since China proposed establishing the AIIB, the government has distanced itself from moves to be a founding member of the new international financial institution. This has led to a lack of serious discussion within the government and the ruling parties about the AIIB.

Prior to the deadline set at the end of March for entry to the AIIB, four G-7 members — Britain, France, Germany and Italy — and Australia declared plans to join. All this has raised the number of AIIB participants to about 50, making the AIIB an international body Japan cannot afford to ignore.

Prime Minister Shinzo Abe therefore instructed the LDP on Tuesday to hold internal debate on the matter. On Wednesday, the LDP began a joint conference of its party organs, including the Foreign Affairs Division chaired by Kenya Akiba.

In the joint conference, LDP members began debate over whether Japan should join the AIIB. The conference will begin collecting opinions from experts this Tuesday, and the LDP aims to decide on a basic policy about the issue by June, when the AIIB’s charter is to be established.

Some in the LDP have voiced dissatisfaction with the ministries. A senior LDP member said: “The issue is different from what we’ve heard from the government. Was the Foreign Ministry’s awareness low?”

After the AIIB is established, it may be a rival to the Asian Development Bank, which is led jointly by Japan and the United States.

Because many ADB presidents have been chosen from among Finance Ministry bureaucrats, a junior LDP member said the ministry “might have underestimated China’s moves due to excessive fears about a decline in the ADB’s influence.”

An aide to Abe also said: “Both the Finance Ministry and the Foreign Ministry’s explanations were poor. They told us the G-7 countries would not join.”

Opposition parties are increasingly critical of the government’s response to the issue, calling it a diplomatic failure.

Democratic Party of Japan President Katsuya Okada said at a press conference Friday: “It was a big failure that G-7 countries failed to take concerted actions. I regret that Japan’s diplomatic skills are as poor as they have been shown to be on this issue.”

Okada voiced doubts about the reactions of Japan and the United States, and said Japan has the option of participating in the AIIB.

Mito Kakizawa, chairman of the Japan Innovation Party’s policy research council, said at a press conference Friday, “Did the government pay attention only to the United States, before looking at moves all over the world?”

He indicated his intention to examine the government’s responsibility for its response, saying, “Discussions and reexaminations are necessary.”

The ADB was established in 1966 at the initiative of Japan and the United States to eliminate poverty in the Asia-Pacific region. Sixty-seven countries and territories, including China and India, belong to the ADB, which mainly extends loans to developing countries.

Japan and the United States are the largest fund contributors to the ADB, and all the presidents of the bank have been Japanese.

Demand for infrastructure investment in Asia from 2010 through 2020 will amount to $8 trillion, according to one estimate. Some experts have said the ADB will not be able to meet this demand alone.

There are also concerns that if the AIIB functions smoothly, the ADB’s influence in Asia may wane.
.

Reactions: Like Like:
6


----------



## 大汉奸柳传志

..Iran got in as founding member (that was fast)

Reactions: Like Like:
4


----------



## Edison Chen

Al Bhatti said:


> The red part relates to "先富论", right?



 I guess so! You know 先富论？It exactly means to encourage some specific groups in some places to become rich first and let them help the others.



cirr said:


> As a matter of fact，these people，especially the Vietnameses，should feel thankful to a China that has advanced to the next level of development，thereby leaving opportunities to those on the lower rungs of the commercial and industrial value chain。
> 
> Instead of staying silent as a token of gratitude，these ungrateful people get excited by posting news about low-value added、labour intensive and often polluting manufacturers，foreign or Chinese，exiting China to find a greener patch called under-developed country。



Too true. I feel sad they never understand such path is a necessity for any country, now we are almost on different levels, let them be.

Reactions: Like Like:
3


----------



## ahojunk

*A post-mortem of the AIIB affair, this time from America*.

-----------
Articles: The White House Loses Face

The White House Loses Face





April 4, 2015
By Michael Curtis, American Thinker

The Obama administration has shown a lack of historic understanding concerning its policy towards China’s proposal to establish the Asian Infrastructure Investment Bank (AIIB). The White House must understand that its policy lacks judgment when former Secretary of State Madeleine Albright, in unladylike language, refers to it as “we screwed it up.” The kindest remark she might have made is that the White House misread the situation.

The president now faces a self-inflicted predicament of possible strained relations with an increasing number of major countries, allies that have defied American pressure and decided to join the AIIB.

The planned establishment of the AIIB is a new factor in the challenge by China and other powers to American leadership in global financial institutions, and what some consider excessive dominance as well as for leadership of the world economy.

The AIIB is an obvious rival to the World Bank that the IMF created, largely by the decisions of John Maynard Keynes and Harry Dexter White, at the Bretton Woods Conference in 1944 to oversee development of the world economy and to establish management of exchange rates. The two institutions did contribute significantly to the growth of the world economy after World War II, and clearly the U.S. has been the dominant factor in this. 

Noticeably, the U.S. has 17% of voting share at IMF, compared with China’s 4%. China has long wanted a larger participation in both. Both developed and developing countries in the world have objected to American dominance of both the IMF and World Bank. The president of the World Bank by tradition is American; the head of the IMF is French. Equally, the Asia Development Bank, a regional bank with 67 member countries started in 1966 to provide loans and grants to help developing member countries in Asia evolve into modern economies, has a Japanese citizen as president. Both the World Bank and the IMF have declined in significance in recent years for financial and technical reasons.

The objective of AIIB is to provide funding for development of roads, ports, water, energy, sanitation, and telecommunication projects. It is one of a number of institutions started or proposed by China to create a financial center to compete with the Western-led institutions. The bank, with an initial capitalization of $50 billion, and anticipated $4 trillion in reserves, will be run by a multinational secretariat and have a recognized management structure. China is providing half of the initial financing.

The Obama administration lobbied hard on the issue in the attempt to prevent countries from joining the bank that would be an obvious rival to U.S.-dominated international institutions, and perhaps be an expression of Chinese economic, political, and military interests. In its pressure, the U.S. expressed concern that the bank would not meet the high standards of the World Bank, especially the standards of transparency. 

It came as a surprise to the White House that a number of important countries have declared they will join the nascent AIIB, the details of which are still being formulated. For the American administration it was particularly troubling that George Osborne, British Chancellor of the Exchequer announced, with the approval of Prime Minister David Cameron, on March 12 that the UK would join and become a founding member of the Bank. Osborne had made no secret of his intention to increase in London overseas business transacted in Chinese currency. 

At its meeting in January 2015 the Group of Seven, the world’s leading economies, agreed not join AIIB unless they could reach a consensus, but this could not be done. The U.S. did not provide leadership on the issue. *Britain was the first G7 country to join the Bank, thus giving it greater credibility*. 

By now, more than 50 countries have announced their intention to join the AIIB. Among them are New Zealand, Luxembourg, Switzerland, France, Germany, Italy, Austria, and Israel, as well as Asian and Middle Eastern countries. They believe that *since the bank is a multilateral investment institution it is not likely to become an instrument of Chinese foreign policy*. 

All the countries that intend to join the bank have been eager to extend their business and financial arrangements with China. In 2013 the UK welcomed China in every part of the UK economy, including the financial district and the nuclear power sector. 

The Chinese economy, measured in purchasing power, is now larger than that of the U.S., and will probably, because of its size, population, expanding consumer market, fast economic development, large amount of venture capital finance, and foreign-exchange reserves, soon be greater than the American in absolute terms. It can be expected to play a larger role in the world economy. Though China is less powerful militarily than the U.S., it is increasing its military budget, and may be considered a challenge to U.S. prominence in the Asian and Pacific region. 

It is evident that China is planning to exercise more power in the Asian region. It has promoted an Asia-Pacific free trade deal, different from the one sponsored by the U.S. If not a vehicle of its foreign policy, the AIIB will allow China more political and economic influence in the world, not only Asia. The Chinese leader, Xi Jinping, has already initiated an ambitious economic policy to expand Chinese influence. He unveiled plans for two large multibillion trade and infrastructure projects connecting China and Europe: the New Silk Road Economic Belt, and the New Maritime Route. Already, China had set up a security group of nations, the Shanghai Cooperation Council, as the center of a group of eastern and central European countries to provide investment to the 16 member countries. 

While China may not soon replace the Unites States as the foremost player in the global economy, the White House should have taken more care in its consideration of the proposal for the new bank. As in the case of relations with Israel, the White House has displaced its peevishness towards traditional allies. In doing so it has lost both face and clout..

Reactions: Like Like:
5


----------



## Al Bhatti

Edison Chen said:


> I guess so! You know 先富论？It exactly means to encourage some specific groups in some places to become rich first and let them help the others.



It was mentioned in a lesson in a Chinese language economics and trade college text book i am reading. The lesson was about the five year plans.

Reactions: Like Like:
1


----------



## Edison Chen

Al Bhatti said:


> It was mentioned in a lesson in a Chinese language economics and trade college text book i am reading. The lesson was about the five year plans.



Nice....Man, are you a Pakistani college student in China? It seems you have gained very well understanding of Chinese.

Reactions: Like Like:
1


----------



## Al Bhatti

Edison Chen said:


> Nice....Man, are you a Pakistani college student in China? It seems you have gained very well understanding of Chinese.



No, i am not a student nor am i in China. I am trying to study myself through text books.

Reactions: Like Like:
2


----------



## Edison Chen

Al Bhatti said:


> No, i am not a student nor am i in China. I am trying to study myself through text books.



It could be hard if you're trying to master that language but not in that environment. But you know quite a lot Chinese, 加油！

Reactions: Like Like:
1


----------



## ahojunk

http://www.ft.com/cms/s/0/1c73b174-d9df-11e4-9b1c-00144feab7de.html

*China cannot believe its luck over new investment bank*
Tom Mitchell in Beijing





_A man carries a package as he walks along a street at in Beijing's central business district. China scored a diplomatic coup by enticing almost 50 countries including key US allies to join its new development bank_

The Chinese government can scarcely believe its own luck. Heaping Asian insult upon Capitol Hill injury, last week Benjamin Netanyahu committed Israel to join Beijing’s new Asian Infrastructure Investment Bank.

While there is no love lost between the Israeli prime minister and US President Barack Obama, who was embarrassed by Mr Netanyahu’s congressional address on March 3, Beijing could not have expected to attract such a longstanding American ally to the AIIB when it first conceived of the institution at least two years ago.

What began as a seemingly quixotic defection to the AIIB by the UK — the first US partner to turn a deaf ear to American protestations about the bank — has turned into an unalloyed strategic triumph for Beijing.

More than 50 countries, including traditional US military allies such as Australia and South Korea, have signed up. Only Japan has — so far — stood by Washington’s side, echoing the Obama administration’s concerns about governance and transparency standards at the new bank.

The Chinese government’s success with the AIIB is not just luck, however, it is the fruit of a very smart policy adjustment.

From its declaration of an air defence identification zone over the East China Sea in November 2013 to its deployment of an oil rig near Vietnam last May, Beijing’s assertion of “hard power” appeared to be putting it on a collision course with almost all of its regional neighbours.

The nadir came on May 26, when a small Vietnamese fishing vessel harassing the oil rig was run down and sunk by a much larger Chinese trawler. The incident, which arguably amounted to attempted homicide on the high seas, has since been immortalised on youtube.

In private, Chinese foreign policy experts acknowledge that the violent protests that erupted across Vietnam after the over-reach in the South China Sea provided a powerful wake-up call. With the annual Asia Pacific Economic Co-operation summit scheduled to be held in Beijing just six months later, the Chinese government decided to ditch hard-power projection for soft-power persuasion.

At APEC, the Chinese government backed down from a looming confrontation with Japan over the contested Senkaku or Diaoyu islands; signed unexpected environmental and military accords with the US; and unveiled a $40bn fund to support an infrastructure-focused “New Silk Road” linking Asia to Europe. The AIIB will contribute at least another $100bn to this initiative in which Beijing intends to assume the role once held by Venetian bankers along the old Silk Road.

China’s strategic volte face has benefited from an almost comic series of mis-steps by its great geopolitical rival. US congressional reluctance to sign off on reforms giving China and other developing nations a greater role at the World Bank and International Monetary Fund has been compounded by the Obama administration’s inability to, as they like to say on Capitol Hill, “count the votes” on the AIIB.

It is one thing to oppose an institution behind-the-scenes and fail quietly; it is quite another to do so brazenly. Worse for Mr Obama, his standing in the Asia-Pacific region will deteriorate even further if he cannot secure congressional “fast-track” authority to seal the deal on the Trans-Pacific Partnership trade talks, which pointedly exclude China.

Should TPP fail, then the economic component of the US president’s “pivot” towards Asia will — to Beijing’s surprise and delight — have completely unravelled.

Chinese President Xi Jinping cannot, however, celebrate just yet. While 2015 may have started out as an annus mirabilis for Beijing, an evolving diplomatic mess in Sri Lanka is a reminder of how quickly geostrategic momentum can change.

China’s crisis in Colombo is largely of its own making, having bankrolled some $5bn-worth of infrastructure projects on the assumption that Mr Xi’s erstwhile ally there, Mahinda Rajapaksa, had as firm a grip on power as the Chinese Communist party does.

Mr Rajapaksa’s shock election defeat in January has exposed China’s Sri Lankan infrastructure investments — and related lending packages — to unwelcome scrutiny from the new government in Colombo. If proven, the accusations there of a lack of transparency and worse will perfectly illustrate Washington and Tokyo’s worst fears about potential governance lapses at the AIIB.

Beijing’s challenge now is to ensure that the mistakes in Sri Lanka are not repeated under the auspices of its popular new bank.
.

Reactions: Like Like:
2


----------



## cnleio

Until to 2015.04.07, there'r 55x foreign nations apply for AIIB.

Reactions: Like Like:
4


----------



## Dakila

A little competition might be good for the World Bank and Asian Development Bank.

Reactions: Like Like:
2


----------



## Jlaw

sweetgrape said:


> you indian lack of toilet, so you don't shit?



This is fxxking hilarious


----------



## TaiShang

On Monday, Larry Summers' published an op-ed in The Washington Post, which opened with the former Treasury Secretary and Harvard president writing, "This past month may be remembered as the moment the United States lost its role as the underwriter of the global economic system."

"The point of Summers' commentary is clear and significant: The global economic tide has started receding from the US and moving toward China."

*Larry Summers has a major warning for the US economy, and everyone should be paying attention*

This is a big deal.

On Monday, we published Larry Summers' latest op-ed in The Washington Post, which opened with the former Treasury Secretary and Harvard president writing,* "This past month may be remembered as the moment the United States lost its role as the underwriter of the global economic system."*

What Summers is referring to is the creation of the Asian Infrastructure Investment Bank, a new banking consortium led by China that will back investment in Asian and emerging-market economies. This bank serves as a direct challenge to the World Bank and the IMF, the traditional sources of international funding, and organizations in which US economic interests have a strong voice. 

The AIIB's founding members include Russia, Brazil, and India, as well as major European economies like France, Germany, and the UK. 

Last week, Business Insider's Mike Bird outlined how the formation of the AIIB has been an embarrassment for the US government all along.

Here's the key point from Bird (emphasis ours):

"The infrastructure bank isn't going to be a massive boom for the UK economy, or even for nearer nations like Japan, and the US will not retaliate. *The point is that the UK is willing to take a very modest improvement in economic and political ties with China in exchange for a small deterioration in ties with the US. Pretty much every country has decided that this is the right move."*

And so while the US has been the dominant global economic power of the past 50 years, the point is that now countries all across the globe are seemingly falling over themselves to be more closely aligned with China.

In his op-ed on Monday, Summers continues (emphasis ours):

I can think of no event since Bretton Woods comparable to the combination of China's effort to establish a major new institution and the failure of the United States to persuade dozens of its traditional allies, starting with Britain, to stay out.

*This failure of strategy and tactics was a long time coming, and it should lead to a comprehensive review of the U.S. approach to global economics.* With China's economic size rivaling that of the United States and emerging markets accounting for at least half of world output, the global economic architecture needs substantial adjustment. Political pressures from all sides in the United States have rendered the architecture increasingly dysfunctional.

In his post, Summers has some policy prescriptions for US lawmakers, among which is a suggestion that US leaders have a "bipartisan foundation," which is the kind of thing you can write when you're not an elected official but which few people in and around US politics likely believe is anywhere near possible.

But the point of Summers' commentary is clear and significant: The global economic tide has started receding from the US and moving toward China.

Reactions: Like Like:
4


----------



## Jlaw

ahojunk said:


> *I am surprised that Hungary has applied to join AIIB. *
> *Don't think it is a donor country, so is it interested in getting loans?*
> *Don't think it qualifies as it is not an Asian country*.
> 
> -------------------------------------
> Hungary to join China-backed AIIB investment bank - PM Orban| Reuters
> 
> *Hungary to join China-backed AIIB investment bank - PM Orban*
> ASTANA, April 1
> 
> (Reuters) - Hungary has decided to join the China-led Asian Infrastructure Investment Bank (AIIB), Prime Minister Viktor Orban said on Wednesday.
> 
> More than 40 countries, including Australia, South Korea, Britain, France, Germany and Italy, have said they would sign up to the AIIB, with Japan and the United States the two notable absentees.
> 
> "I would like to announce here that we will join the Asian international development bank," Orban, referring to the AIIB, told a news briefing during a visit to Kazakhstan.
> 
> "We will follow the example of Kazakhstan," he added, giving no further details.
> 
> China set a March 31 deadline to become a founding member of the AIIB, an institution that could enhance Beijing's regional and global influence.
> 
> Washington initially tried to dissuade its allies from joining the AIIB, seeing it as a challenge to the World Bank and Asian Development Bank over which the U.S. exerts considerable influence, but changed tack after many signed up for it. (Reporting by Raushan Nurshayeva; Additional reporting by Krisztina Than in Budapest; Writing by Dmitry Solovyov; Editing by Alison Williams)



Not surprised. Hungary had a bad experience wih Jewish controlled IMF bank.

Hungary asks IMF to leave the country after early payback — RT Business
*Hungary asks IMF to leave the country after early payback*
*Breaking news

Hungary asks IMF to leave the country after early payback
Published time: July 16, 2013 14:37
Get short URL




AFP Photo / Yuri Gripas

2.3K139
Tags
*
Austerity, Banking, Crisis, Economy, Europe, Finance
Hungary has announced plans to repay its bailout loan from the International Monetary Fund early and asked the organization to leave the country.

The head of Hungary’s Central Bank Gyorgy Matolcsy wrote a letter to IMF Managing Director Christine Lagarde on Monday asking for it to close its representative office in Budapest as it was _"not necessary to maintain"_ it any longer.

The IMF says it is ready to agree since the current IMF representative in Hungary is due to leave soon anyway.

Hungary is heading for a general election next year, and many see the move as an attempt to show the government’s ability to avoid austerity programs and to act without outside help.

In 2008, amid the global crisis Hungary was saved from bankruptcy with a $26 billion rescue package from the IMF and the EU. Two years later Prime Minister Viktor Orban's government decided not to renew the deal to avoid closer IMF scrutiny of its economic policies.

However, in 2011, Economy Minister Matolcsy turned to IMF for a precautionary deal but didn’t get any reply.

In February 2013 Prime Minister Orban issued the country’s first international bond since 2011, thus demonstrating the country could go it alone by borrowing on global financial markets.

Relations between Orban’s government and the IMF have always been strained. In 2010, when Orban came to power, his government issued new laws, which were criticized as curtailing democracy, the justice system and freedom of speech.

The European Parliament responded with a resolution calling on Hungary to repeal the "anti-democratic changes."

Hungary still owes $2.125 billion to the IMF from its original credit line of $25.5 billion.




Edison Chen said:


> I always feel it laughable when some Vietnamese or Turkish members claim that due to the absence of low cost labor of China, western capital is now switching to better places such as Southeast Asia. The truth is, China used to boost her economy by "low cost labor", now it's through the "capital". Think about it, which one is more profitable or sounds better? To make money by directly selling your physical strength or by your brain and capital? China has passed the primary stage of capital accumulation, now it's our turn to invest in the world, because China hold large amount of foreign reserve, it's an important topic about how to increase our ROA by investment, or it will depreciate. This is all the developed countries have been doing. AIIB and "One belt One road" is the best initiate to increase the ROA or our global investments. Till the end of 2014, China has 6.4 trillion USD foreign assets, 4.6 trillion liabilities. The net asset is 1.8 trillion, looking good, but the deficit of foreign investment return is like more than 30 billion dollars. Because China mainly invests in some low return sovereign debt, but the liability part is direct investment of high return. Hope China can make some changes.


 no one takes vietnamese people seriously.

Reactions: Like Like:
3


----------



## ahojunk

*The news for AIIB keeps on getting better. Just hope the World Bank is sincere, which I doubt.*

---------------------
http://www.ft.com/cms/s/0/c58cbd66-dcee-11e4-975c-00144feab7de.html

*World Bank chief endorses rival AIIB as ‘major new player’*
April 7, 2015 2:30 pm






_Jim Yong Kim has given his strongest endorsement yet of the AIIB_

The World Bank’s US-appointed president has vowed to find “innovative” ways to work with a new Chinese-led Asian infrastructure bank, welcoming it as a “major new player” in the world of development.

The overture by Jim Yong Kim comes ahead of next week’s World Bank and International Monetary Fund spring meetings in Washington. It also marks a split with the administration of US President Barack Obama which nominated the medical doctor and former university president to head the World Bank in 2012.

With geopolitical imperatives and its competition with China for influence in the Pacific Rim firmly in mind the US unsuccessfully lobbied allies such as Australia, Japan and the UK not to join the nascent Asian Infrastructure Investment Bank.

Behind that push by Washington has also been a desire to protect the Bretton Woods institutions over which the US and Europe now wield veto power. So the move by one of those institutions’ heads to break from the US and set out a vision for co-operation with the new institution marks another blow to Washington’s diplomatic efforts.

Dr Kim has said he was willing to work with the AIIB before. But in a speech on Tuesday in Washington he went further, offering his strongest endorsement yet of the AIIB and putting it high on the agenda for next week’s meetings.

Calling the AIIB and its fellow start-up, the Brics-backed New Development Bank, “potentially strong allies” for the World Bank that could become “great new forces” to help the world’s poor, he pledged to quickly find ways to collaborate with the new institutions.

“If the world’s multilateral banks, including the new ones, can form alliances, work together, and support development . . . we all benefit — especially the poor and most vulnerable,” he said. “I will do everything in my power to find innovative ways to work with these banks.”

One of those potentially innovative ways would be encouraging the AIIB to help finance projects run by the World Bank and subject to its environmental, labour and social standards, Dr Kim said ahead of the speech.

Such a move would help address one of the biggest fears expressed by the US as well as environmental and other advocacy groups over the AIIB. Washington argues that with big questions still lingering over its governance structures there is a risk that the AIIB’s eventual forays into developing countries will look much like China’s sometimes destructive and protest-inducing pushes into Africa and developing countries in Asia such as Myanmar in the recent past.

Dr Kim is due to meet Lou Jiwei, the Chinese finance minister, during next week’s meetings in Washington and he said he was looking forward to a “long session” with Mr Lou to discuss the future of the AIIB and its collaboration with the World Bank.

To generate economic growth and meet the needs of rising populations the developing world needs an additional $1tn-1.5tn each year to be invested in bridges, roads, railways and other infrastructure, Dr Kim said.

The world’s existing development banks combined lacked the resources to meet those needs, he said. To succeed, he said, more funding for development projects needed to come from the private sector and new entrants such as the AIIB, which so far has a capital base of less than $100bn.

“These goals are ambitious — there’s more than enough work to go around,” Dr Kim said. “We’re no longer talking about billions of dollars for economic development. We’re talking about trillions of dollars — which means that we must be creative and use all of our resources.”
.

Reactions: Like Like:
3


----------



## Jlaw

ahojunk said:


> *The news for AIIB keeps on getting better. Just hope the World Bank is sincere, which I doubt.*
> 
> ---------------------
> http://www.ft.com/cms/s/0/c58cbd66-dcee-11e4-975c-00144feab7de.html
> 
> *World Bank chief endorses rival AIIB as ‘major new player’*
> April 7, 2015 2:30 pm
> 
> 
> 
> 
> 
> _Jim Yong Kim has given his strongest endorsement yet of the AIIB_
> 
> The World Bank’s US-appointed president has vowed to find “innovative” ways to work with a new Chinese-led Asian infrastructure bank, welcoming it as a “major new player” in the world of development.
> 
> The overture by Jim Yong Kim comes ahead of next week’s World Bank and International Monetary Fund spring meetings in Washington. It also marks a split with the administration of US President Barack Obama which nominated the medical doctor and former university president to head the World Bank in 2012.
> 
> With geopolitical imperatives and its competition with China for influence in the Pacific Rim firmly in mind the US unsuccessfully lobbied allies such as Australia, Japan and the UK not to join the nascent Asian Infrastructure Investment Bank.
> 
> Behind that push by Washington has also been a desire to protect the Bretton Woods institutions over which the US and Europe now wield veto power. So the move by one of those institutions’ heads to break from the US and set out a vision for co-operation with the new institution marks another blow to Washington’s diplomatic efforts.
> 
> Dr Kim has said he was willing to work with the AIIB before. But in a speech on Tuesday in Washington he went further, offering his strongest endorsement yet of the AIIB and putting it high on the agenda for next week’s meetings.
> 
> Calling the AIIB and its fellow start-up, the Brics-backed New Development Bank, “potentially strong allies” for the World Bank that could become “great new forces” to help the world’s poor, he pledged to quickly find ways to collaborate with the new institutions.
> 
> “If the world’s multilateral banks, including the new ones, can form alliances, work together, and support development . . . we all benefit — especially the poor and most vulnerable,” he said. “I will do everything in my power to find innovative ways to work with these banks.”
> 
> One of those potentially innovative ways would be encouraging the AIIB to help finance projects run by the World Bank and subject to its environmental, labour and social standards, Dr Kim said ahead of the speech.
> 
> Such a move would help address one of the biggest fears expressed by the US as well as environmental and other advocacy groups over the AIIB. Washington argues that with big questions still lingering over its governance structures there is a risk that the AIIB’s eventual forays into developing countries will look much like China’s sometimes destructive and protest-inducing pushes into Africa and developing countries in Asia such as Myanmar in the recent past.
> 
> Dr Kim is due to meet Lou Jiwei, the Chinese finance minister, during next week’s meetings in Washington and he said he was looking forward to a “long session” with Mr Lou to discuss the future of the AIIB and its collaboration with the World Bank.
> 
> To generate economic growth and meet the needs of rising populations the developing world needs an additional $1tn-1.5tn each year to be invested in bridges, roads, railways and other infrastructure, Dr Kim said.
> 
> The world’s existing development banks combined lacked the resources to meet those needs, he said. To succeed, he said, more funding for development projects needed to come from the private sector and new entrants such as the AIIB, which so far has a capital base of less than $100bn.
> 
> “These goals are ambitious — there’s more than enough work to go around,” Dr Kim said. “We’re no longer talking about billions of dollars for economic development. We’re talking about trillions of dollars — which means that we must be creative and use all of our resources.”
> .



I don't want to sound like a crazy conspiracy guy, but it appear the S. Korea economy is under the control of foreigners since 1998 when they borrowed $33b to ease the burden of the Asian financial crisis


----------



## ahojunk

*Poor Taiwan. The AIIB is still causing political turmoil in Taiwan*.

-------
DPP to rethink joining the AIIB 'practically' - The China Post

DPP to rethink joining the AIIB 'practically'
By Katherine Wei, The China Post
April 7, 2015, 12:00 am TWN

As China is promoting its “One Belt, One Road (一帶一路)” initiative and establishing the Asian Infrastructure Investment Bank (AIIB), Taiwan is torn between filing to join the association and asking itself whether the Ma administration has been honest and straightforward about its financial plans.

While some in the pan-green camp were saying that the government was guilty of deciding it would join the AIIB before explaining to the people, the Democratic Progressive Party (DPP) also opined that it was necessary to discuss the implications of the initiative and the AIIB's goals.

Party members allegedly linked whatever aftermath the AIIB would bring with the upcoming presidential elections, and prompted the party's management to discuss the economic and diplomatic effects the AIIB would possibly bring about in a practical manner.

The term “One Belt, One Road” refers to the Silk Road Economic Belt and 21st-Century Maritime Silk Road initiatives raised by Chinese President Xi Jinping during his state visit to Indonesia in 2013.

The DPP's fellow pan-green party, the Taiwan Solidarity Union, has been boycotting parliamentary sessions seeking approval of the controversial flight route M503 and Taiwan's prospective joining of the AIIB in the Legislative Yuan over the past few weeks, yet the DPP was seen to be taking a different approach.

DPP caucus whip Ker Chien-ming (柯建銘) said yesterday that “We (Taiwan) should join the AIIB ... in the wake of China's plans for the Eurasia region, Asia's banks, international banks and international monetary funds will not be able to deal with the enormous demand for funds that the “One Belt, One Road” will bring. This is no longer an issue about benefits and disadvantages anymore,” said Ker.

Ker also cited China's declaration that it would be “making appropriate arrangements for Taiwan regarding its participation in the One Belt, One Road establishment,” and said Taiwan may join in the end as “Chinese Taipei.”

“It will never be 'Taipei, China.'” said Ker.

Beijing has previously stated that should Taiwan participate in China's AIIB plans, there would not be “two China's,” nor would there be “one China, one Taiwan.”

DPP Members Understanding on Ma's Hurried Decision

Ker and his DPP members were at odds regarding the Ma administration's decision to join the AIIB. The caucus whip pointed out that national security departments had already begun an evaluation of the AIIB, but the government was still waiting for the reaction of the U.S.

Ker questioned Ma's refusal to explain any difficulties to the people, indicating that the application to join AIIB was sent out in a hurried and secretive manner that was “too dramatic and similar to the rushed passage of the Cross-Strait Trade in Services Agreement last year.”

However, unnamed DPP members said yesterday that they “understood the government's handling of the AIIB incident this time, as some of the EU members are asking to join the AIIB as well, so Taiwan is only forced to follow them.”

The AIIB is slated to be launched by the end of this year, and the members to be confirmed allegedly around mid-2015.


----------



## Kiss_of_the_Dragon

utp45 said:


> ..Iran got in as founding member (that was fast)


 
 I'm wondering why we haven't announced Iran's intention to participate the AIIB in the beginning but only the result? there must be a rational explanation to this. Is there some secret geopolitical deal between China and Iran?


----------



## terranMarine

Kiss_of_the_Dragon said:


> I'm wondering why we haven't announced Iran's intention to participate the AIIB in the beginning but only the result? there must be a rational explanation to this. Is there some secret geopolitical deal between China and Iran?


Same goes for Russia  , boom out of no where these two have been approved while others are still pending.

Czech president, US envoy in rare public spat over Ukraine | Daily Mail Online

US ambassador barred from Prague Castle by Czech president - BBC News

US diplomat telling Czech president not to attend WW2 anniversary also failed

Reactions: Like Like:
1


----------



## Abii

Kiss_of_the_Dragon said:


> I'm wondering why we haven't announced Iran's intention to participate the AIIB in the beginning but only the result? there must be a rational explanation to this. Is there some secret geopolitical deal between China and Iran?


Iran's approval might have been pending on a deal with the P5+1.

Hopefully this means Iran can become a full member of the SCO now.

Reactions: Like Like:
1


----------



## ahojunk

*So far, Brazil is the only South American (Latin American) country that has applied to join the AIIB.*
*They have access to China's funds via other instruments*. 

---------------
Brazil sole nation in LatAm to join AIIB - The Nation

*Brazil sole nation in LatAm to join AIIB*
April 7, 2015 4:03 pm

(China Daily) - More than 45 countries have signed up to be a part of the China-led Asian Infrastructure Investment Bank but Brazil is the only Latin American country that has committed to the bank.

Australia, France, the United Kingdom, Germany, India, Italy, and South Korea are among the nations that have said they will join the AIIB, which has received the blessing of International Monetary Fund chief Christine Lagarde. The new bank plans to invest $100 billion in infrastructure projects in Asian countries. China also has its "One Belt, One Road" strategy, an initiative to promote economic and cultural ties with countries involved.

Kevin Gallagher, an associate professor at the Frederick S. Pardee School of Global Studies at Boston University and co-director of the Global Economic Governance Initiative, said that Latin American nations in many ways have their own version of AIIB.

"Latin America already enjoys China as a member of the Inter-American Development Bank, China-CELAC (Community of Latin American and Caribbean States) which has set up approximately $35 billion in funds with Latin America, and of course China’s policy banks provide upwards of $119 billion in finance to the region," he said.
.

Reactions: Like Like:
1


----------



## Al Bhatti

April 7, 2015 

* UAE, Iran approved as founder members of China-backed infrastructure bank *
More than 50 countries, plus Taiwan, have now applied to join the bank in a diplomatic coup for Beijing

Iran has been approved as a founding member of the Beijing-backed Asian Infrastructure Bank (AIIB), China’s finance ministry said Tuesday, just days after Tehran sealed a historic framework agreement on its nuclear programme.

Tehran’s application was backed by other founding members on Friday, China’s Ministry of Finance said in a statement on its website. The UAE’ bid was also approved.

More than 50 countries, plus Taiwan, have now applied to join the bank in a diplomatic coup for Beijing after Washington initially opposed its allies becoming members.

The United States and its Asian ally Japan have not sought to join.

But US Treasury Secretary Jacob Lew said last week that Washington was “ready to welcome” the bank, though he added it should complement existing multilateral institutions such as the World Bank and International Monetary Fund.

Iran’s approval — its application had not been previously announced — comes immediately after the nuclear deal that China helped to broker.

Under the outline nuclear deal, the United States and the European Union are to lift all nuclear-related sanctions on Iran once the UN atomic agency has verified that Tehran has stuck to its terms.

The proposed limits will see Iran’s stocks of highly enriched uranium cut by 98 per cent for 15 years, while its unfinished Arak reactor will not produce weapons-grade plutonium.

There are concerns over transparency of the AIIB, which will fund infrastructure in Asia, as well as Beijing using it to push its own geopolitical and economic interests as a rising power.

Under President Xi Jinping, China is pushing to build on the ancient Silk Road trade routes on land and sea, through its ‘One Belt, One Road’ initiative expected to be partly funded by the AIIB.

UAE, Iran approved as founder members of China-backed infrastructure bank | GulfNews.com

Reactions: Like Like:
1


----------



## cirr

Malta and Kyrgyzstan have been approved as founding members of the AIIB today 09.04.2015.

Reactions: Like Like:
4


----------



## ahojunk

*Japan has missed the boat. Now it can join AIIB as an ordinary member, not a founding member. *
*Wouldn't it be interesting is US join too, but only as an ordinary member.*

-------------
Japan should join the AIIB | The Japan Times

* 

 *
*Opinion*

*Japan should join the AIIB*

Japan stood out — along with the United States — among the major economies in deciding not to join the planned new China-led regional investment bank as founding members. While the government cited concerns over governance standards and operational transparency of the planned institution when it opted to not sign up by the March 31 deadline, it is obvious that Japan had chosen to keep in step with the U.S., which views the Chinese initiative to establish the Asia Infrastructure Investment Bank (AIIB) as Beijing’s challenge to the post-World War II international financial order, even as roughly 50 countries — including key European powers and many U.S. allies — decided to join.

The concerns about the new bank’s governance may indeed be legitimate. But there is little that Japan can do to address the AIIB’s perceived problems if it remains a non-member. Japan should join the bank so it can exert influence from within to ensure that it is run according to international norms.

The planned new bank aims to fill the enormous demand for loans to finance infrastructure-building investments in the growing Asian markets, which are currently not being met by existing international financing institutions. China has said the AIIB will not compete with the World Bank or the Manila-based Asian Development Bank — which has historically been headed by officials from Japan, the largest contributor of the institution along with the U.S. — but rather complement their roles. The AIIB, which will initially be capitalized at $50 billion and later $100 billion, is to be headquartered in Beijing. China will be its largest contributor and a former Chinese finance bureaucrat is expected to be tapped as the institution’s first president.

Behind China’s plan to create the AIIB is no doubt its frustration with the international financial framework led by the advanced economies, which does not reflect the growing presence of emerging economies in its decision-making. Much of the wariness toward the initiative, meanwhile, derives from skepticism over what the world’s second-largest economy intends to do with the new bank.

Finance Minister Taro Aso said Japan had no choice but to take an “extremely cautious stance” toward joining the AIIB, citing unanswered questions about the bank’s governance standards and transparency on how it screens loans for approval. Among the concerns over the AIIB’s governance is apprehension that China might use the institution to expand its economic clout by playing a decisive role in its loan-approval process — unlike the ADB, whose board of representatives from participant nations wield strong power in loan decisions. It is feared that the AIIB could be run in discretionary ways to promote China’s own interests.

But can Japan, and the U.S. for that matter, do much to influence the making of operational rules at the new bank — which will be formally launched by the end of this year — if they remain outsiders? It hardly seems credible that they can retain leverage by withholding their participation now that roughly 50 countries have opted to become founding members. The participants include major European powers such as Britain, Germany, France and Italy, key U.S. allies in the Asia-Pacific region such as Australia and South Korea, all 10 members of the Association of Southeast Asian Nations, as well as India, Brazil and Russia.

The initial caution on the part of many of the advanced economies was dispelled when Britain announced its plan to join the AIIB in mid-March. The other European powers immediately followed its lead. Along with the attraction of economic ties with China, the participants from outside Asia were apparently drawn to the enormous potential of infrastructure investments in the region and the opportunities that they would bring for their businesses. In fact, concern is reportedly growing in Japan’s business circles — as well as within the ruling Liberal Democratic Party — that Japanese firms could face disadvantages in the competition for a slice of this lucrative market due to the nation staying out of the AIIB.

Despite the questions about the planned new institution, there is great demand for more funding for infrastructure investments in Asia. The ADB estimates that the region needs about $700 billion in such investments each year, but the ADB cover less than one-fiftieth of that amount. Investment needs for such projects as railway and road construction in the region are forecast to reach $8 trillion in the decade to 2020. Asian countries that have signed up for the AIIB expect the institution to provide them with more loans for their investment projects.

The countries that joined as founding members are aiming to agree on the rules of running the new bank and capital contribution by each member by the end of June. The Japanese government reportedly plans to consider whether to join by the time such details take shape.

When Japan decided not to sign up for the AIIB at the end of last month, Prime Minister Shinzo Abe is reported to have told LDP members at his office, “Now the U.S. will see that Japan is a reliable country.” The government appears to have placed priority on Japan keeping in step with the U.S. at a time when its other allies and major European powers have defied it and joined the China-led initiative.

Japan may have impressed the U.S. with its loyalty by staying out of the AIIB, but it remains to be seen whether it was the right decision for the world’s third-largest economy, which has gained a wealth of know-how and experience in regional financing through its activities in the ADB.
.

Reactions: Like Like:
2


----------



## TaiShang

*New Kid on the Block: China Dealing Crushing Blow to US Supremacy in Asia*
13:40 09.04.2015(updated 14:06 09.04.2015) Get short URL

*China is determined to subvert American supremacy in Asia, said Richard Javad Heydarian, adding that Beijing has brought numerous regional and international players under its umbrella due to its efficient economic charm offensive.*

China has thrown down the gauntlet to the established Bretton Woods' economic world order and American supremacy in Asia by launching new ambitious infrastructure projects in the region and dislodging the US from the South China Sea, noted Richard Javad Heydarian, an expert in international affairs and policy advisor in the Philippine House of Representatives.

"China's astute economic diplomacy—aimed at challenging the Bretton Woods system (BWS) of global governance—and accelerated construction activities in the South China Sea, an artery of global trade, are chipping away at the very foundations of the decades-long US-led order in Asia," Richard Javad Heydarian stressed.

The rapid development of the China-led Asian Infrastructure Investment Bank (AIIB), the New Development Bank and the New Silk Road initiatives has simultaneously marked the triumph of Beijing's soft power and Washington's dreadful fiasco.





© AP Photo/ Charles Dharapak

Et Tu, Brute? Israel Latest US Ally to Join Chinese AIIB

The expert elaborated, however, that "in fairness," Beijing's decision to challenge the established BWS was largely caused by emerging powers' growing frustration over the lack of much-anticipated reforms in the World Bank and the International Monetary Fund (IMF), blocked up by the US Congress in 2010.

Citing the volatilities of currency markets, China invests its vast financial reserves into Asian infrastructure projects. However, the expert noted that some international observers are inclined to consider particularly the AIIB a "Trojan horse for its broader strategic interests in Asia."

China uses its financial resources to "purchase" the loyalty of its Asian neighbors, Mr. Heydarian believes, citing prominent Chinese scholar Yan Xuetong.

"The policy now is to allow these smaller [neighboring Asian] countries to benefit economically from their relationships with China. For China, we need good relationships more urgently than we need economic development. We let them benefit economically, and in return we get good political relationships," Xan Xuetong pointed out.





© AFP 2015/ Takaki Yajima
Iran Joins China-Led Asian Infrastructure Investment Bank

While the US Asian allies, from the Philippines to Vietnam to Japan, are watching China's steady expansion in the region, it seems that the United States has nothing to bring to the table in order to swing the balance in its favor.
The US' vain attempts to boycott the AIIB have ultimately failed after the UK, Washington's closest (European) ally, announced it would participate in the China-led initiative, paving the way for other European and Asian partners of the US to join.

Washington has found itself in a rather embarrassing situation, isolated and left by all. The situation prompted US Treasury Secretary Jack Lew to state grudgingly that the United States "welcome China having a significant role in the global economic and financial architecture."

Washington's strategic primacy in Asia is at stake – it is clear that China is determined to change the established status quo in the region and obliterate America's longstanding supremacy, the expert underscored.


Read more: New Kid on the Block: China Dealing Crushing Blow to US Supremacy in Asia / Sputnik International

Reactions: Like Like:
2


----------



## ahojunk

AIIB could rank among world’s top bodies - Global Times

*AIIB could rank among world’s top bodies *
Source:Global Times Published: 2015-4-6 21:53:01





_Friis Arne Petersena Photo: Courtesy of the Royal Danish Embassy in Beijing_

*Editor's Note: *_The China-initiated Asian Infrastructure Investment Bank (AIIB) has seen a rush of applications for membership, before the deadline of March 31. Global Times (GT) reporter Wang Sining interviewed Danish Ambassador to China Friis Arne Petersen (Petersen) on Denmark's application filed to become a founding member of the AIIB and the role that the bank is expected to play in the future.
_
* 
GT: Could you tell us why Denmark wants to join the AIIB as a founding member?*

*Petersen:* Joining the AIIB is in line with the national interests of Denmark, and in accordance with Denmark's long-term global commitment and obligations.

On a yearly basis, Denmark gives away some $2.5 billion, or 0.84 percent of its GDP to development assistance programs around the world.

As a Nordic country, not only do we have an outbound assistance system, but we also have great economic and political interests in Asia.

During the past seven or eight years, Asia as a whole has been contributing positively to the world economy, against the backdrop of economic recession and downturn pressure in much of the rest of the world.

There is a positive influence on the economy from Asia, and it can be even bigger in the future.

The AIIB can provide the region with a great amount of new economic growth opportunities, and thus it is of great importance to Denmark.

*GT: Which countries are Denmark's friends in Asia?*

*Petersen:* We have very big bilateral trade and investment flows with many Asian countries, and that should continue and grow. It is of great interest to Denmark.

Denmark has also frequently cooperated with countries like China, Japan, South Korea, Thailand, Indonesia, India, Afghanistan, Pakistan, Myanmar, Malaysia and Vietnam.

There are really many new opportunities, and Danish assistance has been present for a long time.

*GT: What kind of role will Denmark play after joining the AIIB?*

*Petersen:* We hope that in the process of the creation of this development bank, together with all the other countries, we could reach a consensus around accepting these high governance standards and sustainability in infrastructure development.

It is important to secure a development bank that also counters corruption. So this could be a state of the art of new development bank in the international architecture.

I believe the AIIB will rise to be among the world's top organizations and the Danish government will try to help make that happen, together with other founding countries, and agree on the articles for the bank in a very open and transparent consensus-seeking process.

As the Danish ambassador to China, I am happy to see that so many countries in and outside Asia have shown interest in creating and participating in this new development institution.

We will use all our experience of development assistance administration for the last 50 years in Asia and Africa. We have a long track record of seeking poverty eradication, which is the overarching target for our development assistance. That should also be a strong feature of this bank.
.

Reactions: Like Like:
3


----------



## TaiShang



Reactions: Like Like:
2


----------



## ahojunk

.
AIIB and BRICS Bank Pose Threat to Bretton-Woods Dollar System – Engdahl / Sputnik International

*AIIB and BRICS Bank Pose Threat to Bretton-Woods Dollar System – Engdahl*






Opinion
21:50 10.04.2015 (updated 22:28 10.04.2015)

*The rapid rise of the AIIB was foreseeable: the world's emerging economies got really frustrated when the US-dominated Bretton Woods institutions disregarded them as a "group of banana republics," F. William Engdahl noted.*

Washington's policy makers have been ignoring the needs of the world's emerging economies for too long, treating them as a group of banana republics, noted F. William Engdahl, a historian and researcher, adding ironically – "they haven't had their eyes checked since 1944 apparently." 

"At the 2014 BRICS summit in Fortaleza, Brazil, the five heads of state declared bluntly, "We remain disappointed and seriously concerned with the current non-implementation of the 2010 International Monetary Fund reforms, which negatively impacts on the IMF's legitimacy, credibility and effectiveness," the historian pointed out.

Indeed, in 2010 China, Brazil and other fast-emerging countries proposed a reform pledging to double the funds of the IMF in exchange for greater voting rights for such states as China, Russia, India, Brazil and some other countries.

The emerging powers consider it "manifestly absurd" that IMF voting rights on the Executive Board give France, with a $3 trillion GDP far more voting weight than China with its $10 trillion GDP, or provide Belgium ($500 billion GDP) with greater voting shares than Brazil ($2.2 trillion GDP). Remarkably, Washington retains a blocking veto share of votes and "is holding on like a pit bull to the old bylaws," the researcher noted.

However, the US Congress refused to reconsider the established status quo of the US-led Bretton Woods institutions and blocked the reform.

Thus far, China and other fast-growing economies decided to create an entirely new global monetary architecture with the Asian Infrastructure Investment Bank (AIIB) at the centerpiece.

The very next move made by the US has once again demonstrated Washington's foreign policy is being run by elites incapable of flexible response: by fiercely opposing the AIIB they "have royally shot themselves in both feet," remarked the author. The fact that the China-led initiative received global support has shown the impotence of the US-dominated Bretton Woods system.

As BRICS threatens to become an independent global actor, Washington has recently tried to carry out "its usual Color Revolution organized opposition protests," this time against Brazilian President Dilma Rousseff. Alas, it seems such a method is not working as it used to, the researcher pointed out.

Indeed, the AIIB and the BRICS Development Bank poses the greatest threat to the American dollar system and Washington's control over global financial flows since 1944. However, "peace and cooperation is a far more useful way to resolve affairs among civilized nations," the author emphasized.
.

Reactions: Like Like:
3


----------



## terranMarine

I call it the natural evolution of the current rusty financial system.

Reactions: Like Like:
1


----------



## ahojunk

*Good on you, France. Don't hide under the skirt of America.*
*Vive la France!*

*--------*
*France's Decision to Join China-Led AIIB Unaffected by US - Paris / Sputnik International*

France's Decision to Join China-Led AIIB Unaffected by US - Paris

*France made its own decision to join Asian Infrastructure Investment Bank (AIIB) without relying on the US position, the Ministry of Foreign Affairs spokesperson told Sputnik Thursday.*

MOSCOW, April 2 (Sputnik), Yulia Shamporova — In March, France announced its plans to join the AIIB.

"We [France and United States] are strong allies and discussed this question with our international partners, but of course each of us takes its own decisions," the Ministry of Foreign Affairs spokesperson said.

The AIIB was established in October 2014 with a registered capital of $100 billion. China proposed the creation of the bank in a bid to boost investment in infrastructure project in the Asia-Pacific region.

The China-led Asian Infrastructure Investment Bank (AIIB) is a good opportunity to respond to Asian infrastructure needs, a spokeswoman for the French Foreign Ministry said.

"France sees this initiative as an opportunity to respond to Asia’s need in terms of infrastructure. Making infrastructure greener and more resilient to climate-related hazards is one of today’s major challenges. We are keen to see this new bank play a role in meeting this challenge," the spokeswoman said.

Apart from France, countries applying to join the financial organization as founding members include the United Kingdom, Switzerland, Austria, Australia.

“France welcomes China’s readiness to pursue a multilateral approach as with the AIIB and looks forward to that approach being reflected in other international forums," the Ministry of Foreign Affairs spokesperson said.

She added that "in this context it will be important that the AIIB complies with international standards already applied by multilateral financial institutions, including the French agency for Development (AFD)."

The bank will have 45 member states, and March 31 was the deadline for applications to become a founding member. The bank will go live mid-April.

The new Chinese-based bank is seen in Washington as a potential competitor of Western financial institutions, like the US-based International Monetary Fund and the World Bank.

The US Treasury Secretary Jacob Lew said in March that there were growing tensions between trans-Atlantic allies over the AIIB. He criticized European participation in the China-led development bank and questioned AIIB anti-corruption, labor and environmental policy.
.

Reactions: Like Like:
3


----------



## Kiss_of_the_Dragon

*China-led AIIB open to US ‘anytime’, says lender’s chief*

SINGAPORE, April 11 — China is keeping the door open for the US to join its new development bank “anytime,” the lender’s chief said, after the Obama administration failed to persuade most allies to snub the lender.

The US is “*welcome to the kitchen to work with us*,’ Jin Liqun, secretary general of the secretariat for establishing the bank, told reporters in Singapore today. The Asian Infrastructure Investment Bank’s founding membership will probably be ‘‘short of 60,” he said.

“China itself has benefited enormously from contributions by the World Bank” and Asian Development Bank, Jin said at a forum in Singapore. “Now it’s time for China to contribute more to this region, and hopefully China’s contributions will spill over to other regions.” The US suffered a diplomatic setback as allies including Australia, the UK, and Germany opted to become founding members of the China-led bank. World Bank President Jim Yong Kim said this week he doesn’t view the development lender as heralding an end to the global economic order forged by the US

The AIIB will be owned by all members, not solely China, and will have a mandate to promote broad-based socio-economic development, Jin said. As it will focus exclusively on infrastructure funding, while the World Bank and Asian Development Bank address poverty reduction, there is more complementary territory than “head-on competition,” he said. —

China-led AIIB open to US ‘anytime’, says lender’s chief | Money | Malay Mail Online

----
Indeed welcome to the kitchen to work for us , Americans will not have any privilege as they have with World bank or IMF to dictate their terms. In AIIB they shall be just a simple mortal as the rest of earth citizens with no exception , they can keep their ego outside AIIB or stay outside AIIB.


----------



## Edison Chen

Spain, S.Korea and Austria approved as founding members of China-led bank AIIB — RT Business

Reactions: Like Like:
3


----------



## ahojunk

.
AIIB to be lean, clean and green, Chinese officials say - Global Times

AIIB to be lean, clean and green, Chinese officials say
Source:Xinhua Published: 2015-4-12 9:24:56

China and all the member countries of the Asian Infrastructure Investment Bank (AIIB) will be committed to build a bank which would be *lean, clean and green*, said Jin Liqun, secretary general of the interim multilateral secretariat of the China-proposed institution here in Singapore on Saturday.

Jin made such remarks at the two-day "Singapore Forum 2015" which concluded Saturday.

"*Lean is cost effective; clean, this bank will have zero- tolerance on corruption; green means it's going to promote the economy,*" he said.

The bank has seen more than 40 prospective founding members by Saturday, with Spain, South Korea and Austria as the most recent prospective founding members.

Talking about whether the increasing number of members would add difficulty on the decision-making process of the AIIB, Long Yongtu, China's former vice trade minister who also attended the forum, told Xinhua that the more countries joining in, the stronger the foundation of AIIB would be.

"Everything has two sides. It would pose some difficulty to the coordination of the positions and interests of all the member countries, especially many of which are at different economic level of development. But it is definitely not good news if the AIIB earned little response."

"AIIB is not the first multi-lateral financial institution, and we have a lot of experiences to borrow," Long added.

His words were also echoed by Jin. "World Bank and Asian Development Bank (ADB) have been operating for decades, and they have gained a lot of experiences in supporting the investment in other countries," he said.

But he also pointed out the difference between the AIIB and the existing institutions.

"China itself benefits enormously from the contribution by World Bank and the ADB. Now it's time for China to do something more for this region. And the difference between AIIB and World Bank and ADB is that this bank focuses exclusively on infrastructure development."

Talking about the operation of the bank, Jin said the bank would not be operated politically, but professionally.

"AIIB is a bank, not a political organization or political alliance. This guaranteed that it would be impossible to operate it in an untransparent way," he said. "AIIB is not China's bank. Many people have put too much emphasis on politics; this is a misunderstanding towards AIIB," said Long.
.

Reactions: Like Like:
1


----------



## ahojunk

.
China rejects Taiwan as AIIB founding member | Bangkok Post: business

*China rejects Taiwan as AIIB founding member*
13 Apr 2015 at 12:42

BEIJING/TAIPEI — Taiwan is not able to become a founding member of the Beijing-led Asian Infrastructure Investment Bank (AIIB) but is still welcome to become an ordinary member in the future, the Chinese government said on Monday.

In a statement carried by the official Xinhua news agency, China's Taiwan Affairs Office said it confirmed what it said was a Hong Kong media report about the rejection of Taiwan. The report also said Taiwan could join further down the line, the Taiwan Affairs Office added.

While the Taiwan Affairs Office provided no explanation, it repeated that _*Taiwan would be welcome to join if it used an appropriate name*_.

"The mainland will consider opinions from all sides to properly address the issue of Taiwan's membership," the statement said. "The related departments will consider Taiwan's membership when making the constitution for the AIIB."

China views Taiwan as a renegade province. Most countries, including the United States, do not recognise Taiwan due to pressure from China.

Taiwan is not a member of the United Nations, the World Bank or the International Monetary Fund. It is though a member of the Asian Development Bank under the name of Taipei, China.

Taiwan downplayed the rejection, reiterating its interest to become an AIIB member if it receives equal treatment as other members.

Joining AIIB is positive for Taiwan, said Charles Chen, spokesman for Taiwan's Presidential Office.

"But if the future of Taiwan's accession fails to meet the precondition of 'dignity and equality', then Taiwan would prefer not to participate," Chen said.

China has not ruled out the use of force to bring Taiwan under its control. But since Taiwan's current president Ma Ying-jeou took office in 2008, enmity has declined considerably and the two sides have signed a number of trade and investment deals.

Taiwan's decision to apply to join the AIIB has sparked a heated debate in democratic Taiwan, where deepening relations with autocratic China have caused growing unease.

The rejection comes as Taiwan's ruling party, which had championed the AIIB application, said its chairman Eric Chu will visit China in May to attend a cross-straits forum. The visit has drawn criticism from Taiwan's pro-independence opposition party.

"Taiwan is a nation. Our negotiations with China should be government-to-government, not party-to-party negotiations conducted in secret," Democratic Progressive Party chairwoman Tsai Ing-wen said in response to Chu's visit.

Tsai is widely expected to be a candidate in next year's presidential elections.

The United States has urged countries to think twice about joining the AIIB until it could show sufficient standards of governance and environmental and social safeguards.
.

Reactions: Like Like:
2


----------



## TaiShang

Better keep the US out.

*New China-led bank to work for the region, says chief 
April 12, 2015, 6:13 am*






_The AIIB is a China-initiated international financial institution aimed at supporting infrastructure projects in Asia. Beijing will host the headquarters of the Bank [Xinhua]_

China and all the member countries of the Asian Infrastructure Investment Bank (AIIB) will be committed to building a bank which would be lean, clean and green, said Jin Liqun, interim chief of the Bank.


“Lean is cost effective; clean, this bank will have zero- tolerance on corruption; green means it’s going to promote the economy,” he said.

Jin is the secretary general of the interim multilateral secretariat of the AIIB.

The AIIB is a China-initiated international financial institution aimed at supporting infrastructure projects in Asia. Beijing will host the headquarters of the Bank.

The bank has seen more than 40 prospective founding members by Saturday, with Spain, South Korea and Austria as the most recent prospective founding members. The growing list of its European allies joining China’s alternative to the IMF and the World Bank has outraged Washington.

A US official earlier complained about “constant accommodation” of China by Washington’s EU allies, and Obama’s National Security Council issued a statement expressing concern over the AIIB’s environmental and governance standards.

The AIIB’s interim chief on Saturday said the Bank is not a political alliance, contrary to popular perception.

“China itself benefits enormously from the contribution by World Bank and the ADB. Now it’s time for China to do something more for this region. And the difference between AIIB and World Bank and ADB is that this bank focuses exclusively on infrastructure development,” said Jin.

“AIIB is a bank, not a political organization or political alliance. This guaranteed that it would be impossible to operate it in an untransparent way,” he added.

Long Yongtu, China’s former vice trade minister has said the growing list of members of the Bank makes its foundation stronger.

“Everything has two sides. It would pose some difficulty to the coordination of the positions and interests of all the member countries, especially many of which are at different economic level of development. But it is definitely not good news if the AIIB earned little response,” he said.

“AIIB is not China’s bank. Many people have put too much emphasis on politics; this is a misunderstanding towards AIIB,” said Long.

The authorized capital of the AIIB is $100 billion and the initial subscribed capital is expected to be around $50 billion. The paid-in ratio will be 20 per cent.

Founding members have agreed that GDP will be the basic parameter in determining share allocation among member countries in the Bank.


----------



## TaiShang

*U.S. adopts new ploy to block AIIB*
2015-04-13 

After more than 50 countries and regions joined or applied to join the China-proposed Asian Infrastructure Investment Bank by March 31, the United States changed its attitude toward the bank. From publicly criticizing its allies for joining the AIIB, the U.S. is now emphasizing that the bank should follow the "high standards" set by other global or regional financial institutions such as the World Bank, International Monetary Fund and the Asian Development Bank.

*The U.S. hasn't clarified what it means by "high standards", but if people take the U.S.-led World Bank as a reference, it would include the objectives of operation, such as the purpose of the organization, investment fields and management structure. So by referring to the World Bank's "high standards", the U.S. is only trying to create another obstacle for the AIIB.*

As far as its purpose and orientation are concerned, the World Bank's initial aim was to help the reconstruction of Europe and Japan after World War II, and support the economic development of African, Asian and Latin American countries. The loans the World Bank offered focused on large-scale infrastructure construction. After the European and Japanese economies recovered, the World Bank focused mainly on the economic development of developing countries. From the 1990s it began offering loans to the Soviet Union, Eastern European countries, and China.

*In the early postwar period, the U.S., as one of the two superpowers, played a dominant role in the world economy. Needless to say, the U.S. excluded the Soviet Union and Eastern European countries from its development scheme.*

*When postwar national liberation movements resulted in the nationalization of many countries' assets and thus undermined the U.S.-led World Bank's "legal" interests, and some countries such as Iraq publicly challenged the U.S., Washington assumed that large-scale loans for infrastructure construction to developing countries were benefiting its opponents. So in the intervening years, the World Bank changed its aim to "alleviating poverty". *And this policy pushed the new economies with great development potential to the low end of the industrial chain.

Under such conditions, many developing countries, including China, which had just implemented reform and opening-up, got huge amounts of loans from the World Bank to fight poverty. *But given the World Bank's new-found aim, the developing countries could hardly get any loan for the improvement of infrastructure or develop high-end industries. They even had to accept political conditions in exchange for World Bank loans.*

There is no denying that developing countries got loans from the World Bank, and that its favorable soft loan programs have played an important role in reducing poverty across the world. Since China regained its World Bank membership in 1980, it has largely used such loans for poverty alleviation, and *repaid them on time. China's success and some other countries' default on repayment owing to external factors and/or poor governance are proof of the World Bank's aim and investment orientation. The "high standards" of the World Bank have changed according to the U.S.' political will.*

In terms of its management structure, the Washington-headquartered World Bank comprises 25 executive directors and 188 members. Member states' right to vote is closely related to the membership fee they pay. *Even after the 2010 voting power reform, the U.S. has 15.85 percent of the votes. Given that all significant decisions can be taken only with 85 percent of the votes, the U.S. can manipulate all vital World Bank decisions and veto any reform that it believes could undermine its dominant position*. No wonder, the World Bank president has always been an American national. *Thus the World Bank's "high standards" helps the U.S. impose its political will on other members.*

If the existing global financial system cannot meet the development needs of the Asian economies, we have to create one that will do so. The AIIB focuses on the fields that the U.S.-led global financial system doesn't want to get involved in. Indeed, the AIIB has to abide by high standard for its success, but the "high standards" the U.S. refers to are ones that will help maintain American interests.

_The author Liu Hui is a researcher in American studies at the Chinese Academy of Social Sciences._

Reactions: Like Like:
3


----------



## ahojunk

.
China Thwarts Taiwan’s Bid to Be Founding Member of AIIB - WSJ

*China Thwarts Taiwan’s Bid to Be Founding Member of AIIB*

*Taiwan wants to join bank as Chinese Taipei*





_Taiwanese Premier Mao Chi-kuo on April 1. More details on Taiwan’s involvement in the AIIB will be disclosed after he reports to the legislature on Monday.PHOTO:ASSOCIATED PRESS_

By JENNY W. HSU
Updated April 13, 2015 1:46 a.m. ET

TAIPEI—China rejected Taiwan’s bid to become a founding member of the Asia Infrastructure Investment Bank on Monday, but said the island is welcome to apply to be a new member after both sides work out some “participation issues,” signaling China has rebuffed Taiwan’s preferred membership name.

Beijing’s Taiwan Affairs Office spokesman Ma Xiaoguang said in a statement that China is willing to “gather more opinions” and ultimately find an “appropriate name” under which Taiwan can join the bank. That effectively quashes Taiwan’s request to join the multilateral lender as “Chinese Taipei.”

Nomenclature is a sensitive issue in cross-strait relationship. Under pressure from China, which sees Taiwan as a renegade province, the self-ruled island of 23 million people has been competing in international sporting events as “Chinese Taipei” and joined the World Trade Organization as the “Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.”

In 1986, after China joined the Asian Development Bank, the institution changed Taiwan’s membership name to “Taipei, China,” from “Chinese Taipei.” The change was protested by Taiwan’s government, which said the name suggested Taiwan was under China’s jurisdiction. But the change went into effect and Taiwan is still a member of the ADB.

Taiwan President Ma Ying-jeou at numerous occasions have said “Chinese Taipei” is the Taiwan’s bottom line and the his government is willing go as far as to dropping its AIIB bid if the membership name fails to protect Taiwan’s dignity.

“We received the news on Sunday night. The premier has already asked relevant government agencies to take the necessary measures,” said Sun Li-chyun,Taiwan’s cabinet spokesman.

Mr. Sun said more details of Taiwan’s next move will be disclosed after Premier Mao Chi-kuo reports to the legislature on Monday afternoon.

Taiwan pitched its bid to be a founding member of the multilateral lender on March 31 amid heated debate. The opposition Democratic Progressive Party said the government should have waited until the rules on the bank’s activities are clarified, while the government answered that only founding members will enjoy preferential rights such as charting out the those rules.

Analysts say the rejection by China is likely to muddy cross-strait trust which both sides have sought to rebuild in recent years after decades of animosity.

Taiwan and China have been politically and economically separated since 1949 when the Nationalist Party, or the Kuomintang, fled to the island ahead of advancing communist armies. The two sides did not resume communication until 2005.

In recent years, Taiwan and China have managed to reach 21 trade agreements, but many Taiwanese remain deeply suspicious of Beijing’s ultimate intentions. China considers Taiwan part its territory and has vowed to take it back, by force if necessary.

*Correction*
Beijing’s Taiwan Affairs Office spokesman Ma Xiaoguang said in a statement that China is willing find an “appropriate name” under which Taiwan can join the Asia Infrastructure Investment Bank. An earlier version of this article incorrectly the statement was delivered at a news conference. (April 13, 2015)
.

Reactions: Like Like:
3


----------



## Edison Chen

ahojunk said:


> .
> China Thwarts Taiwan’s Bid to Be Founding Member of AIIB - WSJ
> 
> *China Thwarts Taiwan’s Bid to Be Founding Member of AIIB*
> 
> *Taiwan wants to join bank as Chinese Taipei*
> 
> View attachment 214685
> 
> _Taiwanese Premier Mao Chi-kuo on April 1. More details on Taiwan’s involvement in the AIIB will be disclosed after he reports to the legislature on Monday.PHOTO:ASSOCIATED PRESS_
> 
> By JENNY W. HSU
> Updated April 13, 2015 1:46 a.m. ET
> 
> TAIPEI—China rejected Taiwan’s bid to become a founding member of the Asia Infrastructure Investment Bank on Monday, but said the island is welcome to apply to be a new member after both sides work out some “participation issues,” signaling China has rebuffed Taiwan’s preferred membership name.
> 
> Beijing’s Taiwan Affairs Office spokesman Ma Xiaoguang said in a statement that China is willing to “gather more opinions” and ultimately find an “appropriate name” under which Taiwan can join the bank. That effectively quashes Taiwan’s request to join the multilateral lender as “Chinese Taipei.”
> 
> Nomenclature is a sensitive issue in cross-strait relationship. Under pressure from China, which sees Taiwan as a renegade province, the self-ruled island of 23 million people has been competing in international sporting events as “Chinese Taipei” and joined the World Trade Organization as the “Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu.”
> 
> In 1986, after China joined the Asian Development Bank, the institution changed Taiwan’s membership name to “Taipei, China,” from “Chinese Taipei.” The change was protested by Taiwan’s government, which said the name suggested Taiwan was under China’s jurisdiction. But the change went into effect and Taiwan is still a member of the ADB.
> 
> Taiwan President Ma Ying-jeou at numerous occasions have said “Chinese Taipei” is the Taiwan’s bottom line and the his government is willing go as far as to dropping its AIIB bid if the membership name fails to protect Taiwan’s dignity.
> 
> “We received the news on Sunday night. The premier has already asked relevant government agencies to take the necessary measures,” said Sun Li-chyun,Taiwan’s cabinet spokesman.
> 
> Mr. Sun said more details of Taiwan’s next move will be disclosed after Premier Mao Chi-kuo reports to the legislature on Monday afternoon.
> 
> Taiwan pitched its bid to be a founding member of the multilateral lender on March 31 amid heated debate. The opposition Democratic Progressive Party said the government should have waited until the rules on the bank’s activities are clarified, while the government answered that only founding members will enjoy preferential rights such as charting out the those rules.
> 
> Analysts say the rejection by China is likely to muddy cross-strait trust which both sides have sought to rebuild in recent years after decades of animosity.
> 
> Taiwan and China have been politically and economically separated since 1949 when the Nationalist Party, or the Kuomintang, fled to the island ahead of advancing communist armies. The two sides did not resume communication until 2005.
> 
> In recent years, Taiwan and China have managed to reach 21 trade agreements, but many Taiwanese remain deeply suspicious of Beijing’s ultimate intentions. China considers Taiwan part its territory and has vowed to take it back, by force if necessary.
> 
> *Correction*
> Beijing’s Taiwan Affairs Office spokesman Ma Xiaoguang said in a statement that China is willing find an “appropriate name” under which Taiwan can join the Asia Infrastructure Investment Bank. An earlier version of this article incorrectly the statement was delivered at a news conference. (April 13, 2015)
> .



This is another kind of economy sanction. New level. Very nice. When China is strong enough, we will have more leverage.

Reactions: Like Like:
4


----------



## TaiShang

Edison Chen said:


> This is another kind of economy sanction. New level. Very nice. When China is strong enough, we will have more leverage.



As China gathers more economic strength, it enjoys greater economic leverage over Taiwan. It will likely be increasingly harder for Taiwan to sustain economic development while it remains at odds with China over its political status.

Reactions: Like Like:
4


----------



## Kiss_of_the_Dragon

*AIIB miles ahead of TPP in promoting integration*
14 April 2015
Author: Andrew Elek, ANU

The Asian Infrastructure Investment Bank (AIIB) is a far more economically efficient option than the Trans-Pacific Partnership (TPP) for integrating Asian economies to each other and to the rest of the world. While the United States is attempting to thwart China’s AIIB by completing the TPP, it is likely to result in net costs to countries other than the US.

In 2015, very few products face significant transparent barriers — such as tariffs — when they cross international borders. The most important constraints to the flow of products along modern supply chains are due to weaknesses in transport and communications infrastructure. A 2013 study by the World Economic Forum found that supply chain barriers to international trade are far more significant impediments to trade than tariffs. Reducing supply chain barriers could increase world GDP over six times more than removing all tariffs.

This study confirms the experience of business people. For more than a decade they have urged governments to stop obsessing about traditional trade barriers that only affect some agricultural commodities and low-tech manufactures. Those managing ever-expanding supply chains want governments to shift attention to the widening gaps in Asia’s transport and communications infrastructure.

China’s AIIB initiative responds to these realities. It aims squarely at the real obstacles to economic integration. The new multilateral development bank will mobilise finance from international capital markets to reduce the vast gaps in economic infrastructure. It is a timely move to take advantage of the current low borrowing costs to invest in projects with potentially high economic returns.

With its vast current financial strength, China could have chosen to go it alone. Instead, it sought to draw in as many shareholders as possible to ensure that it is able to expand urgently needed investment as fast as possible. Drawing in other governments will also help the AIIB to draw on the expertise of existing multilateral development banks to acquire and sustain its own AAA rating.

The proposed TPP has a very different agenda. It comes from the United States Trade Representative, which responds to the wishes of its domestic business interests. The most widely publicised objective is to eliminate all remaining traditional trade barriers. Even such an impossibly ambitious trade deal would only add 0.5 per cent of income to the nations involved. Paul Krugman believes even that is an overestimate. And any actual TPP outcome will fall far short of fully eliminating all trade barriers.

There is a more important reason for the US push for the TPP. The US is seeking to impose rules that suit its economy on those that are very different. Much-leaked drafts for the TPP reveal many chapters defining new rules for issues such as intellectual property rights, labour and environmental standards, management of state-owned enterprises and many other matters.

But even if United States views were appropriate for 21st century commerce, they would not create any new trade. If accepted, they would impose costs on emerging economies, weakening their capacity to compete. In practice, if the TPP is signed, United States producers will be able to challenge and disrupt imports that they claim to contravene any of its rules. ANU economist Philippa Dee has argued that the TPP may lead to net costs, rather than benefits, for participants other than the United States.

The TPP is likely to be a multiplicity of bilateral preferential trade deals, adding new layers to rules of origin. It hopes to route supply chains around — rather than through — China, the largest trading partner of Asia Pacific economies. By contrast, the AIIB will finance infrastructure to facilitate the creation of essential new production networks. This is necessary as China’s labour costs will continue to rise and labour-intensive production will shift into other countries.

When the AIIB becomes operational in 2016 it will certainly boost much-needed economic infrastructure and integration in the region. The TPP is far less certain. Even if it is ever agreed upon, the deal will need ratification by the US Congress and many other legislatures and will not make a significant contribution to the market-driven integration of the region.
_

Andrew Elek is Research Associate at theCrawford School of Public Policy, Australian National University. He was the inaugural Chair of APEC Senior Officials in 1989._

AIIB miles ahead of TPP in promoting integration | East Asia Forum

---------------------------------------
_Americans will face another eminent humiliation or let these TPP countries got screwed by US...either way China has nothing to lose._

Reactions: Like Like:
1


----------



## terranMarine

Australia has been approved as a prospective founding member of the Asian Infrastructure Investment Bank (AIIB), China's Ministry of Finance said on Monday.

This brings the number of prospective founders to 47. Founding members of the AIIB have the right to make the rules of the bank. Countries that applied to join after March 31 will be ordinary members with voting rights only, and less say in the rule-making process. Founding membership will be finalized on April 15.

The AIIB will provide financing for roads, railways, airports and other infrastructure projects in Asia. It is expected to be established by the end of this year.

Reactions: Like Like:
3


----------



## cirr

South Africa、Azerbaijan and 5 other countries approved as the founding members of the AIIB，making a total of 57.

All the BRICS nations（Brazil、Russia、India、China and South Africa）are in。

Reactions: Like Like:
5


----------



## Yizhi

Asian Infrastructure Investment Bank - Wikipedia, the free encyclopedia




*Prospective Founding Members (PFMs) of AIIB*





i like blue..

Reactions: Like Like:
3


----------



## ahojunk

terranMarine said:


> Australia has been approved as a prospective founding member of the Asian Infrastructure Investment Bank (AIIB), China's Ministry of Finance said on Monday.
> 
> This brings the number of prospective founders to 47. Founding members of the AIIB have the right to make the rules of the bank. Countries that applied to join after March 31 will be ordinary members with voting rights only, and less say in the rule-making process. Founding membership will be finalized on April 15.
> 
> The AIIB will provide financing for roads, railways, airports and other infrastructure projects in Asia. It is expected to be established by the end of this year.



Yay! My country Australia is in... Cheers!
Hip hip hooray!   



cirr said:


> South Africa、Azerbaijan and 5 other countries approved as the founding members of the AIIB，making a total of 57.
> 
> All the BRICS nations（Brazil、Russia、India、China and South Africa）are in。



Hungary is being considered.

Does anybody knows why it takes Hungary so long to be considered?

Looking at the diagram above, looks like Canada, Belgium, Ukraine are considering too.
.

Reactions: Like Like:
3


----------



## ahojunk

.
China's influence over AIIB a concern ahead of founders' meeting | Reuters

*China's influence over AIIB a concern ahead of founders' meeting*
TOKYO/NEW DELHI | By Izumi Nakagawa and Manoj Kumar

(Reuters) - China could have outsized influence over a new Beijing-backed international development bank under a proposed shareholding structure likely to be discussed at a meeting of member nations in Washington this week, sources say.

The group will meet on the sidelines of the annual meetings of the International Monetary Fund and World Bank in the U.S. capital, said an Indian government official familiar with the plan. India was one of the first nations to join the new bank.

China has proposed that Asian nations own three-quarters of the Asian Infrastructure Investment Bank (AIIB), a larger overall stake than would be warranted were ownership decided by economic weightings alone, given European heavyweights Germany, France, Britain and Italy are also members.

Each Asian member will then be allotted a share of that 75 percent quota based on their economic size, two Japanese sources said - a formula that would guarantee China the largest single voice inside the bank.

China has outlined details of the bank to Japan in an effort to get Tokyo to sign up, the sources said. However, Tokyo remains non-committal due to its close relationship with the United States, which has urged nations to be wary of the AIIB.

"Looking at GDP-based contributions, if the No. 1 and No. 3 (the United States and Japan) aren't in, then China will have an overwhelmingly large quota and voice," said one Japanese official. "No country would be able to challenge China. If Japan were in, it would have considerable influence."

China's finance ministry did not immediately respond to a request for comment.

The United States had earlier cautioned nations about joining the bank, citing what it called a lack of transparency and doubts about lending and environmental safeguards, and how much influence Beijing would wield.

But its major allies - Britain, France, Germany, Australia and South Korea - signed up anyway.

*NOT A POLITICAL ALLIANCE*

Jin Liqun, secretary-general of China's interim secretariat which is establishing the AIIB, said at a forum in Singapore on Saturday that although China would have the biggest share in the bank, it would not dominate its operations.

"AIIB is a bank, not a political organisation or political alliance," Jin was quoted as saying by China's official Xinhua news agency. He said the AIIB would be "clean, lean and green".

China has said it will announce the AIIB's list of founder members on Wednesday, but it is not clear if the shareholding structure will also be finalised this week.

The Indian official said Asia's total ownership would be between 70 and 75 percent depending on whether Japan joined or not.

A detailed method of determining the breakdown of national shareholdings had yet to be decided, though it could be based on a country's nominal gross domestic product or its GDP calculated on a purchasing-power-parity basis, or a mixture of the two. Purchasing power parity would give more weight to developing nations than to rich economies such as Japan.

The AIIB has drawn applications from more than 50 nations from Asia, Europe and the Middle East despite U.S. misgivings.

Beijing says it will not hold veto power inside the AIIB, unlike the World Bank where Washington has a limited veto.

Beijing has also said a board of governors will control the operations of the new bank. Founder members will initially pay up to one-fifth of the AIIB'S $50 billion authorised capital, which will eventually be raised to $100 billion.

Brazil, Russia, India, China and South Africa will also hold a meeting in Washington this week to iron out details of another international development bank, the $100 billion BRICS bank launched last year, officials in Brasilia and Moscow said.

"The idea is that everything will be ready for 2016," said an official in Brasilia, adding that governance issues will be taken up in Washington.

(Additional reporting by Takashi Umekawa in Tokyo, Anthony Boadle and Alonso Soto in Brasilia, and Lidia Kelly in Moscow; Writing by Raju Gopalakrishnan; Editing by Mark Bendeich)
.

Reactions: Like Like:
1


----------



## Huaren

Yizhi said:


> Asian Infrastructure Investment Bank - Wikipedia, the free encyclopedia
> 
> 
> 
> 
> 
> *Prospective Founding Members (PFMs) of AIIB*
> View attachment 214990
> 
> 
> i like blue..



Lol, north korea in the same color as US and Japan.

Reactions: Like Like:
3


----------



## mike2000 is back

hehehehehehehehhehe......seems my country really opened the floodgates for others to follow? What where they waiting for, our lead? hmmmmm.........im really surprised this bank got so much members/applicants, Its like an international financial organization already. I didnt expect such a turnout. Interesting though. I like interesting geo political games. means more fun

Reactions: Like Like:
1


----------



## AndrewJin

mike2000 is back said:


> hehehehehehehehhehe......seems my country really opened the floodgates for others to follow? What where they waiting for, our lead? hmmmmm.........im really surprised this bank got so much members/applicants, Its like an international financial organization already. I didnt expect such a turnout. Interesting though. I like interesting geo political games. means more fun


where is Mike2000?


----------



## Aepsilons

AndrewJin said:


> where is Mike2000?



He's back!

*drum roll*



@mike2000 is back



mike2000 is back said:


> hehehehehehehehhehe......seems my country really opened the floodgates for others to follow? What where they waiting for, our lead? hmmmmm.........im really surprised this bank got so much members/applicants, Its like an international financial organization already. I didnt expect such a turnout. Interesting though. I like interesting geo political games. means more fun



Its good that the AIIB is relatively successful in its inception. At least this way developing nations now will have more choices in regards to loans for infrastructure development. Financial analysts and economists refer to this as 'diversifying one's portfolio'.

Reactions: Like Like:
2


----------



## mike2000 is back

AndrewJin said:


> where is Mike2000?



here he is Andrew the lli pika.

Reactions: Like Like:
1


----------



## Aepsilons

mike2000 is back said:


> here he is Andrew the lli pika.



Andrew looks so deliciously scrumptious doesn't he? Bunny soup, anyone? lol

Reactions: Like Like:
1


----------



## AndrewJin

mike2000 is back said:


> here he is Andrew the lli pika.


So we are all Ili Pikas!


----------



## Aepsilons

AndrewJin said:


> So we are all Ili Pikas!



lol


----------



## AndrewJin

Nihonjin1051 said:


> lol


I nominate you as the governor of province of America under the Ili Pika Galaxy


----------



## mike2000 is back

Nihonjin1051 said:


> Andrew looks so deliciously scrumptious doesn't he? Bunny soup, anyone? lol



lol yeah he looks delicious. would love to have it in a nice hot soup with lots of pepper and spices, yummy taste really good i guess.

Reactions: Like Like:
1


----------



## AndrewJin

mike2000 is back said:


> lol yeah he looks delicious. would love to have it in a nice hot soup with lots of pepper and spices, yummy taste really good i guess.


No no no, I'm in a Buddhist mountain, temporarily a vegetarian. No blood and killing!


----------



## Aepsilons

mike2000 is back said:


> lol yeah he looks delicious. would love to have it in a nice hot soup with lots of pepper and spices, yummy taste really good i guess.



With some taters....


----------



## AndrewJin

Nihonjin1051 said:


> With some taters....

Reactions: Like Like:
1


----------



## Aepsilons

AndrewJin said:


> View attachment 215236




Are you there now?


----------



## AndrewJin

Nihonjin1051 said:


> Are you there now?


Yep. I am in a tourist shuttle bus to the cable car station. The picture is about the village at the foot of Jiuhuashan(one of the four major Buddhist mountains in China).


----------



## terranMarine

mike2000 is back said:


> hehehehehehehehhehe......seems my country really opened the floodgates for others to follow? What where they waiting for, our lead? hmmmmm.........im really surprised this bank got so much members/applicants, Its like an international financial organization already. I didnt expect such a turnout. Interesting though. I like interesting geo political games. means more fun



Don't get carried away now  , here's some dose of reality check for ya Does the UK remain a world power? - BBC News

Reactions: Like Like:
1


----------



## Aepsilons

AndrewJin said:


> Yep. I am in a tourist shuttle bus to the cable car station. The picture is about the village at the foot of Jiuhuashan(one of the four major Buddhist mountains in China).



Enjoy your stay buddy! Safe travels. Pray for all of us. 

Om Ma Nee Pad Nee Hum... 

_/\_

Reactions: Like Like:
1


----------



## Beidou2020

UK shouldn't even be part of the UNSC. Neither should France.

Countries with no independent foreign policy should not have UNSC veto power.

European countries are just a branch of American foreign policy. Giving a vote to a European is just giving another vote to the U.S.

Reactions: Like Like:
1


----------



## AndrewJin

Nihonjin1051 said:


> Enjoy your stay buddy! Safe travels. Pray for all of us.
> 
> Om Ma Nee Pad Nee Hum...
> 
> _/\_


南无阿弥陀佛

Reactions: Like Like:
3


----------



## TaiShang

*China's IMF Challenger Bank Approves 7 New Founder Members, Now Totals 57*

*



*

*China's Ministry of Finance has announced seven new founding-member nations to its Asian Infrastructure Investment Bank (AIIB), bringing the total to 57; Norway is also on the list, despite the deep freeze in relations over the Nobel peace prize row*

The China-led AIIB has approved seven new nations as prospective founding members, bringing the total to 57.

The new nations to sign in are Sweden, Israel, South Africa, Azerbaijan, Iceland, Portugal and Poland.







AIIB and BRICS Bank Pose Threat to Bretton-Woods Dollar System – Engdahl

Founding members of the AIIB have the right to help define the bank's rules, while countries that applied to join after March 31 will be considered ordinary members with voting rights only but less say in the rule-making process.

Norway is also on the list despite the complete freeze in relations and cutting all high-level ties between the two countries.

The conflict goes back to 2010 when the Nobel Peace Prize went to jailed Chinese dissident Liu Xiaobo.

The Norwegian government had insisted that the Nobel Committee is independent and makes its own choices

The United States and Japan are the two major nations to have abstained from joining the AIIB.

On Tuesday, a senior Canadian finance official said that Ottawa was actively considering joining the institution, despite US and Japanese reservations, according to Reuters.

China Blocks Taiwan's Bid to Join AIIB as Founding Member

So far, Taiwan is the only territory to have been rejected its application.

China said it would welcome the island to join in the future "under an appropriate name".

China sees Taiwan, the self-ruled island of 23 million people as a renegade province; it considers Taiwan part of its territory and has repeatedly pledged to take it back, with the use of force being mulled as an option.

"Chinese Taipei" is the name Taiwan wants to use when joining the AIIB




Read more: China's IMF Challenger Bank Approves 7 New Founder Members, Now Totals 57 / Sputnik International

Reactions: Like Like:
3


----------



## mike2000 is back

terranMarine said:


> Don't get carried away now  , here's some dose of reality check for ya Does the UK remain a world power? - BBC News



Seen countless number of comments saying such senseless/eye catching things/rhetoric. thats music to my ears. The day the world stops speaking our language as defacto world language, we stop being part of P5, China becomes wealthier/have a better living standard than us, your officials/leaders stop sending their elite kids/children to live a better life and study here, you become overall more advanced than us technologically,you can get involved/influence our internal issues/affair the way we influence yours, we stop being the world's financial capital/hub. Etc etc then I will know we are not a world power and China is a superpower.

Reactions: Like Like:
1


----------



## terranMarine

mike2000 is back said:


> Seen quite a countless number of comments saying such senseless things on thats music to my ears. The day the world stops speaking our language as defacto world language, we stop being part of P5, China becomes wealthier/have a better living standard than us, your officials/leaders stop sending their elite kids/children to live a better life and study here, you become overall more advanced than us technologically,you can get involved/influence our internal issues/affair the way we influence yours, we stop being the world's financial capital/hub. Etc etc then I will know we are not a world power and China is a superpower.


 , don't look at me it's a British journalist who wrote that article depicting your country that way lol. And for the record England hasn't been a world power for decades while China is seen as the rising power globally. I do acknowledge that UK does look after her own interest rather than blindly following what her own son tells her mother to do. By joining AIIB i certainly welcome this kind of "influence" England has and not placing ridiculous restrictions on Chinese investments like USA. Again don't get carried away, we know the reason why UK joined our bank is simply for trying to get Chinese benefits and improving ties. Hence USA criticizes UK for accommodating China

Reactions: Like Like:
4


----------



## AndrewJin

mike2000 is back said:


> Seen countless number of comments saying such senseless/eye catching things/rhetoric. thats music to my ears. The day the world stops speaking our language as defacto world language, we stop being part of P5, China becomes wealthier/have a better living standard than us, your officials/leaders stop sending their elite kids/children to live a better life and study here, you become overall more advanced than us technologically,you can get involved/influence our internal issues/affair the way we influence yours, we stop being the world's financial capital/hub. Etc etc then I will know we are not a world power and China is a superpower.


Your tone is just like mike2000

Reactions: Like Like:
1


----------



## Huaren

AndrewJin said:


> Your tone is just like mike2000


hence the name?


----------



## AndrewJin

Huaren said:


> hence the name?


He was banned or couldn't remember his code?


----------



## Devil Soul

*China-led bank starts with 57 members*
AFP —




No nations that formally sought to become founding members of the AIIB are known to have been refused. —Reuters
BEIJING: A total of 57 countries have been approved as founding members of a Chinese-led infrastructure bank, Beijing said on Wednesday, and Norway is included despite frosty relations over a Chinese dissident’s Nobel prize.

No nations that formally sought to become founding members of the Asian Infrastructure Investment Bank (AIIB) are known to have been refused. But Taiwan, the self-governing island that Beijing regards as part of its territory, had its application for founding membership rejected.

*The last seven countries approved as founding members by Wednesday’s deadline were named by China’s finance ministry as Sweden, Israel, South Africa, Azerbaijan, Iceland, Portugal and Poland.*

*The 57 include four of the United Nations Security Council’s permanent five, 14 of the 28 European Union countries, and 21 members of the 34-strong Organisation for Economic Cooperation and Development (OECD).*

*The line-up does not include the United States or Japan but represents a diplomatic coup for China after close US allies such as Britain, France, Germany and Australia decided to take part even after Washington initially opposed them signing up.*

The institution is aimed at financing infrastructure across Asia rather than poverty reduction, and China’s official news agency Xinhua said in a commentary that it offered Western countries “lucrative business opportunities”.

“Welcoming passengers from around the world, an ‘Oriental Express’ train is getting ready to hit the rails toward a destination of common development and win-win cooperation,” it said.

The AIIB would “have a zero-tolerance policy on corruption” and “abide by stringent policies to avoid repeating past mistakes”, Xinhua added.

But critics have expressed concern about its standards and say it could rival the US-led World Bank and the Asian Development Bank, which is headed by Japan.

US Secretary of Commerce Penny Pritzker stressed the importance of such benchmarks to reporters in Shanghai.

“We welcome the AIIB as long as it adheres to the international standards that have been set by the existing multi-lateral organisations like the IMF, the World Bank or the ADB,” she said.

“If operated under those kind of standards, in fact I think there is enormous opportunity for collaboration.”

China has repeatedly said the institution is “open and inclusive”. It approved Norway despite cutting all high-level ties with Oslo after the Nobel Peace Prize went to Liu Xiaobo in 2010.

The Norwegian government has repeatedly maintained that the Nobel Committee is independent and makes its own choices, but Chinese authorities have torpedoed any attempts at normalising relations.

_Published in Dawn, April 16th, 2015_


----------



## ahojunk

*Final list of 57 founding members of the AIIB*

Australia
Austria
Azerbaijan
Bangladesh
Brazil
Brunei
Cambodia
China
Denmark
Egypt
Finland
France
Georgia
Germany
Iceland
India
Indonesia
Iran
Israel
Italy
Jordan
Kazakhstan
Kuwait
Kyrgyzstan
Laos
Luxembourg
Malaysia
Maldives
Malta
Mongolia
Myanmar
Nepal
Netherlands
New Zealand
Norway
Oman
Pakistan
Philippines
Poland
Portugal
Qatar
Republic of Korea
Russia
Saudi Arabia
Singapore
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Tajikistan
Thailand
Turkey
UAE
United Kingdom
Uzbekistan
Vietnam

Reactions: Like Like:
3


----------



## Azizam

AndrewJin said:


> 南无阿弥陀佛
> View attachment 215255


Is that you?

Reactions: Like Like:
1


----------



## ahojunk

.http://news.xinhuanet.com/english/2015-04/15/c_134153438.htm
Interview: Too early to fret over AIIB's stake structure: Japanese economist - Xinhua | English.news.cn

Interview: Too early to fret over AIIB's stake structure: Japanese economist
English.news.cn 2015-04-15 15:10:26

by Yan Liang, Liu Tian

TOKYO, April 15 (Xinhua) -- Concerns that China's large stake in its new initiative of a multilateral development bank would lead to an unchallengeable status for the country within the framework have not abated since the concept of the Asian Infrastructure Investment Bank (AIIB) came into being.

However, a Japanese economist, who calls on his country to join the AIIB at an early date, said it is unnecessary to worry about the shareholding structure of the bank at a time when details related to the bank's governance and stake structure are still pending.

Kiyoyuki Seguchi, research director of the Canon Institute for Global Studies, told Xinhua during an exclusive interview Tuesday that as the AIIB is open to all, China's shareholding will gradually decline with more countries being included in the multilateral development bank and the trend would also be acceptable to all members.

He further pointed out "It is a convention that countries should negotiate first and then decide whether or not to join an international mechanism," adding it is premature to be concerned over transparency and governance issues.

"Compared to the shareholding structure, the way members use their stakes will be more important after the structure is settled, " the expert said.

"However, China's economic scale is so large already, and, according to the International Monetary Fund, its economic scale will be 2.3 times as much as Japan's this year, so it is natural for China to have its stake as 2.3 times as large as Japan's," if Japan decides to join the AIIB, said Seguchi.

The former Rand Corporation international visiting fellow suggested that large shareholding proportions will not necessarily lead to a monopoly since China understands that credibility is significant for the AIIB and it would plunge if China makes decisions at its own will based on its large share.

China has reiterated on different occasions that the AIIB will uphold high standards and learn from the best practices of existing multilateral financial institutions.

Jin Liqun, secretary general of the interim multilateral secretariat of the AIIB, said Saturday that all members will be committed to building a bank which would be lean, clean and green. "Lean is cost effective; clean, this bank will have zero-tolerance on corruption; green means it's going to promote the economy," Jin detailed.

"If China pays enough respect to and follows the traditions of international developmental banks well enough in terms of transparency, governance, environmental protection and energy saving to manage the AIIB, every member will support and respect China's proposals," Seguchi said.

"To this extent, I am confused over Japan's stance to stay out of the AIIB," Seguchi said, saying that Japan should join the AIIB soon so as to be involved in the mechanism's establishment, rather than complaining as an outsider asking for change.

He said that more than half of the Japanese business circle hope Japan joins the AIIB since its cause to develop the Asian region could boost Japanese companies' performances and Japan's participation will also help the AIIB as a financing screen so as to prevent the AIIB from possible distressed debt in the future, as Japan is a seasoned country when it comes to managing a multilateral development bank.

"The AIIB and Japan could forge a win-win situation for both sides. The success of the AIIB will not only benefit China, but also Japan and the entire region," said Seguchi, who maintains an optimistic attitude toward the China-proposed bank and believes that the AIIB will play a constructive role in improving the regional economy and infrastructural development.

"It is known to all that the Asian Development Bank (ADB) is trapped by its limited financing capability and the United States is opposed to the bank's enlarged scale. Therefore, China proposed the AIIB framework to complement the ADB," Seguchi said, adding "A lot of Asian countries will benefit from the AIIB since they face severe financial deficit in infrastructure construction."

Besides Seguchi, other Japanese economic heavyweights and former senior diplomats also urged Japan to join the AIIB at an early date so as to cooperate with other members to boost regional development.

Former Finance Minister Hisahiro Fujii told Xinhua that the AIIB will play a key role of broad cooperation in the region and it could also serve as a platform for regional countries to develop friendship that could lead to regional peace and prosperity.

Meanwhile, Ukeru Magosaki, former chief of the Intelligence and Analysis Bureau at the Japanese Foreign Ministry, said that the most ideal situation for Japan is to forge interdependent relations with regional countries based on pragmatic interests from cooperation.

To this extent, Japan should be the first to announce its decision to join the AIIB, Magosaki told Xinhua, adding that Japan, right now, missed a good opportunity to join the new initiative and, therefore, it needs to reflect on its miscalculation and make a final decision soon.

Seguchi also said that Japan should make its own decision, although there are pressures exerted on it by the United States.
.

Reactions: Like Like:
1


----------



## AndrewJin

Azizam said:


> Is that you?


Me?

Reactions: Like Like:
4


----------



## ahojunk

.
China’s AIIB and the US Reputation Risk | The Diplomat

*China’s AIIB and the US Reputation Risk*
What are the implications of the Asian Infrastructure Investment Bank for the next U.S. president?

By Mercy A. Kuo and Angelica O. Tang
April 16, 2015






India, Iran and Israel joined. Europe’s leading economies – France, Germany, Italy, Switzerland, and United Kingdom – are approved members. Russia is in. Saudi Arabia and the United Arab Emirates are on board. Australia and South Korea are confirmed. Japan has allocated $1.5 billion for AIIB membership, though Tokyo is assessing AIIB’s governance framework and will decide in June. Canada is considering. North Korea’s application was rejected. Currently, 57 countries are confirmed founding members. The United States stands alone.

Critics of the U.S. decision not to join see Washington sidelined as allies jump on the AIIB bandwagon. Proponents of Washington’s position, mainly Obama administration officials, decry the absence of transparent governance standards and competition with the World Bank and Asian Development Bank, even though both banks have endorsed the AIIB. The White House’s concerns over AIIB’s environmental and social responsibility framework, though valid, miss the bigger picture. What is the strategic significance of the AIIB for the next US president and US rebalance to Asia?

*Geopolitics.* A U.S. president with a clear vision of U.S. leadership in Asia would see the geopolitical context of the AIIB. In tandem with the New Silk Road, Maritime Silk Road, and Air Defense Identification Zone, the AIIB reflects the symbiosis of Chinese soft power prowess and hard power calculations. Both serve to fortify China’s growing stature and leverage in recasting the region’s strategic landscape with China at the epicenter. The decision of 57 countries to join the AIIB suggests that a tectonic shift toward a new world economic order is underway. China has surpassed the United States as the world’s largest economy in purchasing-power parity terms and will eventually bridge the GDP gap with the U.S., according to U.S. Department of Agriculture data. It is, therefore, increasingly incumbent on Washington and the next administration to ascertain how the United States will shape this emerging Asia-centric global economic system. To this end, moving the Trans-Pacific Partnership (TPP) – the crux of the U.S. rebalance to Asia – forward requires the White House and Congress to prevent local politics from trumping national economic interests, and constraining long-term geopolitical leverage in the region.

*Governance.* The next U.S. administration would see that the rebalance could be advanced if AIIB fosters a culture of transparent governance and social responsibility throughout Asia. The real proof of AIIB’s efficacy is for China to ensure that the level of AIIB governance standards is commensurate with those of the World Bank, International Monetary Fund and Asian Development Bank. Whether it is forging the Pakistan-China economic corridor to connect gas and oil pipelines to Middle East, building agriculture, telecommunications and transportation infrastructure in Africa or constructing ports in the Indian Ocean, funding and implementation oversight of China’s investments in global megaprojects have and will continue to warrant investor, stakeholder and policy scrutiny. Perceptions of corruption continue to taint China’s international image despite President Xi Jinping’s ongoing anti-corruption campaign. China ranked 100th among 175 countries in Transparency International’s 2014 Corruption Perceptions Index – a significant drop from its 80th in the 2013 index. With the establishment of the AIIB, China will need to demonstrate credible accountability in upholding international rules and norms.

*Currency*. One main function of the AIIB will be to facilitate the internationalization of China’s currency – renminbi (RMB). While the next White House may understand the impact of RMB internationalization on global capital markets, it will face the challenge of managing the domestic politics of Chinese currency with Congress and constituents. Congressional review over current TPP legislation, which includes an amendment against Chinese currency manipulation, is just as much a political contest as it is a “greenback vs redback” currency debate. By joining AIIB, Singapore and London – both global financial leaders – will strengthen their market positions as centers for RMB-denominated offshore transactions. London intends to be the first RMB clearing house outside Asia, according to the U.K. Chancellor of the Exchequer George Osborne. The AIIB founding and RMB internationalization are interlinked vectors driving economic integration between Asia and the rest of the world. US allies are capitalizing on this trend. U.S. presidential candidates would benefit from grasping its long-term impact on the U.S. rebalance to Asia.
.

Reactions: Like Like:
2


----------



## ahojunk

.
BRICS Development Bank won’t rival China-led AIIB, but complement – CBR head — RT Business

*BRICS Development Bank won’t rival China-led AIIB, but complement – CBR head*
Published time: April 17, 2015 16:34






The BRICS New Development Bank and the Asian Infrastructure Investment Bank (AIIB), both seen as alternatives to US – led institutions, will not compete, but rather complement each other, said the head of the Central Bank of Russia Elvira Nabiullina.

Nabiullina made the statement Thursday in Washington where she is attending the spring meetings of the International Monetary Fund and World Bank.

_"I don't think there's less energy (around the BRICS bank). We didn't feel that. To the contrary, all the representatives of all the countries ... were very motivated to reach speedy practical results,"_ she said.

Both development institutions have been gaining popularity and are seen as a counterbalance to the IMF and World Bank. President Obama has reacted insisting the US should make the rules for the global economy, and not China. The US and Japan have not applied for the membership in either of the new development banks.

Also in Washington Russia’s Finance Minister Anton Siluanov said that the BRICS New Development Bank will be launched before the BRICS summit in Ufa scheduled for July 9-10.

_“We discussed a legal framework for this bank, agreed that by that time [July BRICS summit – Ed.] all of the countries should ratify agreements to set up the Bank,”_ Siluanov said.

The BRICS development bank will start with Russia, Brazil, India, China and South Africa, and was first proposed in 2012. The Bank will be open to other members of the United Nations, the Russian Finance Ministry said in March.

Each of the five-member countries is expected to allocate an equal share of the $50 billion startup capital, which will be expanded to $100 billion. Russia has agreed to provide $2 billion from the federal budget for the bank over the next seven years. The money will be used to finance development projects in emerging economies. India will serve as the first five-year rotating president, and the first Chairman of the Board will be Brazilian.

The Asian Infrastructure Investment Bank (AIIB), established in 2014 by China, will finance infrastructure projects like the construction of roads, railways, airports in the Asia-Pacific Region. Its headquarters will be in Beijing. The initial subscribed capital of AIIB will be $50 billion and is planned to be increased to $100 billion.
.

Reactions: Like Like:
2


----------



## ahojunk

.
China’s AIIB: The Final Tally | The Diplomat

*China’s AIIB: The Final Tally*
Interesting facts about the members of China’s AIIB — with even more interesting implications. 
By *Shannon Tiezzi*
April 17, 2015

The deadline for prospective founding members to submit their applications to China’s new Asian Infrastructure Investment Bank (AIIB) came on March 31, leading a flurry of final applications from countries all over the world. When the dust settled, China moved on to selecting who would actually made the cut. Yesterday, the AIIB released its final, approved list of founding members (*excluding Taiwan*). With 57 countries signed up, the AIIB includes well over a quarter of the world’s nations. Even more interestingly, 16 of the world’s 20 largest economies are on board (with the U.S., Japan, Mexico, and Canada as the holdouts).

So which countries will be joining the AIIB? Here’s a map based on the list of prospective founding members found on AIIB’s official website:






A few key points stand out here.

For one thing, Japan is nearly alone in Asia in not joining the AIIB. It’s the only major economy in all of Asia not to seek membership (Taiwan, as noted above, applied and was turned down, but will still seek to join later as an ordinary member). Looking at the other non-AIIB members in Asia – three are currently dealing with major uprisings (Iraq, Syria, and Yemen), one (Afghanistan) is undergoing its own fragile rebuilding process, one (Turkmenistan) avoids multilateral entanglements on principle, and one (North Korea) is extremely isolated internationally. Three of the other Asian non-applicants rank 116th (Papua New Guinea), 168th (Bhutan), and 174th (Timor-Leste) in terms of GDP, according to the World Bank. That’s not exactly great company for Japan. Even North Korea reportedly sought membership but was told it would need far more economic transparency to join.

The AIIB also has great representation in Europe. Nearly all of Western Europe (save Belgium and Ireland) officially signed up for the new bank. It’s a different story in Eastern Europe, where countries generally don’t have the excess capital to invest in an extra-regional bank (and thus Eastern European countries are not involved with the Asian Development Bank either). Meanwhile, the interest in AIIB from Western Europe marks a stark contrast between that region and North America. The U.S., Canada, and Mexico all declined to sign on, with Washington being particularly critical of the new project (including pressuring its friends and allies not to join).

However, the glut of Western European countries involved in AIIB doesn’t mean Europe will be able to play a major role in the bank’s governance. The AIIB’s chief, Jin Liqun, previously said that non-Asian countries will be limited to holding a total of 25 percent of AIIB shares. That means China can claim all of the prestige of having Western Europe join its new pet project without actually have to share control.

It also means that Asian countries with governance concerns (including Australia and South Korea) will have to be more vocal about these issues to ensure AIIB actually lives up to international standards. China has announced that negotiations over the AIIB charter will take place in April and May, with the signing of the charter scheduled for the end of June.

One other intriguing point: All of the BRICS nations – Brazil, Russia, India, China, and South Africa – are on board. That means double duty for these countries, as they are also in the midst of getting the new BRICS Development Bank (formally launched last July) up and running.
.

Reactions: Like Like:
3


----------



## ahojunk

Asian Infrastructure Investment Bank - Founding Members
.

Reactions: Like Like:
2


----------



## AndrewJin

ahojunk said:


> Asian Infrastructure Investment Bank - Founding Members
> .
> View attachment 215777


Alphabetically, Aussie is the first!

Reactions: Like Like:
1


----------



## ahojunk

AndrewJin said:


> Alphabetically, Aussie is the first!
> View attachment 215778



.
@AndrewJin,

You are very observant and perceptive too!

Aussies are always number one.

Reactions: Like Like:
2


----------



## AndrewJin

ahojunk said:


> .
> @AndrewJin,
> 
> You are very perceptive!
> 
> Aussies are always number one.


Koala is sleeping, but quokka is not!

Reactions: Like Like:
1


----------



## ahojunk

AndrewJin said:


> Koala is sleeping, but quokka is not!
> View attachment 215779


.
Not this koala, he is wide awake.
Isn't he cute looking?






Just in case you didn't notice, it's my avatar.

Reactions: Like Like:
2


----------



## AndrewJin

ahojunk said:


> .
> Not this koala, he is wide awake.
> Isn't he cute looking?
> 
> 
> 
> 
> 
> 
> Just in case you didn't notice, it's my avatar.


Quite rare time for you to be awake.


----------



## ahojunk

.
China says AIIB not a bid to overthrow system

China says AIIB not a bid to overthrow system
Published: 2:50 pm, Saturday, 18 April 2015





_Vice Finance Minister Zhu Guangyao_

China's proposed infrastructure bank for Asia is intended to complement, not replace, existing lenders dominated by the US and Japan, a senior Chinese official says.

Vice Finance Minister Zhu Guangyao said after a meeting of the Group of 20 leading world economies that China has proposed the Asian Infrastructure Investment Bank, or AIIB, to help fill an estimated $US8 trillion ($A10.25 trillion) gap in infrastructure funding for the region over the next decade.

Fifty-seven countries have signed up, including 16 of the world's 20 largest economies.

Notable exceptions are the US and Japan, which are the leading shareholders of the World Bank and Asian Development Bank and have expressed concerns over the new bank's governance standards.

But China's proposal has been a diplomatic coup, as Australia, Britain, France and Germany have broken with the US and joined Asian governments in seeking membership.

The US also faces growing criticism over the refusal by congress to approve reforms to the International Monetary Fund that would increase the voting power of fast-emerging economies such as China, Brazil and India, and boost the Fund's resources to help countries facing financial troubles.

Zhu said China supports and contributes to the IMF and World Bank and plays a constructive role in the current international financial system.

'We want to improve that and enhance that capacity rather than overthrow the current system,' he told the Atlantic Council think tank.

US officials opposed the creation of the AIIB, saying it might undercut institutions like the World Bank by extending credit without adequate environmental, labour and social safeguards.

Zhu said the AIIB's founding members would meet later this month to discuss the bank's mandate and he hoped those negotiations could be concluded within two to three months.

- AP

Reactions: Like Like:
1


----------



## ahojunk

_*I don't understand Japan, who gave up "preferential treatment" to side with US and got nothing in return.*_
_*Japan is now increasingly isolated and marginalized in Asia.*_
.
----------------------
Japan declines China's offer of a top position in AIIB｜WantChinaTimes.com

*Japan declines China's offer of a top position in AIIB*
Staff Reporter 2015-04-19 09:25 (GMT+8)





_German chancellor Angela Merkel and Japanese prime minister Shinzo Abe shake hands at a press conference held at the prime minister's official residence, Tokyo, Mar. 9. (File photo/ Xinhua)_

Beijing had offered Japan a position as top-ranking vice-president at the China-backed Asia Infrastructure Investment Bank (AIIB) but Japan declined the offer and chose to align with the US instead, Japan's Nikkei reported on Apr. 15.

Sources also reveal that Germany has asked Japan to join the AIIB, but Japan's government spokesman has refuted the statement.

Jin Liqun, China's former deputy finance minister and the interim head of AIIB, reportedly spoke with Takehiko Nakao, president of Asian Development Bank (ADB), at the Diaoyutai State Guest House in Beijing.

Jin expressed China wish for Japan to join the AIIB and that he was willing to explain this in person to the Japanese government if necessary, according to informed sources.

Jin, a former vice president of the ADB, is deemed the most probable candidate for the position of AIIB's first president. His meeting with Nakao was on Mar. 22, nine days before the deadline for applications to become one of the organization's founder members.

In addition to offering Japan the post of vice president, Jin also proposed the creation of a post of director which would represent Japan only.

Despite the preferential deal, Japan has stood with the US and chose to stay away from the AIIB.

In a telephone call on Apr. 1 between German chancellor Angela Merkel and Japanese prime minister Shinzo Abe, the Japanese leader asked Germany to collaborate in an effort to ensure transparency in the operation of the AIIB, while Merkel urged Japan to join the AIIB, Japan's Kyodo News reports informed sources as saying.

Yoshihide Suga, Japan's chief cabinet secretary, denied the Kyodo News report. He said in a press conference on Apr. 16 that Japan is cooperating with the Group of Seven (G7) in regard to the AIIB.

Among the G7 nations, the UK, Germany, France and Italy plan to join the AIIB as founding members. The total numbers of founding members stands at 57.

The US has recently stated that they welcome the establishment of the AIIB. Yang Tao, assistant to the director of Institute of Finance and Banking at the Chinese Academy of Social Sciences, has said that the US had not expected to see so many developed nations in the west join the AIIB. The AIIB will become more influential as more countries join, and the US would be marginalized in the new financial institution if it does not take part.

There are scholars and former politicians in Japan calling for it to join the regional financial institution. Abe is to meet with US President Barack Obama on Apr. 28 and the AIIB is expected to be on their agenda.
.

Reactions: Like Like:
2


----------



## terranMarine

@Nihonjin1051 
 are you even more vexed after Japan rejected this offer from China?

Reactions: Like Like:
2


----------



## Aepsilons

terranMarine said:


> @Nihonjin1051
> are you even more vexed after Japan rejected this offer from China?


----------



## ahojunk

*Now, countries are positioning their candidates for senior AIIB positions. *
*Regardless, it's China who is calling the shots*.

------------------
Singapore Mulls Need for Nation’s Presence in Management of AIIB - Bloomberg Business

Singapore Mulls Need for Nation’s Presence in Management of AIIB
by Andrew Mayeda & Sharon Chen
April 19, 2015 6:31 AM AEST





_Tharman Shanmugaratnam, Singapore's Finance Minister and Deputy Prime Minister. Singapore joined 20 countries in being first to sign up for the AIIB in October. Photographer: Munshi Ahmed/Bloomberg_

Singapore, one of the earliest nations to back a China-led development lender, is among countries considering the need for a presence in the Asian Infrastructure Investment Bank’s management.

“We were one of the early prospective founding members. We’ve moved early, and we’ve encouraged others to move as well,” Finance Minister and Deputy Prime Minister Tharman Shanmugaratnam said in an interview in Washington on Friday. “Several countries including ourselves are looking at whether we should have our own candidates represented within the management of the institution, but it’s too early to say anything on that.”

Singapore joined 20 countries in being first to sign up for the AIIB in October. Since then, U.S. allies from Australia to the U.K. have opted to back the bank, confounding efforts by the administration of President Barack Obama to campaign against the institution.

“There’s now a recognition that the AIIB will be a win-win, not just for China or those who joined early, but for the global system,” Shanmugaratnam said. “There’s no lack of infrastructural needs out there. There’s a need for more capacity. If it does at the same time mean a little bit of competition, I would say that’s not a bad thing. Not a bad thing as long as it’s not a race to the bottom in terms of standards, but a race to the top.”

The AIIB has made clear its intention to be an institution with high standards in governance and in selecting the type of projects, said Shanmugaratnam, 58. Extensive discussion is taking place on the articles of agreement and governance roles, he said.
.


----------



## ahojunk

*I sincerely hope Taiwan is successful in joining the AIIB as "an economic entity." *
*Not being a member means being left out of Asian infrastructure projects*. 

-------------------------
Taiwan AIIB entry is 'highly probable,' says Chinese official - The China Post

Taiwan AIIB entry is 'highly probable,' says Chinese official
By Yuan-Ming Chiao, The China Post
April 19, 2015, 12:03 am TWN

TAIPEI, Taiwan -- Mainland China's Deputy Minister of Finance Zhu Guangyao (朱光耀) said Friday that Taiwan's chances of entering the Asian Infrastructural Investment Bank (AIIB, 亞投行) had a high probability. Zhu made the comment while attending a meeting of the Atlantic Council (大西洋理事會), a Washington-based think tank.
When questioned by a reporter from the Central News Agency regarding the suitability of Taiwan's participation under the designation “Chinese Taipei,” Zhu voiced his country's support for the island's bid for membership as “an economic entity.” He added that previous international practice for Taiwan's participation under this formula included the World Trade Organization (as “Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu”) and APEC (under “Chinese Taipei”).

Zhu said that extensive negotiations were under way with Taiwan regarding the designation issue. Taiwan's Ministry of Finance (MOF) responded to Zhu's comments in Washington by confirming that negotiations over an appropriate name for its AIIB participation were in fact taking place. It reiterated the stance of “dignity and equality” as required principles for membership.

*Scholars Advocate Awareness on AIIB*

Meanwhile, scholars pushed for greater public awareness of the international context behind China's AIIB motivations. The R.O.C. International Studies Association (中華民國國際關係學會) held a discussion forum yesterday at National Taiwan University on the possible effects of the AIIB on Taiwan. The event was led by local scholars including the association's president and former Deputy Secretary-General of the National Security Council Philip Yang (楊永明) and Mignonne Chan (詹滿容), founder of Out-of-the-Box Consultancy (方外智庫) and former senior advisor to the president at the National Security Council.

While answering questions from the public and media present, the scholars agreed that the formation of the AIIB represented a watershed moment in recent history since the Cold War. Yang said that the investment bank belongs to Asia and the world, and that Taiwan needs to face new historical circumstances. He argued that the government needs to take a more proactive stance, including departmental and ministerial meetings and more consultations with other countries in APEC.

Chan argued that bank participation would bring more opportunities to the island's small and medium-sized enterprises, and that it presented a better alternative to “building a cart behind closed doors.” She also questioned the issue of the AIIB's operational transparency, a subject broached by the U.S. and its ally Japan, both of which have not applied to join the bank as “a non-issue.”

The scholars also emphasized the need for public awareness on the larger international context at play in China's decision to form the AIIB. Tsai Tung-chieh, a professor at National Chung Hsin University urged the public to utilize the wide ranging number of Internet-based sources to educate themselves on the issue, rather than wait for government explanations. Li Da-jung, a professor at Tamkang University added that Taiwan cannot sustain itself without taking international trends into consideration.

”The world will not cease to move forward because of Taiwan,” Li said.
.

Reactions: Like Like:
1


----------



## ahojunk

*Ha Ha! Some advice for AIIB:-*
*- be client-focused, look for what is best in their interests*
*- be humble and constantly learning*
*- cooperate with other institutions*
*All these are just plain common sense*.

--------------------------------------
Interview: Client-focused, humble learning, cooperation are key lessons for AIIB's success
English.news.cn 2015-04-20 07:09:12

By Xinhua writer Gao Pan


WASHINGTON, April 19 (Xinhua) -- As representatives of the 57 founding countries gather later this month to prepare for the establishment of the Asian Infrastructure Investment Bank (AIIB), a former World Bank official suggested that the new institution could draw three important lessons from the operational experiences of multilateral development banks over the last five decades to become more successful.

"The first is how important it is to be client-focused, to make sure the clients, the developing countries, to decide what's in their best interests," said Vikram Nehru, a former World Bank chief economist for East Asia and a senior associate in the Asia Program at the Carnegie Endowment for International Peace, a Washington-D.C. based think tank.

"Ensuring the developing countries in the driver's seat is absolutely central" to the success of the China-proposed AIIB, Nehru told Xinhua in a recent interview on the sidelines of the spring meetings of the International Monetary Fund (IMF) and World Bank.

As a new multilateral institution focusing exclusively on infrastructure development, the AIIB, said China, will be dominated by developing countries, and their requests and demands need to be respected.

The establishment of the AIIB is an attempt to help fill Asia's infrastructure investment gap and promote economic development in the region, China's vice finance minister Zhu Guangyao said Friday in a speech at the Atlantic Council, another U.S. think tank, noting that India and other Asian countries are now facing the same challenge of infrastructure bottleneck.

The Asian Development Bank (ADB) estimated in 2009 that Asia needs about 8 trillion U.S. dollars in investment by 2020 to improve the region's battered infrastructure to keep its economies humming.

The second lesson for the AIIB is to be "humble" and " constantly learning from local circumstances, local facts and experiences from other countries to see what works best," said Nehru, who served in a number of senior management positions in the World Bank from 1981 to 2011.

Representatives of the 57 founding countries, which were finalized Wednesday, will convene at the end of April, and May to deliberate on the AIIB charter, of which management structure will be the most important part.

China has said the AIIB will draw experiences from other multilateral development banks and avoid their detours so as to be more cost-effective and efficient. The new bank will feature a three-level management structure that includes a board of governors, board of directors and senior management, according to the Chinese Finance Ministry.

Zhu said there are many debates about whether or not the AIIB should have a resident board of directors commonly adopted by the World Bank and the ADB. The intention of these debates is to "increase efficiency and improve the capacity" of the bank to better serve the clients, but it will be finally decided by coming negotiations among founding members, he said.

Nehru believes it's a good idea to have a non-resident board of directors for the AIIB, as it would help make a clear distinction between the board and the management, and also have great accountability.

"When you have a non-resident board, then when the board meets periodically, it has to focus on the policies of the institution and its strategy, leaving up to the management to implement those policies and that strategy," he said.

The third lesson for the AIIB "would be to cooperate with other institutions" to apply the best standards, said Nehru, noting that cooperation between the AIIB and existing institutions will make sure developing countries "get the best services" from multilateral development bank community.

The heads of the World Bank and the ADB have welcomed the AIIB with open arms, pledging to strengthen cooperation with the new multilateral institution.

"Infrastructure needs in the developing world are enormous. They are enormous in Asia for AIIB. Our full expectation is that we will continue to work closely," World Bank President Jim Yong Kim said Thursday at a press conference.

With initial subscribed capital of 50 billion U.S. dollars and planned authorized capital of 100 billion dollars, China is also aware that the bank and its members alone cannot bridge the funding gap in Asia.

The AIIB is intended to play a complementary role alongside existing multilateral development banks, and China welcomes the World Bank and the ADB to increase infrastructure investment, Zhu said.

Nehru suggested that the AIIB could start cooperating with the World Bank and the ADB through co-financing for existing infrastructure projects which are already in the pipeline.

If the AIIB wants to cooperate with the private sector on financing individual infrastructure projects and raise capital from international financial markets, it has to meet high international standards in terms of environmental evaluation and social safeguards, Nehru noted.

"We agree with high standards, and opinions will be gathered through negotiations and reflected in the formal legal document," Zhu echoed.

With the signing of the charter slated for the end of June, the AIIB looks set to be launched by the end of the year.

If the AIIB could draw valuable lessons from existing multilateral development banks, there is no reason to believe that this new initiative could not be successful, many global finance officials agreed during the spring meetings.

Nehru said it's "quite remarkable" for the AIIB to already have 57 founding members from Asia, Europe and the Middle East, as the ADB has just 67 members today after so many decades of operation.

"I believe Chinese authorities want to have a modern, global, and high-quality institution," he added.
.

Reactions: Like Like:
2


----------



## TaiShang

*COMMENTARY / JAPAN | SENTAKU MAGAZINE*
*Why Japan won’t join the AIIB*

The world has been shaken by the decisions of major Western European powers to join China’s scheme of creating the Asian Infrastructure Investment Bank (AIIB), which have left Japan and the United States out of the picture — as intended by Beijing.

Initially the supporters of the plan were limited mainly to developing countries in Asia. On March 12, however, Britain surprised the world by announcing its intention to become a founding member of the bank. This news was followed soon by similar announcements by Germany, France and Italy.

A major question now is whether the AIIB will become a savior for Asia, which faces enormous needs for infrastructure-related construction projects or will the bank become a tool to help China gain hegemony in the region. Japan holds the key.

The recent turn of events in favor of China has had a strong impact on Japan, which had sought to join hands with countries like the United States, Britain and Germany to prevent China from gaining economic dominance in Asia. A Finance Ministry official described the development as serious as the one that Japan faced in 1939 when Nazi Germany concluded a nonaggression pact with the Soviet Union, which Tokyo regarded as a potential enemy.

Even though there are voices within Japan’s political, bureaucratic and academic circles favoring Tokyo’s participation in the AIIB scheme, the administration of Prime Minister Shinzo Abe has adopted a policy of not permitting the expansion of China’s economic influence, insisting that infrastructure-construction needs in Asia should be met by strengthening the Asian Development Bank (ADB), which is principally under a Japan-U.S. umbrella.

The AIIB scheme was first announced by Chinese President Xi Jinping in 2013 as an international financial institution to fund rapidly growing infrastructure projects in Asia. Among those agreeing to become founding members were the Association of Southeast Asian Nations (ASEAN) countries, Kazakhstan and other Central Asian states, India, Saudi Arabia and a few other Middle-Eastern oil rich countries, and New Zealand.

As Britain, Germany, France, Italy, Switzerland and Luxemburg announcing their intentions to take part in the AIIB, the number of prospective founding members of the bank grew to 33. In addition, Australia’s participation was certain as 40 percent of its iron ore and natural gas exports goes to China. South Korea, which relies on China for 25 percent of its exports, announced that it would join on March 26 despite Washington’s call against such an action. [The number of founding members eventually expanded to 57.]

The AIIB will have an initial paid-up capital of $50 billion (about ¥6 trillion), of which one half will be contributed by China. With its headquarters likely to be in Beijing, the bank will probably be headed by Jin Liqun, the former head of the China International Capital Corp. who once served as vice president of the ADB. With so much Chinese influence, the bank can without much exaggeration be called “a financial institution by China and for China.”

The ADB, the rival of the AIIB, was founded in 1966 with the participation of 31 countries and regions not only from Asia but also from North America and Europe. The ratios of its capital contribution are quite diversified, with Japan accounting for 15.67 percent, the U.S. 15.56 percent, China 6.47 percent, India 6.35 percent, Australia 5.8 percent, Canada 5.25 percent, Indonesia 5.17 percent and South Korea 5.05 percent. Headquartered in Manila, its president’s office has to date been occupied by Japanese.

The ADB maintains fairness and impartiality as applications for loans are screened by its Board of Governors, which is made up of representatives from all member nations so that no one country exerts undue influence.

The AIIB, on the other hand, not only will be under strong Chinese influence but also will not have such a board for screening loan applications. It is said that since the days when he was ADB vice president, Jin has been of the opinion that decision making by the board was a waste of time and prevented quick action.

Thus once the AIIB starts its operations, nobody would be able to stop Beijing from making unilateral decisions. Another way of looking at it is that the bank will become a tool for implementing the external economic policies of the Chinese Communist Party, enabling China to use funds contributed by other countries for projects that best suit its own strategies.

The reason why major industrialized economies initially hesitated to join the AIIB scheme was that such ulterior motives of Beijing were obvious and also that they feared the possibility of Asia becoming dominated by China. This stance allowed those countries without uttering any words to persuade Beijing to follow global standards in structuring the AIIB, and to make it a democratic and highly transparent financial institution that contributes to economic development.

Therefore the negative impact of Britain’s about-face is all the more far-reaching. While welcoming London’s move, Beijing warned Germany and France that unless they join the bank, they would not only be put into disadvantageous positions in doing business with China but also be discriminated against in the bank’s loan projects.

These were serious threats to both countries as China is the largest market for Volkswagen Group of Germany while Areva SA of France has won many orders to build nuclear reactors in China and is looking for more. Britain hopes that China’s leading corporations and banks will raise funds in the City of London. Perhaps the West European powers are not worried about China’s exercise of greater hegemony in Asia because of the huge distance separating them from Asia.

Although the idea of making the AIIB an impartial international financial institution through inside efforts after joining it may sound feasible, no member countries will be able to clash head on with China and change the AIIB since Europe is preoccupied with its own problems, like the situation in Greece. Should one country make such an attempt, Beijing would likely respond with “divide and rule” tactics, threatening to give more favorable terms to other countries.

Japan and the U.S. are faced with a different kind of pressure because if the AIIB is established in the form now being contemplated, China will likely have a strong voice in international tenders for AIIB-funded projects. If the bank adopts an explicit or implicit rule that bidding is limited to corporations from AIIB member-nations, Japanese and American companies will automatically be excluded from major AIIB-funded projects, leading them to beg their governments to join the bank. This would be another victory for China’s divide and rule tactics.

The ADB estimates that an annual sum of $750 billion (about ¥90 trillion) is needed for Asian infrastructure projects to build and improve roads, railways, dams, electric power stations, airports and so on. It is clear that this sum far exceeds what can be provided by the ADB, the World Bank, the Japan Bank for International Cooperation (JBIC), export-import banks of various countries, and other public and private sector financial institutions.

That is why many policymakers and experts agree on the need to create a bank devoted exclusively to funding new medium- to long-term infrastructure projects.

But such projects include dam and pipeline construction, which, it is feared, could damage the ecosystem or lead to the eviction of local residents without proper compensation. Another source of concern is that the project contract system could spawn graft and other forms of corruption.

It is highly questionable whether the AIIB will be capable of filling its social responsibilities by fully comprehending and coping with these and other problems when selecting appropriate projects.

Xi’s vigorous anti-corruption campaign shows that corruption in both China’s private and public sectors is serious. It is simply too naive to believe that a banking institution run by such corrupt government officials will perform its public duties in a fair and clean manner.

Late in September 2011, President Thein Sein of Myanmar revoked a $3.6 billion (¥43 billion) Chinese project to construct a hydroelectric power station in Kachin state. Known as the Myistone Dam project, it would have sent to China the entire 6 million kilowatts of electricity it was supposed to generate. Thein Sein took the action out of concern over environmental damage and corruption — the very issues that many worry will result from the Chinese-run AIIB.

In March, Narendra Modi became the first Indian prime minister to visit Sri Lanka in 28 years for talks with President Maithripala Sirisena, putting an end to a protracted period in which their two countries were at loggerheads.

For nearly three decades, Sri Lanka relied on economic assistance from China. But Sirisena won the presidential election in January with a campaign promise to free the country from the influence of Beijing, which has attempted to make the country a satellite by building naval and other facilities.

These moves by Myanmar and Sri Lanka indicate that China is beginning to face a deadlock in its pursuit of a strategy of gaining economic and military footholds in Asian developing countries by providing them with monetary aid.

With suspicions about China’s policies growing among Asian countries, Beijing must have thought that aid to them through the AIIB would be more palatable than direct aid from the Chinese government, again proving that the bank scheme is but a tool for implementing China’s diplomatic strategies.

The ultimate goal of establishing the AIIB is to implement the “one belt, one road” initiative proposed by Xi. The “one belt” is a new overland Silk Road connecting inland China with the Central Asia and the Middle East. It would consist of highways and railroads that would facilitate industrial and economic development along the route. The “one road” is a maritime trade route spanning from China to the Middle East via the South China Sea, the Strait of Malacca and the Indian Ocean.

Behind the two-route initiative is China’s energy security strategy as Beijing seeks to ensure supply of oil, natural gas and other energy sources, and to obtain the right to develop natural resources. It also hopes that those routes will facilitate the export of steel, cement, home electric appliances, electronic products, automobiles, clothing and other manufactured goods as China is now stuck with excessive production capacity. Another hope is placed on the growth of Chinese corporations in the fields of construction and engineering.

In short, China needs the AIIB to achieve all these aims.

For the one belt, one road initiative, China created a “Silk Road Fund” of $40 billion late last year. But this sum is just for pump priming and the truly necessary funds will come from the AIIB.

Such being China’s true intentions, it is only natural for Japan to decline to join the AIIB. Japan will do well if it continues to cooperate in infrastructure projects in Asia by strengthening the ADB and working in close collaboration with the World Bank and the United Nations. Before long it will become clear on which side justice is, Japan or China.

***


----------



## mike2000 is back

TaiShang said:


> *COMMENTARY / JAPAN | SENTAKU MAGAZINE*
> *Why Japan won’t join the AIIB*
> 
> The world has been shaken by the decisions of major Western European powers to join China’s scheme of creating the Asian Infrastructure Investment Bank (AIIB), which have left Japan and the United States out of the picture — as intended by Beijing.
> 
> Initially the supporters of the plan were limited mainly to developing countries in Asia. On March 12, however, Britain surprised the world by announcing its intention to become a founding member of the bank. This news was followed soon by similar announcements by Germany, France and Italy.
> 
> A major question now is whether the AIIB will become a savior for Asia, which faces enormous needs for infrastructure-related construction projects or will the bank become a tool to help China gain hegemony in the region. Japan holds the key.
> 
> The recent turn of events in favor of China has had a strong impact on Japan, which had sought to join hands with countries like the United States, Britain and Germany to prevent China from gaining economic dominance in Asia. A Finance Ministry official described the development as serious as the one that Japan faced in 1939 when Nazi Germany concluded a nonaggression pact with the Soviet Union, which Tokyo regarded as a potential enemy.
> 
> Even though there are voices within Japan’s political, bureaucratic and academic circles favoring Tokyo’s participation in the AIIB scheme, the administration of Prime Minister Shinzo Abe has adopted a policy of not permitting the expansion of China’s economic influence, insisting that infrastructure-construction needs in Asia should be met by strengthening the Asian Development Bank (ADB), which is principally under a Japan-U.S. umbrella.
> 
> The AIIB scheme was first announced by Chinese President Xi Jinping in 2013 as an international financial institution to fund rapidly growing infrastructure projects in Asia. Among those agreeing to become founding members were the Association of Southeast Asian Nations (ASEAN) countries, Kazakhstan and other Central Asian states, India, Saudi Arabia and a few other Middle-Eastern oil rich countries, and New Zealand.
> 
> As Britain, Germany, France, Italy, Switzerland and Luxemburg announcing their intentions to take part in the AIIB, the number of prospective founding members of the bank grew to 33. In addition, Australia’s participation was certain as 40 percent of its iron ore and natural gas exports goes to China. South Korea, which relies on China for 25 percent of its exports, announced that it would join on March 26 despite Washington’s call against such an action. [The number of founding members eventually expanded to 57.]
> 
> The AIIB will have an initial paid-up capital of $50 billion (about ¥6 trillion), of which one half will be contributed by China. With its headquarters likely to be in Beijing, the bank will probably be headed by Jin Liqun, the former head of the China International Capital Corp. who once served as vice president of the ADB. With so much Chinese influence, the bank can without much exaggeration be called “a financial institution by China and for China.”
> 
> The ADB, the rival of the AIIB, was founded in 1966 with the participation of 31 countries and regions not only from Asia but also from North America and Europe. The ratios of its capital contribution are quite diversified, with Japan accounting for 15.67 percent, the U.S. 15.56 percent, China 6.47 percent, India 6.35 percent, Australia 5.8 percent, Canada 5.25 percent, Indonesia 5.17 percent and South Korea 5.05 percent. Headquartered in Manila, its president’s office has to date been occupied by Japanese.
> 
> The ADB maintains fairness and impartiality as applications for loans are screened by its Board of Governors, which is made up of representatives from all member nations so that no one country exerts undue influence.
> 
> The AIIB, on the other hand, not only will be under strong Chinese influence but also will not have such a board for screening loan applications. It is said that since the days when he was ADB vice president, Jin has been of the opinion that decision making by the board was a waste of time and prevented quick action.
> 
> Thus once the AIIB starts its operations, nobody would be able to stop Beijing from making unilateral decisions. Another way of looking at it is that the bank will become a tool for implementing the external economic policies of the Chinese Communist Party, enabling China to use funds contributed by other countries for projects that best suit its own strategies.
> 
> The reason why major industrialized economies initially hesitated to join the AIIB scheme was that such ulterior motives of Beijing were obvious and also that they feared the possibility of Asia becoming dominated by China. This stance allowed those countries without uttering any words to persuade Beijing to follow global standards in structuring the AIIB, and to make it a democratic and highly transparent financial institution that contributes to economic development.
> 
> Therefore the negative impact of Britain’s about-face is all the more far-reaching. While welcoming London’s move, Beijing warned Germany and France that unless they join the bank, they would not only be put into disadvantageous positions in doing business with China but also be discriminated against in the bank’s loan projects.
> 
> These were serious threats to both countries as China is the largest market for Volkswagen Group of Germany while Areva SA of France has won many orders to build nuclear reactors in China and is looking for more. Britain hopes that China’s leading corporations and banks will raise funds in the City of London. Perhaps the West European powers are not worried about China’s exercise of greater hegemony in Asia because of the huge distance separating them from Asia.
> 
> Although the idea of making the AIIB an impartial international financial institution through inside efforts after joining it may sound feasible, no member countries will be able to clash head on with China and change the AIIB since Europe is preoccupied with its own problems, like the situation in Greece. Should one country make such an attempt, Beijing would likely respond with “divide and rule” tactics, threatening to give more favorable terms to other countries.
> 
> Japan and the U.S. are faced with a different kind of pressure because if the AIIB is established in the form now being contemplated, China will likely have a strong voice in international tenders for AIIB-funded projects. If the bank adopts an explicit or implicit rule that bidding is limited to corporations from AIIB member-nations, Japanese and American companies will automatically be excluded from major AIIB-funded projects, leading them to beg their governments to join the bank. This would be another victory for China’s divide and rule tactics.
> 
> The ADB estimates that an annual sum of $750 billion (about ¥90 trillion) is needed for Asian infrastructure projects to build and improve roads, railways, dams, electric power stations, airports and so on. It is clear that this sum far exceeds what can be provided by the ADB, the World Bank, the Japan Bank for International Cooperation (JBIC), export-import banks of various countries, and other public and private sector financial institutions.
> 
> That is why many policymakers and experts agree on the need to create a bank devoted exclusively to funding new medium- to long-term infrastructure projects.
> 
> But such projects include dam and pipeline construction, which, it is feared, could damage the ecosystem or lead to the eviction of local residents without proper compensation. Another source of concern is that the project contract system could spawn graft and other forms of corruption.
> 
> It is highly questionable whether the AIIB will be capable of filling its social responsibilities by fully comprehending and coping with these and other problems when selecting appropriate projects.
> 
> Xi’s vigorous anti-corruption campaign shows that corruption in both China’s private and public sectors is serious. It is simply too naive to believe that a banking institution run by such corrupt government officials will perform its public duties in a fair and clean manner.
> 
> Late in September 2011, President Thein Sein of Myanmar revoked a $3.6 billion (¥43 billion) Chinese project to construct a hydroelectric power station in Kachin state. Known as the Myistone Dam project, it would have sent to China the entire 6 million kilowatts of electricity it was supposed to generate. Thein Sein took the action out of concern over environmental damage and corruption — the very issues that many worry will result from the Chinese-run AIIB.
> 
> In March, Narendra Modi became the first Indian prime minister to visit Sri Lanka in 28 years for talks with President Maithripala Sirisena, putting an end to a protracted period in which their two countries were at loggerheads.
> 
> For nearly three decades, Sri Lanka relied on economic assistance from China. But Sirisena won the presidential election in January with a campaign promise to free the country from the influence of Beijing, which has attempted to make the country a satellite by building naval and other facilities.
> 
> These moves by Myanmar and Sri Lanka indicate that China is beginning to face a deadlock in its pursuit of a strategy of gaining economic and military footholds in Asian developing countries by providing them with monetary aid.
> 
> With suspicions about China’s policies growing among Asian countries, Beijing must have thought that aid to them through the AIIB would be more palatable than direct aid from the Chinese government, again proving that the bank scheme is but a tool for implementing China’s diplomatic strategies.
> 
> The ultimate goal of establishing the AIIB is to implement the “one belt, one road” initiative proposed by Xi. The “one belt” is a new overland Silk Road connecting inland China with the Central Asia and the Middle East. It would consist of highways and railroads that would facilitate industrial and economic development along the route. The “one road” is a maritime trade route spanning from China to the Middle East via the South China Sea, the Strait of Malacca and the Indian Ocean.
> 
> Behind the two-route initiative is China’s energy security strategy as Beijing seeks to ensure supply of oil, natural gas and other energy sources, and to obtain the right to develop natural resources. It also hopes that those routes will facilitate the export of steel, cement, home electric appliances, electronic products, automobiles, clothing and other manufactured goods as China is now stuck with excessive production capacity. Another hope is placed on the growth of Chinese corporations in the fields of construction and engineering.
> 
> In short, China needs the AIIB to achieve all these aims.
> 
> For the one belt, one road initiative, China created a “Silk Road Fund” of $40 billion late last year. But this sum is just for pump priming and the truly necessary funds will come from the AIIB.
> 
> Such being China’s true intentions, it is only natural for Japan to decline to join the AIIB. Japan will do well if it continues to cooperate in infrastructure projects in Asia by strengthening the ADB and working in close collaboration with the World Bank and the United Nations. Before long it will become clear on which side justice is, Japan or China.
> 
> ***


LMAO...... Why are people shocked to see Britain joining the bank first among the west and thereby opening the floodgates for others? Anyway, s I said we are a pragmatic nation who has always looked after its interests first and foremost. This should again be a lesson to some naive Chinese members who seem to think e have no influence/role in world affairs. Truth is without us this AIIB will be just a small institution with few Asian countries as members. So they have to thank our insignificant island for making their bank so successful/influential even before it starts. 
We have always been good strategists(in fact i might argue the bests in the World.). After all we didn't win two world wars, ruled the world(such a small island), spread our language and culture the world over by mistake/luck. So the U.S and even more surprising Japan should chill down and stop talking shit/questioning us about why we decided to join AIIB thus making others who might not have joined to follow suit. We all are after our interests first and foremost, full stop. We joined it for a reason(they will see later)

Reactions: Like Like:
1


----------



## AndrewJin

mike2000 is back said:


> LMAO...... Why are people shocked to see Britain joining the bank first among the west and thereby opening the floodgates for others? Anyway, s I said we are a pragmatic nation who has always looked after its interests first and foremost. This should again be a lesson to some naive Chinese members who seem to think e have no influence/role in world affairs. Truth is without us this AIIB will be just a small institution with few Asian countries as members. So they have to thank our insignificant island for making their bank so successful/influential even before it starts.
> We have always been good strategists(in fact i might argue the bests in the World.). After all we didn't win two world wars, ruled the world(such a small island), spread our language and culture the world over by mistake/luck. So the U.S and even more surprising Japan should chill down and stop talking shit/questioning us about why we decided to join AIIB thus making others who might not have joined to follow suit. We all are after our interests first and foremost, full stop. We joined it for a reason(they will see later)


British created India as a nation, biggest work ever!

Reactions: Like Like:
3


----------



## mike2000 is back

AndrewJin said:


> British created India as a nation, biggest work ever!



To be honest, there are many other nations we created from Africa to middle east. So you don't have to pick on only India.

Anyway , as I said before Japan won't join and even if it did, it will be the last country to ever do so if ever. The AIIB is a threat to Japan's influence/dominance in Asia more than any other country(yes more than even the mighty U.S). Its not in Japans interest to join, so Japan won't join and will try as much as possible to act as a spoiler. I don't think there's anything wrong in this though, geo politics is not a clean game, any trick is allowed  So Japan will keep being China's main rival in Asia for long time to come (both have been rivals for centuries, won't stop anytime soon. Lol). This game is indeed getting very interesting... I like that. 

Let the game begin, since Japan has openly let know it won't accept/seat still as China expands its own influence with so called AIIB.


----------



## ahojunk

.
UN official sees no difficult ties between AIIB and other financial institutions
English.news.cn 2015-04-21 09:51:18

UNITED NATIONS, April 20 (Xinhua) -- A senior UN official said Monday that difficult relations do not exist between the Asian Infrastructure Investment Bank (AIIB) and other financial institutions, adding that the Chinese government intends to work closely with them.


"I do not see the kind of difficult relations between AIIB and other financial institutions," Wu Hongbo, UN undersecretary-general for economic and social affairs, told a press conference on financing for development.

"The Chinese government has already said they will work very closely with the World Bank and the Asian Development Bank, (and) that's their intention," he said.

Wu said that one of the important areas in boosting economic recovery is investment in infrastructure and many countries need this investment.

"Take Asia alone, in the next decade, the investment in infrastructure in that region requires 8 trillion dollars," he noted.

"So I would see great benefit and value in having this bank (of AIIB)," he said. "I think the only thing (in need) is trying to remove all these misunderstandings and unfounded worries."

The China-proposed AIIB is expected to be established by the end of this year. It will provide financing for roads, railways, airports and other infrastructure projects in Asia.
.

Reactions: Like Like:
1


----------



## AndrewJin

mike2000 is back said:


> To be honest, there are many other nations we created from Africa to middle east. So you don't have to pick on only India.
> 
> Anyway , as I said before Japan won't join and even if it did, it will be the last country to ever do so if ever. The AIIB is a threat to Japan's influence/dominance in Asia more than any other country(yes more than even the mighty U.S). Its not in Japans interest to join, so Japan won't join and will try as much as possible to act as a spoiler. I don't think there's anything wrong in this though, geo politics is not a clean game, any trick is allowed  So Japan will keep being China's main rival in Asia for long time to come (both have been rivals for centuries, won't stop anytime soon. Lol). This game is indeed getting very interesting... I like that.
> 
> Let the game begin, since Japan has openly let know it won't accept/seat still as China expands its own influence with so called AIIB.


I mean the biggest work. 
@Nihonjin1051 will be sad.


----------



## mike2000 is back

AndrewJin said:


> I mean the biggest work.
> [USEelites/25]@Nihonjin1051[/USER] will be sad.



Well nihonji can be sad, just like every other 'common man' .however, its the elites/leaders that always decide, the common man have little to no say in how things play out.


----------



## ahojunk

.
How China is upsetting the old global economic order
by Aurélia End, Agence France-Presse
Posted at 04/20/2015 8:20 AM

WASHINGTON -- With its huge new infrastructure bank and its ambitions for a globalized renminbi currency, China is leading the upending of a 70-year-old global order built on American economic power.

Beijing's rise was confirmed this week at the Spring meetings of the World Bank and International Monetary Fund in Washington, the two institutions by which the economic vision of the United States has been propagated across the world since their founding in 1944.

The US-selected president of the World Bank, Jim Yong Kim, applauded China's "bold step in the direction of multi-lateralism" for its new Asia Infrastructure Investment Bank, even as many view it as a rival to the Bank.

Kim stressed though that he expects the World Bank and the AIIB will work "very closely" together.

That appeared to pull the World Bank away from its major shareholder: together with ally Japan, Washington has refused to join the AIIB even as nearly five dozen other countries have applied to Beijing to be part.

Beijing moved on the AIIB, which aims to support infrastructure development across the Asia region, as another China-backed project announced in 2014, the BRICS bank, has stalled.

But that institution, planned with fellow emerging economic powers Brazil, Russia, India, and South Africa, was designed as well as a challenge to the World Bank and IMF, where the old powers the US, Europe and Japan dominate.

*Threat to World Bank?*

Critics fear the new development banks will challenge the World Bank in lending to poorer countries by offering them easier terms and fewer restrictions governing the social and environmental impacts of large projects, undermining standards established to protect vulnerable populations.

The Chinese approach is more pragmatic though, with each institution filling a need, said Christophe Destais of CEPII, the French international economics think tank.

Countries are searching for new opportunities in public works and energy, and also for their banks, he said, the latter possibly explaining why US ally Britain rushed to join the AIIB, he said.

For its part, China is seeking "an outlet for its industrial overcapacity" while at the same time aiming "to weaken US influence," said Destais.

But China is not abandoning the US and Europe-dominated Bretton Woods system of multilateral development banks set up in 1944, however imperfect it is, he said.

"China finds it useful. It has the means to influence it, though still not to shape it," especially since the US dollar remains the world's core currency.

But China's growing power keeps Washington nervous.

Even as new institutions like the AIIB emerge, US Treasury Secretary Jacob Lew said in a statement Saturday: "I would like to underscore that the IMF remains the foremost international institution for promoting global economic stability."

Nobel Prize-winning economist Joseph Stiglitz said the US hostility to the AIIB is a new sign of its insecurity over its global influence.

*US shares blame*

But Washington is also at fault in the erosion of its Bretton Woods-based power.

The US Congress has refused to ratify crucial reforms at the IMF laid out in 2010 that would double its funding and recognize with higher shareholder quotas the rise of economies such as China and India.

As the IMF's largest shareholder by far, Washington has now blocked the reforms for four years, to great criticism from allies and rivals in the world economy.

"This remains an impediment to IMF credibility, legitimacy and effectiveness," lashed the G-24 group of emerging economies at the IMF-World Bank meetings this week.

The AIIB is not the only front of China's challenge to the old US-centered global economic structure.

After decades of closely controlling its currency, the renminbi or yuan, China is now moving to internationalize it, and asking that it be included in the IMF's benchmark basket of major currencies, known as SDRs, or special drawing rights.

That move, which could happen as early as 2016, would officially elevate the yuan to world status and boost China's prestige inside the IMF.

*© 1994-2015 Agence France-Presse*
.

Reactions: Like Like:
2


----------



## WAR-rior

Jlaw said:


> i somewhat agree with you. any big scale projects that has indian participation is bound to fail. Ie. BRICS bank anyone?


You mean it will fail in India but will be a super duper success in terrorism hit highly uneducated Pakistan? 50 cent proved.


----------



## ahojunk

Commentary: Launch of AIIB promises fast track to common development, win-win cooperation
English.news.cn 2015-04-15 16:55:36

by Xinhua writer Ma Mengli


BEIJING, April 15 (Xinhua) -- Welcoming passengers from around the world, an "Oriental Express" train is getting ready to hit the rails toward a destination of common development and win-win cooperation: the Asian Infrastructure Investment Bank (AIIB).

The number of AIIB's prospective founders was finalized Wednesday, as of which, a total of *57 countries* have been approved as the founding members of the China-proposed bank.

The bank has received an increasing number of endorsements in Asia and beyond since it was first proposed by the Chinese government around half a year ago.

Its popularity across the world, even among the U.S. allies, should be attributed to its design as an open and inclusive multilateral lender, which promises win-win interactions in the global arena.

The enthusiasm among Western countries to take a ride on this "Oriental Express" train is also due to the understanding that the bank, aiming to complement rather than compete with the existing global financial institutions, would provide them with lucrative business opportunities.

Factors such as China's rich experience in infrastructure development and the enormous gap in funds needed to break the infrastructure bottleneck in Asia play a role here.

The establishment of the AIIB is an attempt to meet Asia's tremendous infrastructure needs. The Asian Development Bank estimated in 2009 that Asia needs about 8 trillion U.S. dollars in investment by 2020 to improve the region's battered infrastructure to keep its economies humming.

Poverty reduction is not the first priority of the AIIB, which focuses mainly on promoting economic growth. Instead, the fundamental mandate of the bank is to invest in quasi-commercial infrastructure projects so as to promote regional inter-connectivity and mutual access and strengthen the capacity to self-develop.

Meanwhile, the AIIB will uphold high standards as it can learn from the best practices of the existing multilateral financial institutions such as the World Bank and the Asian Development Bank, which have accumulated many good experiences and practices with regards to governance structure, environmental evaluation, procurement, debt sustainability and project management.

The AIIB will uphold high standards and abide by stringent policies to avoid repeating past mistakes, reduce operation costs and increase efficiency.

The World Bank welcomes the AIIB with open arms, pledging to "bring all of its 70 years of experience to helping the bank figuring out what it wants to do."

As a matter of fact, the World Bank has already started cooperation with the AIIB in such areas as institutional standards and framework formulation.

Jin Liqun, secretary general of the interim multilateral secretariat of the China-proposed institution, has said that China and all the members of the AIIB will be committed to building a bank which would be "lean, clean and green."

The cost-effective and highly streamlined institution will have a zero-tolerance policy on corruption and be dedicated to promoting a green and low-carbon economy.

Editor: Song Miou

Reactions: Like Like:
1


----------



## ahojunk

21 April 2015, 8.25pm AEST
China’s AIIB helps resolve Asia’s soaring infrastructure needs

*



*
_About 1.8 billion people in Asia lack basic sanitation services, like this slum in Jakarta, Indonesia_.

Less than two years after reports first appeared in October 2013 about the formation of a new specialized development bank focused on Asia, China’s Asian Infrastructure Investment Bank (AIIB) has become a reality.

While its birth has given rise to international tensions, it has also offered hope to developing countries that need an enormous amount of infrastructure investment in coming years.

The tensions – the US has fiercely opposed China’s bank and lobbied its allies not to join it – have been well reported and discussed. Overlooked by these critics is that the region’s investment needs are far too great to be met by the West’s development banks alone. China’s willingness to shoulder more of the burden should be welcomed, and the decision of US allies like the UK and Germany to become founding members gives the AIIB a significant credibility boost that will make it more likely to succeed.

*Top priority: financing infrastructure*
A few years ago the Asian Development Bank Institute, where I have been an adviser, contributed to a report pointing out correctly that Asia will require at least US$8 trillion to invest in infrastructure from 2010 to 2020 for the region to continue economic development at a reasonable pace.

The kinds of infrastructure needed range from the high-tech such as telecommunications services and high-speed railroads to the most basic and essential. About 1.8 billion are not connected to basic sanitation services, 800 million lack electricity and 600 million do not have access to potable water, according to the report.

For those of us who have been involved in strategy debates over Asian development since the 1980s, Japan, Korea, Taiwan and now China itself are all existing examples of the extent to which infrastructure investment is instrumental in economic development.

In my many visits to East Asia – most recently China – I have seen how national and international linkages can be constructed through infrastructure investment. China itself exemplifies how investing in roads and education can make a dramatic impact on a country’s long-term growth and lifting millions of people out of poverty.

Financing such investment is, therefore, a top strategic priority. The International Monetary Fund, the Asia Development Bank and the World Bank have all played pivotal roles helping finance such investment in these now prosperous countries.

The availability of transport, electricity, schools and hospitals has a “tremendous impact on improving the quality of life,” while businesses need more reliable infrastructure to spur growth, which boosts incomes and reduces poverty, according to the ADB report.

The addition of the AIIB to the fold would bring many benefits especially to those parts of Asia in the Southeast and South Asian regions that lag behind in infrastructure investment. Indonesia has the greatest needs, with the ADB estimating $450 billion will be required through 2020, mostly on transport. China needs just a little less, primarily due to electricity troubles, while another seven countries require at least $100 billion a piece.

In addition, the problem of a global lack of demand for goods and services due to the slowing economy will be mitigated by the hundreds of billions of dollars in extra infrastructure spending in Asia. Thus there are both local and global benefits that can be reaped from appropriate infrastructure investment projects financed by the AIIB.

*AIIB’s rapid growth*
In pushing the AIIB against the wishes of the US, the Chinese capitalized on a growing impatience among many Asian policy makers over the unwillingness of global institutions like the IMF and World Bank to allow greater input into its operations.

Last April Chinese Premier Li Keqiang said China was ready to intensify consultations with those interested in joining the AIIB. By June China proposed doubling the registered capital of the bank from $50 billion to $100 billion and invited India to participate in its founding. Just four months later, a signing ceremony held in Beijing formally established the bank, with 21 initial signatories, including Thailand, Singapore and Vietnam.

Since then the number of countries agreeing to sign on as founders has soared, such as Hong Kong in February, to 57.

But the AIIB’s credibility was particularly enhanced when in early March UK Chancellor of the Exchequer George Osborne announced that Britain had agreed to lend money to the Bank, becoming the first major Western country to do so in spite of US opposition. Soon on the heels of UK, three other European nations – Germany, France and Italy – followed suit.

Clearly, the concept of AIIB has become institutionally viable. It has also established the credibility of China’s economic diplomacy.

*Competitive pluralism*
Thoughtful economists should welcome this multilateral initiative led by China. In line with other southern initiatives such as the launch of the New Development Bank last July by the so-called BRICS (Brazil, Russia, India, China and South Africa), the AIIB will ease emerging countries' strategic financing problems for development. It will also lead to a healthy competitive pluralism in this area that the Asian Development Bank itself has defended in the past.

The time has come for the experts to offer serious analyses of specific projects and their costs and benefits for the region. Here in addition to growth and employment aspects, social and environmental issues can also be analyzed in a multilateral context.

The AIIB offers a great opportunity to craft new strategies and foster fresh frameworks for making serious investments in infrastructure in Asia. Indeed, this is the key challenge that development strategists must address as the AIIB takes shape and aims to make a meaningful contribution the region’s growth.
.

Reactions: Like Like:
4


----------



## ahojunk

_*Report from Indian media. They are hoping for an Indian to be Vice President of AIIB.
Good luck!*_

------------------------------------------------------
Indian likely to get VP's post in China floated AIIB 
By PTI | 22 Apr, 2015, 06.14PM IST

BEIJING: An Indian is likely to get the vice president's post in China-backed Asia Infrastructure Investment Bank (AIIB) in which India and 56 countries have been admitted as founding members.

Chief negotiators of the countries would hold a key meeting next week to begin consultations to finalise the format of the AIIB's functioning, including the voting share.

The MOU of the bank to be headquartered in Beijing specifies that the authorised capital of AIIB will be USD 100 billion with an initial subscribed capital of USD 50 billion.

The bank being headed by China is headquartered in Beijing.

Chances of India getting the Vice President's post are high as the vote share is expected to be based on 50 per cent Gross Domestic Product ( GDP) and 50 per cent Purchasing Power Parity (PPP) with primacy to be given to the Asian countries as the bank primarily aims to fund infrastructure projects mainly in the Asian region, officials told PTI.

Under these guidelines, India figured next to China and is expected to take the lead role, they said.

India has already been designated to head the BRICS, (Brazil, Russia, India, China, South Africa) Development Bank which will be headquartered in Shanghai.

It will have a starting capital of USD 50 billion. Besides AIIB and BRICS Bank, China has announced USD 40 billion special fund for its Silk Road projects to develop a wide network of highways, railway and ports in Asia and Africa.

The overall format of AIIB is expected to be finalised after a series of meetings in which India is taking part.

Chinese officials stated that the bank will draw best practices from the IMF, World Bank and ADB but will avoid domination of few countries setting rules for the international financial system.

As a new multilateral institution focusing exclusively on infrastructure development, the AIIB will be dominated by developing countries, and their requests and demands need to be respected, China's vice finance minister Zhu Guangyao said.

The establishment of the AIIB is an attempt to help fill Asia's infrastructure investment gap and promote economic development in the region, he has been quoted by the official media here as saying.

The Asian Development Bank (ADB) estimated in 2009 that Asia needs about USD 8 trillion investment by 2020 to improve the region's battered infrastructure to keep its economies humming.

Representatives of the 57 founding countries, which were finalised will deliberate in the next two months on the AIIB's charter, of which management structure will be the most important part.

The US and Japan have refrained from joining while a number of their European allies like Britain, Australia, Germany and France joined the bank as founding members, taking Washington by surprise.

China has said the AIIB will draw experiences from other multilateral development banks and avoid their detours so as to be more cost-effective and efficient.

The new bank will feature a three-level management structure that includes a board of governors, board of directors and senior management, according to the Chinese Finance Ministry.

Zhu said that there were debates about whether or not the AIIB should have a resident board of directors commonly adopted by the World Bank and the ADB.

The intention of these debates is to "increase efficiency and improve the capacity" of the bank to better serve the clients, but it will be finally decided by coming negotiations among founding members, he said.

Officials said it is a good idea to have a non-resident board of directors for the AIIB, as it would help make a clear distinction between the board and the management, and also have great accountability.

Countries that have been accepted as founding members of the AIIB include China, India, Malaysia, Indonesia, Singapore, Thailand, Kazakhstan, Saudi Arabia, Kuwait, Oman, Qatar, Brunei, Cambodia, Laos, Myanmar, the Philippines, Vietnam, Mongolia, Uzbekistan, Nepal, Sri Lanka, Bangladesh, Pakistan, the Maldives, New Zealand, Jordan, Tajikistan, Luxemburg, Switzerland, Britain, Australia, Austria, Brazil, Denmark, France, Germany, Italy, Netherlands and Spain.
.

Reactions: Like Like:
2


----------



## AndrewJin

ahojunk said:


> _*Report from Indian media. They are hoping for an Indian to be Vice President of AIIB.
> Good luck!*_
> 
> ------------------------------------------------------
> Indian likely to get VP's post in China floated AIIB
> By PTI | 22 Apr, 2015, 06.14PM IST
> 
> BEIJING: An Indian is likely to get the vice president's post in China-backed Asia Infrastructure Investment Bank (AIIB) in which India and 56 countries have been admitted as founding members.
> 
> Chief negotiators of the countries would hold a key meeting next week to begin consultations to finalise the format of the AIIB's functioning, including the voting share.
> 
> The MOU of the bank to be headquartered in Beijing specifies that the authorised capital of AIIB will be USD 100 billion with an initial subscribed capital of USD 50 billion.
> 
> The bank being headed by China is headquartered in Beijing.
> 
> Chances of India getting the Vice President's post are high as the vote share is expected to be based on 50 per cent Gross Domestic Product ( GDP) and 50 per cent Purchasing Power Parity (PPP) with primacy to be given to the Asian countries as the bank primarily aims to fund infrastructure projects mainly in the Asian region, officials told PTI.
> 
> Under these guidelines, India figured next to China and is expected to take the lead role, they said.
> 
> India has already been designated to head the BRICS, (Brazil, Russia, India, China, South Africa) Development Bank which will be headquartered in Shanghai.
> 
> It will have a starting capital of USD 50 billion. Besides AIIB and BRICS Bank, China has announced USD 40 billion special fund for its Silk Road projects to develop a wide network of highways, railway and ports in Asia and Africa.
> 
> The overall format of AIIB is expected to be finalised after a series of meetings in which India is taking part.
> 
> Chinese officials stated that the bank will draw best practices from the IMF, World Bank and ADB but will avoid domination of few countries setting rules for the international financial system.
> 
> As a new multilateral institution focusing exclusively on infrastructure development, the AIIB will be dominated by developing countries, and their requests and demands need to be respected, China's vice finance minister Zhu Guangyao said.
> 
> The establishment of the AIIB is an attempt to help fill Asia's infrastructure investment gap and promote economic development in the region, he has been quoted by the official media here as saying.
> 
> The Asian Development Bank (ADB) estimated in 2009 that Asia needs about USD 8 trillion investment by 2020 to improve the region's battered infrastructure to keep its economies humming.
> 
> Representatives of the 57 founding countries, which were finalised will deliberate in the next two months on the AIIB's charter, of which management structure will be the most important part.
> 
> The US and Japan have refrained from joining while a number of their European allies like Britain, Australia, Germany and France joined the bank as founding members, taking Washington by surprise.
> 
> China has said the AIIB will draw experiences from other multilateral development banks and avoid their detours so as to be more cost-effective and efficient.
> 
> The new bank will feature a three-level management structure that includes a board of governors, board of directors and senior management, according to the Chinese Finance Ministry.
> 
> Zhu said that there were debates about whether or not the AIIB should have a resident board of directors commonly adopted by the World Bank and the ADB.
> 
> The intention of these debates is to "increase efficiency and improve the capacity" of the bank to better serve the clients, but it will be finally decided by coming negotiations among founding members, he said.
> 
> Officials said it is a good idea to have a non-resident board of directors for the AIIB, as it would help make a clear distinction between the board and the management, and also have great accountability.
> 
> Countries that have been accepted as founding members of the AIIB include China, India, Malaysia, Indonesia, Singapore, Thailand, Kazakhstan, Saudi Arabia, Kuwait, Oman, Qatar, Brunei, Cambodia, Laos, Myanmar, the Philippines, Vietnam, Mongolia, Uzbekistan, Nepal, Sri Lanka, Bangladesh, Pakistan, the Maldives, New Zealand, Jordan, Tajikistan, Luxemburg, Switzerland, Britain, Australia, Austria, Brazil, Denmark, France, Germany, Italy, Netherlands and Spain.
> .
> 
> 
> 
> 
> 
> 
> 
> 
> 
> 
> ..


I think Indian members here are more for 100% PPP. LOL

Reactions: Like Like:
2


----------



## ahojunk

_*View from Iceland. They have lots of expertise in geothermal infrastructure projects*_.

----------------------
Iceland looks to future with AIIB membership
By Luna Finnsson
11:54 am April 21, 2015

Iceland can look forward to future opportunities after announcing that it is to be a founding member of the Asian Infrastructure Investment Bank (AIIB), said one of the country’s senior officials.

The permanent secretary of the Ministry of Economics and Finance, Gudmundur Arnason, said the North Atlantic nation would be able to acquire information and experience by being part of infrastructure initiatives such as AIIB.

Arnason explained that by being part of such schemes, Iceland would have the opportunity to learn how to develop and finance such projects, noting that it was something that was new to the country.

China’s Ministry of Finance announced on 15 April that Iceland – as well as Sweden, Portugal, Poland, South Africa, Azerbaijan and Israel – had been approved as founding members of AIIB, taking the overall number of founding members to 57 countries.

Iceland now plans to be involved in AIIB-financed energy projects across Asia, according to Arnason, who revealed that the energy initiatives could include both geothermal and hydropower schemes. He added that Icelandic businesses could also offer consulting services for general and single projects.

Iceland submitted its application to become a founding member of AIIB on the deadline day of 31 March as its government continues its drive to strengthen ties across Asia.
.

Reactions: Like Like:
4


----------



## ahojunk

*Good news for Russia if this is true...*

--------------
Russia may become third largest AIIB participant – deputy minister
Published time: April 29, 2015 21:51






_China's Finance Minister Lou Jiwei (L) gives a speech with the guests of the signing ceremony of the Asian Infrastructure Investment Bank at the Great Hall of the People in Beijing October 24, 2014. (Reuters/Takaki Yajima)_

Russia could become the third largest participant in the China-led Asian Infrastructure and Investments Bank (AIIB) and enter its board of directors, said Stanislav Voskresensky, Deputy Minister of Economic Development.

_“According expert estimates, Russia ... claims to be the third largest participant, which means it could gain a seat on the board of directors,”_ Voskresensky told Rossiya-24 TV channel on Wednesday.

That means Russia will be able to influence the bank’s policy and, together with its partners in the Customs Union, offer interesting projects for the bank to fund, he added.

The Asian Bank for Infrastructure Investment (AIIB), established in 2014 by China, will finance infrastructure projects like the construction of roads, railways, and airports in the Asia-Pacific Region.

The initial subscribed capital of AIIB will be $50 billion and there are plans for it to be increased to $100 billion. The bank, with its headquarters located in Beijing, is expected to start its work at the end of 2015.

The number of founding members has reached 57. Russia received the status of founding member on April 14, 2015.
.

Reactions: Like Like:
2


----------



## TaiShang

*Russia to Get More Voting Rights in China-Led Bank Than Non-Asian States*

15:15 04.05.2015

*A diplomatic source said that China will allow Russia to join the Asian Infrastructure Investment Bank (AIIB) as an ‘Asian’ member with greater voting rights than non-Asian nations, Asia Times reported.*








South Korea will likely take a 3%-3.5% stake in the AIIB, down from an earlier 4% to 5%, now that Russia is expected to join the regional development bank as an ‘Asian’ member.


The Chinese newspaper reported a Yonhap's diplomatic source as saying that China would allow Russia to join the Asian Infrastructure Investment Bank (AIIB) as an ‘Asian’ member with greater voting rights than non-Asian nations.

Russia announced its decision to join the AIIB on March 28.

If that is the case, Russia’s Asian designation would seem to specify a preferred status by Beijing which has been moving closer to Moscow in geopolitical terms.

It would also give Russia more voting power in the AIIB which is regarded as a competitor to US-led development banks.

The establishment of the bank has been approved by a vast majority of countries across the world as the US has failed to restructure the existing institutions such as the IMF in accordance with new geopolitical realities, Laurence Summers, President of Harvard University and former US Secretary of the Treasury, said.

The rules that govern the AIIB have yet to be officially announced by China. According to some reports, AIIB’s Asian members could have 75% of the voting rights, while the remaining 25%would go to non-Asian members.

China and other AIIB members are scheduled to hold another round of meetings in Singapore in May before signing the final ‘Articles of Agreement’ governing the AIIB in June.



Read more: Russia to Get More Voting Rights in China-Led Bank Than Non-Asian States / Sputnik International

Reactions: Like Like:
5


----------



## terranMarine

Eric Chu discussed with China about joining AIIB, i'm sure Taiwan will be given the green light to join after it has met Mainland's prerequisite.

Reactions: Like Like:
2


----------



## TaiShang

terranMarine said:


> Eric Chu discussed with China about joining AIIB, i'm sure Taiwan will be given the green light to join after it has met Mainland's prerequisite.



Taiwan needs to accept the title, "Taipei, China."

After all, that's the official title in ADB, as well. The sky won't fall. 

Besides, what is more factual than "Taipei, China" title?

Reactions: Like Like:
2


----------



## AndrewJin

TaiShang said:


> Taiwan needs to accept the title, "Taipei, China."
> 
> After all, that's the official title in ADB, as well. The sky won't fall.
> 
> Besides, what is more factual than "Taipei, China" title?


Chinese Tapei, Green prefer more.

Reactions: Like Like:
1


----------



## TaiShang

AndrewJin said:


> Chinese Tapei, Green prefer more.



That has been proposed by KMT and DPP both as the bottom line but turned down by Beijing. Rightfully. It should be "Taipei, China" just as HK, China. I guess TW will come to that.

Reactions: Like Like:
1


----------



## TaiShang

What is the next step in China's economic leadership? - Agenda - The World Economic Forum


*By Meng Liu and Jeremy Balkin*
Apr 30 2015

At this moment in history, the global geopolitical dynamics are changing before our very eyes. China is rising on the global stage, as are Chinese companies. Following the phenomenal economic successes over the past quarter century, China has gradually learnt how to more efficiently and harmoniously integrate into global markets and initiate a transition from a follower to an emerging leader.

*Forced to Lead?*

It is smart to utilize a country’s relative strength to build up its soft power and exert greater global influence. Taking a perspective from outside of China, this is happening right now in the global financial landscape with the establishment of a new multilateral institution, the Asian Infrastructure Investment Bank (AIIB) proposed and led by China, and supported by over 50 countries around the world. Despite concerns the AIIB will rival existing multilateral financial institutions like the World Bank and Asian Development Bank, in fact the AIIB has been established to compliment the current framework and further facilitate large scale infrastucture investments across the Asian region. According to the Chinese government’s public statement, the goal is to fill in the gap to feed increasing capital needs in support of Asia’s infrastructure development...

Therefore, China is taking a leading role in earning the trust of its neighbour’s by painting a picture for a sustainable long term vision of enhanced regional economic cooperation and prosperity. The AIIB is part of the long term strategic vision that incorporates aggregating global investment capital into the burgeoning infrastructure needs of the Asia region. Building new and efficient infrastructure in India for example, will make imports more affordable and exports more valuable, whilst having a positive social impact on the lives of millions of Indians. It also provides more opportunities for China to export goods and services across the region. But, new infrastructure not only benefits Chinese exports, but greatly benefits the vital raw material exporters in the region like Australia, Indonesia and New Zealand.

Increasing regional and economic cooperation through vital geopolitical collaboration comes at a time when economic nationalism is increasing in other regions. The AIIB offers the broader Asian region a unique opportunity to include natural partners and stakeholders to benefit from the rising economic tide and shared prosperity. This is a win-win situation and in fact, as the AIIB becomes more inclusive it provides greater capacity for the benefits to flow externally. But importantly for China, having increased regional and economic partnerships provides the opportunity for vital skills, expertise, governance and best practices to flow internally that in turn benefit China as it continues to rise.

*Historic opportunity*

Beyond the political considerations of various countries, the debate over AIIB has largely focused on the bank’s potential governance, transparency, environmental and social standards for infrastructure project financing. By implication, the concerns raised question the existing standards of doing business. That being said, the creation of the AIIB offers a generational opportunity to establish a common code of best practices for infrastructure investment financing that grasps the opportunity to incorporate a robust environmental, social and governance framework among members.

Today, sustainability issues are even more important as global populations become more aware. From a Chinese perspective, the AIIB provides a great opportunity to build up its soft power credentials and be seen as a responsible leader in this sphere. After all, China has a proven record of leading the world’s largest and most successful poverty alleviation campaign in human history. Over the last thirty years China has lifted approximately six hundred million people out of extreme poverty, primarily due to a combination of successful policy and ambitious economic reform.

These great achievements have helped accelerate the realization of the Millennium Development Goals (MDGs) and the current affirmation of the Sustainable Development Goals (SDGs). China’s successful story is not only recognized by the world, but also has inspired many developing countries to follow the tireless efforts to fight against poverty. AIIB could be the most immediate opportunity for China to work closely with its fellow member states to invent a whole new way of doing business. On the one hand by thinking outside the box, and on the other by innovation and establishing leading standards and practices strengthening the bank’s sustainability and social responsibility. At the end of the day, it will be the people across the region who ultimately benefit from the improvement in basic infrastructure and the associated positive social impact. China is poised to step up to the plate and lead a multilateral financial institution perhaps on the cusp of another great economic success story.

This is a challenging job. However, it is worthwhile to note a number of international organisations have actively developed the basic framework for the concept of social responsibility and sustainability. These include the ten universal principles by the United Nations Global Compact, the Principles for Responsible Investment by the UN Global Compact and UN Environment Program, and the Equator Principles in the area of project financing by the International Finance Corporation. Those universally supported principles and experiences can be good reference points for the AIIB, without denying the fact that AIIB should aim to set its own rules and standards, to break the status quo and invent a new level of global excellence.

Notably, AIIB is taking shape against the broader backdrop of a new post-2015 agenda. The United Nations and its member states are developing Sustainable Development Goals (SDGs) to replace the MDGs. Not surprisingly, this new set of goals will more thoroughly incorporate environmental and social dimensions to the updated global agenda. China has the opportunity to build an updated portfolio in front of the whole world as a leader on sustainability and highly align such globalization efforts like AIIB with the forthcoming SDGs. This is the right time.

*Leader or Follower?*

While the Chinese government becomes more active on the global stage by launching the AIIB, Chinese companies should also step up and be more proactive in terms of participating in the global policy making process. The private sector should realize in the long run, such engagement could be very beneficial, enabling companies to shape a “soft” environment to operate within. Globally, there is an increased acceptance that corporate social responsibility is a key part of any business model and goes beyond merely focusing on business and investment opportunities.

Many global institutions such as the World Economic Forum and United Nations Global Compact have provided companies with access to the global discussion on pressing challenges, and in many cases, offer invaluable opportunities for companies to participate in shaping the global agenda. On each platform, various working groups have been established to bring together like-minded companies with other stakeholders in solving problems faced in the areas of supply chains, climate and water, anti-corruption, the empowerment of women etc.

Three major Chinese companies, China National Petroleum Corporation (CNPC), China Petroleum & Chemical Corporation (SINOPEC), and China National Offshore Oil Corporation (CNOOC), participated in a project led by the United Nations, called Business for Peace. The initiative aimed to work out a guideline for investors and companies that have a business interest and operations in conflict affected regions to advance peace through responsible investment and business practices.

It is recognized by companies that participation in such an exercise can help them raise awareness of the pressing issues they face, and share knowledge from the project that could guide more companies to make positive contributions to peace and development in these high risk regions where they operate. There is an historic opportunity to scale up and align business efforts to make positive contributions to similar goals of all human kind.

The fundamental improvements will only happen if more private sector companies engage and join forces. The AIIB is a unique multilateral framework to collaborate regionally, geographically and cooperatively with all stakeholders to positively influence the allocation of capital, and achieve immense positive social impact through the provision of large scale investment grade infrastructure projects ensuring mutual interest and shared prosperity, sustainably.

Reactions: Like Like:
1


----------



## Echo_419

TaiShang said:


> *Russia to Get More Voting Rights in China-Led Bank Than Non-Asian States*
> 
> 15:15 04.05.2015
> 
> *A diplomatic source said that China will allow Russia to join the Asian Infrastructure Investment Bank (AIIB) as an ‘Asian’ member with greater voting rights than non-Asian nations, Asia Times reported.*
> 
> 
> 
> 
> 
> 
> 
> 
> South Korea will likely take a 3%-3.5% stake in the AIIB, down from an earlier 4% to 5%, now that Russia is expected to join the regional development bank as an ‘Asian’ member.
> 
> 
> The Chinese newspaper reported a Yonhap's diplomatic source as saying that China would allow Russia to join the Asian Infrastructure Investment Bank (AIIB) as an ‘Asian’ member with greater voting rights than non-Asian nations.
> 
> Russia announced its decision to join the AIIB on March 28.
> 
> If that is the case, Russia’s Asian designation would seem to specify a preferred status by Beijing which has been moving closer to Moscow in geopolitical terms.
> 
> It would also give Russia more voting power in the AIIB which is regarded as a competitor to US-led development banks.
> 
> The establishment of the bank has been approved by a vast majority of countries across the world as the US has failed to restructure the existing institutions such as the IMF in accordance with new geopolitical realities, Laurence Summers, President of Harvard University and former US Secretary of the Treasury, said.
> 
> The rules that govern the AIIB have yet to be officially announced by China. According to some reports, AIIB’s Asian members could have 75% of the voting rights, while the remaining 25%would go to non-Asian members.
> 
> China and other AIIB members are scheduled to hold another round of meetings in Singapore in May before signing the final ‘Articles of Agreement’ governing the AIIB in June.
> 
> 
> 
> Read more: Russia to Get More Voting Rights in China-Led Bank Than Non-Asian States / Sputnik International



Can you post the list of voting rights held by all nations in AIIB


----------



## milvipes

Interestingly US's old-time NATO allies are more independently-minded, whereas the newer eastern European allies are hell-bent on brownnosing the US.

Reactions: Like Like:
3


----------



## TaiShang

Echo_419 said:


> Can you post the list of voting rights held by all nations in AIIB



You mean percentages by member state? I guess there is no such list as yet. I would guess the three top nation would be China, Russia and India. 

According to the AIIB website:

*<<Q8: What will be AIIB’s capital base?*

_The authorized capital of AIIB is expected to be USD 100 billion. As a regional development bank, AIIB’s regional members will be the majority shareholders; non-regional members will hold smaller equity shares. This shareholding arrangement reflects the commitment and ownership of regional members while providing non-regional members the opportunity to participate actively. >>_

So, as people speculate, Asian members will retain the majority of the share (75%-80%). The rest will be given to the remaining prospective founding members (PFMs).

Reactions: Like Like:
2


----------



## Echo_419

TaiShang said:


> You mean percentages by member state? I guess there is no such list as yet. I would guess the three top nation would be China, Russia and India.
> 
> According to the AIIB website:
> 
> *<<Q8: What will be AIIB’s capital base?*
> 
> _The authorized capital of AIIB is expected to be USD 100 billion. As a regional development bank, AIIB’s regional members will be the majority shareholders; non-regional members will hold smaller equity shares. This shareholding arrangement reflects the commitment and ownership of regional members while providing non-regional members the opportunity to participate actively. >>_
> 
> So, as people speculate, Asian members will retain the majority of the share (75%-80%). The rest will be given to the remaining prospective founding members (PFMs).



Good to know atleast we are in top 3

Reactions: Like Like:
2


----------



## TaiShang

Echo_419 said:


> Good to know atleast we are in top 3



I guess India's presence is valuable. Much more valuable than, I would say, Japan. 

Pragmatically, Japan would be a competitor as well as a partner and also, with its share as an Asian country, would be an asset for the US to weaken/dilute China's influence.

I anticipate India to care more about its own interests and side with the rest of Asian partners.

Reactions: Like Like:
3


----------



## Echo_419

TaiShang said:


> I guess India's presence is valuable. Much more valuable than, I would say, Japan.
> 
> Pragmatically, Japan would be a competitor as well as a partner and also, with its share as an Asian country, would be an asset for the US to weaken/dilute China's influence.
> 
> I anticipate India to care more about its own interests and side with the rest of Asian partners.



Well I agree with you since India has stayed with Asia many more times than other Asian Countries Like Japan,Pakistan,China etc


----------



## Chanakya's_Chant

Echo_419 said:


> Can you post the list of voting rights held by all nations in AIIB



The vote share is expected to be based on 50 per cent Gross Domestic Product (GDP) and 50 per cent Purchasing Power Parity (PPP) with primacy to be given to the Asian countries as the bank primarily aims to fund infrastructure projects mainly in the Asian region. A much better methodology than IMF - China and India have been on the same side with their struggle at IMF. Still to be finalized though.

Reactions: Like Like:
1


----------



## ahojunk

Report on AIIB structure denied
2015-05-07 08:51Global Times _Editor: Qian Ruisha_

*No branches, fewer vice presidents, says expert*

A senior expert on the Asian Infrastructure Investment Bank (AIIB) at the Ministry of Finance (MOF) dismissed on Wednesday a media report about a proposed plan to set up regional branches for the AIIB and a team of one president and 10 vice presidents.

China has proposed an executive system of one president and 10 vice presidents, the China Economic Weekly magazine reported Wednesday, citing unnamed sources close to the matter.

The report also said the AIIB founding members are considering setting up two branch offices of the AIIB, one in Europe and the other in Asia.

However, Zhou Qiangwu, chief of the Asia-Pacific Finance and Development Center, said the report was not accurate. Zhou's office, a think tank on international economics, is an affiliated agency under the MOF.

"There are no plans at present to set up branches, just a headquarters in Beijing. There might be some regional offices in the future, if such a need was agreed upon by all members," Zhou told the Global Times on Wednesday.

As for the arrangement of AIIB senior management, Zhou said there will be one president, but it is unlikely there will be as many as 10 vice presidents.

"The AIIB will aim for high efficiency, with keen-witted and capable staff," Zhou said.

Requests for comment sent to the Ministry of Finance were not answered by press time Wednesday.

Vice Finance Minister Shi Yaobin said on March 25 that issues concerning the setting-up of regional centers and the appointment of executives are still being discussed.

Zhou said the draft agreement for the AIIB has been under discussion by all the prospective founding members. The draft is expected to be agreed upon by late May, and in June it will be submitted to the AIIB members for approval. The AIIB will officially be launched somewhere between the end of 2015 and early 2016, Zhou said.

A meeting was held in Beijing from April 27 to 28 for preparing the draft proposal and another meeting will be held in Singapore in late May, according to the website of the MOF.

The AIIB, initiated by China in October 2014 to spur infrastructure investment in Asia, has 57 founding members. In contrast, the World Bank and the Asian Development Bank have 28 and 31 founding members, respectively.

"Things have been complicated as a large number of countries have pledged participation. This was unexpected," Yuan Gangming, a researcher at Tsinghua University's Center for China in the World Economy, told the Global Times on Wednesday.

More presidents means more voices will be heard, more interests will be taken into account, and there will have to be wider representation. The downside is that it will take more efforts to reach a consensus, Yuan said.

Di Dongsheng, a research fellow at the international monetary institute under Renmin University of China, noted that the AIIB will not regard making a profit as its primary goal.

"Its goal is to support and sustain the development of developing economies in Asia. The investment might go to projects that are not favored by commercial banks and with limited yields. However, China's economic restructuring and upgrading will also benefit from more of its investment and industrial capacity heading to global destinations," Di told the Global Times Wednesday.

The China Economic Weekly report cited experts as saying that there are many contenders to be president of the AIIB, with India showing a special interest.

"India is very confident it can get the president's post, with Prime Minister Narendra Modi pushing reforms at home. But it is not the only country seeking it," Dong said.

Yuan did not totally agree with this view. "There is no doubt that the president of the AIIB will be Chinese rather than Indian, since China has taken the greatest risks and responsibilities in the foundation and development of the AIIB."

"But China will not dominate the AIIB, since China has criticized the US dominance of the World Bank. China will not do a similar thing," Yuan told the Global Times. "The AIIB will give more weight to the opinions and benefits of developing countries."
.

Reactions: Like Like:
2


----------



## ahojunk

*Opinion | May 2015*
AIIB: A plank in China’s hedging strategy 
By: Injoo Sohn

China’s new development bank is neither a surprising initiative nor a grave threat to global financial governance. The Asian Infrastructure Investment Bank (AIIB) is the latest component of Beijing’s decade-long hedging strategy. To avoid over dependence on existing global institutions, China has been pursuing a risk-averse hedging strategy by developing regional supplements while sustaining collaborative relations with the Group of 7-centered global institutions such as the World Bank. Although the AIIB is part of China’s sophisticated attempts at reshaping the prevailing international monetary order, it is compatible with existing global and regional institutions.

China has deep uncertainty about the evolution of both global and regional financial institutions, and wants to avoid putting all of its eggs in a single basket. At the global level, the prospects for the fundamental reform of global financial institutions have not been bright, in the eyes of China. The interests of the major G-20 players – of which China is one – do not necessarily coincide. The conservative tendencies of the status quo powers and the bureaucratic inertia in existing international institutions have stalled reform of the International Monetary Fund (IMF) and other organizations. At the same time, uncertainty about East Asia’s project to create a cohesive regional financial architecture prevails, both within and outside China. Since the Asian financial crisis in the late 1990s, China and other East Asian countries have implemented the Asian Bond Fund Initiative (ABFI) and the Chiang Mai Initiative Multilateralization (CMIM) currency swap arrangement. Despite some modest progress in these regional initiatives, structural diversity, weak regional identity and power competition seem to conspire to impede the rise of a strong overarching regional financial architecture in the near future.

Against this backdrop, China intends to explore both global and regional options lest it limit the range of strategic options available to it. Beijing seeks greater input in the running of the world economy. At the same time, it is creating non-confrontational means ways to resist the pressure of the status quo powers. At the global level, though it calls for more substantial reforms in the existing global financial architecture, Beijing has been neither a key policy innovator nor a principal opponent of proposed initiatives. China has played a constructive role in the institutionalization of the G-20 summit and the creation of the Financial Stability Board, even though it did not take the lead in those global initiatives. At the regional level, China has attempted to reduce the exclusivity of the regional arrangements by advocating a CMIM–IMF linkage, an Asian Bond–Eurobond linkage and an ABFI–Bank of International Settlement (BIS) collaboration. This strategic behavior helped the region to develop its supplementary institutions, even as East Asia maintains collaborative relations with the existing global financial institutions. Together, the AIIB, CMIM and ABFI can lessen China’s dependence on the World Bank and IMF’s for development and crisis management support. These new institutions might complement (or even outperform) the global institutions in addressing specific pressing regional problems. Regional institutions thus give China a feasible exit option when the existing global institutions become ineffective or irrelevant.

China’s hedging strategy – reinforced by a sense of triumph over the positive global response to the establishment of the AIIB – is likely to facilitate the emergence of a more fragmented and multilayered form of global financial governance. There are legitimate concerns about this decentralizing trend. However, a fragmented mode of global governance, while not perfect, may be beneficial in some ways. Effective coordination among global, regional and bilateral institutions may be possible so long as key players can learn to pursue public goods together. Decentralized governance also may offer “checks and balances,” in effect encouraging public goods. Highly centralized power in a single overarching global institution can be often misapplied and, thus, dangerous. Moreover, a decentralized system would also resonate with the normative structure of the post-global recession world: namely, general skepticism of one-size-fits-all solutions. Multilayered international financial governance could prove to be compatible with regional diversity and national variations in capitalism. The decentralizing trend looks messy, but it is a new reality which we may have to accept. The diffusion of interstate power and concomitant increasing number of veto players are likely to make global consensus harder to reach. We should learn to live with China’s evolving hedging strategy and subsequently decentralized global financial governance.
.

Reactions: Like Like:
2


----------



## ahojunk

‘Don’t pre-judge China-led AIIB’: World Bank MD
By Matthew Allen
May 13, 2015 - 11:00






_World Bank MD Bertrand Badré visits a rural women's self-employment group in India_

*The impending creation of the Chinese-led Asian Infrastructure Investment Bank (AIIB) has been applauded by World Bank managing director Betrand Badré, despite United States objections to the new development financing vehicle.*

Switzerland is one of 56 countries to have expressed an interest in joining China as an AIIB founding member. Dubbed the ‘Chinese World Bank’ by the media, the AIIB aims to get off the ground by the end of the year once it has established a set of operating ground rules.

The US and Japan have so far snubbed the Beijing-based institution, doubting China’s ability to apply proper corporate governance. But the stand-off has been widely interpreted as a wider struggle for political influence in Asia.

In an interview with swissinfo.ch at the St Gallen Symposium, Badré said the AIIB could have a lot to offer and urged the US to “engage in discussions”. The 45thSt Gallen Symposium, organised by students at the University of St Gallen, gathered leaders from around the world to discuss global issues under the banner “Proudly Small”.

*swissinfo.ch: Does the World Bank welcome the AIIB?*
*Betrand Badré:* The World Bank does welcome the AIIB for a number of reasons. We have to be consistent with what we say. We are saying first of all that the needs are enormous, we say that we want to eradicate poverty [and] we say that there are up to $2 trillion of unmet infrastructure finance every year. We alone, or even with all our partners, cannot handle this, so additional resources are always welcome. We need to stimulate projects, and the more people you have focusing on projects and raising issues the better. So I think there is room for everybody.

*swissinfo.ch: How closely will the World Bank and the AIIB cooperate?*
*B.B.: *We don’t have an official contract, but we are working with them. China, just like the US in 1945, is trying to put together a system by which they are they dominant, but they [also] need to share.

The AIIB has 58 potential members. How do you organise that? That is a very practical question. The World Bank can help them because we have been doing this for more than 70 years.

*swissinfo.ch: Is the US/Japan spat with China an unwelcome political diversion? *
*B.B.: *I am not a spokesperson for Japan or the US. I don’t think you can pre-judge what people are going to do. If we work together it is the best way to converge. If we ignore China they will do it on their own and we will have no control. I think it’s better to work together.

This is a critical moment for the US and they have to engage in discussions.

*swissinfo.ch: Is it right therefore that so many other countries (56 including Switzerland) have been so quick to sign up alongside China as AIIB founding members?*
*B.B.: *The likes of Britain, Australia and France have said that they want to join to make sure it’s working properly. These shareholders will want it to be consistent with what they are doing in other places [such as the World Bank]. This is introducing multilateralism to an extent that perhaps China did not have in mind at the beginning. When you bring multilateralism, these countries will get a vote and express their views.

*swissinfo.ch: Is there not a danger of the AIIB and World Bank treading on each other’s toes?*
*B.B.: *This is a healthy competition for us. The very fact you have this new form of competition is incentive for us to do an even more and that helps our reform.

It will take a little bit of time for the AIIB to reach the same level of funding as the World Bank. It is not just money, it is expertise, the capacity to strike a deal, set and supervise a project and to make it work. It will take many years for AIIB to reach that level, so we have time to adjust ourselves.

*swissinfo.ch: The AIIB will concentrate on infrastructure projects. Is this the right approach?*
*B.B.: *Getting infrastructure up and running is absolutely necessary to solving the problem of eradicating poverty. You will not get there if you don’t have infrastructure. We need three types of infrastructure: social (mainly education), physical (transportation, energy, telecommunications etc) and financial infrastructure.

*swissinfo.ch: Is it true that China set up the AIIB because it was frustrated at having so little say at the World Bank?*
*B.B.:* Emerging economies have 48% of voting power at the World Bank [since reform in 2010], so it is not that unbalanced. Voting rights are not just based on the economic and GDP size of countries, the formula is more complex.

The World Bank is a development institution that works with grants. The truth is that, for the time being, the largest grants are being provided by Europe (and Switzerland is a big donor), the US, Japan and Australia and less so by China and others.

There is a frustration by the BRICS [Brazil, Russia, India, China and South Africa] about IMF voting reform being stalled by the US Congress. That is the real irritant. That is where tensions are at a maximum.

The second element [of the AIIB’s formation] was real need for infrastructure development in Asia and the central role of China in the region. You don’t do something like this [form the AIIB] just to prove that the Bretton Woods institutions are wrong. There is more to it than that.
.

Reactions: Like Like:
2


----------



## ahojunk

IDB puts Islamic finance on AIIB drawing board
By Maja Zuvela, Reuters
May 13, 2015, 11:30 PM

SARAJEVO (Reuters) - The Islamic Development Bank (IDB) is in discussions with Chinese officials to study the use of Islamic financing in the planned Asian Infrastructure Investment Bank (AIIB), the head of the Jeddah-based multilateral lender told Reuters.

The move could spur the use of sukuk (Islamic bonds), which have gained prominence as funding tools for a range of countries in recent years, and among multilateral lenders to help fund some of Asia's mounting infrastructure needs.

A potential link-up between IDB and AIIB, which have 20 member countries in common, would also open a growing pool of capital in the hands of private-sector Islamic investors across the Middle East and Southeast Asia.

"Our delegation has visited Chinese counterparts and we expect them to visit us soon," IDB president Ahmad Mohamed Ali said on the sidelines of an industry conference.

"We are ready to collaborate with AIIB on this project and also to help them develop expertise in Islamic financing."

Most analysts believe the AIIB will have to work with established institutions for some of its initial investments, as it takes time to develop its own pipeline of deals.

Developing countries spend about $1 trillion a year on infrastructure and an additional $1-1.5 trillion will be needed through 2020 in areas such as water, power and transportation projects, according to the World Bank.

The asset-backed nature of Islamic finance makes sukuk ideal for such transactions, but until now the format has been confined to handling mid-sized deals with shorter tenors.

The IDB wants to change this, with the multilateral lender now planning to set up a dedicated infrastructure unit.

"Our research unit is currently exploring ways on how to pursue these plans and formation of a special unit to deal with infrastructure projects is on the table," Ali said.

Even the Asian Development Bank, seen as a rival to the AIIB, is stepping up efforts to assist its member countries to use sukuk for infrastructure financing.

The IDB is also coordinating with Turkey, Indonesia and Saudi Arabia to support efforts by the G20 group of nations which has included infrastructure sukuk in its annual agenda.

The AIIB has yet to start operating, but it is designed to cater to Asia's growing appetite for infrastructure, with many of its projects housed in IDB member countries.

Besides the three Muslim-majority G20 members, the AIIB counts other Muslim countries such as Kazakhstan, Pakistan, Qatar, Jordan and Oman as founding members. All have issued or have plans to issue sovereign sukuk.

(Writing and additional reporting by Bernardo Vizcaino; Editing by Eric Meijer)
.

Reactions: Like Like:
4


----------



## ahojunk

*Lean & Mean AIIB Vs Bloated & Slow World Bank*
Author: David Dollar, Brookings Institution

To understand the impetus for launching the Asian Infrastructure Investment Bank (AIIB) one needs to look no further than China’s concern that the governance structure of existing international financial institutions was evolving too slowly. An important agreement to increase the resources of the International Monetary Fund and to raise the voting shares of fast-growing emerging markets, ratified by other nations, has been stalled in the US Congress for some time.

It is ironic that one of China’s frustrations with the US-dominated institutions is that China sees a need for more resources and is willing to contribute, whereas the different parts of the US government cannot agree to this expansion.

China’s frustration is not just about the size of the institutions and its weight within them. In the case of the World Bank, China has argued for years for more focus on infrastructure and growth.

Several years ago, Ernesto Zedillo, former president of Mexico, chaired the High-Level Commission on Modernization of World Bank Group Governance. This was a serious effort by a distinguished international committee, including Zhou Xiaochuan from China and other emerging market heavyweights.

The Zedillo report is quite critical of the current World Bank arrangement of a resident board that approves all loans. The resident board is both a large financial cost to the bank (US$70 million per year) and an extra layer of management that slows down project preparation and makes the bank less efficient.





Slowness of project preparation is one of the main criticisms of clients concerning the poor performance of the multilateral development banks.

The Chinese officials charged with developing the AIIB are looking at the Zedillo report for ideas. It is likely that the bank will have a non-resident board that meets periodically in Beijing and also by video-conference. Given the newness of the bank a likely compromise among the countries that have signed up is that the board will approve many of the initial projects and eventually delegate more decision-making to management.

The Zedillo report recognises the importance of environmental and social safeguards but argues that the World Bank has become so risk averse that the implementation of these policies imposes an unnecessary burden on borrowing countries.

In practice developing countries have moved away from using the existing multilateral development banks to finance infrastructure because they are so slow and bureaucratic. The enthusiastic response of developing countries in Asia to the AIIB concept reflects their sympathy with the idea that a bank can have good safeguards and still be quicker and more efficient than the existing banks.

Some of the Western commentary on the AIIB expresses a fear that China will use the bank for narrow political or economic ends. Now that a diverse group of nearly 60 countries have signed up it would be difficult for China to use the bank to finance projects in favoured countries over the exclusion of other members.

The idea that AIIB projects would help absorb China’s over-capacity problem does not make sense either. If the bank is very successful then in five years it might lend US$20 billion per year, on a scale with the World Bank’s International Bank for Reconstruction and Development lending.

In the steel sector alone, China would need US$60 billion per year of extra demand to absorb excess capacity. Add in excess capacity in cement, heavy machinery and other sectors — the point is that the bank is just way too small to make any dent in China’s excess capacity problem, even if China were the sole supplier for these projects, which it won’t be.

The initial success of AIIB is a diplomatic victory for China. The US diplomatic response has not been adroit, playing into the narrative of US decline in the Asia Pacific. But that perception could change quickly.

Infrastructure is the necessary ‘hardware’ of economic integration. But trade agreements such as the Trans-Pacific Partnership (TPP) are the ‘software’. If the US and its partners can negotiate and implement this agreement for deeper integration, that will provide a large boost for the members and re-establish US importance to the Asia Pacific economy.

China pursuing the AIIB and other initiatives that do not include the US, while the TPP negotiations do not involve China, creates a risk of competing blocs and institutions. But the most likely outcome is that the world ends up with a more robust and inclusive set of institutions.

The AIIB is likely to make the other development banks more effective and become a part of the global architecture. China and other Asian countries not now involved in TPP are likely to join if it is successful. By bringing the hardware and the software together the outcome could be a more integrated Asia Pacific economy.

_This article was written by *David Dollar*, a Senior Fellow, John L. Thornton China Center, Brookings Institution. He was the former World Bank Country Director for China and Mongolia in the East Asia and Pacific Region. This article was also published on East Asia Forum and reproduced here with their kind permission._
.

Reactions: Like Like:
5


----------



## ahojunk

EBRD eyes cooperation with Chinese-led Asian bank AIIB
TBILISI | By Margarita Antidze

May 15 The European Bank for Reconstruction and Development (EBRD) said on Friday it was ready to cooperate on projects with China and its newly launched Asian Infrastructure Investment Bank (AIIB).

In March, a number of European governments decided to become founding members of the AIIB despite misgivings in the United States, which fears the bank will expand China's global influence at the expense of Western lenders.

"Our approach is to face reality and to try and work with Chinese companies and the Chinese government," EBRD president Suma Chakrabarti told a news conference in the Georgian capital Tbilisi after an annual meeting of the EBRD board of governors.

He said many member countries of the EBRD, whose traditional investment focus since its founding in 1991 has been the former Soviet bloc, were keen to attract investment from the AIIB and to see the London-based EBRD as a co-financer.

"We would be honoured and delighted if we could find some projects where we could have a fresh start of co-financing with them. I think the two institutions (the AIIB and EBRD) have quite an interesting future together as partners."

The EBRD, set up after the collapse of communism in central and eastern Europe, has in recent years expanded its area of operations to include other countries including Turkey, Mongolia and Arab countries such as Egypt and Jordan.

The EBRD last year suspended new lending to Russia, traditionally its largest market, over the Ukraine crisis, a move Russian Deputy Finance Minister Sergei Storchak said on Thursday was "politically motivated".

On Friday, Chakrabarti reiterated that he did not expect to make any new loans to Russia this year but stressed the EBRD was keen to resume lending if the political climate improved.

"We will be ready if one day the geopolitical situation changes and shareholders decide to ask us to go back," he said, noting the bank saw its assets in Russia as "very important".

The EBRD has been hit by a sharp drop in both the Russian rouble and Ukraine's hryvnia currency since Moscow's annexation of Crimea and economic sanctions over what the West says is Russia's support for pro-Russian rebels in eastern Ukraine.

Storchak linked the EBRD's 2014 net loss of 568 million euros ($650 million) to its decision regarding Russia, but Chakrabarti on Friday denied any such link. (Editing by Gareth Jones and Louise Ireland)

Reactions: Like Like:
2


----------



## ahojunk

South Korea is choosing to focus investing in niche infrastructure areas such as ICT.
The Japanese and Americans could now regret missing out on potential opportunities.

-------------
Korea urged to focus on ICT infra projects
Published : 2015-05-15 19:12

South Korea’s participation in the Asian Infrastructure Investment Bank will be beneficial if the country focuses on infrastructure-building projects in information and communications technology and other key areas, experts said.

A recent report, titled “The Meaning of AIIB and Opportunity for ICT,” published by the KT Center of Business and Economic Studies, said that in order to Korea to benefit from the AIIB, it should focus on investing in ICT.

“Investing in ICT in Asia could also pave the way for Korean corporations to enter overseas markets,” Cho In-ho, a DIGIECO researcher and coauthor of the report, said.

The report added that global demand for ICT infrastructure during the current decade was estimated at $8.22 trillion.

“Because there is a huge demand for infrastructure in Asia, we have to see how much share we can take and how many derivative markets we can create from the ICT industry,” Cho said.

“With the U.S. and Japan ― both countries with strong ICT industries ― currently not part of the AIIB, it was a good chance for the IT-powered South Korea to establish a foothold in business deals first.”

More specifically, he said Korea had an advantage in broadband and LTE data, as well as having a thriving applications and mobile solution market.

With the rise of ICT in developing countries, there may be demands for other industries that improve residents’ quality of life.

“In that case, the medical businesses could become important as well as smart traffic and electronic traffic industries.”

Other industries have also been forecast to benefit from the AIIB. Ankit Panda, a foreign affairs analyst and editor at the Diplomat, said that Korean contractors in energy, transportation, construction, and related industries could stand to win valuable contracts with the backing of the AIIB, noting that shares of Korean iron and steel campanies rose after Seoul announced its participation in March.

Charles K. Armstrong, professor of Korean Studies at Columbia University, also stated that he saw the AIIB as an important regional element to the world financial system.

“There is a shortage of investment capital in Asia, and the work of the AIIB should complement ― rather than simply compete with ― the activities of the Asian Development Bank, the World Bank, and other international investing institutions,” he told The Korea Herald in an email interview.

By Sang Youn-joo (sangyj@heraldcorp.com)

Reactions: Like Like:
2


----------



## ahojunk

That's a change of heart for USA. 
If you can't beat them but can't join them, then say something good about them.

---------------------
*United States welcomes AIIB*
2015-05-17 08:33 chinadaily.com.cn Editor: Li Yan





Chinese Foreign Minister Wang Yi (R) holds talks with US Secretary of State John Kerry in Beijing, capital of China, 
May 16, 2015. (Photo/Xinhua)

The United States welcomes new multilateral institutions, including the Asian Infrastructure Investment Bank, U.S. Secretary of State John Kerry said during a press conference with Chinese Foreign Minister Wang Yi on Saturday.

"We respect the AIIB," the top U.S. envoy said. "There is an enormous amount of misunderstanding but let me try to be clear.

"There is a pressing need to enhance infrastructure investment not only in Asia, but as well as around the world," Kerry said. "The United States welcomes new multilateral institutions, including the AIIB, as long as it provides the international community a strong commitment to high standards."

Those standards include genuine multilateral decision-making and environmental and social safeguards, which Kerry said also "applied to global financial institutions".

"We will continue to engage directly with China and other countries in order to provide suggestions on how the AIIB can best adopt and implement these particular standards. With that, we welcome the AIIB and we encourage co-financing some projects with existing institutions, like the World Band and the Asian Development Bank," Kerry said.

About the meeting, Foreign Minister Wang Yi said that the most important thing is for he and Kerry to make preparations for President Xi Jinping's state visit in September to the United States.

"Just now, together with Secretary Kerry, we exchanged views concerning the arrangements of events, the agenda items of this visit," Wang said.

Kerry disclosed that both sides also dug into a number of issues in depth, including those in which the two countries have a difference in opinion, such as maritime security.

"There is no question that our nations share extraordinary opportunity as we build the history of this century," Kerry said. "We have a lot to accomplish together in the coming years. As two of the world's major powers and largest economies, we have a profound opportunity to set a constructive course to affect everybody on this planet."
.

Reactions: Like Like:
4


----------



## ahojunk

.
AIIB Said to Mull Fast-Track Loan Approval With No Board on-Site
by Sandrine Rastello & Unni Krishnan
6:41 PM AEST May 18, 2015

The new China-led Asian infrastructure bank is considering giving senior staff more power over loan approval than at existing multilateral lenders to speed up the decision process, officials familiar with the talks said.

Under proposals to be discussed this week in Singapore, the board of directors, which represents member countries, wouldn’t sit at the lender’s headquarters. The threshold and conditions to delegate loan decisions to management haven’t yet been agreed, according to the officials from founder-member countries, who asked not to be named as the talks aren’t public.

China, which lined up support of 56 nations for the $100-billion bank, wants to set it apart from institutions such as the World Bank, which borrowers have criticized for having too many conditions and authorization layers.

“In the past there’s been a lot of complaints that the multilateral institutions -- the board -- can be heavy handed in the operations, so there will be room for improvement,” Justin Lin Yifu, a former chief economist at the World Bank, said in an interview Monday in Singapore. “But at the same time, I think that to have some kind of supervision from the board would be desirable.”

The Beijing-based AIIB, which is recruiting Chinese and international staff, would be unusual in forgoing an on-site executive board, marking out a contrast with institutions such as the Asian Development Bank or the African Development Bank.

*Faster Decisions*
Decisions could be made more quickly and efficiently without a board physically present, said Lin, who is now a director of the China Center for Economic Research at Peking University.

The AIIB and China’s Finance Ministry didn’t immediately respond to faxed requests for comment on plans for the bank’s loan-approval process.

Under proposals being discussed, the AIIB’s board would retain power to overturn lending decisions made by an investment committee of senior staff.

The Washington-based World Bank and other lenders have tried to streamline their decision process for small or low-risk loans, including with absence-of-objection procedures that don’t require board discussion.

A greater reliance on fast-track loan approvals would mirror the framework of a separate new institution that China is setting up with with Brazil, Russia, India and South Africa -- the BRICS bank. China is also pursuing a Silk Road Fund to strengthen Chinese economic ties in South and Central Asia.

*Japan Frustration*
Details of how the AIIB would operate are only starting to emerge, with outlines for lending objectives and conditions still unclear. Japan, which along with the U.S. has refrained from joining as a founding member, has expressed frustrations over the lack of information. Japan is the leading member of the Manila-based Asian Development Bank.

“We keep asking questions but they didn’t give answers,” Japanese Finance Minister Taro Aso said earlier this month. It’s been “the same thing the last year and a half.”

Rapid progress for the bank may be hampered by political concerns, overlap with other institutions and governance issues, according to analysis by Bloomberg economist Fielding Chen.

Still, because the AIIB focuses on infrastructure, its capacity to make loans to build Asia’s bridges and power plants may be as much as 70 percent greater as that of the Manila-based ADB, Chen wrote last month.

Reactions: Like Like:
6


----------



## Edison Chen

ahojunk said:


> *Faster Decisions*
> Decisions could be made more quickly and efficiently without a board physically present, said Lin, who is now a director of the China Center for Economic Research at Peking University.
> 
> The AIIB and China’s Finance Ministry didn’t immediately respond to faxed requests for comment on plans for the bank’s loan-approval process.
> 
> Under proposals being discussed, the AIIB’s board would retain power to overturn lending decisions made by an investment committee of senior staff.
> 
> The Washington-based World Bank and other lenders have tried to streamline their decision process for small or low-risk loans, including with absence-of-objection procedures that don’t require board discussion.
> 
> A greater reliance on fast-track loan approvals would mirror the framework of a separate new institution that China is setting up with with Brazil, Russia, India and South Africa -- the BRICS bank. China is also pursuing a Silk Road Fund to strengthen Chinese economic ties in South and Central Asia.



Faster decision is really needed. Lengthy and worthless decisions could only make things more complicated and delay the development of those countries.

Reactions: Like Like:
6


----------



## ahojunk

Things are happening for the AIIB. Hope it will be able to start functioning by end of year.

-----------------------------------------------------.
China-backed AIIB founding members to meet in Singapore this week
*Members of the China-backed Asian Infrastructure Investment Bank (AIIB) will hold a three-day meeting in Singapore this week to discuss operational policies for the establishment of the institution.*

*POSTED:* 19 May 2015 12:34





_Marina Bay, Singapore._

SINGAPORE: Founding members of the China-backed Asian Infrastructure Investment Bank (AIIB) will hold a three-day meeting in Singapore this week to discuss operational policies for the establishment of the institution.

The gathering, called the 5th chief negotiators' meeting, will also discuss the draft articles of agreement for the AIIB in Singapore from Wednesday to Friday, a Singapore Ministry of Finance statement said on Tuesday (May 19).

The meeting will be co-chaired by Shi Yaobin, vice minister of China's Ministry of Finance, and Yee Ping Yi, deputy secretary of Singapore's Ministry of Finance.

A total of 57 countries have joined AIIB as its founding members, China has said, throwing together countries as diverse as Iran, Israel, Britain and Laos.

Among the Group of Seven (G7) industrialised countries, the United States, Japan and Canada remain absentees.

Washington had cautioned nations about joining the bank, seen as a rival to the U.S.-dominated World Bank, citing what it called a lack of transparency, doubts about lending and environmental safeguards, and concerns over Beijing's influence.

Beijing said it will not hold veto power inside the AIIB, unlike the World Bank where Washington has a limited veto.

Founder members will initially pay up to one-fifth of the AIIB'S US$50 billion authorised capital, which will eventually be raised to US$100 billion.

(Reporting by Saeed Azhar; Editing by Raju Gopalakrishnan)

- Reuters

Reactions: Like Like:
4


----------



## ahojunk

*AIIB Founding Members.*

Reactions: Like Like:
3


----------



## TaiShang

*Founding members agree on AIIB's charter*
Xinhua, May 22, 2015
Negotiators from the 57 prospective founding members of the Asian Infrastructure Investment Bank (AIIB) have reached agreement on the bank's charter, with the signing scheduled for the end of June in Beijing, China's Ministry of Finance said on Friday.

The three-day meeting ended Friday in Singapore, the ministry said in a statement on its website.

The statement said after signing the charter, representatives of prospective founding members will bring the charter back to their countries for legal adoption processes. The bank, which will be headquartered in Beijing, is expected to be officially established at the end of 2015.

The AIIB is designed to finance infrastructure construction in the continent. It will have authorized capital of 100 billion U.S. dollars and the initial subscribed capital is expected to be around 50 billion dollars.

Reactions: Like Like:
1


----------



## ahojunk

Japan didn't join the AIIB (under pressure from US) but still want a piece of the infrastructure cake in Asia.
What a joke! Oh! it hurts to see India and Russia have more say in AIIB than Japan. 
If Japan had joined, it would be number two instead of just being a spectator from outside.
Come on Japan, get out from under the US skirt.

----------------------------------
*Japan unveils $110 billion plan to fund Asia infrastructure, eye on AIIB*
Thu May 21, 2015 6:50am EDT
TOKYO | By Leika Kihara and Linda Sieg

Japan unveiled a plan on Thursday to provide $110 billion in aid for Asian infrastructure projects, as China prepares to launch a new institutional lender that is seen as encroaching on the regional financial clout of Tokyo and its ally Washington.

The amount of Japanese funds, to be invested over 5 years, tops the expected $100 billion capitalisation of the Asian Infrastructure Investment Bank (AIIB), the Beijing-sponsored lender scheduled to begin operations next year.

Japanese officials said the plan, announced by Prime Minister Shinzo Abe at a symposium of Asian officials and experts, represents a 30 percent increase over Tokyo's past infrastructure funding.

Japan said it wants to focus on "high quality" aid, for example, by helping recipients tap its expertise in reducing pollution while building roads and railways. That's an implicit contrast with the AIIB, whose projects Washington has said may not adequately safeguard the environment.

"We intend to actively make use of such funds in order to spread high-quality and innovative infrastructure throughout Asia, taking a long-term view," Abe said in a speech announcing the plan.

About half the funds will be extended by state affiliated agencies in charge of aid and loans and the rest in collaboration with the Asian Development Bank (ADB).

Japan hopes the aid will help draw private funds to help meet the vast demand for infrastructure in Asia.

The United States and Japan were caught off guard when a total of 57 countries, including Group of Seven members Britain, Germany and France jumped on board the AIIB bandwagon by March.

The two allies have stayed out of the China-led institution, seen as a rival to the U.S.-dominated World Bank and Japan-led Asian Development Bank, citing concerns about transparency and governance - although Tokyo for one is keeping its options open.

Finance officials said Japan's aid plan had long been in the works as part of a Group of 20 pledge to meet global needs.

But worried that Japan may look less pro-active than Beijing, Tokyo also wants to showcase its support for the region.

"We had thought it was better not to speak up much, but that doesn't get through," Koichi Hagiuda, a special aide to Abe in his Liberal Democratic Party, told Reuters.

"So some demonstration seems to be needed."

Japanese and Chinese finance officials will meet in Beijing on June 6 and may discuss the AIIB, but Tokyo looks unlikely to make a decision on joining any time soon.

LDP lawmakers looking into the matter will put together a report later this month or in early June, but will only state the pros and cons of joining or staying out, said Masahiko Shimayama, a member of the party panel.

"I think it's unlikely that the government would make a decision on when to join based on our report," he told Reuters.

Tokyo, which given the size of its economy could become the No. 2 donor if it decides to join the AIIB, may well keep its powder dry for some time to come.

"If it (AIIB) becomes a proper financial institution for the sake of Asia, there is no reason to be embarrassed about joining later," Hagiuda said.

The United States and Japan agreed last month that the World Bank and ADB should team up with the AIIB in syndicated loans as a way to help the new lender establish strong standards.

The AIIB is holding a meeting of founder members in Singapore this week to decide on the articles of association and operational details. A delegate to the conference, speaking on condition of anonymity, said it was unlikely the new bank could start lending at the start of 2016 as predicted, given the need for member countries to get approvals from their legislatures.

"China hopes that members get such approvals by year-end and the operations start from the next year, said the Asian delegate. "But I wonder if it is possible, given domestic political situations in each country."

(Additional reporting by Jongwoo Cheon in Singapore; Editing by Raju Gopalakrishnan)

Reactions: Like Like:
2


----------



## ahojunk

China-backed AIIB sets target to be operational by year-end
Fri May 22, 2015 12:50pm IST





_China's Vice Minister of Finance Shi Yaobin (2nd R) listens to delegates during a break in the Fifth Chief Negotiators' meeting which will discuss draft agreements for the China-backed Asian Infrastructure Investment Bank, in Singapore May 20, 2015._

China-backed Asia Infrastructure Investment Bank (AIIB) on Friday set an ambitious target to become operational by the end of the year after a three-day meeting of prospective founding member nations in Singapore.

AIIB said in a statement that the meeting finalised the articles of agreement, which are expected to be ready for signing by the end of June, but did not give details.

Delegates told Reuters that China would likely take a 25-30 percent stake in the bank, and India was likely to be the second-largest shareholder.

China's share in the $100 billion lender would be less than 30 percent, an Asian delegate told Reuters. A second delegate said India's share would be between 10 and 15 percent. Both spoke on condition of anonymity.

In all, Asian countries are expected to own between 72 and 75 percent of the bank, while European and other nations will own the rest.

A third delegate said each country representative would take the proposals back to their governments for a final decision.

Some were sceptical of the timeline for the bank to start running, as each member will need to obtain cabinet and legislature approvals at home.

"It is uncertain if we can start from early next year," said a delegate, who declined to be named as he was not authorised to speak to the media.

"China hopes that members will get such approvals by year-end and the operations start from the next year. But I wonder if it is possible, given domestic political situations in each country."

A total of 57 countries have joined AIIB as its prospective founding members, throwing together countries as diverse as Iran, Israel, Britain and Laos.

The United States and Japan have stayed out of the institution, seen as a rival to the U.S.-dominated World Bank and Japan-led Asian Development Bank, citing concerns about transparency and governance, although Tokyo for one is keeping its options open.

AIIB's launch is coming at a time when the space for infrastructure lending is already crowded due to the presence of major multilateral lenders and Japan's latest move to provide $110 billion for Asian infrastructure projects.

The amount of Japanese funds, to be invested over five years, tops the expected $100 billion capitalisation of the AIIB.

(Reporting by Karen Lema in MANILA and Manoj Kumar in NEW DELHI; additional reporting by Eveline Danubrata in JAKARTA, Jongwoo Cheon, Aradhana Aravindan and Rujun Shen in SINGAPORE; Writing by Saeed Azhar; Editing by Nick Macfie)

Reactions: Like Like:
1


----------



## Kyle Sun

Guynextdoor2 said:


> Dream more. If you think that UK (perpetual US poochdoggy), Norway, India etc. will take one step against the US simply because they became members of the AI whatever Bank, you're dreaming after smoking lots of Pot.
> 
> We'll worry about our sanitation, you should spend more money on pollution than on such fanciful projects. Last time I checked lots of people die every day due to that @AndrewJin


we are working on the pollution issue.and even we have so much pollution ,chinese average life time is still much longer than indian.
before you talk about our pollution issue,you should ask pm modi to build some toilets and clean your mother river

Reactions: Like Like:
3


----------



## ahojunk

A letter from a professor....

------------------------
*US offers only sour grapes in opposition to AIIB*

Sir, 

America’s opposition to China’s creation of an Asian Infrastructure Investment Bank is not only “a self-defeating farce” (Editorial, May 21) but also an outright hypocrisy.

The late philosopher Bertrand Russell once remarked, “We have, in fact, two kinds of morality side by side: one which we preach but do not practise, and another which we practise but seldom preach.” Russell’s words apply to the Obama administration’s stance on the AIIB. The primary function of this bank is to finance infrastructure projects in Asia’s developing countries desperately in need of such investments. America has long admonished China to become a “responsible stakeholder” in Asia, and China is attempting to become one with the creation of the AIIB.

The late historian William Appleman Williams, author of Empire as a Way of Life, defined empire as “the use and abuse, and the ignoring, of other people for one’s own welfare and convenience”. Is the Obama administration displaying imperial hubris? Or perhaps its hostility toward the AIIB is simply a case of Aesop’s “the fox and the grapes”? Since it would be unable to get approval for funding from a Republican Congress even if it wanted to join the bank as a founding member, the Obama administration is deeming China’s grapes “sour” and telling America’s allies not to eat them. In either case, by pressuring them not to join the bank, the administration has only repelled the sympathies of the global community.

Washington’s choice to eschew the AIIB places greater responsibility on those who do join to ensure the bank meets high standards of governance. By declining membership, the US is also declining a chance to safeguard the AIIB against hegemony and dominion, further eroding its waning influence in Asia.

*Yeomin Yoon*

_Professor of Finance & International Business_

_Seton Hall University, NJ, US_

Reactions: Like Like:
2


----------



## Hasbara Buster

ahojunk said:


> *AIIB Founding Members.*
> 
> View attachment 223521





Why not more members from South America?


----------



## ahojunk

Hasbara Buster said:


> Why not more members from South America?



They didn't apply to be founding members.

Reactions: Like Like:
1


----------



## ahojunk

.
*Japan, World Bank funds ‘no threat’ to AIIB*
By Chen Yang and Liu Xin | Source:Global Times | Published: 2015-5-22 0:33:01

* Germany eyes director seat on AIIB board *

Japan and the World Bank's separate plans to fund infrastructure projects in Asia will increase competition, but not threaten the role of the Asian Infrastructure Investment Bank (AIIB) in Asia's huge infrastructure market, experts said Thursday.

Japanese Prime Minister Shinzo Abe announced on Thursday that the country will provide $110 billion to help develop infrastructure projects in Asia over the next five years, Reuters reported.

World Bank President Jim Yong Kim on Wednesday also pledged up to $11 billion in new financing over the next three to four years to Indonesia, in the energy, health, education and maritime economy sectors, including the delivery of services at the local level, said a statement on the bank's website. 

The announcements came at a time when representatives of 57 prospective founding members of AIIB meet this week in Singapore to discuss the draft Articles of Agreement and operational policies of the bank. 

"Japan and the US-dominated World Bank strengthened efforts to invest in Asia's infrastructure after they saw the AIIB's influence and its potential role in the region," Han Meng, a research fellow at the Institute of Economics of the Chinese Academy of Social Sciences, told the Global Times Thursday.

But the infrastructure funding gap in Asia is so large that all countries are welcome to work together to boost the region's development, experts said. The Asian Development Bank estimated that Asia needs to invest more than $8 trillion in infrastructure projects between 2010 and 2020 to connect its economies to each other and the world.

"Both plans will increase competition and promote investment efficiency but not become threats to the AIIB, because even with the combined effort of Japan and the World Bank, the total investment of the three parties still could not meet the huge financing demand in the region," Ding Yifan, deputy director of the Institute of World Development at the Development Research Center of the State Council, told the Global Times Thursday.

Japanese and Chinese finance officials are expected to hold talks on June 6 in Beijing to discuss ways to promote cooperation between the two countries. The two sides may exchange views on the AIIB, Reuters reported Thursday, citing unnamed Japanese officials.

Han said Japan's wait-and-see attitude toward the AIIB reflects the dilemma it faces. "Being a major player in Asia, Japan wants to join the bank, but its alliance with the US has made it hesitate," he said. 

Details of the AIIB's three-day meeting have not been released so far, but the South China Morning Post (SCMP) reported Wednesday that Germany will have a director on the board of the AIIB, citing German Ambassador to China Michael Clauss. 

However, the German Embassy reached by the Global Times Thursday said the report was "inaccurate" and the ambassador was merely expressing an expectation. 

"As to an AIIB office in Europe, no decisions have been taken," the embassy wrote in an e-mail.
.

Reactions: Like Like:
1


----------



## ahojunk

.
South Korea seeks deeper cooperation with Japan on China-led AIIB
Business News | Sat May 23, 2015 3:43am EDT
TOKYO






_South Korea's Finance Minister Choi Kyung-hwan speaks during an interview with Reuters before the G20 finance ministers and central bank governors meeting in Istanbul February 9, 2015. 

Reuters/Osman Orsal
_
South Korea called on Saturday for deeper cooperation with Japan on a China-led development bank, while Japan remained cautious about the lender, which it and ally the United States have held back from joining.

A meeting between the Japanese and South Korean finance ministers was "an impetus to deepen cooperative relations" regarding the Asian Infrastructure Investment Bank (AIIB), South Korea's Choi Kyung-hwan told host Taro Aso.

The Beijing-sponsored $100 billion lender is seen as a rival to the U.S.-dominated World Bank and Japan-led Asian Development Bank. Japanese Prime Minister Shinzo Abe countered China's push on Thursday, announcing $110 billion in aid for Asian infrastructure projects over five years.

Aso and Choi "agreed on the importance of assessing enormous demand for infrastructure investments in Asia", including through Abe's new "Partnership for Quality Infrastructure", both countries said in a statement.

Choi, whose government expects a 4-5 percent stake in the AIIB, did not elaborate on the China-sponsored bank in brief remarks, or speak to the media after the meeting of the two officials, who are also deputy prime ministers.

Asked about Choi's reference to the AIIB, Aso told reporters only that he had explained Japan's position that it was seeking more details from China about the transparency and governance of the AIIB, which is scheduled to begin operations next year.

The United States and Japan were caught off guard when 57 countries, including Group of Seven members Britain, Germany and France jumped on board the AIIB bandwagon by March.

Aso and Choi pledged greater financial and economic cooperation, a bright spot in a tense relationship that has been marred by anger over Japan's approach to its wartime and colonial past, as well as friction over disputed islands.

While Abe has held two summits with the Chinese leader since taking office two and a half years ago, he has yet to get a one-on-one meeting with Korean President Park Geun-hye.

(Reporting by Takaya Yamaguchi; Writing by William Mallard)


----------



## ahojunk

I feel sorry for Taiwan, it is still trying to join AIIB but no luck so far.
Hope it can join AIIB soon as an entity like Hong Kong and share in the Asian infrastructure pie.
I wonder if Macao is interested in joining AIIB. 

------------------------------
Dignity key to AIIB participation: Hsia
May 24, 2015, 12:08 am TWN

TAIPEI--Mainland Affairs Council head Hsia Li-yan raised the issue of Taiwan's participation in the Asian Infrastructure Investment Bank (AIIB) during his meeting with his Chinese counterpart Zhang Zhijun in Kinmen on Saturday.

During a news conference held after the meeting, Hsia said he told Zhang that Taiwan has a very high interest in joining the AIIB, but Taiwan's participation must be realized under the principle of dignity and equality.

"Without dignity and equality, we would rather not take part," Hsia said.

Zhang said he welcomed Taiwan's participation and promised to relay Taiwan's position to Beijing, according to Hsia.

"It (China) is very clear about our stance," Hsia said.

Hsia said he also reiterated Taiwan's stance that China should take the feelings of Taiwan's people into serious consideration when formulating its National Security Act.

A proposed revised version of the act says that ensuring the (Chinese) nation's unification is also the obligation of people in Hong Kong, Macau and Taiwan.

The Mainland Affairs Council said the proposed act failed to recognize the fact that the two sides of the Taiwan Strait are ruled by different governments and ignored the desire of Taiwan's people to maintain the political status quo.

The council said it could not agree with the idea embodied in the act that Beijing might deal with Taiwan in ways other than through peaceful means.

But Zhang replied that the proposed revision reflects Beijing's long-standing position, Hsia said.

In a separate news conference, Ma Xiaoguang, a spokesman for China's Taiwan Affairs Office, said Hsia and Zhang reached a consensus on allowing Chinese tourists to use Taiwan as a transit point to travel to other countries, beginning in the middle of this year.

Ma also said the two sides are expected to sign an agreement on introducing fresh water from Xiamen to Kinmen "very soon."

Reactions: Like Like:
2


----------



## TaiShang

*Space for lending is crowded*
Source: Agencies | May 23, 2015, 

*CHINA is likely to hold a 25-30 percent stake in the new Asian Infrastructure Investment Bank (AIIB)* while India will be the second-biggest shareholder, delegates said yesterday after a three-day meeting of the bank’s founding member-nations.

AIIB said in a statement that it expected to be operational by the end of the year. It said the meeting in Singapore had finalized the articles of agreement, which are expected to be ready for signing by the end of June, but did not give further details.

*China’s share in the US$100 billion lender would be less than 30 percent,* an Asian delegate told reporters. A second delegate said India’s share would be between 10 and 15 percent.

*In all, Asian countries are expected to own between 72 and 75 percent of the bank,* while European and other nations will own the rest.

Another delegate said that each country representative would take the proposals back to their governments for a final decision.

All spoke on condition of anonymity.

Some were skeptical of the timeline for the bank to start running, as each member will need to obtain Cabinet and legislative approvals at home.

“It is uncertain if we can start from early next year,” said one of the delegates. “China hopes that members will get such approvals by year-end and the operations start from the next year. But I wonder if it is possible, given domestic political situations in each country.”

A total of 57 countries have joined the AIIB as its prospective founding members, throwing together countries as diverse as Iran, Israel, Britain and Laos.

The United States and Japan have stayed out of the institution, seen as a rival to the US-dominated World Bank and Japan-led Asian Development Bank, citing concerns about transparency and governance, although Tokyo is keeping its options open.

*Washington led a high-profile, and ultimately unsuccessful, attempt to dissuade allies from taking part in the project, which critics say will not demand the same good governance and environmental standards imposed by other international bodies, such as the Asian Development Bank.*

But supporters say fears over undue Chinese influence are overblown, and that the participation by more than 50 countries will dilute Beijing’s power.

The AIIB’s launch is coming at a time when the space for infrastructure lending is already crowded due to the presence of major multilateral lenders and Japan’s latest move to provide US$110 billion for Asian infrastructure projects.
The amount of Japanese funds, to be invested over five years, tops the expected US$100 billion capitalization of the AIIB.

Jahangir Aziz, head of emerging market Asia economics at JPMorgan, said that spending on infrastructure was a great idea on paper, but it was unclear how the AIIB or the New Development Bank, a lender promoted by China and other members of the BRICS group of nations, would be structured.

“We will have to wait for the actual structure of governance before we can see how successful these (institutions) will turn out to be,” he said. “The proof of the pudding will be in the eating.”

The Singapore meeting was the fifth to be held since the signing of a Memorandum of Understanding on establishing the AIIB in Beijing in October last year.

Reactions: Like Like:
3


----------



## ahojunk

AIIB is gaining momentum ...

-----------
Founding members of AIIB finalize Articles of Agreement
CCTV.com
05-23-2015 03:51 BJT

The founding members of Asian Infrastructure Investment Bank have finalized the Articles of Agreement. That's as chief negotiators wrapped up a three-day meeting in Singapore on Friday.

It was the fifth round of meetings for the chief negotiators since the signing of a memorandum of understanding on setting up the bank in Beijing in October 2014.

Besides the articles, the negotiators also discussed the draft Environmental and Social Framework and draft Procurement Policy Framework at the closed-door meeting.

It is expected that the Articles of Agreement would be ready for signing by the end of next month and the AIIB would be operational by the end of this year.

Reactions: Like Like:
1


----------



## Echo_419

TaiShang said:


> *Space for lending is crowded*
> Source: Agencies | May 23, 2015,
> 
> *CHINA is likely to hold a 25-30 percent stake in the new Asian Infrastructure Investment Bank (AIIB)* while India will be the second-biggest shareholder, delegates said yesterday after a three-day meeting of the bank’s founding member-nations.
> 
> AIIB said in a statement that it expected to be operational by the end of the year. It said the meeting in Singapore had finalized the articles of agreement, which are expected to be ready for signing by the end of June, but did not give further details.
> 
> *China’s share in the US$100 billion lender would be less than 30 percent,* an Asian delegate told reporters. A second delegate said India’s share would be between 10 and 15 percent.
> 
> *In all, Asian countries are expected to own between 72 and 75 percent of the bank,* while European and other nations will own the rest.
> 
> Another delegate said that each country representative would take the proposals back to their governments for a final decision.
> 
> All spoke on condition of anonymity.
> 
> Some were skeptical of the timeline for the bank to start running, as each member will need to obtain Cabinet and legislative approvals at home.
> 
> “It is uncertain if we can start from early next year,” said one of the delegates. “China hopes that members will get such approvals by year-end and the operations start from the next year. But I wonder if it is possible, given domestic political situations in each country.”
> 
> A total of 57 countries have joined the AIIB as its prospective founding members, throwing together countries as diverse as Iran, Israel, Britain and Laos.
> 
> The United States and Japan have stayed out of the institution, seen as a rival to the US-dominated World Bank and Japan-led Asian Development Bank, citing concerns about transparency and governance, although Tokyo is keeping its options open.
> 
> *Washington led a high-profile, and ultimately unsuccessful, attempt to dissuade allies from taking part in the project, which critics say will not demand the same good governance and environmental standards imposed by other international bodies, such as the Asian Development Bank.*
> 
> But supporters say fears over undue Chinese influence are overblown, and that the participation by more than 50 countries will dilute Beijing’s power.
> 
> The AIIB’s launch is coming at a time when the space for infrastructure lending is already crowded due to the presence of major multilateral lenders and Japan’s latest move to provide US$110 billion for Asian infrastructure projects.
> The amount of Japanese funds, to be invested over five years, tops the expected US$100 billion capitalization of the AIIB.
> 
> Jahangir Aziz, head of emerging market Asia economics at JPMorgan, said that spending on infrastructure was a great idea on paper, but it was unclear how the AIIB or the New Development Bank, a lender promoted by China and other members of the BRICS group of nations, would be structured.
> 
> “We will have to wait for the actual structure of governance before we can see how successful these (institutions) will turn out to be,” he said. “The proof of the pudding will be in the eating.”
> 
> The Singapore meeting was the fifth to be held since the signing of a Memorandum of Understanding on establishing the AIIB in Beijing in October last year.



Good to know we will be the 2nd largest shareholder in the Bank


----------



## IND151

Echo_419 said:


> Good to know we will be the 2nd largest shareholder in the Bank



Thats very good..............


----------



## ahojunk

A pretty good summary of the deceitful tactics of the Americans towards the AIIB and China... indirectly against Asian infrastructure development.

------------------------
America’s flawed strategy towards AIIB
May 20, 2015 6:56 pm

*US hostility towards new Asian bank risks unnecessarily chilling China relations*

America’s opposition to China’s creation of an Asian Infrastructure Investment Bank is degenerating into a self-defeating farce. Having failed to prevent western allies from joining the fledgling bank, Washington has been left scowling on the sidelines. The Obama administration’s handling of the issue has been embarrassing — and it may hold ominous portents for Asia and the rest of the world.

This week, 57 prospective members assembled in Singapore to devise the rules of the new Beijing-sponsored development institution. Among those attending are US allies such as the UK, France, Germany and South Korea. Aside from Washington, only Canada and Japan have stayed away.

Since 1945, the US has played a hegemonic role in the world’s financial system, propped by the might of the dollar and the lapidary heft of the Bretton Woods institutions: the World Bank and IMF. Top dogs rarely welcome a pushy rival. Surrendering the role of _primus inter pares_ is hard.

But Washington’s principled reasons for opposing the bank do not stack up. True, China’s bilateral lending practices have hardly underpinned its claim to good governance. But it is premature to dismiss the AIIB as Beijing mercantilism writ large.

China is keen to show that it can host a respectable multilateral institution. It has been careful not to politicise the bank. It has put Jin Liqun, an international bureaucrat with experience of the World Bank and the Asian Development Bank (ADB), at its head. His brief has been to apply globally accepted principles of governance.

Convincing doubters that the AIIB is not a vehicle for brute Chinese power was never going to be quick or easy. But Mr Jin’s early steps give some confidence. He has for instance recruited widely: roughly half the nascent institution’s employees so far are non-Chinese. And while AIIB has yet to settle upon a final governance structure, Beijing seems willing to give oversight to its other members.

China is understood to favour a 75 per cent-25 per cent voting split between Asian and non-Asian members (with allocations made according to gross domestic product). On the basis of the current membership roll, that would give Beijing about 43 per cent of the votes, according to analysis by Benn Steil and Dinah Walker at the Council for Foreign Relations.

There are reports that China has forsworn its veto power. If this is the case, then it would be more democratic than the approach taken by the US, which retains a final say at both the IMF and World Bank despite having less than 20 per cent of the votes.

The Obama administration’s reflexive hostility to the establishment of the AIIB risks giving the impression that the US is less interested in Asian development than in restraining Beijing. The US would be unwise to give China further excuses to claim that it is bent on containment.

Washington’s stance has relevance to its Asian allies, particularly Japan. Tokyo is understood to be considering joining the AIIB, even though it is already the leading power in the ADB. Rather than leaning on Japan to stay out, the US should realise that the presence of its allies in the AIIB would give its allies a much bigger say in the bank and dilute Chinese voting power.

Far from being a point of contention, the AIIB’s establishment could still turn out to be an example of how China can reinforce the principles that underpin multilateralism in the west. The US has played a poor hand in regard to the AIIB and its allies. The best course would be to acknowledge the mistake and be present at the creation.

Reactions: Like Like:
2


----------



## ahojunk

.
AIIB set to play vital, unique role in funding Asian infrastructure projects 
By Hu Weijia Source:Global Times Published: 2015-5-25 18:38:02

The planned authorized capital of the Asian Infrastructure Investment Bank (AIIB) is $100 billion, and the proportion that will be contributed by countries in Asia will be decided based on their comparative GDP levels, Shi Yaobin, China's vice minister of finance, was quoted by the Xinhua News Agency as saying on Friday.

As for economies outside Asia, GDP will also be an important criterion for deciding on the amount they should contribute, Shi said.

GDP size is also an important factor in deciding on contributions from member countries of the IMF and the World Bank.

The contribution to the bank's capital from each member will likely affect their voting power at the AIIB.

Shi's remarks indicate the AIIB's founding members will be divided into two parts between Asian countries and economies outside the region.

Differentiating Asian countries from nations outside the region will help to give emerging market economies in Asia a stronger voice at the bank.

So far a total of 57 countries have joined the AIIB as prospective founding members, including 20 from outside Asia. The 20 nations - mainly composed of developed economies such as the UK and Germany, which have large GDP levels - may be granted more voting power at the AIIB if they are put in the same group with Asian countries.

The current allocation system will help ensure more voices can be heard from Asian countries so that financing for their infrastructure requirements can be provided, which was the original reason for setting up the bank.

The system means that the bank will stick to its role as a supplement to the World Bank because it will focus mainly on Asia, which is currently struggling to find enough financing for its many infrastructure projects.

Asia needs about $750 billion in financing every year to support infrastructure construction, and the Asian Development Bank (ADB) and World Bank can only provide about $10 billion each in loans per year, according to experts. The current contribution system will help the bank meet the huge investment needs.

China and India are likely to become the first- and second-biggest shareholders in the AIIB, given the two countries' economic prominence in Asia.

The shareholding ratio will be decided based on economic factors and without political interference, signifying that the AIIB will be operated according to business principles alone.

The bank, initiated by China in October 2014 to spur infrastructure investment in Asia, has been seen by some Western media outlets as a rival to the Western-dominated World Bank and the Japan-led ADB, and some Western scholars have also said the AIIB could undermine the two countries' regional standing in Asia.

However, this is not true, because China has said the AIIB is open to the US and Japan and the two economies were welcomed to join the bank as founding members.

The current contribution system means that Japan would have become the second-largest shareholder in the AIIB if it had joined as a founding member. The US would also enjoy large voting power in the bank as it is the largest economy outside Asia.

The author is a reporter with the Global Times.

Reactions: Like Like:
2


----------



## ahojunk

Posted in: Viewpoint 
------------------------------.
Japanese infrastructure funds can provide healthy competition for AIIB 
Source:Global Times Published: 2015-5-25 21:58:02

"Japan ups ante in race to boost influence in Asia with cash," is how the AP described Japan's response to the Asian Infrastructure Investment Bank (AIIB), after the country announced on Thursday that it will provide $110 billion in aid for Asian infrastructure projects over the next five years. The announcement was released when the AIIB was holding a meeting of founder members in Singapore to arrange operational details. Many see Japan's program as the beginning of a more intense competition between the two largest economies in the region.

Yet the investment should not be regarded simply as a fierce contention. Due to the complicated backdrop, it might as well become a healthy competition.

Since the US launched its strategy of pivot to Asia that apparently targets China, Japan is actually facing a dilemma. It wants to cooperate with Washington to contain the rise of China. Therefore, it has chosen to sacrifice its potential interests and not to join the AIIB so as to coordinate with the US' grand strategy.

But it remains reluctant to give up its share of the economic pie provided by China. So it also turned its eyes to the infrastructure investment like Beijing to make up for the losses of not being a founding member of the AIIB.

Japan has its own advantages. Its rich experience, proven technology and high-quality products are appealing and attractive. However, given its sluggish economic development in recent years, whether it will keep its promise in the long run remains a question.

In the meantime, China enjoys a vigorous economic growth, strong investment ability, as well as price advantages. In a word, each option provided by China and Japan has its own pros for nations looking for aid.

Recipient countries could therefore choose based on their own level of economic development and demands for distinct projects. But in any case, $110 billion is far from meeting the actual needs of infrastructure investment in Asia.

According to the Asian Development Bank, the overall investment demand in the region is estimated to be $8 trillion from 2010 to 2020.

That said, neither a single country nor an organization can fulfill the task single-handedly, which means there will probably be more cooperation than competition.

Japan's investment might also play a constructive role in improving the quality of Chinese products, environmental awareness, and transparency of cooperation with recipients, as well as the transformation of domestic manufacturing industries. Where there is a competitor, there is a way to become stronger. It is not a zero-sum game. It doesn't mean that recipients will have to pick a side. The scale of demand is enormous out there, the need to expand infrastructure is constantly growing, and let's just wait and see who can do better.

When Tokyo turned its back on the AIIB, it started suffering from pressure from its financial sector, which voiced concerns that this was a misjudgment. The White House might have also realized that it acted wildly in trying to thwart the establishment of the AIIB, which embarrassed itself and caused it to miss opportunities. The two allies are now watching, yet have never made a single statement about definitely not joining the bank.

If the AIIB can do an excellent job, it will become increasingly attractive. And it will only be a matter of time for Japan and the US to seek a partnership with it.

The article was compiled by Global Times reporter Li Aixin based on an interview with Hu Lingyuan, a professor with the Center for Japanese Studies at Fudan University. liaixin@globaltimes.com.cn

Posted in: Viewpoint


----------



## ahojunk

Typical western media trying to gloss over US' loss, blame the Europeans and downplay China's win..... 
When you go through the details, you will find it's a big loss to US and its lackey; Japan. 
The AIIB is a big win for China.
--------------------
*AIIB: US is not the only loser, and China is not such a big winner*
27 May 2015 9:59AM

The recent rush by Western countries to join the Asian Infrastructure Investment Bank (AIIB) before the 30 March deadline set by China was widely, and rightly, seen as a policy failure for the US. Earlier, the US had openly opposed the bank.





_Photo courtesy of Flickr user World Bank Photo Collection._

The US has also resisted reform of the Bretton Woods institutions, reforms which might have deterred the emerging economies from establishing new banks. A moderate reform of IMF quotas approved by the Fund's other members has been stuck in the US Congress for five years, aggravating China and the rest of the world.

In the same vein, but less widely known, a few years ago the US and Japan turned down a proposal by China and other Asian countries for a 'special capital increase' in the Asian Development Bank (ADB). This would have allowed these countries to channel some excess capital into the ADB and increase their voting shares in an institution which has served the West well. From a US perspective this would surely have been preferable to the establishment of a new bank by China.

The US has also been inept at reading its allies' intentions. It assumed that it could convince Australia, South Korea and its European allies to remain outside the AIIB. But once the UK broke ranks on 12 March and decided to join the bank, it became clear that accommodating China was the higher priority for virtually everyone.

But the policy failures do not stop with the US.

By rushing to apply to the AIIB in the last two and a half weeks of March, European countries displayed a remarkable lack of foresight and coordination in dealing with China, a skillful counter-party.

Had the European countries been strategic about joining the AIIB, they could already last year have formulated a common position on a raft of issues from the bank's management and governance structure to ensuring its integrity. They could have made these conditions for joining, and maintained a firm common front. By signing up piecemeal at the eleventh hour they have played their trump card and significantly weakened their negotiating stance.

Nor does Japan emerge unscathed. Once it became clear that much of the Western world would join the AIIB, Japan considered its options and announced its continued support for the US. But prioritising its loyalty to Washington over the financing of infrastructure in Asia can hardly have gone down well with its neighbours.

Within Japan, the Ministries of Finance and Foreign Affairs were rebuked by the major political parties for failing to warn them that Western countries might join the AIIB. Now that Tokyo has helped Washington to save face, it may also reverse course and join the bank.

Amid these missteps, the conventional wisdom is that China has emerged as the winner. However, this is only half true. Admittedly, China's multilateral bank has now become a much larger and more visible initiative than Beijing could have imagined. But the last-minute scramble to join caught Chinese authorities by surprise. China may have got more than it bargained for.

China's initiative started out as an Asian bank, which it could easily have dominated. In early March it had 27 prospective members, a month later it had 57, with more lining up to join. The AIIB now includes all of South and Southeast Asia, most of Central and East Asia and the Caucasus, much of Western Europe, Australia, Brazil, New Zealand, Russia, South Africa and several Middle Eastern countries, including Iran and its adversaries Israel and Saudi Arabia.

The diverse membership opens the bank to political and economic pressures that China had not expected to manage. To accommodate its members, there is already talk that the bank may have up to ten vice presidents. This would be a far cry from the lean organisation it was supposed to be.

What then are the key lessons from the AIIB experience? Despite the plethora of policy papers, books and reports on how the West and China ought to manage their relationship, all parties still have a lot to learn. A thorough stock-taking of their recent missteps would be a good place to start.

Reactions: Like Like:
1


----------



## TaiShang

ahojunk said:


> Typical western media trying to gloss over US' loss, blame the Europeans and downplay China's win.....
> When you go through the details, you will find it's a big loss to US and its lackey; Japan.
> The AIIB is a big win for China.
> --------------------
> *AIIB: US is not the only loser, and China is not such a big winner*
> 27 May 2015 9:59AM
> 
> The recent rush by Western countries to join the Asian Infrastructure Investment Bank (AIIB) before the 30 March deadline set by China was widely, and rightly, seen as a policy failure for the US. Earlier, the US had openly opposed the bank.
> 
> View attachment 225238
> 
> _Photo courtesy of Flickr user World Bank Photo Collection._
> 
> The US has also resisted reform of the Bretton Woods institutions, reforms which might have deterred the emerging economies from establishing new banks. A moderate reform of IMF quotas approved by the Fund's other members has been stuck in the US Congress for five years, aggravating China and the rest of the world.
> 
> In the same vein, but less widely known, a few years ago the US and Japan turned down a proposal by China and other Asian countries for a 'special capital increase' in the Asian Development Bank (ADB). This would have allowed these countries to channel some excess capital into the ADB and increase their voting shares in an institution which has served the West well. From a US perspective this would surely have been preferable to the establishment of a new bank by China.
> 
> The US has also been inept at reading its allies' intentions. It assumed that it could convince Australia, South Korea and its European allies to remain outside the AIIB. But once the UK broke ranks on 12 March and decided to join the bank, it became clear that accommodating China was the higher priority for virtually everyone.
> 
> But the policy failures do not stop with the US.
> 
> By rushing to apply to the AIIB in the last two and a half weeks of March, European countries displayed a remarkable lack of foresight and coordination in dealing with China, a skillful counter-party.
> 
> Had the European countries been strategic about joining the AIIB, they could already last year have formulated a common position on a raft of issues from the bank's management and governance structure to ensuring its integrity. They could have made these conditions for joining, and maintained a firm common front. By signing up piecemeal at the eleventh hour they have played their trump card and significantly weakened their negotiating stance.
> 
> Nor does Japan emerge unscathed. Once it became clear that much of the Western world would join the AIIB, Japan considered its options and announced its continued support for the US. But prioritising its loyalty to Washington over the financing of infrastructure in Asia can hardly have gone down well with its neighbours.
> 
> Within Japan, the Ministries of Finance and Foreign Affairs were rebuked by the major political parties for failing to warn them that Western countries might join the AIIB. Now that Tokyo has helped Washington to save face, it may also reverse course and join the bank.
> 
> Amid these missteps, the conventional wisdom is that China has emerged as the winner. However, this is only half true. Admittedly, China's multilateral bank has now become a much larger and more visible initiative than Beijing could have imagined. But the last-minute scramble to join caught Chinese authorities by surprise. China may have got more than it bargained for.
> 
> China's initiative started out as an Asian bank, which it could easily have dominated. In early March it had 27 prospective members, a month later it had 57, with more lining up to join. The AIIB now includes all of South and Southeast Asia, most of Central and East Asia and the Caucasus, much of Western Europe, Australia, Brazil, New Zealand, Russia, South Africa and several Middle Eastern countries, including Iran and its adversaries Israel and Saudi Arabia.
> 
> The diverse membership opens the bank to political and economic pressures that China had not expected to manage. To accommodate its members, there is already talk that the bank may have up to ten vice presidents. This would be a far cry from the lean organisation it was supposed to be.
> 
> What then are the key lessons from the AIIB experience? Despite the plethora of policy papers, books and reports on how the West and China ought to manage their relationship, all parties still have a lot to learn. A thorough stock-taking of their recent missteps would be a good place to start.




So which stage the Western media now?

Reactions: Like Like:
1


----------



## ahojunk

This is very true. Without the AIIB, Japan would not have put this money trying to do some catch up....
US would also like to throw some money too, only if they have some to spare ....

-------------------
AIIB triggered Japan's US$110bn ADB injection: academic
Xinhua | 2015-05-28 | 09:05 (GMT+8)





_Japan's prime minister, Shinzo Abe, gives a press conference in Tokyo, May 14. (Photo/Xinhua)_

Japan's US$110 billion investment in the Asian Development Bank (ADB) announced last Thursday was triggered by the establishment of the China-proposed Asian Infrastructure Investment Bank (AIIB), a leading Australian academic has said.

In a recent telephone interview with Xinhua, deputy director of the China Relations Institute professor James Laurenceson said Japan's further investment into the ADB would not have happened if it were not for the AIIB.

"It means that the AIIB is actually achieving one of its goals which is to increase funds for infrastructure investment." Laurenceson said. "That is why even if the AIIB only provides some gentle competition to the existing players, the region itself is going to be better off," he added.

*For many countries of the region, Laurenceson said what China is proposing is more genuinely win-win than anything they have seen to date, which countries in the region are going to want to support on top of the ADB.*

"There is nothing wrong with the existing players for countries in the region to maintain the ADB," Laurenceson said. "These are institutions that can quite happily work together. It's in (the regions) best interests and it's in their own national interests to support the AIIB."

Laurenceson said that while people talk about the competition between the two banks, the reality is that the demand for finance is so great, and in practical terms competition will be limited.

"The ADB says currently, on their numbers, they only provide 1.5% of the total demand for infrastructure funds," Laurenceson said. "Even with the AIIB, with this extra capital going into the Asia Development Bank, the demand for funds is still going to be far greater."

Laurenceson said the AIIB isn't going to take offense if the ADB gives a loan to a developing country in the region, negating any potential geopolitical conflict.


----------



## ahojunk

The following is by a columnist; David Pilling.

---------------------------------------
A bank made in China and better than the western model



David Pilling

*It is possible that the AIIB will even exceed the standards of existing development lenders*






Groucho Marx said he would refuse to join any club that would have him as a member. He did not however try to discourage his friends from signing up. That is what the US did when it came to the Asian Infrastructure Investment Bank, a China-led institution that Washington regarded with some suspicion.

One Beijing-based US executive scoffed at the very notion that China could run a multilateral institution. It did not know the first thing about how such a bank should be governed, he said.

Opponents of the AIIB whispered that it would lend to dictators, despoil the environment and trample on human rights. (Western institutions, of course, have never done any such thing.) The AIIB may turn out very differently from this caricature.

It is just possible that it will even exceed the standards of existing institutions. With 57 members, including Europeans such as the UK, Germany and Sweden, it is evolving fast and may end up an entirely different institution from the one Beijing envisaged.

Last week, members met in Singapore to draw up articles of agreement. With input from both China, which has proved it knows a thing or two about development, and western countries, which have a better record of implementing safeguards, the project has made a promising start.

The bank will have initial capital of $100bn, double that originally intended. That will make it a serious challenger to the Asian Development Bank, the 50-year-old Tokyo-dominated regional bank with capital of $150bn. China will have the biggest capital quota, probably about 25 per cent. India will have the second-largest, then Russia, Germany, Australia and Indonesia. Overall, 75 per cent of the bank’s capital — and therefore voting rights — are likely to be Asian. Initial indications are that China will not have a veto.

The bank will be based in Beijing. It will have a non-resident board that meets periodically in the Chinese capital and convenes by video conference. At first glance, this could raise the suspicion that the AIIB will have less rigorous oversight than the World Bank, with its resident board that approves all loans. Yet many see the World Bank board as expensive — it costs $70m a year — and cumbersome.

David Dollar, a World Bank veteran who has acted as an unpaid consultant to the AIIB, says the World Bank had become so slow and risk-averse that most governments had stopped coming to it for infrastructure financing. He quotes an Indian official, exasperated at the pace of World Bank-sponsored projects, as saying: “Mr Dollar, the combination of our bureaucracy and your bureaucracy is deadly.”

The hope, he says, is that the AIIB can combine the best of both worlds. “The enthusiastic response of developing countries in Asia to the AIIB concept reflects their sympathy with the idea that a bank can have good safeguards and still be quicker and more efficient than the existing banks,” he writes.

In Jin Liqun, tipped to become the AIIB’s first president, China’s new institution has one of the country’s most experienced technocrats. He is a former deputy finance minister and a former ADB vice-president. His job will not be easy. With such high-profile western involvement, the AIIB will find its projects (a dam in Myanmar here, a highway through an Indonesian township there) scrutinised by board members from the likes of Germany. By inviting in so many foreign participants, Beijing has probably given up on the idea that the AIIB can be a crude instrument of Chinese diplomacy. It may even be having buyers’ regret.

In one way, though, the bank is a success before it has even started. It has triggered what one commentator calls “infrastructure wars”. The ADB has performed some accounting magic in order to increase the amount it can lend. ADB officials say the bank will review approval procedures so that it can match the AIIB’s expected greater speed. On the day that AIIB members met in Singapore, Shinzo Abe, Japan’s prime minister, announced that Tokyo would make $110bn available for infrastructure projects in Asia over five years. These, he implied, would be of higher quality than those led by China.

Like Groucho Marx, Japan and the US are not rushing to join the new club. Yet if the AIIB proves as effective as its advocates hope, before long even Tokyo and Washington may be angling for membership.
.

Reactions: Like Like:
2


----------



## ahojunk

Hmmm... The Japanese are still mulling over, just couldn't let go..... To join or not to join.
I thought they have gotten over it, but apparently I was wrong.

------------------
Japan Shouldn’t Join AIIB for Time Being, LDP Panel to Tell Abe
by Maiko Takahashi
3:30 PM AEST | June 1, 2015

Japan shouldn’t join the China-led Asian Infrastructure Investment Bank until governance concerns are addressed, a panel of ruling party lawmakers will advise Prime Minister Shinzo Abe this week, according to a person with direct knowledge of the plan.

The Liberal Democratic Party’s AIIB panel will discuss a draft recommendation on June 3 and submit a final report to Abe before Japanese Finance Minister Taro Aso meets his Chinese counterpart on June 6 in Beijing, the person said, asking not to be named because the plan is not yet public.

The recommendation will express concerns over the governance of the AIIB and the possibility that China will be able to exert strong influence over areas of investment, the person said. The panel doesn’t favor joining the infrastructure bank, but keeping options open so the government can use its position as a diplomatic card in talks with China.

The new $100-billion lender being established by China will boost Beijing’s presence in the region’s infrastructure business. Japan, which along the U.S. chose not to join 57 other nations in setting up the AIIB, still plans to increase infrastructure spending in the region. The Asian Development Bank, which is headed by Japan, will expand funding for infrastructure projects to about $110 billion over the next five years.

“This is more about politics than economics, as Japan has the ADB and doesn’t really need to join,” said Hiromichi Shirakawa, chief Japan economist at Credit Suisse Group AG. “Japan is likely to continue to follow the U.S.”

Shirakawa added that Japan could lose out on some investment projects in Asia if the AIIB gains influence.
.

Reactions: Like Like:
2


----------



## TaiShang

ahojunk said:


> Hmmm... The Japanese are still mulling over, just couldn't let go..... To join or not to join.
> I thought they have gotten over it, but apparently I was wrong.
> 
> ------------------
> Japan Shouldn’t Join AIIB for Time Being, LDP Panel to Tell Abe
> by Maiko Takahashi
> 3:30 PM AEST | June 1, 2015
> 
> Japan shouldn’t join the China-led Asian Infrastructure Investment Bank until governance concerns are addressed, a panel of ruling party lawmakers will advise Prime Minister Shinzo Abe this week, according to a person with direct knowledge of the plan.
> 
> The Liberal Democratic Party’s AIIB panel will discuss a draft recommendation on June 3 and submit a final report to Abe before Japanese Finance Minister Taro Aso meets his Chinese counterpart on June 6 in Beijing, the person said, asking not to be named because the plan is not yet public.
> 
> The recommendation will express concerns over the governance of the AIIB and the possibility that China will be able to exert strong influence over areas of investment, the person said. The panel doesn’t favor joining the infrastructure bank, but keeping options open so the government can use its position as a diplomatic card in talks with China.
> 
> The new $100-billion lender being established by China will boost Beijing’s presence in the region’s infrastructure business. Japan, which along the U.S. chose not to join 57 other nations in setting up the AIIB, still plans to increase infrastructure spending in the region. The Asian Development Bank, which is headed by Japan, will expand funding for infrastructure projects to about $110 billion over the next five years.
> 
> “This is more about politics than economics, as Japan has the ADB and doesn’t really need to join,” said Hiromichi Shirakawa, chief Japan economist at Credit Suisse Group AG. “Japan is likely to continue to follow the U.S.”
> 
> Shirakawa added that Japan could lose out on some investment projects in Asia if the AIIB gains influence.
> .



I guess it is not too bad if Japan decided not to join. They already missed the boat to become the founding member. Hence, even if they joined, their weight will not be in proportion to their economy. If they had joined and become founding member, then, this would lessen China's weight and given the US a bridgehead within the institution to blackmail or derail it through the Japanese government.

Reactions: Like Like:
3


----------



## BHAN85

When will AIIB give its first loan?
And BRICS bank?

Bretton Woods institutions IMF and WB born after WWII.
will WWIII born after AIIB and BRICS bank first loan? 

Is AIIB the real reason of USA bullying China last months? And it doesnt China artificials islands neither nothing like that .


----------



## ahojunk

.
*AIIB in quest for ‘best bank’ standards, says French ambassador to China*
*French ambassador to China says members of the new lender aim to lay the governance foundation for an efficient financial institution*

Victoria Ruan
PUBLISHED : Monday, 01 June, 2015, 11:35pm
UPDATED : Tuesday, 02 June, 2015, 8:33am





French Ambassador Maurice Gourdault-Montagne. Photo: Simon Song

Member states of the US$100 billion Asian Infrastructure Investment Bank aim to put high standards of internal governance in place, ensuring the lender becomes "the best bank possible", according to France's ambassador to China.

In an exclusive interview with the _South China Morning Post_, Maurice Gourdault-Montagne said chief negotiators from the AIIB's 57 prospective founding members met in Singapore last month to discuss governance goals, including sustainability, safeguards, debt policy and procurement.

Finance ministers and central bank chiefs from the Group of Seven industrialised nations - four of which are AIIB founding members - met on Friday, urging the new lender to follow international standards and ensure transparency.

"We want to build up with other founding members the best bank possible, the most solid, the one that can lend money efficiently to countries that require the money," Gourdault-Montagne said.

Beijing has pledged to streamline the bank's governance and avoid the inefficient practices of lenders dominated by the West. The United States, in particular, has publicly expressed concern over how the AIIB - which is due to be launched by the end of this year - would operate. But that has not dissuaded some of its closest allies such as Britain and France from signing up.

There were some "good practices" and "some difficulties and some hurdles" in the members' discussions so far, Gourdault-Montagne said, without elaborating.

Another diplomat told the _Post_ earlier that the bank was likely to adopt a high voting threshold for "key decisions". The mechanism would mirror that of some existing lenders, although those institutions have also been criticised for inefficiency .

Gourdault-Montagne said the AIIB should not sacrifice rules for efficiency. "Of course we want the bank to be efficient. But we should also respect the rules."

Responding to a report that Asian members would have 75 per cent of the AIIB's voting rights, Gourdault-Montagne said: "This is the beginning. There are Asian countries and non-Asian countries, founding countries and non-founding countries … We know the rules at the beginning are such and then there'll be discussions."

He also said the capital split among nations would take factors such as gross domestic product into consideration.

France felt it necessary to join the AIIB because of its economic links with China in a range of areas from nuclear power to aerospace manufacturing, as well as their long-standing political ties, Gourdault-Montagne said. "It's always better to be in than to be out," he said.

He said the members would discuss whether the AIIB would have a branch office in Europe. He also said Jin Liqun , secretary general of the AIIB's multilateral interim secretariat, was talented and experienced.

"He is also someone who knows the interests of China. He has a farsighted vision about what the bank must be."
.

Reactions: Like Like:
2


----------



## WuMaoCleverbot

*Aquino wants to ensure China-led AIIB isn't prone to politics*
June 3, 2015 4:42pm

President Benigno Aquino III on Wednesday said the Philippines is still studying a proposal to join the China-led Asian Infrastructure Investment Bank (AIIB).

In a briefing with Japanese reporters during his state visit to Japan, Aquino said he particularly wants to make sure the AIIB will not fall prey to conflicts between China and other countries.

“I think it behooves our sense of fiscal responsibility to look at how the governance structure of the AIIB will be, so that the economic help that is supposed to be afforded will not be subjected to vagaries of politics between our countries and the lead proponent,” Aquino said.

The President nevertheless admitted the Philippines has “tremendous infrastructure needs.”

“We are studying the invitation to join the AIIB, and we have to determine whether or not it is a net positive or not,” he added.

*Aquino also cited a million-dollar loan granted by China to former President Gloria Macapagal-Arroyo’s administration, which he said “was neither concessional nor helpful to our country.”*

Last year, China launched the AIIB, which is seen to rival multilateral lenders such as the World Bank and the International Monetary Fund.

The Philippines and China are currently locked in territorial dispute over parts of the South China Sea. Manila has already sought international arbitration to resolve the sea row. *– Andreo Calonzo/VS, GMA News*


Aquino wants to ensure China-led AIIB isn't prone to politics | Economy | GMA News Online

====================
*Phl, China drop North Rail*
By Aurea Calica (The Philippine Star) | Updated September 26, 2012 - 12:00am

In the middle of the territorial disputes over the Scarborough (Panatag) Shoal, China decided to “call” the official development assistance that it lent the Philippines for the North Rail project, he said.

“It was ‘called’ – meaning it became due and demandable. So it was discussed how we would pay for it and since we got the money, we would settle it. According to Secretary (Cesar) Purisima of (the Department of) Finance, the negotiations have started and we will pay it in installments over the next two years. But this was* a multi-year long-term loan that was suddenly called,” Roxas said.*

http://www.philstar.com/headlines/2012/09/26/852997/phl-china-drop-north-rail


----------



## 大汉奸柳传志

WuMaoCleverbot said:


> *Aquino also cited a million-dollar loan granted by China to former President Gloria Macapagal-Arroyo’s administration, which he said “was neither concessional nor helpful to our country.”*



Lmao what gives him the idea that China wants to help his country？If we really want to help Philippines，we would already have Aquino III surgically removed via a drone attack.

Having a mentally unstable president for the pinoys is actually in our best interest，he can call us nazis，but I really wish him stay in power forever

Reactions: Like Like:
5


----------



## TaiShang

The Philippines leader should not have revealed his master strategy before he decides to join or not. Now we all know what is his intention and China can definitely easily shut down the Philippines in the AIIB. It can easily ensure that the country can never get a loan, if Beijing decides that the Philippines is n more than an agent provocateur and cheap fifth column.

Mr. President Aquino has become a liability for the Philippines.

Reactions: Like Like:
1


----------



## cirr

*China, India to be biggest AIIB shareholders*

Source:Global Times Published: 2015-6-4 22:38:03

China and India will become the top two shareholders in the Asian Infrastructure Investment Bank (AIIB), the Wall Street Journal (WSJ) reported on Thursday.

China will be the biggest shareholder by holding a stake of around 30 percent in the AIIB, followed by India which will own an 8 percent stake, the report said, citing an unidentified Indian official.

As for voting rights, India will have around 7.5 percent, the newspaper said.

The quotas were determined on the basis of the AIIB founding members' GDP and their purchasing power parity, according to the report. 

The report came after a meeting attended by AIIB's 57 prospective founding members in late May. The three-day meeting in Singapore concluded discussions and finalized the Articles of Agreement (AOA) for the bank, but gave no details about the AIIB's ownership structure. 

It is expected that the AOA would be ready for signing by the end of June and the AIIB would be operational by the end of this year, the AIIB said in a statement on May 22. 

The WSJ report also fits with experts' estimation.

"Whether measured by nominal GDP or the purchasing power parity-adjusted GDP, it makes sense for China to be the biggest capital contributor and the most influential decision-maker among all the Asian members," Ma Tieying, an economist with Singapore-based DBS Bank, told the Global Times in an earlier interview in May.

China, India to be biggest AIIB shareholders - Global Times

Reactions: Like Like:
3


----------



## ahojunk

.
US Congress pushed China into launching AIIB, says Bernanke
David Pilling and Josh Noble in Hong Kong
June 2, 2015 12:30 pm





Ben Bernanke says he understands why other countries say, ‘well let’s take our marbles and go home'

Beijing was pushed into launching the Asian Infrastructure Investment Bank by US lawmakers’ refusal to give China greater clout in existing multilateral institutions, Ben Bernanke has said.

“The US Congress is largely at fault for all that’s happening,” the former chairman of the Federal Reserve said in Hong Kong on Tuesday.

America’s legislature blocked a 2010 International Monetary Fund agreement to shift 6 per cent of quota — and voting rights — to emerging economies, which Mr Bernanke believes would have “better reflected the increasing role of China” and other nations.

“The US Congress has not approved it. They should, they haven’t,” Mr Bernanke said. “So I understand why other countries say, ‘well let’s take our marbles and go home’.”

The AIIB, which will be capitalised at $100bn, now has 57 members including most big European economies.

Mr Bernanke’s remarks add to those of other senior US figures who argue that Washington has mishandled its response to China’s ambition to play a bigger role in the international economy.

Lawrence Summers, former US Treasury secretary, wrote recently that US cold-shouldering of the AIIB may be remembered as the moment it “lost its role as the underwriter of the global economic system”.

Mr Bernanke said those remarks were “a little strong” but agreed it was “unfortunate” that China had felt the need to go its own way. “It would be better to have a globally unified system and allow resources to go where they are needed,” he said.

However, the former Fed chairman played down the practical implications of the AIIB, saying the bank was largely symbolic.

“There’s now a huge amount of private capital flows going in and out of emerging markets, including money that goes into infrastructure projects,” he said.

According to a former senior official at the Asian Development Bank, which is dominated by Japan and the US, ADB lending accounts for less than 2 per cent of Asia’s infrastructure needs.

Mr Bernanke also said too much attention was being focused on the internationalisation of the renminbi, which was as much a matter of “national prestige” as of practical economic value. In reality, he said, the Chinese currency’s share of global reserves was “very tiny” and even its share of trade settlement was “modest”.

China should continue gradual steps to open up its capital account, to deepen its bond markets and to allow a bigger role for the private sector, Mr Bernanke advised.

These were all preconditions to make the renminbi a reserve currency, he said, but they were more important as a means of improving capital allocation. The ultimate goal, he said, was to shift China’s economic model from one dominated by heavy industry and investment to one in which the consumer and the service industry played a much bigger role.

Reactions: Like Like:
2


----------



## rott

BHAN85 said:


> When will AIIB give its first loan?
> And BRICS bank?
> 
> Bretton Woods institutions IMF and WB born after WWII.
> will WWIII born after AIIB and BRICS bank first loan?
> 
> Is AIIB the real reason of USA bullying China last months? And it doesnt China artificials islands neither nothing like that .


Not just the islands. They've come up with other things like this
‘An attack against America’: China accused of biggest ever cyberhack - The Times of India

Reactions: Like Like:
1


----------



## Echo_419

cirr said:


> *China, India to be biggest AIIB shareholders*
> 
> Source:Global Times Published: 2015-6-4 22:38:03
> 
> China and India will become the top two shareholders in the Asian Infrastructure Investment Bank (AIIB), the Wall Street Journal (WSJ) reported on Thursday.
> 
> China will be the biggest shareholder by holding a stake of around 30 percent in the AIIB, followed by India which will own an 8 percent stake, the report said, citing an unidentified Indian official.
> 
> As for voting rights, India will have around 7.5 percent, the newspaper said.
> 
> The quotas were determined on the basis of the AIIB founding members' GDP and their purchasing power parity, according to the report.
> 
> The report came after a meeting attended by AIIB's 57 prospective founding members in late May. The three-day meeting in Singapore concluded discussions and finalized the Articles of Agreement (AOA) for the bank, but gave no details about the AIIB's ownership structure.
> 
> It is expected that the AOA would be ready for signing by the end of June and the AIIB would be operational by the end of this year, the AIIB said in a statement on May 22.
> 
> The WSJ report also fits with experts' estimation.
> 
> "Whether measured by nominal GDP or the purchasing power parity-adjusted GDP, it makes sense for China to be the biggest capital contributor and the most influential decision-maker among all the Asian members," Ma Tieying, an economist with Singapore-based DBS Bank, told the Global Times in an earlier interview in May.
> 
> China, India to be biggest AIIB shareholders - Global Times



Brilliant news


----------



## Sam.

Echo_419 said:


> Brilliant news


it's not actually ally as they said india share will be 15-20% but they reduced it to half.


----------



## cirr

Sam. said:


> it's not actually ally as they said india share will be 15-20% but they reduced it to half.



The total allocated to the Asian Block in the AIIB is 75% and you seriously think that with the current size of the Indian economy at some 2 trillion USD warrants a stake of 15-20%?

China's GDP is over 5 times India's. How much a stake do you think China should have in the AIIB?

And all the other Asian countries, including such power houses as South Korea and Indonesia?

Come on, be realistic!

Reactions: Like Like:
2


----------



## TaiShang

*AIIB Puts G7 Team Spirit to the Test*

17:22 05.06.2015

*Participants of the upcoming G7 summit could find themselves in a state of perfect disunity while discussing global economic development and the China-led Asian Infrastructure Investment Bank (AIIB) in particular.*








New Silk Road vs TPP: East and West Enter 'War' For Dominance in Eurasia
The AIIB is an international financial institution designed to provide financial support to infrastructure projects in Asia.


Together with the BRICS New Development Bank, the AIIB is seen as an alternative to the Western-led financial institutions such as the World Bank and the International Monetary Fund.

China's initiative was largely welcomed with open arms but not everyone was and remains happy.

The United States and Japan are among the few countries, which decided not to join. Washington tried to pressure several other states, allegedly including Australia and South Korea, to avoid the development bank.

Much to the dismay of the US, fifty-seven countries have stated their intention to join the AIIB as founding members, including Germany, France, Israel, Italy, Russia and the United Kingdom. Even countries wary of China, like India and Vietnam, see the opportunity in joining the AIIB and they simply cannot afford to miss it.

The G7 summit in Bavaria will bring together leaders of the countries supporting the Chinese initiative, those who are firmly opposed to the idea and Canadian officials who remain undecided on the issue. This seems to be as far from unity as one can get.

"Germany and the United Kingdom decided to join the AIIB since global economic development shifted to Asia. GDP growth in the G7 countries amounts to less than 2 percent, while some countries in Asia are developing at nearly 7 percent rate," Japan's Mainichi newspaper noted.

In 2012, the Organization for Economic Cooperation and Development said that combined GDP of China and India would exceed that of all OECD member states by 2060. "Evidently, Asian countries will play the leading part in the world," the media outlet stated.

The United Kingdom joined the AIIB, for the move is in the UK's national interest. "Thus, Britain chose to strengthen economic ties with China instead of promoting G7 unity," Mainichi emphasized.


Then again, this unity was shattered long before AIIB became an issue, namely when Russia was not invited to participate.

Asia's imminent rise and Russia's international clout bring another question to the fore, what can G7 really achieve without Russia and China taking part in the forum, which hopes to bring about a real change in the world?



Read more: AIIB Puts G7 Team Spirit to the Test / Sputnik International


----------



## Sam.

cirr said:


> The total allocated to the Asian Block in the AIIB is 75% and you seriously think that with the current size of the Indian economy at some 2 trillion USD warrants a stake of 15-20%?
> 
> China's GDP is over 5 times India's. How much a stake do you think China should have in the AIIB?
> 
> And all the other Asian countries, including such power houses as South Korea and Indonesia?
> 
> Come on, be realistic!


China will likely take a 25-30 per cent stake in the Asian Infrastructure Investment Bank (AIIB) and India is likely to be the second-largest shareholder, delegates attending a meeting of the bank's founding members said on Friday. 

China's share in the USD 100 billion lender will be less than 30 per cent, an Asian delegate attending the meeting in Singapore told Reuters. 

A second delegate said India's share will be between 10 to 15 per cent. Both spoke on condition of anonymity. 


In all, Asian countries will own between 72-75 per cent of the bank, while European and other nations will own the rest. 
China, India likely to be largest shareholders of AIIB - The Times of India


*Beijing*: China will be the largest shareholder in the newly floated Asia Infrastructure Investment Bank (AIIB) with a 30.85% stake followed by India and Russia, Chinese officials have said.
“Based on the AIIB members’ GDP weight in the world economy, China will become the bank’s largest shareholder, followed by India and Russia,” Chen Fengying, a research fellow at the China Institutes of Contemporary International Relations, told state-run _Global Times_.
China is likely to have a 30.85% share in the bank, followed by India with 10.4%, the daily quoted media reports as saying.
“Whether measured by nominal GDP or the purchasing power parity-adjusted GDP, it makes sense for China to be the biggest capital contributor and the most influential decision maker among all the Asian members,” Ma Tieying, an economist with Singapore-based DBS Bank, told the _Global Times_.

*Based on the GDP and Purchasing Power Parity, (PPP) China was expected to get the post of President followed by India as one of the vice presidents.

China, India and Russia to be top 3 shareholders of AIIB: report - Livemint

Sure now from to 15% to 10 % and now 7 % , we seen enough of your hypocrisy you don't want multi polar world but just want to replace USA. You guys are as hegemonic as USA *


----------



## Echo_419

cirr said:


> The total allocated to the Asian Block in the AIIB is 75% and you seriously think that with the current size of the Indian economy at some 2 trillion USD warrants a stake of 15-20%?
> 
> China's GDP is over 5 times India's. How much a stake do you think China should have in the AIIB?
> 
> And all the other Asian countries, including such power houses as South Korea and Indonesia?
> 
> Come on, be realistic!



I agree with you Indian share is a very fare one & we appreciate you guys for giving us our rightful shate ,not like some other could tries who want to maintain their monopoly



Sam. said:


> China will likely take a 25-30 per cent stake in the Asian Infrastructure Investment Bank (AIIB) and India is likely to be the second-largest shareholder, delegates attending a meeting of the bank's founding members said on Friday.
> 
> China's share in the USD 100 billion lender will be less than 30 per cent, an Asian delegate attending the meeting in Singapore told Reuters.
> 
> A second delegate said India's share will be between 10 to 15 per cent. Both spoke on condition of anonymity.
> 
> 
> In all, Asian countries will own between 72-75 per cent of the bank, while European and other nations will own the rest.
> China, India likely to be largest shareholders of AIIB - The Times of India
> 
> 
> *Beijing*: China will be the largest shareholder in the newly floated Asia Infrastructure Investment Bank (AIIB) with a 30.85% stake followed by India and Russia, Chinese officials have said.
> “Based on the AIIB members’ GDP weight in the world economy, China will become the bank’s largest shareholder, followed by India and Russia,” Chen Fengying, a research fellow at the China Institutes of Contemporary International Relations, told state-run _Global Times_.
> China is likely to have a 30.85% share in the bank, followed by India with 10.4%, the daily quoted media reports as saying.
> “Whether measured by nominal GDP or the purchasing power parity-adjusted GDP, it makes sense for China to be the biggest capital contributor and the most influential decision maker among all the Asian members,” Ma Tieying, an economist with Singapore-based DBS Bank, told the _Global Times_.
> 
> *Based on the GDP and Purchasing Power Parity, (PPP) China was expected to get the post of President followed by India as one of the vice presidents.
> 
> China, India and Russia to be top 3 shareholders of AIIB: report - Livemint
> 
> Sure now from to 15% to 10 % and now 7 % , we seen enough of your hypocrisy you don't want multi polar world but just want to replace USA. You guys are as hegemonic as USA *



Calm down man 10-15‰ is confirmed


----------



## Sam.

Echo_419 said:


> I agree with you Indian share is a very fare one & we appreciate you guys for giving us our rightful shate ,not like some other could tries who want to maintain their monopoly
> 
> 
> 
> Calm down man 10-15‰ is confirmed


but they are saying 7 % now?


----------



## ahojunk

.
*Two Asias: AIIB v ADB*
*One view welcomes the US as a major Pacific power while the other seeks to reduce its role in Asia.*
Published on Jun 5, 2015 6:01 AM
By Malcolm Cook For The Straits Times

With the Articles of Agreement the Asian Infrastructure Investment Bank (AIIB) "finalised" at the latest meeting of chief negotiators in Singapore, the AIIB is moving from a Chinese initiative to a China-led regional institution with global membership.

The Japan-led Asian Development Bank (ADB) is the institution that is most similar to the AIIB in name, geographic coverage and likely structure.

Yet two differences within this overarching similarity exemplify the very different understandings of Asia held in Beijing and Tokyo and the very different views of Japan’s place within Asia expressed by the ADB and China’s place in Asia expressed by the AIIB.

On the similarity side, both the ADB in 1966 and AIIB in 2015 are responses by Asia’s leading economic power of the time to a twin belief.

First, that its own developmental success has defining characteristics that can be transferred to others in Asia.

Second, that the existing intergovernmental development banks operating in Asia have been dominated by other powers, not giving Asia’s leading power enough say, and not focusing enough on the keys to developmental success.

Given the common regional focus on Asia and the global nature of finance, both the ADB and AIIB have memberships bifurcated between regional and non-regional members in ADB parlance, and Asian and non- Asian members in the emerging AIIB lexicon.

Of the 67 ADB members, 19 are classified as non-regional.

Of the 57 prospective founding members of the AIIB, 20 are classified as non-Asian. Moreover, in both institutions, non-regional members get or will likely get less say than the size of their economies suggest.

Seven of the 10 positions on the ADB board of directors are reserved for regional members while it is reported that nine of the AIIB’s 12 directors will come from Asian members.

On the side of contrast, modern Japan, as an archipelagic power on the North Pacific periphery of the Eurasian landmass, has a North-South maritime understanding of Asia.

China, as a vast land power with an inland capital, has an East-West continental understanding of Asia.

In the ADB, this Japanese view is reflected by the inclusion of the Pacific Islands states as regional members.

These small and micro island states make up 13 of the 48 regional members.

None is a prospective founding member of the AIIB.

In the AIIB, the Chinese view of Asia is represented by the fact that the second-largest Asian sub-group of AIIB prospective founding members, after the South-east Asian 10, are the nine Middle Eastern states.

None of these nine is an ADB member, regional or non-regional.

Post-war Japan’s Pacific nature and close relationship with the US have led Japan to pay particular heed to the United States’ interests and place in Asia and, to a lesser extent, that of Canada.

While both North American states are non-regional members of the ADB, their role and share in the bank are significantly larger than the European non-regional members’. The US has the same voting weight and shareholding in the ADB as its founder, Japan.

Canada is the second-largest non-regional member with a share larger than that of France and Britain combined.

In total, non-regional members account for over 30 per cent of the ADB’s shareholdings.

China’s proposal for a 75 per cent versus 25 per cent split in the AIIB between Asian and non-Asian members would provide the US and Canada much smaller shares than they hold in the ADB.

The proposed 75-25 per cent split would give China alone a larger stake in the AIIB than all non-Asian members combined.

If the US, the world’s largest and most advanced economy, were to join under this formula, it would need to be satisfied with the largest national share of this small minority stake.

Not surprisingly, then, both the US and Canada chose not to become prospective founding members of the AIIB.

The Japanese view of Asia as reflected in the ADB is a very different one to the Chinese view reflected in the AIIB so far.

Japan’s view gives itself a much smaller role in Asia than China’s view gives China.

Japan’s share in the ADB is less than half that of China’s likely share in the AIIB.

The ADB is headquartered in Manila, a full 3,000km away from Tokyo.

The AIIB will be headquartered in Beijing.

Post-war Japan’s Pacific oriented view of Asia has welcomed the US as the major Pacific and global power worthy of equal status in Asia to Japan.

This is in line with the very close US-Japan bilateral relationship and integrates Asia with the US-led global order.

China’s continental view of Asia is equally congruent with the nature of the US-China bilateral relationship, one that is increasingly defined by strategic competition.

This view of Asia seeks to reduce the role and position of the United States in Asia and to challenge the prevailing US-led global order.

Time will tell which view of Asia predominates and what that will mean for Asia’s place in the global order.

stopinion@sph.com.sg

*The writer is a senior fellow at the Institute of Southeast Asian Studies.*

Reactions: Like Like:
2


----------



## ahojunk

.
In the current G-7 conference in Germany, it will be interesting to know what exactly happened during the leaders' discussion on AIIB. It could turn out into a slanging match.

Four of them - UK, Germany, France, Italy - joined the AIIB as founding members. The remaining three - Canada, Japan, and the United States remained outside the AIIB. The United States had very publicly chastise its European allies—particularly the United Kingdom— for signing up with the AIIB.

There were news that Japan will join the AIIB after issues of governance and transparency are sorted out. I think that Japan's recent announcement of $110 billion infrastructure initiative for Asia is a big red herring, to buy some time.

Reactions: Like Like:
1


----------



## TaiShang

The Asian Infrastructure Investment Bank And Taiwan - Analysis - Eurasia Review

Eurasia Review May 11, 2015

_



_


By Dr. Serafettin Yilmaz*

First announced by Chinese President Xi Jinping and Premier Li Keqiang in October 2014, the AIIB (The Asian Infrastructure Investment Bank) has attracted a great deal of attention over the past few months. Proposed as an institution to exclusively focus on infrastructure development in Asia, the Bank is to have a $50 billion startup capital, which later will be raised to $100 billion.

The fact that Washington publicly attempted to dissuade its allies and partners from joining the AIIB, the growing list of membership which was snowballed after the United Kingdom declared its interest to join has been viewed by many as yet another sign of China’s growing economic and geopolitical clout. Indeed, of the notable US allies, only Japan, the de facto leader of the Asian Development Bank (ADP) and Washington’s most trusted strategic partner in the Asia-Pacific, declined to make a formal application.

Beijing set March 31 as the final day to enlist in the Bank as a prospective founding member. By the time the deadline approached, a total of 57 nations were approved with only North Korea and Taiwan’s applications being rejected. The rejection of the former has been due to its non-transparent economy. The rejection of the latter, on the other hand, has been due to the two sides’ disagreement over the title under which Taipei would be represented in the AIIB. So far, however, only scant interest has been shown to the failed applications.

Taiwan submitted its letter of intent to join the AIIB on March 31st to Taiwan’s Affairs Office of the State Council (TAO), the agency which handles the relations with Taipei, pledging to invest $200 million. By its skeptics, the decision to apply via TAO, rather than Ministry of Foreign Affairs as was the case with other applicants, could give the impression that Taipei conceded to the One China framework. The criticism leveled at the Ma Ying-jeou administration also included the oft-repeated argument that the decision had been made behind the closed doors and the society and the opposition had been left uninformed on the issue.

As a matter of fact, Beijing made it clear from the beginning that Taiwan’s application would have to comply with the “requirement that the island not be identified as a separate country.” Initially there was considerable optimism with respect to a consensus on the appropriate title for Taiwan within the AIIB. The approaching high-level meeting between officials from the two sides at the 11th round of cross-Straits talks was slated as an important platform to overcome the deadlock.

However, the sides failed to reach an agreement. Taipei missed the opportunity to become a founding member as Taiwan’s proposal to be admitted under the name of Chinese Taipei as a bottom line has been thwarted by Beijing. As it stands today, the rejection is a major loss for Taipei’s drive to be more closely integrated into the regional and global development network, given that Taipei is already largely isolated from most of the integration schemes, be they bilateral or multilateral.

It follows that the concern of those who argued for Taiwan’s participation in the AIIB and warned against the negative implications of a missed founding member status is justified. Those who urged Taiwan not to take part in the proposed institution and downplayed its importance and prospects seem to have failed to fully grasp the importance for Taiwan to secure a seat in the grouping.

Although, provided that a consensus is reached on the title, Taiwan can still find a place as a regular member as long as a political will toward this direction exists, a founding member status would definitely have been more valuable since it would give Taiwan the right to have a say in the writing of the Bank’s charter as well as a greater weight in the body’s decision-making process.

Nonetheless, a prospective AIIB membership is crucial for Taiwan in normative, political and economic respects and hence should be encouraged. Normatively, AIIB offers Taipei a chance to break away from the existing perception crisis which has been further aggravated by the concentrated protests in Taiwan which crippled the efforts to launch the Cross-Strait Services Trade Agreement (CSSTA) that aimed to bring greater economic synergy and benefit to both sides. Admittedly, the existing status quo will not be altered entirely with Taiwan’s participation, but nonetheless, it would count as major step toward bridging the normative gap across the Straits.

Politically, further interaction between China and Taiwan would certainly help improve Taiwan’s interconnectedness and importance as new linkages are cast in the Asia-Pacific. Taipei’s isolation from major decision-making structures would be compensated to some degree, which, in the final analysis, would count as an improvement over the present status quo. Realistically speaking, political differences are here to stay across the Straits, but, given the size and potential extent of the newly-launched institution, a meaningful membership will certainly offer Taipei a larger room for maneuver. The fact that countries such as Vietnam and the Philippines have joined the Bank despite the existing territorial disputes demonstrates that differences can be shelved for larger benefits. In this particular case, then, the onus of seeking a workable solution with Beijing has been on Taipei.

Obviously, a real, tangible contribution of the AIIB is the anticipated economic benefits. The Bank’s primary objective is clearly stated in its title. It is likely that, other than the geopolitical interests, what has driven over 50 states to join the Bank is the anticipated economic gains that come from taking part in the infrastructure development of the world’s most dynamic region that hosts a number of nations in need of large scale investment.

No doubt, infrastructure is the key word with a wide range of applications that extends from physical structures to information and communication technologies (ICT) and other information-related industries that help operate and connect all these tangible assets. Taiwan, with its well-developed ICT base, could be a major contributor and beneficiary of China’s new drive for regional interconnectedness given that it already occupies a significant space in the supply chain of ICT industrial cluster networks.

Thus, a regular membership would still offer Taiwan numerous advantages. A certain level of participation should be preferable over no participation. In short, apart from an improvement in cross-Straits relationship, joining the AIIB could provide Taipei further regional and global economic linkages, reinforce its global standing within its existing political capacity and promise considerable benefits in terms of taking part in intra and inter-regional development projects.

Those who object Taiwan’s efforts to find a seat within the AIIB should be reminded of the unfavorable status quo which, realistically, does not allow much room to Taiwan and becomes a greater burden each passing day as has been reflected in the fatalism observed in Taipei’s internal politics. The existing deadlock is obvious, but it hardly makes sense to force Taipei to further isolate itself even when it has an opportunity to participate in a development-oriented institution under an appropriate name.

*It is becoming clear that, with it ever increasing aggregate national power, China is now an indispensable country for the regional and global development. Therefore, the cost of missing out on China-led development schemes has grown significantly just as the rewards are multiplied for every actor, something that the overall interest in the AIIB proves. Especially when the existing international structures are far from satisfying in the right way the development-related needs of the rising East Asia, the price of an exclusion from a major institution can hardly be stressed enough. What appear to be at stake for Taipei are not only direct economic benefits but also intangibles that include prestige and influence.*

*Apparently, the risk of inciting fierce opposition and crippling protests (however one might argue that these do not necessarily represent the entirety of the Taiwanese society) have deterred the administration from taking a bold move regardless of the fact that Taiwan is a member of the ADB under the name of “Taipei, China,” and therefore a similar arrangement would not make much difference in the status quo.* Nevertheless, shying away from the AIIB will mostly remain a one-directional move, in the same line with the forced freeze on the implementation of the next steps proposed under the Economic Cooperation Framework Agreement (ECFA). Economic vitality and relevance is as important as political viability. Taiwan would do better if it capitalized on its strengths rather than sacrificed strengths for weaknesses.




ahojunk said:


> .
> In the current G-7 conference in Germany, it will be interesting to know what exactly happened during the leaders' discussion on AIIB. It could turn out into a slanging match.
> 
> Four of them - UK, Germany, France, Italy - joined the AIIB as founding members. The remaining three - Canada, Japan, and the United States remained outside the AIIB. The United States had very publicly chastise its European allies—particularly the United Kingdom— for signing up with the AIIB.
> 
> There were news that Japan will join the AIIB after issues of governance and transparency are sorted out. I think that Japan's recent announcement of $110 billion infrastructure initiative for Asia is a big red herring, to buy some time.



For some interesting reason, Japan perceives the AIIB as a challenge. When you have this innate challenger-challenged dichotomy, then it becomes obvious that you have a domination agenda to begin with. The real intention of great powers only surfaces when they are challenged. I guess we will see the real Japan as it faces the natural/organic challenge from China.

Reactions: Like Like:
4


----------



## Aepsilons

*Japan, China finance chief agree to promote infrastructure development in Asia*


Japan, China finance chief agree to promote infrastructure development in Asia | The Japan Times

Reactions: Like Like:
1


----------



## Shotgunner51

Nihonjin1051 said:


> *Japan, China finance chief agree to promote infrastructure development in Asia*
> 
> 
> Japan, China finance chief agree to promote infrastructure development in Asia | The Japan Times



A healthy competition is good for everyone, be it the exporters (of capital, tech & manufacturing capacity), or the recepient countries. Other than Asia, where China & Japan will compete directly or through proxies (e.g. AIIB, ADB), do you see increased direct competition between the two on other parts of the world?

Reactions: Like Like:
1


----------



## Aepsilons

Shotgunner51 said:


> A healthy competition is good for everyone, be it the exporters (of capital, tech & manufacturing capacity), or the recepient countries. Other than Asia, where China & Japan will compete directly or through proxies (e.g. AIIB, ADB), do you see increased direct competition between the two on other parts of the world?



Absolutely . You're right bro that with China and Japan competing with each other healthily, Asian is sure to benefit . This is why in this regard competition between Tokyo and Beijing is healthy for the region.

As for cooperation in other fields, yes. In fact, bro, despite the politicization of the SCS , Japan and China are cooperating together and actively patrolling the Gulf of Aden. Here is a picture of a PLAN frigate docked in a JMSDF naval base in Djibouti. Yes we actually help refuel and resupply PLAN warships , lol. Talk about the multidimensional , omnidirectional relationship between China and Japan, right? 





A Jiangkai II class frigate of the PLAN docked next to 2 Takanami Class Destroyers of the JMSDF --- in Japan's Naval base in Djibouti. LOL!

Reactions: Like Like:
4


----------



## TaiShang

Shotgunner51 said:


> A healthy competition is good for everyone, be it the exporters (of capital, tech & manufacturing capacity), or the recepient countries. Other than Asia, where China & Japan will compete directly or through proxies (e.g. AIIB, ADB), do you see increased direct competition between the two on other parts of the world?



There is definitely competition and this is not necessarily a bad thing. Competition may lead to institutional innovation, as in the case of the AIIB and ADB.

Ironically, if Japan had joined the AIIB, the percentage of shares attributed to Japan would have been in proportionate to their GDP, or around 13~15% , while China's share would become around 22%~24%. All important decisions needs 75% majority and thus China with about 22%~24% shares cannot overturn important decisions if all other members cast the yes vote.

China has never sought to grant herself a Technical Veto, but gets "de facto" veto from Japan's non-participation. The United States has unwittingly done China a favor by reining in on Japan from joining the AIIB.

Reactions: Like Like:
2


----------



## AndrewJin

TaiShang said:


> There is definitely competition and this is not necessarily a bad thing. Competition may lead to institutional innovation, as in the case of the AIIB and ADB.
> 
> Ironically, if Japan had joined the AIIB, the percentage of shares attributed to Japan would have been in proportionate to their GDP, or around 13~15% , while China's share would become around 22%~24%. All important decisions needs 75% majority and thus China with about 22%~24% shares cannot overturn important decisions if all other members cast the yes vote.
> 
> China has never sought to grant herself a Technical Veto, but gets "de facto" veto from Japan's non-participation. The United States has unwittingly done China a favor by reining in on Japan from joining the AIIB.


So, thankful for Japan's absence and Uncle Sam?

Reactions: Like Like:
2


----------



## TaiShang

AndrewJin said:


> So, thankful for Japan's absence and Uncle Sam?



US, I guess.  

Otherwise, Japan would have definitely joined.

Reactions: Like Like:
2


----------



## Aepsilons

TaiShang said:


> There is definitely competition and this is not necessarily a bad thing. Competition may lead to institutional innovation, as in the case of the AIIB and ADB.
> 
> Ironically, if Japan had joined the AIIB, the percentage of shares attributed to Japan would have been in proportionate to their GDP, or around 13~15% , while China's share would become around 22%~24%. All important decisions needs 75% majority and thus China with about 22%~24% shares cannot overturn important decisions if all other members cast the yes vote.
> 
> China has never sought to grant herself a Technical Veto, but gets "de facto" veto from Japan's non-participation. The United States has unwittingly done China a favor by reining in on Japan from joining the AIIB.




It would have been better had we joined. A loss for us. A damned loss for us....


----------



## AndrewJin

Nihonjin1051 said:


> It would have been better had we joined. A loss for us. A damned loss for us....


If, I mean if, one day a war between Japan and US, which side would you choose?


----------



## Aepsilons

AndrewJin said:


> If, I mean if, one day a war between Japan and US, which side would you choose?



Loyalty to my Motherland is without question.

Reactions: Like Like:
2


----------



## AndrewJin

Nihonjin1051 said:


> Loyalty to my Motherland is without question.


I guess thousands of Asians will flee back if something bad happens to US...
In Chinese, it is called 树倒猢狲散

Reactions: Like Like:
2


----------



## Aepsilons

AndrewJin said:


> I guess thousands of Asians will flee back if something bad happens to US...
> In Chinese, it is called 树倒猢狲散




A war between Japan and America? Hehe, before that happens, Japan will have already aligned with East Asia and Russia......

America knows that we originally did not want to align with Washington, but with Beijing actually.

Alignment with America was by out of pure necessity given the Soviet threat. Now there is no Soviet threat and there is relative entente with Moscow and Tokyo.

Washington wants to prevent by all means Tokyo's growing relations with Moscow. As it would have strategic consequences.


I will not say more. Hehehe.

Reactions: Like Like:
1


----------



## AndrewJin

Nihonjin1051 said:


> A war between Japan and America? Hehe, before that happens, Japan will have already aligned with East Asia and Russia......


Like what Chinese were doing during 2011 earthquake in Japan, simply flying back to China.
树倒猢狲散，if the tree falls, monkeys scatter away.

Reactions: Like Like:
3


----------



## Aepsilons

AndrewJin said:


> Like what Chinese were doing during 2011 earthquake in Japan, simply flying back to China.
> 树倒猢狲散，if the tree falls, monkeys scatter away.



Even after earthquake , the number of Chinese has grown. There are more than 1 million Chinese (naturalized and non) who call Japan home. Literally Chinese are largest minority in Japan, 2nd is Koreans. 

LOL

Third is Taiwanese but they're Chinese, so...LOL


----------



## AndrewJin

Nihonjin1051 said:


> Even after earthquake , the number of Chinese has grown. There are more than 1 million Chinese (naturalized and non) who call Japan home. Literally Chinese are largest minority in Japan, 2nd is Koreans.
> 
> LOL


But when something bad happens to the place where they live, 树倒猢狲散. Just like if a earthquake hits Shanghai, I will run back to Wuhan just like Japanese in Shanghai fleeing back to Japan.

Reactions: Like Like:
1


----------



## Aepsilons

AndrewJin said:


> But when something bad happens to the place where they live, 树倒猢狲散. Just like if a earthquake hits Shanghai, I will run back to Wuhan just like Japanese in Shanghai fleeing back to Japan.



Just unify so we won't have to flee back and forth anymore, lol.

Reactions: Like Like:
2


----------



## AndrewJin

Nihonjin1051 said:


> Just unify so we won't have to flee back and forth anymore, lol.


Since your language is similar to some accent in Zhejiang, I recommend the special district of Japan under Zhejiang Province!

Reactions: Like Like:
1


----------



## Aepsilons

AndrewJin said:


> Since your language is similar to some accent in Zhejiang, I recommend the special district of Japan under Zhejiang Province!




People from Ningbo don speak with a similar accent!

Reactions: Like Like:
1


----------



## TaiShang

*China to retain veto power in new lender*
By Zheng Yangpeng

*Voting structure gives nation an upper hand in major decisions on AIIB operations, say reports.*







*China will retain "veto power" over major decisions by the Asian Infrastructure Investment Bank but relinquish that for day-to-day decisions,* as part of Beijing's broad-based efforts to build a lean, efficient lending institution, according to media reports.

The nation has gained between 25 and 30 percent of the total votes of the emerging multilateral lender,* which give it the power to block major motions involving structure, membership, capital increases and other significant issues that require a "super majority" of at least 75 percent of votes*, both The Wall Street Journal and Reuters reported, claiming they had viewed the draft articles of association.

The Finance Ministry said on May 22 that* the 57 prospective founding members of the AIIB had agreed on the text of the articles of association at a three-day meeting in Singapore*. It will be signed at the end of June and will then be presented to each nation's legislature for approval.

The ministry did not disclose the content of the AOA, and declined to confirm media reports.

*China's decision to forgo its outright veto power in day-to-day operations has also helped win over some key founding members,* The Wall Street Journal said. *However, China still has an upper hand as the largest shareholder, and is the only country to wield a veto power over major decisions, as opposed to previous reports that China had relinquished the power to win support.*

According to the AOA, *China is providing $29.78 billion of the bank's $100 billion capital base.* India contributes $8.36 billion, Russia $6.53 billion and South Korea $3.74 billion. Outside the Asian-Pacific region, Germany's allocation is $4.48 billion, France $3.37 billion and Brazil $3.18 billion.

Voting shares are apportioned according to a complex formula that factors in each member's capital contribution, the size of its economy, basic votes each member receives equally plus another 600 votes allocated to each founding member.

This would translate into a 25 to 30 percent vote for China, the Journal said. India would be the second-largest shareholder with a 7.5 percent voting rights, while Germany has gained a 4.1 percent stake, the largest outside the region, Reuters said.
*
Xiao Lian, director of the Center for America Studies under the Chinese Academy of Social Sciences, said a veto power would improve efficiency of the decision-making at the lender.*

Asked if the power would incur criticism from the United States, which has consistently expressed concern over the governance of the AIIB, he said: *"We're just imitating the US. If the US can wield veto power in the International Monetary Fund, why can't we?"*

*To streamline bureaucracy and cut costs, the AIIB will be overseen by an unpaid, nonresident board of directors.* *The new bank will open bidding for projects to all, unlike the Asian Development Bank, which restricts contracts to member countries, the Journal said.*

David Dollar, a senior fellow at Brookings Institution and former World Bank official, told the Journal that the resident board costs the World Bank some $70 million annually. There was often a certain tension between the management and the board members whose resident staff wanted to find out about projects at an early stage.

Chen Fengying, a researcher at the China Institute of Contemporary International Relations, said a non-resident board of directors would give more room for the management to perform.

The latter's recruitment will be open to global talent, which will help make professional decisions, rather than making the bank an instrument of China's foreign policy, as many outsiders fear.

The board, in which China has more seats, retains decision power on important issues, she said.

*"As long as China maintains the largest shareholding and the president position, which should go to a Chinese national for the first term, we won't worry over conceding influence," Xiao said.*

Reactions: Like Like:
3


----------



## Echo_419

TaiShang said:


> *China to retain veto power in new lender*
> By Zheng Yangpeng
> 
> *Voting structure gives nation an upper hand in major decisions on AIIB operations, say reports.*
> 
> 
> 
> 
> 
> 
> *China will retain "veto power" over major decisions by the Asian Infrastructure Investment Bank but relinquish that for day-to-day decisions,* as part of Beijing's broad-based efforts to build a lean, efficient lending institution, according to media reports.
> 
> The nation has gained between 25 and 30 percent of the total votes of the emerging multilateral lender,* which give it the power to block major motions involving structure, membership, capital increases and other significant issues that require a "super majority" of at least 75 percent of votes*, both The Wall Street Journal and Reuters reported, claiming they had viewed the draft articles of association.
> 
> The Finance Ministry said on May 22 that* the 57 prospective founding members of the AIIB had agreed on the text of the articles of association at a three-day meeting in Singapore*. It will be signed at the end of June and will then be presented to each nation's legislature for approval.
> 
> The ministry did not disclose the content of the AOA, and declined to confirm media reports.
> 
> *China's decision to forgo its outright veto power in day-to-day operations has also helped win over some key founding members,* The Wall Street Journal said. *However, China still has an upper hand as the largest shareholder, and is the only country to wield a veto power over major decisions, as opposed to previous reports that China had relinquished the power to win support.*
> 
> According to the AOA, *China is providing $29.78 billion of the bank's $100 billion capital base.* India contributes $8.36 billion, Russia $6.53 billion and South Korea $3.74 billion. Outside the Asian-Pacific region, Germany's allocation is $4.48 billion, France $3.37 billion and Brazil $3.18 billion.
> 
> Voting shares are apportioned according to a complex formula that factors in each member's capital contribution, the size of its economy, basic votes each member receives equally plus another 600 votes allocated to each founding member.
> 
> This would translate into a 25 to 30 percent vote for China, the Journal said. India would be the second-largest shareholder with a 7.5 percent voting rights, while Germany has gained a 4.1 percent stake, the largest outside the region, Reuters said.
> *
> Xiao Lian, director of the Center for America Studies under the Chinese Academy of Social Sciences, said a veto power would improve efficiency of the decision-making at the lender.*
> 
> Asked if the power would incur criticism from the United States, which has consistently expressed concern over the governance of the AIIB, he said: *"We're just imitating the US. If the US can wield veto power in the International Monetary Fund, why can't we?"*
> 
> *To streamline bureaucracy and cut costs, the AIIB will be overseen by an unpaid, nonresident board of directors.* *The new bank will open bidding for projects to all, unlike the Asian Development Bank, which restricts contracts to member countries, the Journal said.*
> 
> David Dollar, a senior fellow at Brookings Institution and former World Bank official, told the Journal that the resident board costs the World Bank some $70 million annually. There was often a certain tension between the management and the board members whose resident staff wanted to find out about projects at an early stage.
> 
> Chen Fengying, a researcher at the China Institute of Contemporary International Relations, said a non-resident board of directors would give more room for the management to perform.
> 
> The latter's recruitment will be open to global talent, which will help make professional decisions, rather than making the bank an instrument of China's foreign policy, as many outsiders fear.
> 
> The board, in which China has more seats, retains decision power on important issues, she said.
> 
> *"As long as China maintains the largest shareholding and the president position, which should go to a Chinese national for the first term, we won't worry over conceding influence," Xiao said.*



Intresting so this AIIB is a Chinese version of IMF


----------



## TaiShang

Echo_419 said:


> Intresting so this AIIB is a Chinese version of IMF



Natural consequence of economies of scale.

If Japan were in, it would be a whole lot different.

Reactions: Like Like:
3


----------



## Aepsilons

TaiShang said:


> Natural consequence of economies scale.
> 
> If Japan were in, it would be a whole lot different.



A foolish mistake on our part. Damned foolish mistake.



TaiShang said:


>


----------



## Beidou2020

TaiShang said:


> *China to retain veto power in new lender*
> By Zheng Yangpeng
> 
> *Voting structure gives nation an upper hand in major decisions on AIIB operations, say reports.*
> 
> 
> 
> 
> 
> 
> *China will retain "veto power" over major decisions by the Asian Infrastructure Investment Bank but relinquish that for day-to-day decisions,* as part of Beijing's broad-based efforts to build a lean, efficient lending institution, according to media reports.
> 
> The nation has gained between 25 and 30 percent of the total votes of the emerging multilateral lender,* which give it the power to block major motions involving structure, membership, capital increases and other significant issues that require a "super majority" of at least 75 percent of votes*, both The Wall Street Journal and Reuters reported, claiming they had viewed the draft articles of association.
> 
> The Finance Ministry said on May 22 that* the 57 prospective founding members of the AIIB had agreed on the text of the articles of association at a three-day meeting in Singapore*. It will be signed at the end of June and will then be presented to each nation's legislature for approval.
> 
> The ministry did not disclose the content of the AOA, and declined to confirm media reports.
> 
> *China's decision to forgo its outright veto power in day-to-day operations has also helped win over some key founding members,* The Wall Street Journal said. *However, China still has an upper hand as the largest shareholder, and is the only country to wield a veto power over major decisions, as opposed to previous reports that China had relinquished the power to win support.*
> 
> According to the AOA, *China is providing $29.78 billion of the bank's $100 billion capital base.* India contributes $8.36 billion, Russia $6.53 billion and South Korea $3.74 billion. Outside the Asian-Pacific region, Germany's allocation is $4.48 billion, France $3.37 billion and Brazil $3.18 billion.
> 
> Voting shares are apportioned according to a complex formula that factors in each member's capital contribution, the size of its economy, basic votes each member receives equally plus another 600 votes allocated to each founding member.
> 
> This would translate into a 25 to 30 percent vote for China, the Journal said. India would be the second-largest shareholder with a 7.5 percent voting rights, while Germany has gained a 4.1 percent stake, the largest outside the region, Reuters said.
> *
> Xiao Lian, director of the Center for America Studies under the Chinese Academy of Social Sciences, said a veto power would improve efficiency of the decision-making at the lender.*
> 
> Asked if the power would incur criticism from the United States, which has consistently expressed concern over the governance of the AIIB, he said: *"We're just imitating the US. If the US can wield veto power in the International Monetary Fund, why can't we?"*
> 
> *To streamline bureaucracy and cut costs, the AIIB will be overseen by an unpaid, nonresident board of directors.* *The new bank will open bidding for projects to all, unlike the Asian Development Bank, which restricts contracts to member countries, the Journal said.*
> 
> David Dollar, a senior fellow at Brookings Institution and former World Bank official, told the Journal that the resident board costs the World Bank some $70 million annually. There was often a certain tension between the management and the board members whose resident staff wanted to find out about projects at an early stage.
> 
> Chen Fengying, a researcher at the China Institute of Contemporary International Relations, said a non-resident board of directors would give more room for the management to perform.
> 
> The latter's recruitment will be open to global talent, which will help make professional decisions, rather than making the bank an instrument of China's foreign policy, as many outsiders fear.
> 
> The board, in which China has more seats, retains decision power on important issues, she said.
> 
> *"As long as China maintains the largest shareholding and the president position, which should go to a Chinese national for the first term, we won't worry over conceding influence," Xiao said.*



China played its cards right. Chinese leaders just know how to get things done. 
China should always retain veto power over major decisions since most of the members are American vassal states and they might be in there to sabotage the whole bank as Washington's agents.

American regime will do anything to sabotage the AIIB.

I always found it suspicious that once UK (America's closest vassal state) decided to join AIIB, all other American vassals decided to join in a matter of days. It could be that in public the US pretends they 'lost out' but in reality this might have been a master plan all along to get its vassals into AIIB and sabotage it once they joined the bank. This way the AIIB won't operate properly and the US won't have to do it themselves.

Don't trust a snake like the US.

Reactions: Like Like:
1


----------



## TaiShang

Beidou2020 said:


> China played its cards right. Chinese leaders just know how to get things done.
> China should always retain veto power over major decisions since most of the members are American vassal states and they might be in there to sabotage the whole bank as Washington's agents.
> 
> American regime will do anything to sabotage the AIIB.
> 
> I always found it suspicious that once UK (America's closest vassal state) decided to join AIIB, all other American vassals decided to join in a matter of days. It could be that in public the US pretends they 'lost out' but in reality this might have been a master plan all along to get its vassals into AIIB and sabotage it once they joined the bank. This way the AIIB won't operate properly and the US won't have to do it themselves.
> 
> Don't trust a snake like the US.



Nonetheless, it is now obvious that, no matter how much fifth-columns the US might have inside, China holds the veto power.

Question is, if the argument is legitimate, why did the USA held Japan while letting other close allies to join? Or, the close allies joined at the expense of US disagreement and wrath?

Reactions: Like Like:
3


----------



## Beidou2020

TaiShang said:


> Nonetheless, it is now obvious that, no matter how much fifth-columns the US might have inside, China holds the veto power.
> 
> Question is, if the argument is legitimate, why did the USA held Japan while letting other close allies to join? Or, the close allies joined at the expense of US disagreement and wrath?



Maybe because US has its World Bank and Japan has ADB, they decided not to join but got its European vassals to do the dirty work. Who knows.

China should always stay alert to all possibilities, especially when dealing with the US and its vassals.

Reactions: Like Like:
3


----------



## TaiShang

Beidou2020 said:


> Maybe because US has its World Bank and Japan has ADB, they decided not to join but got its European vassals to do the dirty work. Who knows.
> 
> China should always stay alert to all possibilities, especially when dealing with the US and its vassals.



I agree. US probably wants to hold the ADB card up against the AIIB. Nonetheless, China has absolute voting power and I do not see it changing anytime soon -- unless India becomes an 8trillion USD economy while China just remains as it is today.

Reactions: Like Like:
2


----------



## Echo_419

TaiShang said:


> Natural consequence of economies of scale.
> 
> If Japan were in, it would be a whole lot different.



Well I have to agree on this one



Nihonjin1051 said:


> A foolish mistake on our part. Damned foolish mistake.



A monumental mistake on Japan's part


----------



## TaiShang

Echo_419 said:


> Well I have to agree on this one



In IMF and WB, China is represented way below its economic scale. That's the major issue China has with those institutions. I guess it is same with India and other developing nations like Brazil and Russia. They are underrepresented.

In AIIB, it is done according to a mathematical formulation as agreed by all members.

Reactions: Like Like:
2


----------



## Echo_419

TaiShang said:


> In IMF and WB, China is represented way below its economic scale. That's the major issue China has with those institutions. I guess it is same with India and other developing nations like Brazil and Russia. They are underrepresented.
> 
> In AIIB, it is done according to a mathematical formulation as agreed by all members.



Well atleast you are honest & fair

Reactions: Like Like:
1


----------



## terranMarine

That's what the AIIB is for, based on the size of the economy you get the appropriate share. AIIB is the answer to IMF/WB, i think it sets a good example to every member, and i'm sure they won't regret joining this new prestige institution.

Reactions: Like Like:
3


----------



## ahojunk

Another report, this time from WSJ...

------------------
How China Plans to Run AIIB: Leaner, With Veto
*The Beijing-led investment bank aims to give developing nations a greater voice in multilateral organizations*
By Mark Magnier
June 8, 2015 7:48 a.m. ET

BEIJING—A new China-led infrastructure bank aims to differentiate itself from other lenders with a leaner, more efficient structure that ultimately gives Beijing veto power over major decisions, people close to the institution said.

The bank’s voting structure means that China will retain the upper hand as the largest shareholder, according to its articles of incorporation and people close to the bank. China has offered to forgo outright veto power in day-to-day operations, which helped win over some key founding members.

The articles, agreed to at a meeting of the bank’s 57 founding member countries last month, call for the Asian Infrastructure Investment Bank to be overseen by an unpaid, nonresident board of directors, unlike the World Bank and the Asian Development Bank. The new bank, which will be based in Beijing and use English as its operating language, will open bidding for projects to all, unlike the ADB, which restricts contracts to member countries, according to a copy of the articles reviewed by The Wall Street Journal.

The new Asian bank also gives a bigger voice to developing nations—a turnaround from the International Monetary Fund and World Bank, which China lobbied for years for greater representation.

Overall, the bank, on paper, attempts to redress perceived shortcomings at the World Bank, ADB and other development institutions that have been criticized by China for being top-heavy and overly controlled by the U.S. and other wealthy nations.

“China benefited a lot from existing multilateral organizations, but it was also frustrated in a lot of ways that they didn’t increase the weight of China and other developing markets, that they are often slow and bureaucratic,” said David Dollar, a senior fellow at Brookings Institution and former World Bank and U.S. Treasury official in China who has done unpaid consulting for the new bank.

The bank, known as AIIB, has been seen as an ambitious bid by Beijing to expand its international influence and challenge U.S. clout while at the same time bolstering opportunities abroad for Chinese construction and engineering companies.

A low-key lobbying campaign by China exceeded expectations, attracting 56 other countries, among them U.S. allies Australia and South Korea, which faced pressure from Washington not to join.

“China can’t lose from having an economically rational, transparent governing structure at the AIIB that it can showcase in response to the U.S.,” said Leslie Young, an economics professor with Beijing’s Cheung Kong Graduate School of Business. “This is going to change the game and expand its soft power,” he said.







Negotiators approved the basic framework last month in Singapore and agreed the bank would start with $100 billion in registered capital. A signing ceremony is scheduled for late June, according to people close to the bank. Once 10 members representing at least 50% of the share votes ratify the agreement, the AIIB can start operating, probably by late 2015, according to Chinese media.

Voting shares are apportioned according to a complex formula that factors in each member’s capital contribution, the size of its economy, basic votes each member receives equally plus another 600 votes allocated to each founding member.

At least 75% of share votes are reserved for members located in the Asia-Pacific region, giving smaller Asian countries a greater say than they have in other global organizations.

According to the bank’s articles, China is providing $29.78 billion of the bank’s $100 billion capital base. Under the voting formula, that gives Beijing between 25% and 30% of the total votes, enough to block decisions involving structure, membership, capital increases and other significant issues laid out in the articles that require a “super majority” of at least 75% of votes.

Other big prospective contributors among those listed as Asia-Pacific members are India at $8.36 billion, Russia at $6.53 billion and South Korea at $3.74 billion. Outside the region, Germany’s allocation is $4.48 billion, France’s is $3.37 billion and Brazil’s is $3.18 billion.

Shareholding and voting amounts could shift if some founding members change their minds. “Willingness will still be decided by the president and the cabinet,” said Philippines National Treasurer Roberto Tan, part of his country’s negotiating team, who said the Philippines’s capital share in the bank would be about 1%.

China’s finance ministry, which has been spearheading the initiative, didn’t respond to requests to comment about the bank’s structure.

The Ministry of Foreign Affairs said the bank aims to be “inclusive and transparent.”

“The important idea is to achieve common development and build a new model of international cooperation,” ministry spokesman Hong Lei said.

As one of China’s biggest forays in trying to reshape the global order, the bank aims to set high standards for efficiency and transparency—and counter criticisms it will be a tool of Chinese foreign policy, the people close to the bank said.

“They will try and increase the efficiency of investment compared to other development banks with long approval procedures,” said Cui Fan, a professor with Beijing’s University of International Business and Economics.

The bank is expected to maintain a lean staff, according to analysts and those close to the bank, compared with the World Bank, which has over 12,000 staff and consultants. Doing without a resident board of directors should save the bank money and friction in decision-making.

Mr. Dollar, of Brookings, said the resident board costs the World Bank some $70 million annually. When he worked at the bank, “There was often a certain tension between the management and the board members whose resident staff wanted to find out about projects at an early stage.”

The bank articles pledge to heed environmental risks and promote transparency, though they don’t offer specific mechanisms to safeguard against bid-rigging, environmental degradation and other potential fallout from huge infrastructure projects. These issues were of significant concern to prospective European members facing vocal domestic civic society constituencies, said the people close to the bank.
.

Reactions: Like Like:
4


----------



## Götterdämmerung

terranMarine said:


> That's what the AIIB is for, based on the size of the economy you get the appropriate share. AIIB is the answer to IMF/WB, i think it sets a good example to every member, and i'm sure they won't regret joining this new prestige institution.



Will the voting rights change with time, since some countries will grow larger and some will become smaller in the next decades? Is there some kind of mechanism to consider this problem within the AIIB?

Reactions: Like Like:
1


----------



## terranMarine

Götterdämmerung said:


> Will the voting rights change with time, since some countries will grow larger and some will become smaller in the next decades? Is there some kind of mechanism to consider this problem within the AIIB?


That's a good question, i don't know if that will be the case. I won't be surprised if it does because that's the reason why China initiated this alternative. As you know China and some other countries don't get more influence within IMF or WB despite our position as the #2 biggest economy status. I guess we just have to wait and see how the other economies are performing in the coming years/decades before we can tell for sure whether their share will drop/rise or remain the same.
China has put a large chunk of money inside this bank so it's natural she will have the biggest influence. We don't know if smaller economies can put more money in the future to get more say in the decision making. It would be interesting to see if their influence will fluctuate based the amount of money they invest or the size of their economies.

Reactions: Like Like:
2


----------



## ahojunk

Germany to be AIIB's fourth largest shareholder
*
The German cabinet has approved plans for Germany to buy a stake in the China-led Asian Infrastructure Investment Bank that will make it the fourth largest shareholder. It'll also provide financial guarantees*.






Germany is to acquire a 4.1-percent stake in the Asian Infrastructure and Investment Bank (AIIB), which would make it the fourth largest stakeholder after China, India and Russia. The German government approved a draft proposal on Wednesday, which will still have to pass through both houses of parliament.

Relevant documents said the AIIB would have a capital base of $100 billion (88.6 billion euros). "Germany's capital investment will most likely amount to some $900 million, to be contributed between 2016 and 2019," the draft plan stated, adding that the deal would also involve a further $3.6 billion in financial guarantees.

*Power struggle*

The AIIB is designed to raise more resources for infrastructure projects across Asia, with support also coming from 13 other European nations, including fellow G7 countries France, Britain and Italy. The founding charter is scheduled to be signed on June 29 in Beijing.

The US, Japan and Canada have remained skeptical of the lender, assuming that China could misuse its dominant role in the bank for pushing its own geopolitical agenda.

Washington also fears the AIIB will pose a significant challenge for the International Monetary Fund (IMF) and the World Bank where it wields huge influence.

The Wall Street Journal reported Tuesday that China would ultimately have veto power over major decisions of the AIIB after providing almost a third of the lender's overall capital base, giving Beijing an estimated 25 to 30 percent of total votes.

--------------------------------------
My understanding - China does not have direct veto, only indirect veto due to the 25 to 30% of the total votes it holds, as major AIIB decisions require 75% approval.

Reactions: Like Like:
1


----------



## TaiShang

*New Zealand to invest US$87m in AIIB*
June 15, 2015
The New Zealand government announced Monday that the country will invest NZ$125 million ($87.27 million) in the China-led Asian Infrastructure Investment Bank (AIIB) paid over five years.

New Zealand has agreed to become a founding member of the AIIB, which is being established to invest in new infrastructure across Asia, Finance Minister Bill English said in a statement.

The bank aimed to address a significant gap in infrastructure investment in the Asian region, which would enhance the Asian region's growth and in turn be good for New Zealand, English said.

"New Zealand was the first Western developed nation to join negotiations to set up the bank and our membership will enhance our already strong economic, trade and investment links with the Asian region," said English.

It was envisaged the bank would have initial capital of close to $100 billion to invest, which would be financed by individual country contributions proportionate to their economic size.

Asia was important to New Zealand's future so it made sense to contribute to infrastructure investment in the region, Foreign Minister Murray McCully said in the statement.

"Asia is driving global growth and it is full of opportunities for New Zealand," McCully said.

"This new bank will be a welcome addition to existing institutions and it stands to make a significant contribution to infrastructure in the region," he said.

"New Zealand is benefiting from the rapid and sustained development across Asia. To ensure we achieve further growth and that more people in the region are lifted out of poverty, Asia needs to address continuing constraints posed by infrastructure bottlenecks."

The next step would be a formal signing ceremony in Beijing later this month, and the bank was expected to begin operations before the end of the year.

Reactions: Like Like:
1


----------



## ahojunk

_China said: Let's work together to develop infrastructure in Asia...... If you don't want to join, then don't cause trouble._

--------
China Urges Efforts to Look for Solutions, Not Trouble on AIIB

A Chinese foreign ministry spokesman on Thursday urged "some countries" to help look for solutions rather than trouble as the Asian Infrastructure Investment Bank (AIIB) aims to fill the gap in infrastructure investment in Asia.

"The mission of the AIIB is to help developing economies in the region resolve their practical problems in pursuit of common development and prosperity," Spokesman Lu Kang said at a daily news briefing.

"Toward the practical problems faced today, the right attitude for us should be to work together to find a way rather than look for trouble to set back the efforts to resolve the problems," said the spokesman.

Lu said that most Asian countries are developing countries in need of investment in infrastructure.

It is a good thing if there are more options to finance infrastructure, Lu said, adding that that is why the AIIB proposal has won widespread support.

China and the other 56 founding members from both Asia and beyond are willing to work together to boost development, he said, adding that it is a pleasure to know that more countries want to join the financial institution.

"It is understandable that some countries cannot join the AIIB now," Lu said. "However, it is quite unacceptable that some countries who do not want to join keep looking for trouble," he added.

(Xinhua News Agency June 18, 2015)

======================================
_China did not use the word "condemn". Then Reuters spin this into the following. The contents of the article doesn't match the title. My friends, this is how western media works!_

China condemns efforts to find fault with new infrastructure bank AIIB
BEIJING, June 18

China's Foreign Ministry on Thursday condemned efforts to cast doubt on governance issues facing the country's new Asian Infrastructure Investment Bank (AIIB), saying attention should focus instead on finding ways to tackle regional problems.

A total of 57 countries, including G7 members Britain, Germany and France, have joined the AIIB as founding members.

But the United States and Japan have stayed out of the venture, which is seen as a rival to the U.S.-dominated World Bank and Japan-led Asian Development Bank (ADB), expressing concern about the new bank's governance.

"The aim of China's proposal to set up the AIIB is to help the developing economies of this region to really resolve some actual difficulties they face, and lead the region to joint development and prosperity," Foreign Ministry spokesman Lu Kang told a daily news briefing.

"We believe that the correct attitude to the real problems facing countries in this region is to do more to find ways of addressing them rather than finding fault," Lu added.

The region's financing needs are so enormous that having another means of addressing them can only be a good thing, the spokesman said.

"Now there are even more countries who want in on the AIIB, and this is a happy thing. Some countries can't for the moment join, and this can be understood," Lu said.

"But if some countries don't want to join, and keep looking for fault in the efforts of other countries to resolve problems, then this attitude really isn't very desirable." (Reporting by Ben Blanchard; Editing by Clarence Fernandez)

Reactions: Like Like:
5


----------



## Shotgunner51

ahojunk said:


> _China said: Let's work together to develop infrastructure in Asia...... If you don't want to join, then don't cause trouble._
> China Urges Efforts to Look for Solutions, Not Trouble on AIIB
> ======================================
> _China did not use the word "condemn". Then Reuters spin this into the following. The contents of the article doesn't match the title. My friends, this is how western media works!_
> China condemns efforts to find fault with new infrastructure bank AIIB



Western media spinning the story again? Nothing new, as expected.

Well China never expect *applause* from the west in the first place, nor care about their *hostility* if it so happens, since either way both are empty words, and equally *worthless*.



ahojunk said:


> Germany to be AIIB's fourth largest shareholder



It's a good deal for China, Germany & AIIB.

Germany is a real tech/financial power, its addition will strengthen AIIB.

From Berlin's perspective, it would be in their interests to seek opportunities on the vast Eurasian continent.

Check Post #2
What the BRICS plus Germany are really up to?

Reactions: Like Like:
1


----------



## Götterdämmerung

Please don't throw the US with the EU into one basket and call it the "West". Ask any informed person in Germany and you will see that the US' interests and our interests are diametrically different. We are part of Eurasia and our future is Eurasia. There are 4 billions consumers in Eurasia compared to the 350 million of the US. Most markets in Eurasia are growing markets unlike the US and the EU where the markets are mostly saturated.

Reactions: Like Like:
4


----------



## Shotgunner51

Götterdämmerung said:


> Please don't throw the US with the EU into one basket and call it the "West". Ask any informed person in Germany and you will see that the US' interests and our interests are diametrically different. We are part of Eurasia and our future is Eurasia. There are 4 billions consumers in Eurasia compared to the 350 million of the US. Most markets in Eurasia are growing markets unlike the US and the EU where the markets are mostly saturated.



Yes bro I know the "West" is heavily splintered in many aspects from *geo-political perspectives* to *geo-economic interests*, that's why I usually use the term "US-led West" in describing the camp in which US can enforce concerted action on EU, Japan. Donald Rumsfeld's "old Europe" view, Victoria Nuland's cursing are just some notorious and fresh reminders of the fact.

Even inside a splintered EU I am also well aware (by checking data, numerical indicators) of *Germany's unique position* as compared to rest of EU like France, UK, PIIGS and the new members (in central & eastern Europe) in tech advancement, degree of industrialization and financial strength. It's obvious where Germany stands.

That's why I said Germany becoming a major shareholder of AIIB is a good deal to the bank, to China and to Germany itself. Look forward to closer tie between Beijing and Berlin on more regional/global deals!

Reactions: Like Like:
5


----------



## IR-TR

Trust me, Germany and the Germans do NOT like the current situation (being forced to apply US foreign policy). But they have no option for the time being.


----------



## Shotgunner51

IR-TR said:


> Trust me, Germany and the Germans do NOT like the current situation (being forced to apply US foreign policy). But they have no option for the time being.



I think you could be right, hard to imagine anyone will like something that goes against their own interests! But US will force it, so no choice, as of now.

Reactions: Like Like:
3


----------



## TaiShang

*European bank seeks to combine strength with AIIB*
June 22, 2015
The European Bank for Reconstruction and Development is keenly eyeing opportunities to work closely with the Asian Infrastructure Investment Bank, both in offering advice to the AIIB as it grows and in jointly funding infrastructure projects.

Suma Chakrabarti, president of the EBRD, said the creation of the China-led bank has significant implications for an older development-oriented bank like the European bank because the combined strength of both can allow them to take on much larger projects.

In addition, efficient and innovative ways of funding that may be demonstrated by the AIIB will provide inspiration and create benchmarks that affect how the EBRD examines and funds projects, Chakrabarti said.

Chakrabarti, who is due to visit China for a two-day visit beginning June 26, will be giving a speech outlining his advice to the AIIB, including details about setting up a reasonable business model, governance and standards.

He will also have conversations with counterparts in China to examine how the two banks can cooperate, especially in geographical regions where they have overlapping responsibilities.

"What I'd really like to achieve by next year, when the AIIB is running, is to have at least two or three cofinance projects. That's going to be our main push. Of course we can do other things together, but projects will be a good way to start," Chakrabarti said.

Founded in 1991, the EBRD is a multilateral developmental investment bank that initially focused on countries of the former Soviet Eastern bloc, but over time it expanded to support development in 30 countries from Europe to Central Asia.

Potential partnerships between the two banks have attracted great attention from industry experts, although they could only speculate on the effects of future cooperation at this stage.

Hou Zhenbo, a researcher of the London-headquartered think tank Overseas Development Institute, said the overlap between the two, given what we know so far, would probably be infrastructure projects in Central Asia and former Soviet republics, although it is "difficult for us to speculate how large these sets of investments would be in the future".

Christopher Bovis, a professor of business law at the Business School of the University of Hull in Yorkshire, England, said that the EBRD's investment partnership with the AIIB could help to develop and continuously expand a pipeline of public private partnership projects on the basis of a clearly defined eligibility framework.

The European Regional Development Fund would carry out the due diligence and financial appraisal in the structuring phase and monitor the project thereafter. The fund may also be prepared to act as the controlling creditor according to principles to be established by agreement with market participants, Bovis said.

"The AIIB and the ERDF would share the risk of the losses of the project portfolio. The ERDF risk would be ring-fenced and its participation therefore capped at an agreed annual budgetary amount.

"The ERDF would be covering the residual risk up to its maximum exposure on any individual transaction. The risk-taking of the AIIB on the other hand, would be compensated via a risk premium charged up front to the project entity at the time of agreement.

"This premium will be priced to reflect the subordinated status of the credit line and the associated risks for the ERDF as well as covering expected management and other costs," Bovis said.

Chakrabarti said that because both the EBRD and the AIIB have similar financing structures and goals, they can jointly invest in projects and share revenue based on percentage shares. In addition to debt financing, he said, the two banks can also work together on equity financing.

In particular, opportunities exist in the municipal infrastructure investment sector－for example, in waste, water management, public transportation and street lighting, Chakrabarti said.

"Equity investment, in our view, will allow us to use our expertise to help a company become more comfortable and effective on the ground. As an equity investor, we would typically have a position on the board of a company, and we can then cooperate with the company to make it better," he said.

Reactions: Like Like:
1


----------



## IR-TR

A Eurasian Infrastructure and Investment Bank? Hmmm


----------



## TaiShang

@ahojunk 

*Australia commits 718 mln USD for China-initiated bank*
2015-6-24 13:27:16

Australian government officially announced on Wednesday that the country will become a founding member of the China-proposed Asian Infrastructure Investment Bank (AIIB) with a contribution of 930 million AU dollars (718 million US dollars) as paid-in capital to the bank.In a joint statement, Minister for Foreign Affairs and Trade Julie Bishop and Treasurer Joe Hockey said the decision to join the AIIB comes after "extensive discussions between the government, China and other key partners around the world".

*Australia will be the sixth largest shareholder, said the statement.*

The AIIB will have paid-in capital of 20 billion US dollars with total authorized capital of 100 billion US dollars.

The statement noted that there is an estimated infrastructure financing gap of around 8 trillion US dollars in the Asian region over the current decade. "The AIIB will be part of the solution to closing this gap," it said.

The two ministers said in the statement that joining the AIIB presents Australia with great opportunities to work with Australia's neighbors and with its largest trading partner, China, to drive economic growth and jobs.

They noted that the AIIB will work closely with the private sector, paving the way for Australian businesses to take advantage of the growth in infrastructure in the region.

As for the governance of the AIIB, the statement said it will be based on best practice, ensuring that all members will be directly involved in the direction and decision making of the bank in an open and transparent manner.

"We look forward to working with other members to lay the foundations for an effective new multilateral institution which is expected to be operational by the end of the year," the statement said.

Treasurer Joe Hocky will attend the AIIB's Articles of Agreement signing ceremony in Beijing on Monday June 29.

Reactions: Like Like:
3


----------



## ahojunk

TaiShang said:


> @ahojunk
> 
> *Australia commits 718 mln USD for China-initiated bank*
> 2015-6-24 13:27:16
> 
> Australian government officially announced on Wednesday that the country will become a founding member of the China-proposed Asian Infrastructure Investment Bank (AIIB) with a contribution of 930 million AU dollars (718 million US dollars) as paid-in capital to the bank.In a joint statement, Minister for Foreign Affairs and Trade Julie Bishop and Treasurer Joe Hockey said the decision to join the AIIB comes after "extensive discussions between the government, China and other key partners around the world".
> 
> *Australia will be the sixth largest shareholder, said the statement.*
> 
> The AIIB will have paid-in capital of 20 billion US dollars with total authorized capital of 100 billion US dollars.
> 
> The statement noted that there is an estimated infrastructure financing gap of around 8 trillion US dollars in the Asian region over the current decade. "The AIIB will be part of the solution to closing this gap," it said.
> 
> The two ministers said in the statement that joining the AIIB presents Australia with great opportunities to work with Australia's neighbors and with its largest trading partner, China, to drive economic growth and jobs.
> 
> They noted that the AIIB will work closely with the private sector, paving the way for Australian businesses to take advantage of the growth in infrastructure in the region.
> 
> As for the governance of the AIIB, the statement said it will be based on best practice, ensuring that all members will be directly involved in the direction and decision making of the bank in an open and transparent manner.
> 
> "We look forward to working with other members to lay the foundations for an effective new multilateral institution which is expected to be operational by the end of the year," the statement said.
> 
> Treasurer Joe Hocky will attend the AIIB's Articles of Agreement signing ceremony in Beijing on Monday June 29.



@TaiShang 
Thank you for tagging me.

Yes, Australia committed to the AIIB by contributing US$718 million which equates to AUD $930 million.
That's a lot of money but only allows Australia to be the sixth largest shareholder.
I hope all founding member countries will commit and contribute their share asap.
Only then the AIIB can be up and running by the end of 2015.

Reactions: Like Like:
1


----------



## TaiShang

ahojunk said:


> @TaiShang
> Thank you for tagging me.
> 
> Yes, Australia committed to the AIIB by contributing US$718 million which equates to AUD $930 million.
> That's a lot of money but only allows Australia to be the sixth largest shareholder.
> I hope all founding member countries will commit and contribute their share asap.
> Only then the AIIB can be up and running by the end of 2015.



I wonder if there is a built-in timeline/deadline for the pledged funds to be actually deposited.


----------



## IR-TR

Those Aussies are surprisingly pragmatic. They are embracing China like nobody's business. I would have thought them to be a lot more like Japan, or even worse. Guess they know where the future lies.


----------



## TaiShang

The prospective founding members of the AIIB are set to sign the bank's *Articles of Agreement* on June 29, 2015 in Beijing.* President Xi Jinping* will meet with the heads of the delegations, said the Foreign Ministry.

Reactions: Like Like:
1


----------



## ahojunk

_Great! Things are moving along for AIIB. _

----------------
*[Bank] Constitution to lay cornerstone for AIIB*
2015-06-27 06:29 | Xinhua | Editor: Mo Hong'e

Representatives of 57 prospective founding countries of the Asian Infrastructure Investment Bank (AIIB) will meet in Beijing next Monday to sign the constitution of the bank, creating a legal framework for the existence of the entity.

"This will be a significant event. The constitution will lay a solid foundation for the establishment and operation of the AIIB," said Chinese Finance Minister Lou Jiwei.

All parties have agreed on the AIIB's objectives, membership, stakes, voting power, operations, governance and decision-making mechanism. Prospective members hammered out the constitution in Singapore last month. When signed, the document will be subject to legal and parliamentary ratification in all member countries before it becomes active.

"The signing of the constitution means that preparations are almost complete," said Liu Dongmin of the Chinese Academy of Social Sciences.

"If everything goes to plan, the AIIB will start operation by the end of 2015," said Chen Fengying, a researcher with the China Institute of Contemporary International Relations.

The AIIB will have three tiers of governance: a board of governors, a board of directors and executives. The governors have the supreme power in the bank. The directors, who are non-standing, convene to make decisions. Executives will take care of routine work.

"Some international organizations have too much bureaucracy. The AIIB has a streamline structure that might increase efficiency," said Tang Min, member of a government think tank who previously worked for the Asian Development Bank.

The AIIB will recruit personnel in a transparent and open manner and be zero tolerant of graft or fraud. Members will contribute to the lender largely according to GDP and enjoy a voting power accordingly. Details will probably become available on Monday.

China first proposed the AIIB in 2014 with the aim of financing infrastructure. Many countries do not have the capacity to fund the infrastructure upgrades they need. So far, 57 countries have agreed to join the AIIB.

All parties are working closely on a list of investment projects and trying to make the first AIIB investment "a very successful one", according to the Chinese finance minister.

"The AIIB will be headquartered in Beijing. As the host country, China will provide reliable and strong support," said Lou.

Reactions: Like Like:
4


----------



## Edison Chen

China's new bank will start taking concrete shape this week - Business Insider
Arun Jaitley to skip FMs meet to sign agreement on AIIB in Beijing - The Economic Times
Indonesia to be eighth-largest AIIB shareholder with $672 million stake - The Economic Times
AIIB members set to sign Articles of Agreement in Beijing - CCTV News - CCTV.com English

I can't believe it's so fast! China speed.

Where is TPP?  In your dreams.

Reactions: Like Like:
4


----------



## TaiShang

Edison Chen said:


> I can't believe it's so fast! China speed.



Exactly, it is China speed. 

Now think in the larger context of the One Belt One Road, Brics Bank, The Silk Road Fund, and the AIIB. 

Massive undertaking by China's diplomacy. Not an easy feat.

Reactions: Like Like:
3


----------



## TaiShang

*Signing ceremony for AIIB to be held today in Beijing*
June 29, 2015

A signing ceremony for the official creation of the Asian Infrastructure Investment Bank is going to be held later today in Beijing.

President Xi Jinping is scheduled to meet the heads of the delegations representing the prospective founding members of the bank.

A meeting of finance ministers of the 57 countries involved is also scheduled to take place.

Written remarks by Chinese premier Li Keqiang, who is now in Europe, will be delivered during the meeting.

The China-proposed bank is expected to begin operating later this year with start-up capital of around 100-billion U.S. dollars.

Reactions: Like Like:
4


----------



## TaiShang

*AIIB agreement signed, China-led bank takes key step forward*
2015-06-29

BEIJING, June 29 (Xinhua) -- A China-initiated multilateral bank that has dominated media headlines for months took a key step forward on Monday, with the signing of an agreement that outlines the framework and management structure for the institution.

*Representatives of the 57 prospective founding countries of the Asian Infrastructure Investment Bank (AIIB) gathered in Beijing for the signing ceremony in the Great Hall of the People. Australia was the first country to sign the document. @ahojunk *

The 60-article agreement *specified each member's share as well as the governance structure and policy-making mechanism of the bank,* which is designed to finance infrastructure in Asia.

*Seventy-five percent of the bank's share is distributed among Asian and Oceanian countries while the remaining 25 percent is assigned to countries outside the region. *As the bank expands its membership, countries outside of the region can expand their stake, *but the portion cannot exceed 30 percent. *Each member will be allocated a share of the quota based on the size of their economy.

*China, India and Russia are the three largest shareholders, taking a 30.34 percent, 8.52 percent, 6.66 percent stake, respectively. Their voting shares are calculated at 26.06 percent, 7.5 percent and 5.92 percent.*

China's stake and voting share in the initial stage are a "natural outcome" of current rules, and may be diluted as more members join, China's Vice Finance Minister Shi Yaobin said in an interview with Xinhua.

*"China is not deliberately seeking a veto power," Shi stressed.*

Being the largest shareholder does not mean China will have veto power over major issues. Instead, *China will closely watch and balance other members' interests*, said Tang Min, with Counselors' Office of the State Council, who previously worked for the Asian Development Bank (ADB).

Speaking at Monday's ceremony, Finance Minister Lou Jiwei said the new bank will uphold high standards and follow international rules in its operation, policies and management to ensure efficiency and transparency.

*The bank, headquartered in Beijing, will possibly set up regional offices in other countries. It will be led by a president with a five-year term that can be extended once.*

*The articles do not say who will be the president, but said the president will be chosen from Asian member countries using an "open, transparent and excellent" selection process.*

Jin Liqun, former vice finance minister of China, is secretary-general of the interim multilateral secretariat for establishing the AIIB.

*After signing the agreement, representatives from prospective founding countries will return home with the document for legal adoption.*

The AIIB was proposed by President Xi Jinping in October 2013. A year later, 21 Asian nations, including China, India, Malaysia, Pakistan and Singapore, signed an agreement to establish the bank.

After the new bank garnered support from countries like Britain and Germany, much focus has been trained on whether the U.S. and Japan, the world's largest and third largest economies, will join.

While stating that the U.S. will not join the AIIB at present, U.S. President Barack Obama said the country looked forward to collaborating with the new development bank "just like we do with the Asia Development Bank and with the World Bank"in April.

Despite outside worries that a new investment bank will challenge the established order of multilateral lenders, the IMF, World Bank and other leading global lenders have welcomed collaboration with the new bank to fill Asia's infrastructure gap.

Statistics from the ADB show that between 2010 and 2020, around 8 trillion U.S. dollars in investment will be needed in the Asia-Pacific region to improve infrastructure.

"We view the AIIB as an important new partner that shares a common goal: ending extreme poverty. With strong environment, labor and procurement standards, the AIIB will join us and other development banks in addressing the huge infrastructure needs that are critical to ending poverty, reducing inequalities, and boosting shared prosperity," World Bank Group President Jim Yong Kim said in a statement after the signing ceremony.

Chinese officials have reiterated that rather than being a competitor, the new bank will complement the current international economic order and enable China to take more global responsibility.

The bank will start operation at the end of the year under two preconditions: At least 10 prospective members sign the agreement and the initial subscribed capital is no less than 50 percent of the authorized capital.

"We are confident of working with related parties to accelerate legal procedures and push for the official set up of the AIIB before the year end," Lou said.

*TIMELINE*

October 2013, Chinese President Xi Jinping proposed the bank.

October 2014, 21 Asian nations, including China, India, Malaysia, Pakistan and Singapore signed an agreement to establish the bank.

March 12, 2015, Britain applied to join the AIIB as a prospective founding member, the first major western country to do so.France, Italy and Germany quickly followed suit.

March 31, 2015, China announced that 57 countries joined or applied to join the AIIB as prospective founding members before the deadline.

Until May, five rounds of talks were held and consensus was reached on all key elements, such as the bank's purpose, membership, capital subscription, voting powers and decision-making structures.

June 29, 2015, delegates of the 57 prospective founding countries of the AIIB gathered in Beijing for the signing ceremony of an agreement to lay the legal framework and management structure for the bank.

*Related:*

*Key legal framework laid for China-initiated AIIB*

BEIJING, June 29 (Xinhua) -- Delegates of the 57 prospective founding countries of the Asian Infrastructure Investment Bank (AIIB) on Monday gathered in Beijing for the agreement signing ceremony, which will lay the legal framework for the China-initiated multilateral institution. Full story

*Xinhua Insight: AIIB -- the green investment bank?*

GUIYANG, June 28 (Xinhua) -- At an eco forum in southwest China, one important player is drawing much attention from environment organizations, researchers and business people, despite being absent.

The Asian Infrastructure Investment Bank (AIIB) has not even been officially founded. Its 57 prospective founders will meet in Beijing Monday to sign its charter in anticipation of beginning formal operations by the end of the year. Full story

*News Analysis: Constitution to lay cornerstone for AIIB*

BEIJING, June 26 (Xinhua) -- Representatives of 57 prospective founding countries of the Asian Infrastructure Investment Bank (AIIB) will meet in Beijing next Monday to sign the constitution of the bank, creating a legal framework for the existence of the entity.

"This will be a significant event. The constitution will lay a solid foundation for the establishment and operation of the AIIB," said Chinese Finance Minister Lou Jiwei. Full story

*Nepal's Finance Minister leaves for Beijing to sign AIIB Constitution*

KATHMANDU, June 28 (Xinhua) -- Nepal's Finance Minister Ramsharan Mahat left for China on Sunday morning to sign the constitution of the Asian Infrastructure Investment Bank (AIIB).

"The AIIB will be the new source of capital in the country's rebuilding," Mahat told reporters in Kathmandu earlier.

Reactions: Like Like:
6


----------



## cirr

It looks though that AIIB I will be up and running by the end of the year, and when the dust has settled we can start on AIIB II - the African Infrastructure Investment Bank.

Reactions: Like Like:
4


----------



## Echo_419

Edison Chen said:


> China's new bank will start taking concrete shape this week - Business Insider
> Arun Jaitley to skip FMs meet to sign agreement on AIIB in Beijing - The Economic Times
> Indonesia to be eighth-largest AIIB shareholder with $672 million stake - The Economic Times
> AIIB members set to sign Articles of Agreement in Beijing - CCTV News - CCTV.com English
> 
> I can't believe it's so fast! China speed.
> 
> Where is TPP?  In your dreams.



Great this confirms pur participation in AIIB 
Long live Sino-Indian ties 



cirr said:


> It looks though that AIIB I will be up and running by the end of the year, and when the dust has settled we can start on AIIB II - the African Infrastructure Investment Bank.



When will the bank start its operations

Reactions: Like Like:
4


----------



## ahojunk

TaiShang said:


> Australia was the first country to sign the document.


@TaiShang

This time around, Australia is the first to sign. No dilly dally and no need to check with the Americans. That's great.




cirr said:


> It looks though that AIIB I will be up and running by the end of the year, and when the dust has settled we can start on AIIB II - the African Infrastructure Investment Bank.



Now, that's a brilliant idea.

Reactions: Like Like:
2


----------



## Al Bhatti

Al Bhatti said:


> April 7, 2015
> 
> * UAE, Iran approved as founder members of China-backed infrastructure bank *
> More than 50 countries, plus Taiwan, have now applied to join the bank in a diplomatic coup for Beijing
> 
> Iran has been approved as a founding member of the Beijing-backed Asian Infrastructure Bank (AIIB), China’s finance ministry said Tuesday, just days after Tehran sealed a historic framework agreement on its nuclear programme.
> 
> Tehran’s application was backed by other founding members on Friday, China’s Ministry of Finance said in a statement on its website. The UAE’ bid was also approved.
> 
> More than 50 countries, plus Taiwan, have now applied to join the bank in a diplomatic coup for Beijing after Washington initially opposed its allies becoming members.
> 
> The United States and its Asian ally Japan have not sought to join.
> 
> But US Treasury Secretary Jacob Lew said last week that Washington was “ready to welcome” the bank, though he added it should complement existing multilateral institutions such as the World Bank and International Monetary Fund.
> 
> Iran’s approval — its application had not been previously announced — comes immediately after the nuclear deal that China helped to broker.
> 
> Under the outline nuclear deal, the United States and the European Union are to lift all nuclear-related sanctions on Iran once the UN atomic agency has verified that Tehran has stuck to its terms.
> 
> The proposed limits will see Iran’s stocks of highly enriched uranium cut by 98 per cent for 15 years, while its unfinished Arak reactor will not produce weapons-grade plutonium.
> 
> There are concerns over transparency of the AIIB, which will fund infrastructure in Asia, as well as Beijing using it to push its own geopolitical and economic interests as a rising power.
> 
> Under President Xi Jinping, China is pushing to build on the ancient Silk Road trade routes on land and sea, through its ‘One Belt, One Road’ initiative expected to be partly funded by the AIIB.
> 
> UAE, Iran approved as founder members of China-backed infrastructure bank | GulfNews.com




UAE signs up as founding member of Asian Infrastructure Investment Bank

In continuation to the above:


------

30 June 2015







*UAE signs up as AIIB founding member*

*  Japan and the US, which oppose the AIIB, are the most prominent countries not to join. *

The UAE on Monday formally became a founding member of the $100 billion Asian Infrastructure Investment Bank, or AIIB, a new international financial institution heralding the dawn of a new global financial architecture.

Mohammed Saif Al Suwaidi, director-general of the Abu Dhabi Fund for Development, which was mandated to represent the UAE as a founding member of the AIIB, signed in Beijing the articles of agreement for the bank that seeks to rival the World Bank and the Asian Development Bank in the emerging new economic world order dominated by Asian countries.

The UAE, with a share of 1.21 per cent, has the second-largest stake after Saudi Arabia (2.59 per cent) among the five GCC countries that had joined the AIIB. China holds the largest share at 30.34 per cent with 26.06 per cent of the voting rights within the multilateral institution, followed by India at 8.52 per cent based on their capital subscriptions. Russia and Germany make up the third- and fourth-biggest member stakes.

Of the 57 founding member countries, delegates from 50 countries signed articles on Monday that determine each member’s share and the bank’s initial capital. The remaining seven — Denmark, Kuwait, Malaysia, the Philippines, Holland and South Africa and Thailand — have not yet won domestic approval to formally join. China’s Finance Minister Lou Jiwei said those countries can sign the articles by the end of the year. The AIIB’s authorised capital stock would be $100 billion, which would be divided into shares that have a value of $100,000. China’s Ministry of Finance said the initial stakes and voting rights of China and other founding members would be gradually diluted as other members joined.

Although China’s voting rights effectively give the country a veto on votes requiring a “super majority”, which need to be approved by 75 per cent of votes and two-thirds of all member countries, Beijing has maintained it will not have veto powers, unlike the World Bank where Washington has a limited veto.

A super majority vote is needed to choose the president of the bank, provide funding outside the region and allocating the bank’s income, among other decisions.

Japan and the US, which oppose the AIIB, are the most prominent countries not to join.

The Beijing-based institution, which was first mooted at the Asia-Pacific Economic Cooperation session held in Indonesia in October 2013, will begin with an authorised capital of $50 billion — eventually to be raised to $100 billion — to fund mostly Asian energy, transport and infrastructure projects.

UAE Minister of State Dr Sultan Ahmed Al Jaber who led discussions with the Chinese government and was instrumental in arranging the country’s membership in the AIIB, said the signing of the agreement is a historic moment for the UAE.

“It articulates the vision of our wise leadership and the importance they attach to supporting infrastructure development projects. This agreement is crucial in paving the way for accelerating economic development across Asia. In addition to enhancing the country’s role within the global economy, the UAE’s affiliation to the institution as a founding member will support the country’s growing interests in Asia.”

Expected to start official operations by the end of 2015, the bank seeks to provide new financial resources for infrastructure development and improvement across Asia, while maintaining balanced economic growth in the countries of the region while addressing the financial challenges facing infrastructure projects.

The bank will additionally promote investment activities, specifically in productive sectors that leverage available resources and support projects that translate a long-term economic impact on the region. In particular, AIIB will cater to the development needs of its least economically developed members, and encourage the private sector to invest in projects and initiatives with widespread development impact.

Mohammed Saif Al Suwaidi, director-general of the ADFD, said the signing of this agreement with the AIIB is aligned with the vision of the UAE leadership to promote international collaboration towards fulfilling the development goals of developing countries.

“The UAE has been playing a prominent role in aiding emerging countries in their efforts to achieve sustainable development through extending developmental and humanitarian assistance. AIIB’s objectives are well aligned with the social, humanitarian and development aid program carried out by the UAE in more than 145 countries across the world,” said Al Suwaidi.

He argued that the UAE’s affiliation to AIIB as a founding member would boost international cooperation towards furthering development efforts across Asia. “Additionally, it will give fresh impetus to the economies of Asian countries through the infusion of more funds to infrastructure projects that will help stimulate economic growth and create hundreds of new job opportunities.”

UAE signs up as AIIB founding member - Business | Khaleej Times

Reactions: Like Like:
4


----------



## TaiShang

*AIIB shows center of world economic gravity moving east*
By Shujie Yao

Financial leaders of 57 states gathered in Beijing on June 29 to sign the agreement for establishing the Asian Infrastructure Investment Bank (AIIB), expected to become the region’s largest investment bank in the 21st century.

Seventy years ago, the World Bank was established, led by the US and its close western economic and political allies, as the first global financial institution. Along with the World Trade Organization and the International Monetary Fund, the western powers have commanded world financial and trade order for more than half a century. *Even the Asian Development Bank (ADB), established 20 years later after the World Bank, has been largely controlled by Japan, backed by the US and other western economic powers.*

China benefited from the global and regional development and financial institutions in the initial stage of economic reform and openness. As China expanded its economic strength it has aggressively contributed to financing them. However, despite its financial contribution to these institutions rising significantly China still has limited influence over management and operation.

China’s desire to influence world financial order and its inability to do so have been due to the governance structure of these institutions where China is not only a minority shareholder but its voting rights are marginalized.

*Since the world financial crisis, triggered by the US subprime mortgage crisis and the EU’s debt problem, China’s relative importance in the world economy has risen rapidly. By 2010, it surpassed Japan to become the world’s second largest economy, and by 2012 it overtook the US to become the world largest trading nation as well as the largest producer and consumer of motor vehicles.*

*Apart from China’s second-to-none manufacturing capability, it holds the world’s largest foreign exchange reserves which have to be used effectively so they can generate a financial return and make appropriate contributions to infrastructural development in Asia, the largest and fastest growing region among all continents.*

In addition, China, India, Russia and other initial AIIB member states have the financial strength and managerial confidence to create a new financial institution similar to the World Bank and ADB. For the initial $100 billion fund to be pledged, China has agreed to contribute 29.7 percent, India 8.3 percent, Russia 6.5 percent, Germany 4.4 percent and South Korea 3.75 percent. Other major contributors include the UK, Australia and Indonesia.

Both the US and Japan have not expressed their intention to join AIIB although many US political and economic allies have come to Beijing to sign the agreement, particularly the UK, Germany, France, Italy and Australia. The diversion of these countries' attention away from the US to China and Asia not only reflects ever rising business opportunities in Asia, but also the relative decline of the US-led western influence on the global economy and financial order.

The apparent shift of economic gravity from the West to the East reminds me of my personal experience in the past.* Thirty year ago, I was awarded a World Bank scholarship from a university in Hainan to study in the UK in 1985. At that time, the salary of a Chinese university lecturer was less than 1 percent of his UK counterpart. Today, all the top Chinese universities are able to pay significantly more than the equivalent UK or US salaries to attract overseas talents to work in China. In addition, numerous university teachers in China can easily apply for more research funding than their western counterparts.*

Although China is still a developing economy by definition, it has exceeded many western powers in a number of areas such as equipment manufacturing, high-speed railways, nuclear power, construction, infrastructure engineering and space technology. In 2014, Chinese scientists produced the second largest number of high-impact academic journal papers in the world.

China started the first high speed railway 30 years later than Europe, but by 2014, has built 16,000 km of high-speed tracks, twice as long as the total length of all the EU countries put together. BYD, one of China’s private auto makers, has marched to California to build electric buses for the local market.

India is racing to follow in China’s footsteps. Its economy was growing as fast as China in 2014 and is set to overtake China’s growth in 2015. However, India’s transportation systems are so poor that they are evident constraints on the country’s development. It is expected that India will require $1 trillion to improve its transportation systems, and the establishment of AIIB will be helpful to its development needs. Other Asian countries face similar problems of investment for roads, railways, airports, seaports, telecommunications and internet.

AIIB will become a potent propeller to accelerate economic and social development in Asia. Along with the Silk Road Fund and the Brics Bank, China will use AIIB to implement its “one- belt and one-road” regional and global development strategies.

The Silk Road Economic Belt and the 21st Century Sea Silk Road will cover more than 60 countries surrounding China, and many will benefit from China’s outward-looking investment and development strategies. *Under Xi Jinping’s leadership, China has gained increased support from neighbouring countries in Asia and many others in Latin America,Europe and Africa, thanks to its persistent foreign policy of peaceful cooperation, mutual benefit and common prosperity.*

The future operation of the AIIB may face many challenges and uncertainty, but the AIIB has signified the rapid emergence of China, India and other developing and transitional economies. The determination and confidence for success through the AIIB and other newly created financial institutions suggest that the world financial and political order will be different from now, as the overwhelming dominance of the World Bank and ADB in Asia and the world financial systems will inevitably decline in the future.

The author is a professor of economics, Chongqing University and the University of Nottingham.

Reactions: Like Like:
2


----------



## TaiShang

AIIB Structure

Reactions: Like Like:
5


----------



## TaiShang

Greece could be first development project for China's AIIB facility - National Finance Examiner | Examiner.com

Next: China will use gold and gold pricing to force global currency reset







With Greece now in arrears on their debt obligations to the IMF, and awaiting a historic referendum vote by the Greek people to decide for either austerity or default, one institution may be waiting in the wings to provide a bailout of the Southern European country, and it may be the first development project for the newly implemented Asian Infrastructure Investment Bank (AIIB).
*
On July 2, the director of the Quantitative Finance Department at China's Institute of Quantitative and Technical Economics stated that China is open to working alone, or with the European Union, to provide the financial and economic means to aid Greece with their financial problems.* And with all the new banking facilities coming online in the Far Eastern sphere of influence, salvation and development for a country like Greece is exactly what entities such as the AIIB were created for.

_China may help Greece directly through its new financial instruments, director of the Quantitative Finance Department at China's Institute of Quantitative and Technical Economics told Sputnik China.

"The Greek crisis has an undoubtedly seriously influence on China's trade with Greece and investment into the country. But I think that European countries together with China can help Greece overcome the problems that arose," Fan Mingtao said.

"I believe there are two ways to give Greece Chinese aid. First, within the framework of the international aid through EU countries. Second, China could aid Greece directly. Especially considering the Silk Road Economic Belt and the Asian Infrastructure Investment Bank. China has this ability," Fan added.

According to Fang, China has the financial ability to aid Greece if needed, because of its existing Silk Road Economic Belt project and the Asian Infrastructure Investment Bank_. - Sputnik News

In addition to this sudden announcement in China to use their new facilities to work on a bailout or development solution for the Greek crisis, Russia has already intimated bringing Greece into the BRICS coalition, especially if their people should choose to vote against austerity and create the scenario where they might leave the Euro and the European Union as a result.

It is very interesting to watch as the Eurozone is being pushed into a corner rather than seeing Greece surrounded on all sides as previous debtors to the IMF and ECB have experienced as far back as 2008 and 2009. During those years, the insolvent nations of Portugal, Spain, Italy, and Ireland were forced into instituting austerity on their economies and peoples, and in some cases EU technocrats were put in positions of power to dominate their governments as un-elected officials.

Much has changed since the original crisis in 2008 that separated Europe into a union of haves and have nots, and where massively indebted countries like Greece, Spain, and Italy now have alternatives that weren't available to them just seven years ago. And with most of the nations within the European Union having already signed on to the AIIB agreement at the end of March, to attempt to veto the bank's offer to save one of their own would quickly make the European coalition look like aggressors who vindictively want Greece to fail, rather than as a union seeking to achieve a solution to Greece's un-payable debt problem.

Reactions: Like Like:
4


----------



## AndrewJin

TaiShang said:


> Greece could be first development project for China's AIIB facility - National Finance Examiner | Examiner.com
> 
> Next: China will use gold and gold pricing to force global currency reset
> 
> 
> 
> 
> 
> 
> 
> With Greece now in arrears on their debt obligations to the IMF, and awaiting a historic referendum vote by the Greek people to decide for either austerity or default, one institution may be waiting in the wings to provide a bailout of the Southern European country, and it may be the first development project for the newly implemented Asian Infrastructure Investment Bank (AIIB).
> *
> On July 2, the director of the Quantitative Finance Department at China's Institute of Quantitative and Technical Economics stated that China is open to working alone, or with the European Union, to provide the financial and economic means to aid Greece with their financial problems.* And with all the new banking facilities coming online in the Far Eastern sphere of influence, salvation and development for a country like Greece is exactly what entities such as the AIIB were created for.
> 
> _China may help Greece directly through its new financial instruments, director of the Quantitative Finance Department at China's Institute of Quantitative and Technical Economics told Sputnik China.
> 
> "The Greek crisis has an undoubtedly seriously influence on China's trade with Greece and investment into the country. But I think that European countries together with China can help Greece overcome the problems that arose," Fan Mingtao said.
> 
> "I believe there are two ways to give Greece Chinese aid. First, within the framework of the international aid through EU countries. Second, China could aid Greece directly. Especially considering the Silk Road Economic Belt and the Asian Infrastructure Investment Bank. China has this ability," Fan added.
> 
> According to Fang, China has the financial ability to aid Greece if needed, because of its existing Silk Road Economic Belt project and the Asian Infrastructure Investment Bank_. - Sputnik News
> 
> In addition to this sudden announcement in China to use their new facilities to work on a bailout or development solution for the Greek crisis, Russia has already intimated bringing Greece into the BRICS coalition, especially if their people should choose to vote against austerity and create the scenario where they might leave the Euro and the European Union as a result.
> 
> It is very interesting to watch as the Eurozone is being pushed into a corner rather than seeing Greece surrounded on all sides as previous debtors to the IMF and ECB have experienced as far back as 2008 and 2009. During those years, the insolvent nations of Portugal, Spain, Italy, and Ireland were forced into instituting austerity on their economies and peoples, and in some cases EU technocrats were put in positions of power to dominate their governments as un-elected officials.
> 
> Much has changed since the original crisis in 2008 that separated Europe into a union of haves and have nots, and where massively indebted countries like Greece, Spain, and Italy now have alternatives that weren't available to them just seven years ago. And with most of the nations within the European Union having already signed on to the AIIB agreement at the end of March, to attempt to veto the bank's offer to save one of their own would quickly make the European coalition look like aggressors who vindictively want Greece to fail, rather than as a union seeking to achieve a solution to Greece's un-payable debt problem.


As planned.

Reactions: Like Like:
2


----------



## TaiShang

AndrewJin said:


> As planned.



They are not a member yet. The Silk Road Fund might be used because Greece is an important leg of the strategy.

Reactions: Like Like:
1


----------



## somsak

TaiShang said:


> Greece could be first development project for China's AIIB facility - National Finance Examiner | Examiner.com
> 
> Next: China will use gold and gold pricing to force global currency reset
> 
> 
> 
> 
> 
> 
> 
> With Greece now in arrears on their debt obligations to the IMF, and awaiting a historic referendum vote by the Greek people to decide for either austerity or default, one institution may be waiting in the wings to provide a bailout of the Southern European country, and it may be the first development project for the newly implemented Asian Infrastructure Investment Bank (AIIB).
> *
> On July 2, the director of the Quantitative Finance Department at China's Institute of Quantitative and Technical Economics stated that China is open to working alone, or with the European Union, to provide the financial and economic means to aid Greece with their financial problems.* And with all the new banking facilities coming online in the Far Eastern sphere of influence, salvation and development for a country like Greece is exactly what entities such as the AIIB were created for.
> 
> _China may help Greece directly through its new financial instruments, director of the Quantitative Finance Department at China's Institute of Quantitative and Technical Economics told Sputnik China.
> 
> "The Greek crisis has an undoubtedly seriously influence on China's trade with Greece and investment into the country. But I think that European countries together with China can help Greece overcome the problems that arose," Fan Mingtao said.
> 
> "I believe there are two ways to give Greece Chinese aid. First, within the framework of the international aid through EU countries. Second, China could aid Greece directly. Especially considering the Silk Road Economic Belt and the Asian Infrastructure Investment Bank. China has this ability," Fan added.
> 
> According to Fang, China has the financial ability to aid Greece if needed, because of its existing Silk Road Economic Belt project and the Asian Infrastructure Investment Bank_. - Sputnik News
> 
> In addition to this sudden announcement in China to use their new facilities to work on a bailout or development solution for the Greek crisis, Russia has already intimated bringing Greece into the BRICS coalition, especially if their people should choose to vote against austerity and create the scenario where they might leave the Euro and the European Union as a result.
> 
> It is very interesting to watch as the Eurozone is being pushed into a corner rather than seeing Greece surrounded on all sides as previous debtors to the IMF and ECB have experienced as far back as 2008 and 2009. During those years, the insolvent nations of Portugal, Spain, Italy, and Ireland were forced into instituting austerity on their economies and peoples, and in some cases EU technocrats were put in positions of power to dominate their governments as un-elected officials.
> 
> Much has changed since the original crisis in 2008 that separated Europe into a union of haves and have nots, and where massively indebted countries like Greece, Spain, and Italy now have alternatives that weren't available to them just seven years ago. And with most of the nations within the European Union having already signed on to the AIIB agreement at the end of March, to attempt to veto the bank's offer to save one of their own would quickly make the European coalition look like aggressors who vindictively want Greece to fail, rather than as a union seeking to achieve a solution to Greece's un-payable debt problem.


 Im for gold standard.

Reactions: Like Like:
2


----------



## TaiShang

somsak said:


> Im for gold standard.



Looks like that's slowly coming.

Reactions: Like Like:
2


----------



## TaiShang

*AIIB Key Moves*

China's economic and social development has been improved massively after the government implemented the policy of reform and opening up in 1978. Since then, China has benefited from the support of multilateral banks such as the World Bank and the Asian Development Bank as well as other countries for its development.





*Representatives from 57 member countries attend a signing ceremony of articles of agreement of the AIIB*




*Representatives from 57 member countries attend a signing ceremony of articles of agreement of the AIIB*




*Representatives from 57 member countries attend a signing ceremony of articles of agreement of the AIIB*




*Representatives from 57 member countries attend a signing ceremony of articles of agreement of the AIIB*




*Representatives from 57 member countries attend a signing ceremony of articles of agreement of the AIIB*




*Representatives from 57 member countries attend a signing ceremony of articles of agreement of the AIIB*
"As China grows stronger, we are willing to make our due contribution to world development... We will continue to support existing multilateral banks, and by proposing the AIIB, we also hope to promote current institutions to better meet the requirement of their member countries and global economic system changes," Chinese President Xi Jinping said to representatives during a meeting to sign the Articles of Agreement of the AIIB on Monday.

Reactions: Like Like:
1


----------



## TaiShang

*AIIB: Financial pillar for Belt and Road*

*MOVING TO AGREE*
The latest phase of the AIIB process is another key step moving forward.

Monday's signing ceremony of the Articles of Agreement of the AIIB in Beijing has outlined the framework and management structure for the institution. Following Australia, 50 of 57 AIIB prospective founding countries signed the document.





*AIIB underway*
Being the largest shareholder in the AIIB does not mean China will seek veto power over major issues. Instead, China will closely cooperate with other members to balance all parties' interests.

China's stake and voting share in the AIIB are a "natural outcome" of current rules and may be diluted as more members join this endeavor. China is not deliberately seeking veto power, China's Vice Finance Minister Shi Yaobin told Xinhua News Agency.





*AIIB: Major capital contributions*
*TOWARDS WORLD SUPPORT*
Vice President of the Swiss Confederation and Head of Federal Department of Economic Affairs Johann Schneider-Ammann; Deputy Prime Minister and Minister of Finance of New Zealand Bill English; and Deputy Prime Minister and Finance Minister of the Republic of Korea Choi Kyung-hwan spoke to Chinese President Xi Jinping after the signing ceremony on behalf of all representatives.





*Representatives from 57 member countries attend a signing ceremony of articles of agreement of the AIIB*
They spoke highly of the AIIB as timely and important, adding that along with the China-proposed Belt and Road Initiative, the bank would help address regional infrastructure bottlenecks and capital constraints, and enhance regional trade connections and interconnectivity, according to Xinhua.





*AIIB: Financial pillar for Belt and Road*
Whether the US and Japan will join the new-born bank remains to be seen.

Last April, US President Barack Obama said the country will not join the AIIB at present but America will be looking forward to collaborating with the new development bank, "Just like we do with the Asia Development Bank and with the World Bank."

However, Japan's attitude toward the AIIB is not as positive. Japanese Finance Minister Taro Aso said that “Japan has to maintain caution toward the AIIB” in last March before the application deadline for founding membership, according to Kyodo News.





*Prospective founding memvers of the AIIB*
The Belt and Silk Road Initiative and the AIIB, both proposed by Xi, are connected closely with one another.

The Belt and Silk Road Initiative will mainly spend effort on promoting regional economic development and strengthening connectivity among countries bordering China's west. The AIIB will support infrastructure along the Belt, while also cooperating with existing global financial institutions.

According to an analysis from the People's Daily newspaper, the Belt and the AIIB complement each other. The Belt needs financial support from the AIIB. The Belt will thereby create reciprocal opportunities for the AIIB's development.

Reactions: Like Like:
2


----------



## TaiShang

*China nominates Chinese candidate for AIIB*
July 06, 2015

BEIJING, July 6 -- China has formally nominated Jin Liqun, former vice finance minister of China, as the Chinese candidate for president of the Asian Infrastructure Investment Bank, the country's Ministry of Finance announced on Monday.

Reactions: Like Like:
2


----------



## ahojunk

*AIIB's president candidate, scholarly economist*
2015-07-07 16:28 | Xinhua | _Editor: Gu Liping_





_File photo of Jin Liqun._

China has formally nominated Jin Liqun, former vice finance minister of China, as its candidate for president of the Asian Infrastructure Investment Bank (AIIB), the Ministry of Finance announced Monday.

Jin, secretary-general of AIIB interim secretariat and former vice president of the Asian Development Bank (ADB), has spent the past few months shuttling between countries to convince them to join the bank.

But besides his financial and banking knowledge, Jin has impressed his colleagues with his love of literature, philosophy and English.

When he studied in Nanjing High School of Jiangyin, east China's Jiangsu Province, from 1965 to 1968, Jin indulged in the third edition of Webster's New World Dictionary, a rare tome in schools at that time. "It was precious to me, while seldom used by my classmates," he recalled.

Now, a new edition of the dictionary has pride of place on his desk.

Also in senior high school, he read publications released by the imprint Zephyr Books. "The study was intense, but I took the time to read English books in the library," Jin Said.

The Cultural Revolution disrupted education and many young people in the city went to the countryside for "reeducation". Many attempted to continue with their academic pursuits while working the land, but only a few persisted.

Jin was one of them. He lived and worked in Changshu, Jiangsu Province, from 1968 to 1978, and his closest friends during that period were some of the works of Shakespeare given to him by his high school teacher.

Despite full-time work in the fields, Jin's hunger for knowledge never tired.

He recalled this time of his life in a China Daily article: "Sometimes those curious, honest villagers would watch me. It seemed that they appreciated my hard effort."

After 10 years of a hard life in the countryside, Jin became one of the few high school graduates to bypass undergraduate studies, and was enrolled directly on to a postgraduate program majoring in British and American literature at Beijing Foreign Studies University (BFSU) in 1978.

His classmate Liu Runqing, now a professor at BFSU, recalls that Jin was the youngest and liveliest students in class.

"I have been engaged in economics and finance," Jin said. "But a huge part of my books are Chinese classical literature and philosophy."

After graduating from BFSU, Jin worked for the Ministry of Finance before reading economics at George Washington University and Boston University.

During his time in the U.S., he was impressed by the nation's passion for reading.

"Almost every passenger on the way was reading a book or newspaper," Jin recalled, noting that a country whose people love reading would make continuous progress both in soft and hard power.

"Reading needs us to arrange our time reasonably," Jin said.

The "scholar official" has published several books. He led the translation work of "The House of Morgan" and wrote "Economic Development: Theories and Practices" in collaboration with Nicholas Stern, then chief economist of the European Bank.

*FINANCIAL DIPLOMAT, SHINING RESUME*

Skimming through Jin Liqun's resume, it can be seen that he has been close to the opening up of China's financial affairs.

He was once appointed deputy director general of the external finance department at the Ministry of Finance (MOF); the alternative executive director for China at the World Bank; director general of the World Bank department of MOF; and assistant minister progressing to vice minister of MOF.

As one of the first government officials to be involved in international financial affairs since the reform and opening-up of China in 1978, Jin Liqun has actively participated in multilateral cooperation on the global stage.

Jin was responsible for the release of Chinese sovereign bonds, which cost 1 billion U.S. dollars (about 6.2 billion yuan), in 1998. It showcased his persuasive ability, as it was the first sovereign bond issuance in Asia that relied on its own credibility following the Asian financial crisis in 1997.

The MOF vice minister stood out and became the first ADB Chinese vice president in August 2003. He was in charge of the South Asian and Mekong Delta Sector, and granting loans to private departments.

Greater Mekong Sub-region (GMS) Economic Cooperation saw great progress during his term of office. He believed that sub-regional cooperation was an integral part of regional and international cooperation. Building up tighter sub-regional ties would be a determining factor for more comprehensive international cooperation due to globalization.

He became chairman of the board of supervisors of China Investment Corp. afterward, working with Lou Jiwei, the current MOF Minister. The two played a significant role in running the Sovereign Wealth Fund of the world's second largest economy with the largest foreign exchange reserve.

He then became chairman of China International Capital Corp. Ltd. (CICC) in 2013, entering investment banking and securities.

From governmental departments to international financial institutes, and from sovereign bonds to the private sector, Jin has experience in almost every essential role in finance.

He is now facing a new challenge and opportunity. President Xi Jinping proposed the Asian Infrastructure Investment Bank (AIIB) during his visit in Southeast Asia in October 2013. One year later, financial ministers and representatives of the 21 prospective founding members signed the Memorandum of Understanding (MoU) on Establishing the AIIB. China, India, Singapore, Qatar and Thailand were among them.

In the meantime, Jin started working for AIIB as its the interim secretariat secretary-general. Just two days before the signing of MOU, it was confirmed that he had left CICC.

The AIIB now has 57 prospective founding members, across five continents.

Jin and his colleagues made a huge effort to explain the work of AIIB to countries outside Asia. Jin was one of the great contributors in the expansion of the membership.

The AIIB aims to finance infrastructure in Asia. This is one of Jin's areas of expertise. During his five years at ADB, his worked to alleviate poverty through economic and social development. He helped boost infrastructure building in South Asia and the Mekong Delta area during his term of office.

This may be, in part, due to the passion Jin has for rural areas. He said that he "never stopped thinking about the farmers" after the Cultural Revolution.

No matter what role he held if a policy was beneficial to rural areas or villagers Jin would take part in promoting and executing it.

When he was working at ADB, every time a road was built in a remote village, or rural homes got electricity, he was filled with joy, he wrote in a China Daily article.

It is this interest in the grassroots that motivated Jin to care about developing countries.

There were two ways that developing countries could participate in economic globalization: To make their economy fit in the needs of globalization through structural adjustment and system building; or let the system reflect the interests and needs of developing countries through active participation in the setting up of international norms to safeguard development opportunities, he said during a high-level meeting of developing countries when he was MOF vice minister in 1999.

"I hope developing countries will no longer be the followers, but the masters of globalization in the 21st century." (Tsui See Au Yeung also contributed to the story)

Reactions: Like Like:
4


----------



## Echo_419

TaiShang said:


> *AIIB: Financial pillar for Belt and Road*
> 
> *MOVING TO AGREE*
> The latest phase of the AIIB process is another key step moving forward.
> 
> Monday's signing ceremony of the Articles of Agreement of the AIIB in Beijing has outlined the framework and management structure for the institution. Following Australia, 50 of 57 AIIB prospective founding countries signed the document.
> 
> 
> 
> 
> 
> 
> *AIIB underway*
> Being the largest shareholder in the AIIB does not mean China will seek veto power over major issues. Instead, China will closely cooperate with other members to balance all parties' interests.
> 
> China's stake and voting share in the AIIB are a "natural outcome" of current rules and may be diluted as more members join this endeavor. China is not deliberately seeking veto power, China's Vice Finance Minister Shi Yaobin told Xinhua News Agency.
> 
> 
> 
> 
> 
> *AIIB: Major capital contributions*
> *TOWARDS WORLD SUPPORT*
> Vice President of the Swiss Confederation and Head of Federal Department of Economic Affairs Johann Schneider-Ammann; Deputy Prime Minister and Minister of Finance of New Zealand Bill English; and Deputy Prime Minister and Finance Minister of the Republic of Korea Choi Kyung-hwan spoke to Chinese President Xi Jinping after the signing ceremony on behalf of all representatives.
> 
> 
> 
> 
> 
> *Representatives from 57 member countries attend a signing ceremony of articles of agreement of the AIIB*
> They spoke highly of the AIIB as timely and important, adding that along with the China-proposed Belt and Road Initiative, the bank would help address regional infrastructure bottlenecks and capital constraints, and enhance regional trade connections and interconnectivity, according to Xinhua.
> 
> 
> 
> 
> 
> *AIIB: Financial pillar for Belt and Road*
> Whether the US and Japan will join the new-born bank remains to be seen.
> 
> Last April, US President Barack Obama said the country will not join the AIIB at present but America will be looking forward to collaborating with the new development bank, "Just like we do with the Asia Development Bank and with the World Bank."
> 
> However, Japan's attitude toward the AIIB is not as positive. Japanese Finance Minister Taro Aso said that “Japan has to maintain caution toward the AIIB” in last March before the application deadline for founding membership, according to Kyodo News.
> 
> 
> 
> 
> 
> *Prospective founding memvers of the AIIB*
> The Belt and Silk Road Initiative and the AIIB, both proposed by Xi, are connected closely with one another.
> 
> The Belt and Silk Road Initiative will mainly spend effort on promoting regional economic development and strengthening connectivity among countries bordering China's west. The AIIB will support infrastructure along the Belt, while also cooperating with existing global financial institutions.
> 
> According to an analysis from the People's Daily newspaper, the Belt and the AIIB complement each other. The Belt needs financial support from the AIIB. The Belt will thereby create reciprocal opportunities for the AIIB's development.



Is the share mentioned above the final one?


----------



## IR-TR

When will the first loan be made?


----------



## TaiShang

Echo_419 said:


> Is the share mentioned above the final one?



The final one in the sense that it was agreed upon by all parties involved. But, as I read it, as the landscape changes in the future with additions or changes of economies of scale, the distribution might be readjusted.



IR-TR said:


> When will the first loan be made?



I think the first duty in in line is for the member states to pass the agreement in their national bodies. 

The Articles of Agreement will remain open until December 31, 2015. 

"The AOA will enter into force when at least 10 signatories, with initial subscriptions in Schedule A that total not less than 50 % of total subscriptions, have deposited their instruments of ratification, acceptance or approval.

It is expected that the AOA will enter into force by the end of the calendar year 2015.
Once the AOA enters into force, the inaugural meeting of the Board of Governors will be convened.
At its inaugural meeting, the Board of Governors will, among other matters: elect the President; elect the Board of Directors; determine the date that the AIIB will commence operations; and make other arrangements as necessary to commence AIIB operations."

Reactions: Like Like:
2


----------



## Reashot Xigwin

*China unlikely to wield veto power in new Asian bank, Indonesian envoy says*
Jakarta's ambassador says Beijing wary of brandishing de facto power to block decisions

PUBLISHED : Tuesday, 23 June, 2015, 1:24am
UPDATED : Tuesday, 23 June, 2015, 8:18am
Teddy Ng teddy.ng@scmp.com





 
Indonesian ambassador Soegeng Rahardjo says 75 per cent of the AIIB's voting rights will go to Asian members. Photo: Simon Song
China will hold the biggest share of voting rights in the Asian Infrastructure Investment Bank, or AIIB, but Beijing will be cautious before exercising any power of veto, according to Indonesia's envoy to Beijing.

Soegeng Rahardjo said the newly formed international development bank had been well set up to ensure voting rights were used positively, and he believed the power of veto was unlikely to be used.

"We should learn from the successes and failures of the International Monetary Fund and the World Bank. This is a good teacher for the AIIB to move forward," he said.

"What is more important, I think, is how we use the voting rights … rather than talking about how to divide the voting rights.

"Many countries will react negatively [if the power of veto is exercised easily]."

Indonesia would get about 3.1 per cent of the voting rights and Asian members 75 per cent in total based on the size of their economy and their contribution to the bank, Rahardjo said.

A quarter of the rights would go to members from outside Asia, and China would have de facto veto power because it would hold the biggest block of votes, Rahardjo added, without giving a precise figure.

"Other countries will have a significant say in the operation of the bank," Rahardjo said. "I don't think there will be the situation of the majority dominating the minority, or minority domination of the majority."

Rahardjo's remarks came after the AIIB's 57 founding members met in Singapore last month to discuss goals for running the bank.

The lender's founding charter is due to be signed in Beijing on Monday.

The AIIB was established under China's "One Belt, One Road" initiative, which is aimed at bolstering trade and infrastructure links in Asia and beyond.

Beijing has pledged to streamline the bank's governance and avoid what it claims are the inefficient practices of lenders dominated by the West.

The United States, in particular, has publicly expressed concern over how the AIIB will be run and how open and transparent its decisions will be.

Rahardjo said the bank should be governed not only by market principles and profit considerations, but also by the potential impact of the proposed projects on local residents and whether local governments provided political guarantees for the infrastructure.

Local construction companies should be allowed to take part in the projects through open bidding, and the schemes should benefit local communities, he added.

Indonesia plans to upgrade its sea ports, airports, highways and railways in the coming years, and is ready to submit proposals to the AIIB once it starts operations. "I think all infrastructure is related to connectivity. It is important for the AIIB to participate in our infrastructure projects," he said.

Indonesian President Joko Widodo has suggested that a regional office of the bank could be set up in Jakarta, serving the Association of Southeast Asian Nations.

"It is logical that the AIIB has a representative office in Jakarta. This is the role that Indonesia would like to play, especially in subregional financing arrangements," Rahardjo said.

This article appeared in the South China Morning Post print edition as China unlikely to wield AIIB veto: Indonesian envoy 

China unlikely to wield veto power in new Asian bank, Indonesian envoy says | South China Morning Post

Reactions: Like Like:
1


----------



## TaiShang

Looks like the AIIB has just found itself a peer.

*BRICS Bank to Approve First Infrastructure Projects in April 2016*
09.07.2015

MOSCOW (Sputnik) — The BRICS New Development Bank (NDB) will approve its first infrastructure projects in April 2016, the head of the bank told Sputnik on Thursday.

In July 2014, BRICS members — Brazil, Russia, India, China and South Africa — signed an agreement to create the NDB, a mutual development bank set to finance infrastructure and sustainable development projects in BRICS and other developing countries.

"We are looking forward to approving our first projects in April," President designate of the BRICS New Development Bank Kundapur Vaman Kamath said.

"We have talked to the BRICS governments to put together projects which we can look at in the next six months, so that we have them ready for approval in April next year," he said, adding that all the projects will be on the infrastructure area as the bank's initial idea supposes.

BRICS member states regard the NDB as an alternative to existing global financial institutions, such as the International Monetary Fund and the World Bank.

At the moment, the seventh BRICS summit is being held in the Russian city of Ufa on July 8-10, with participants discussing the issues of mutual cooperation, including on the NDB.



Read more: BRICS Bank to Approve First Infrastructure Projects in April 2016 / Sputnik International

Reactions: Like Like:
4


----------



## Echo_419

TaiShang said:


> Looks like the AIIB has just found itself a peer.
> 
> *BRICS Bank to Approve First Infrastructure Projects in April 2016*
> 09.07.2015
> 
> MOSCOW (Sputnik) — The BRICS New Development Bank (NDB) will approve its first infrastructure projects in April 2016, the head of the bank told Sputnik on Thursday.
> 
> In July 2014, BRICS members — Brazil, Russia, India, China and South Africa — signed an agreement to create the NDB, a mutual development bank set to finance infrastructure and sustainable development projects in BRICS and other developing countries.
> 
> "We are looking forward to approving our first projects in April," President designate of the BRICS New Development Bank Kundapur Vaman Kamath said.
> 
> "We have talked to the BRICS governments to put together projects which we can look at in the next six months, so that we have them ready for approval in April next year," he said, adding that all the projects will be on the infrastructure area as the bank's initial idea supposes.
> 
> BRICS member states regard the NDB as an alternative to existing global financial institutions, such as the International Monetary Fund and the World Bank.
> 
> At the moment, the seventh BRICS summit is being held in the Russian city of Ufa on July 8-10, with participants discussing the issues of mutual cooperation, including on the NDB.
> 
> 
> 
> Read more: BRICS Bank to Approve First Infrastructure Projects in April 2016 / Sputnik International



Brilliant news we need a lot of funding to rebuild pur nation 


TaiShang said:


> The final one in the sense that it was agreed upon by all parties involved. But, as I read it, as the landscape changes in the future with additions or changes of economies of scale, the distribution might be readjusted.
> 
> 
> 
> I think the first duty in in line is for the member states to pass the agreement in their national bodies.
> 
> The Articles of Agreement will remain open until December 31, 2015.
> 
> "The AOA will enter into force when at least 10 signatories, with initial subscriptions in Schedule A that total not less than 50 % of total subscriptions, have deposited their instruments of ratification, acceptance or approval.
> 
> It is expected that the AOA will enter into force by the end of the calendar year 2015.
> Once the AOA enters into force, the inaugural meeting of the Board of Governors will be convened.
> At its inaugural meeting, the Board of Governors will, among other matters: elect the President; elect the Board of Directors; determine the date that the AIIB will commence operations; and make other arrangements as necessary to commence AIIB operations."



The current ratio will stay for a long time unless Japan joins


----------



## cirr

Echo_419 said:


> Brilliant news we need a lot of funding to rebuild pur nation
> 
> 
> The current ratio will stay for a long time unless Japan joins



Japan may be allowed to join in，say，5 years，by which time China's nominal GDP could be 4 times Japan’s and India's will be on par with Japan's。Japan's joining won't lead to a big dilution of holdings in the Bank by the other major members。

I for one couldn't care less if Japan joins or not。

Reactions: Like Like:
5


----------



## Echo_419

cirr said:


> Japan may be allowed to join in，say，5 years，by which time China's nominal GDP could be 4 times Japan’s and India's will be on par with Japan's。Japan's joining won't lead to a big dilution of holdings in the Bank by the other major members。
> 
> I for one couldn't care less if Japan joins or not。




Interesting


----------



## ahojunk

*Canada Will Join China-Led AIIB If Its Companies Can Benefit, Says Finance Minister*
By Kalyan Kumar on July 13 2015 5:14 PM

Canada's decision on joining the Chinese-led Asian Infrastructure Investment Bank will be taken on merit and it will be judged by the opportunity and scope for Canadian companies in competing for projects coming up with the bank’s funding. This was stated by Canadian Finance Minister Joe Oliver. It may be recalled that Canada had said in April that it is considering the proposal to join the AIIB, despite reservations by the U.S. and Japan.

However, Canada was conspicuous by its absence among the 50 nations who signed the articles of agreement in early July, for conceiving the bank. The signing ceremony in Beijing was attended by the representatives from 50 countries, while seven more nations, including Philippines and Thailand are negotiating the matter.

*Exploring Opportunities*

The Canadian minister said, “Our government is monitoring the developments to determine, among other things, the opportunity for Canadian companies to compete for infrastructure projects.” Speaking at the Canada-China financial conference in Toronto, Oliver noted that any decision will be based on Canada's national interests. He said more than a trillion dollars, or several trillions of AIIB project investments would come up. So, the share of Canadian companies will not be too large to be meaningful. Calling for a level playing field, Oliver said, “We want to make sure that the rules provide a realistic and fair opportunity for our companies to compete. We're not asking for any guarantees.”

*Seeking Global Clout*

China’s Asian Infrastructure Investment Bank has already found support from 50 nations. In AIIB, China, India and Russia are the biggest shareholders, which began with $50 billion as capital investment. It is projected to grow to $100 billion soon. Canada’s stand assumes significance as the U.S and Japan wield much of the power in the World Bank and Asian Development Bank and they are not investing in AIIB. But Canada is not against AIIB.

For the U.S, the main objection to AIIB is the fear that it will undercut the existing institutions such as World Bank and might lead to lax lending standards. But much to the chagrin of the U.S, bulk of the West and Southeast Asia ignored the U.S. objections and signed up, which include Australia, Britain, Germany and South Korea.

China is hoping that AIIB will help it to leverage its weight on the international stage, commensurate with its economic importance and is hoping that the new bank will grow to the stature of the Asian Development Bank and World Bank. The AIIB envisages offering loans to member countries for building ports, roads and cities throughout Asia and China's engineering firms also expect taking up such work on a priority basis for expanding their global expertise. China's minister of finance, Lou Jiwei described the AIIB as a "win-win for Asia" and claimed that the bank would start operating toward the end of 2015. Among the biggest shareholders in the bank, India is at second place, with Russia and Germany at third and fourth positions respectively.

Reactions: Like Like:
4


----------



## TaiShang

*AIIB: The first international financial institution of the 21st century*
July 20, 2015

In 1945, a group of 43 nations led by the United States, then the world’s dominant economic power, created the International Bank for Reconstruction and Development (now part of the World Bank Group) and the International Monetary Fund – the “Bretton Woods institutions” – to promote reconstruction after World War II.

There were a number of goals. First, given the experience of the interwar period, there was a perceived need to coordinate exchange rate policy and both control and cushion the impact of cross-border capital flows. Second, there was a desire to provide technical assistance to governments lacking expertise in promoting growth and development. And finally, in places where domestic financing, private or public, was insufficient, there was a need for the resources for public infrastructure projects.

Today, infrastructure funding remains insufficient, and nations still experience sudden stops of private funding that official lending can temporarily cushion. But the global economy has evolved much faster than the operations of either the Bretton Woods institutions or some of their regional siblings like the Asian Development Bank (ADB), the African Development Bank (AfDB), the Inter-American Development Bank (IDB), and the European Bank for Reconstruction and Development (EBRD).

What happens when official international financial institutions (IFIs) fail to respond to a changing environment? The same thing that happens to firms that stop innovating. New, more competitive institutions (firms) arise that compel them to change or – like dinosaurs – become extinct.

We may be witnessing this process of creative destruction right now. Last month, a group of 57 founding nations led by China signed the articles of agreement to establish the Asian Infrastructure Investment Bank (AIIB) with an initial subscribed capital of $100 billion. While most of the G20 nations, including the big European states, Australia, and South Korea, are among the founding members, the United States, Japan, and Canada are noticeably not.

No one disputes the need for more official infrastructure funding: the World Bank projects infrastructure spending needs over the next 20 years in east and south Asia at about $500 billion per year(see figure 0.4 here). The ADB’s estimate is even higher, putting Asian infrastructure investment needs at $8 trillion in the current decade (2010 to 2020). Yet, all types of loans on the balance sheets of the ADB and the World Bank (which includes lending outside of Asia) together total only a bit over $200 billion (see here and here).

What we find the most interesting is that the AIIB founders didn’t ask member countries to approve an expansion of either the World Bank or the ADB. Instead, they opted for a new organization altogether.

Why? The problem is institutional legitimacy arising from issues of power and governance. Frustrated with the failure of the IMF and World Bank to modernize, the AIIB’s 57 founders moved to start from scratch in an attempt to do better. Critical changes include the mechanism for distributing capital shares and voting rights; the role of the organization’s board; the focus on a single critical task; and the imposition from the start of oversight mechanisms to ensure compliance with rules that limit political interference and corruption.

In effect, the AIIB, which could begin operations this year, aims to establish principles for best practice for IFI’s in the 21st century. If it meets that high standard, the traditional IFIs will either have to change or, like many firms that fail to adapt, their importance will diminish over time.

The most glaring problem with the 20th century IFI’s – the BIS, IMF, World Bank and the regional development banks – is representation. Compare, for example, the relationship between the share of IMF quotas allocated to a country (a rough proxy for that country’s voting power) and its share of global GDP. The bars in the following chart show the gap between these two measures. For example, in 2014, China’s IMF quota was nearly 4% of the total, while it accounted for closer to 16% of global GDP (measured at PPP), a gap of 12 percentage points. Other large emerging economies also show sizable negative gaps – some of which have widened significantly since 1990. By contrast, Japan, the United States and the countries of Europe show growing _overrepresentation._ This all reflects the failure of the United States and Europe to implement a reallocation of quotas and voting rights commensurate with economic growth.

Gap between IMF quota share and global GDP share (measured in percentage points)

Note: GDP is measured as current international U.S. dollars (adjusted for purchasing power parity). Data for 2014 show the gap between 2014 quota shares and 2013 GDP shares. Sources: IMF and World Bank.

" id="yui_3_17_2_1_1437435491706_176" style="line-height: 0; text-align: center; position: relative; overflow: hidden; padding-bottom: 430.875px;">




Note: GDP is measured as current international U.S. dollars (adjusted for purchasing power parity). Data for 2014 show the gap between 2014 quota shares and 2013 GDP shares. Sources: IMF and World Bank.



You might wonder if the chart overstates the misrepresentation in the Bretton Woods organizations. If anything, the opposite is true. Since 1945, European members have always selected the IMF’s leader (known as the “Managing Director”), the United States has always selected both the leader of the World Bank (known as the “President”) and the deputy at the IMF, while Japan has always designated the head of the ADB. Other elements of IFI governance are skewed similarly. For example, despite an adjustment in recent years, advanced economies in Europe remain overrepresented on the IMF Board. (The current quota for the EU as a whole is roughly 30% of the total, twice its share of global GDP.) And, while most countries elect directors in a competition for shared slots on the Board, the United States, Japan, Germany, France, and Britain each appoint their own Board members.

Perhaps most important are the veto rights. In the case of the IMF, both the United States and (collectively) the large European members have sufficient voting shares to veto constitutional changes. As a result, the U.S. Congress’s continued failure to approve a 2010 IMF reform is the only remaining roadblock to a modest reallocation of voting shares and a shift to an all-elected IMF Board (see here for the policy options facing Congress). Finally, none of these organizations have agreed on or created a formula for future changes that would automatically reallocate voting shares as global GDP shares evolve, without triggering repeated constitutional debates.

Instead, the Bretton Woods institutions are becoming aging political fiefdoms, ruled by governments whose economies are diminishing in global importance. No wonder China – which remains the largest contributor to global economic growth – has led the charge for reform by doing an end-run around the existing IFIs.

Is the AIIB likely to do better? There are reasons to be hopeful. First, three-fourths of the voting shares will be allocated to Asia-Pacific members, boosting the representation of emerging and developing economies. Second, the Bank’s broad membership and its constitutional pledges bode well for implementing high standards for transparency. To highlight the founders’ desire for good governance, and notwithstanding U.S. absence from the organization, the AIIB has appointed a top U.S. and ex-World Bank lawyer as the Chief Counsel for the Secretariat that is preparing for the start of AIIB operations. Third, while China initially will have sufficient votes to veto constitutional changes, Chinese authorities argue that its voting rights will be diluted as others join. Fourth, unlike the Bretton Woods institutions, the AIIB’s Board will be nonresident. In an age when Board members can travel easily, a nonresident Board is less costly and avoids the sort of intrusion into daily management that comes from having an executive board in the building (as there is at the IMF). Finally, the AIIB’s focus on infrastructure lending and its stated willingness to cooperate with existing IFIs should allow more efficient specialization. Not every IFI needs a large staff (the World Bank has staff of more than 12,000).

Of course, the proof will be in the pudding. When the AIIB begins operations, observers will be watching closely whether these ideals are realized. Will AIIB loans be free of political interference and bid-rigging? Will it avoid favoring providers from nations like China that have large quotas and voting rights? Will AIIB leadership and employment be based solely on merit, rather than on nationality? Will it be able and willing to recruit top-flight staff? Will the AIIB cooperate where possible with the World Bank and the ADB to avoid duplication of effort or outright conflict? Will the rules of the game promote transparency and continued self-reform? And, as the relative economic importance of the countries changes, will voting rights adjust?

As economists, we like competition. If the AIIB meets the high standards its leaders espouse, it will heighten the pressure on the existing IFIs’ political masters to change with the times. In addition, in light of numerous potential areas of conflict between China and the United States (think cyberspace and the South China Sea for starters), wouldn’t we all benefit from having these two leading economies and governments instead focus their competitive energies on improving global infrastructure finance?

From this perspective, we see a powerful argument for the United States to do two things. First, the U.S. Congress should belatedly approve the IMF’s 2010 Quota and Governance Reforms to signal its support for continued global economic and financial cooperation in coming decades. And second, after failing to stop the AIIB, and refusing to participate as a founding member, the United States should join the institution as soon as it can, participating actively in holding it to the highest 21st century standards.

Reactions: Like Like:
5


----------



## LowPost

* Interview: AIIB agreement meets high standards, implementation to be " real test": expert*

WASHINGTON, July 22 (Xinhua) -- The Agreement of the Asian Infrastructure Investment Bank (AIIB) meets international high standards, but faces a key test of implementation as the China-initiated institution aims to start operation at the end of the year, a U.S. expert said.


"AIIB's Articles of Agreement is very similar to that of the World Bank," David Dollar, senior fellow with the Brookings Institution and former official of the World Bank and the U.S. Treasury Department, told Xinhua in an interview, referring to the 60-article agreement that outlined the governance structure and policy-making mechanism of the new multilateral institution.

"I think it's quite impressive that China pulled together this initiative and got nearly 60 countries to sign up, putting together these professional and international-standard articles of agreement," Dollar said, who also works as an unpaid consultant to the AIIB.

According to the articles, the bank will have an authorized capital of 100 billion U.S. dollars, with 29.78 billion dollars provided by China, as the bank's largest shareholder holding a 30.34 percent stake and 26.06 percent of voting shares.

As the bank goes from theory to reality, "the real test is going to be implementation," Dollar said, noting that implementation is often very slow in the World Bank and "the clients complain about this."

"So I know the challenge for Mr. Jin Liqun is... can this bank be more efficient, can it operate quickly and still meet high environmental standards?" Dollar said.

China has formally nominated Jin, secretary-general of the interim multilateral secretariat for establishing the AIIB, as candidate for the first president of the bank.

Jin has spent the past few months shuttling between countries to convince them to join the bank and has earned a reputation for his flexible approach.

"I had opportunities to interact with him for a long time, so I have very high regard for his abilities," Dollar said, noting that Jin had represented China in the World Bank while serving as vice president of the Asian Development Bank, a senior official of China's sovereign fund and the country's vice finance minister.

"He has lots of experience with development banks. So I think he is the excellent choice to head the bank," Dollar said.

The bank is expected to start operation at the end of the year under two preconditions: at least 10 prospective members sign the agreement and the initial subscribed capital is no less than 50 percent of the authorized capital.

Dollar believed money will not become a problem for the bank's operation as it's well capitalized.

Interview: AIIB agreement meets high standards, implementation to be " real test": expert - Xinhua | English.news.cn

Reactions: Like Like:
4


----------



## TaiShang

rugering said:


> David Dollar, senior fellow with the Brookings Institution and former official of the World Bank and the U.S. Treasury Department



The guy has a lucky name. I wish my name had been X Renmin Bi. LOL.

Reactions: Like Like:
4


----------



## ahojunk

*TPP Versus AIIB: Obama’s Uphill Battle*
By Wall Street Daily | Jul 23, 2015 11:44AM GMT

It was a party that the United States urged 57 countries not to attend… But they did.

These countries included close European allies of the United Sates, such as Germany and the United Kingdom, and Asian comrades like Australia and South Korea. Not to mention members of the Middle East, including Israel and the Saudis. The party in question was held in Beijing for the late-June signing of the Articles of Agreement, putting in place the framework for the China-led Asian Infrastructure Investment Bank (AIIB).

Instead of joining the AIIB, the Obama Administration offered up another option to 11 countries in Asia: the Trans-Pacific Partnership (TPP). This “next generation” trade agreement has one glaring omission, though: China – the region’s most important trading nation.

Of course, that’s only fair since China didn’t invite the United States to its version of the TPP – the Regional Comprehensive Economic Partnership (RCEP). This trade initiative links 16 nations in Asia. But that transgression isn’t the most important part of this tiff.

The real sticking point is that the TPP isn’t popular among our Asian friends. Allies, such as Australia and Japan, say the TPP intrudes too much into their internal affairs. That’s a valid point. The TPP requires more than tariff reductions. It gets into other areas, including intellectual property rights, data protection rules, corporate governance, labor and environmental standards, and financial regulations.

The perception in many parts of Asia is that the TPP will result in net costs to the region’s economies, while only benefiting the United States. A high hurdle indeed for a “partnership.”

*China’s Approach*

This is when the differences between the Chinese and American approaches to global economics and geopolitics become very stark.

China doesn’t bother with other countries’ internal processes. Its leadership realizes that, in today’s world, there’s one main obstacle to increase trade between nations: poor transportation, power, water, and communications infrastructure, which fouls up global supply chains.

This is the same conclusion reached in a 2013 study by the World Economic Forum. In fact, the study found that removal of these supply chain barriers could increase the world’s GDP by up to six times!

Somehow the Obama Administration missed the memo on that. But the Chinese did not.

China has the $50-billion AIIB, the $40-billion Silk Road Fund, and the $100-billion New Development Bank. The latter was founded in cooperation with India, Russia, Brazil, and South Africa.

And there are the individual Chinese development banks, too – the China Development Bank, which has $100 billion in capital, and the Export Import Bank of China. These banks already give more loans to Asia and Latin America than U.S.-dominated institutions like the World Bank, the Asian Development Bank, and the Inter-American Development Bank.

Of course, this isn't completely altruistic. China is hoping that a good chunk of the infrastructure work will be done by Chinese companies, as the country faces a serious excess capacity problem in heavy equipment manufacturing and construction.

*21st Century “Marshall Plan”*

Still, funds dedicated to infrastructure are sorely needed in the developing world. According to some estimates, the U.S.-led development banks fall short by $175 billion annually in aid for the poverty-stricken.

And the infrastructure needs are much more massive. The Asian Development Bank itself estimates that Asia faces an infrastructure funding shortfall of about $8 trillion for 2010 to 2020. McKinsey & Co. estimates the global infrastructure investment requirement through 2030 to be $57 billion and $67 billion.

And that’s exactly where China is focusing the AIIB and its other efforts – on infrastructure.

Meanwhile, the global perception is that the Obama Administration is more concerned on imposing its vision of what’s “right” on other nations, instead of actually getting the help where it’s needed. For example, the Administration believes any infrastructure project should pass the strictest environmental standards before proceeding.

Tell that to the people without power and roads. That type of environmental permitting may take a decade or more. Just ask any U.S. company involved in an infrastructure project.

And with the involvement of Europe and developed Asian countries in the AIIB, it’s likely that environmental standards won’t be ignored.

President Obama seems to be left at the station after the train has left, and the United States’ global influence is sure to diminish.

Meanwhile, China is proceeding full steam ahead with its version of a 21st century Marshall Plan, making friends around the world as it goes.

And the chase continues,

_by Tim Maverick_

Reactions: Like Like:
7


----------



## TaiShang

ahojunk said:


> China doesn’t bother with other countries’ internal processes. Its leadership realizes that, in today’s world, there’s one main obstacle to increase trade between nations: poor transportation, power, water, and communications infrastructure, which fouls up global supply chains.
> 
> This is the same conclusion reached in a 2013 study by the World Economic Forum. In fact, the study found that removal of these supply chain barriers could increase the world’s GDP by up to six times!



Very good point. That's the whole idea behind the One-Belt One-Road project. In the final analysis, all from AIIB to NDB comes down to this grand project, China's version of Marshall Plan for 21st century.

The US seems to have stuck in 20th century, which is not surprising because hegemonies are always reactionary and resistant to change.

Reactions: Like Like:
3


----------



## ahojunk

*Former Chinese finance minister named head of Asian Infrastructure Investment Bank*
Tuesday 25 August 2015 07.35

*Former Chinese vice finance minister Jin Liqun has been elected to head the new Asian Infrastructure Investment Bank (AIIB), the Chinese government has said*. 

Jin was elected as the bank's "incoming president" at a two-day meeting of chief negotiators in the Georgian capital of Tbilisi, according to a statement by China's finance ministry. 

Beijing last month had named Jin as its preferred candidate to head the new institution. 

The AIIB has been viewed by some as a rival to the World Bank and Asian Development Bank. The United States and Japan - the world's largest and third-largest economies, respectively - have notably declined to join. 

Jin has previously worked for both institutions. He was also formerly a top official at the China Investment Corporation, the country's sovereign wealth fund. 

He has a master's degree in English literature, speaks fluent English and reportedly good French and was a Hubert Humphrey Fellow in economics at Boston University in 1987-88. 

Jin's selection had been widely expected as Beijing will initially have a 26.06% share of the votes at the bank, giving it veto power over the choice of the president, which requires a 75% majority. 

Beijing will be by far the largest AIIB shareholder at about 30%, according to the legal framework signed by 50 founding member countries in late June.

*Source: AFP*

-----------------------------------------------------

Jin chosen as official candidate for AIIB president
English.news.cn 2015-08-24 21:33:47

TBILISI, Aug. 24 (Xinhua) -- The 6th Chief Negotiators' Meeting on establishing the Asian Infrastructure Investment Bank (AIIB) agreed on Monday to name Jin Liqun, a former Chinese official, as the official candidate for the bank's president.

The chief negotiators from 54 of the 57 founding members of the AIIB (with Sri Lanka, Switzerland and Amman absent) unanimously agreed to choose Jin for the post in Tbilisi, capital of Georgia.

According to the AIIB's charter, Jin needs to be re-confirmed by the Board of Governors at its inaugural meeting after the formal establishment of the AIIB.

Jin, nominated by China for the post of AIIB president in early July, has an outstanding leadership record in the public and private sectors, and multilateral development institutions.

He once served as China's vice finance minister, vice president of the Asian Development Bank, chairman of the Supervisory Board of China Investment Corp., and board chairman of China International Capital Corp., Ltd.

Reactions: Like Like:
3


----------



## steelseries779

Vietnam joins AIIB to seek new funding source - Vietnam joins AIIB to seek new funding source - SaiGon Times Daily

The Saigon Times Daily
Tuesday, Jun 30,2015,19:51 (GMT+7)

HCMC - State Bank of Vietnam (SBV) governor Nguyen Van Binh said Vietnam had joined the Asian Infrastructure Investment Bank (AIIB) as a founding member so as to seek an extra funding source for infrastructure projects.

The governor was quoted by Vietnam News Agency as saying in Beijing on June 29 that Vietnam will use the funding source for effective projects to ensure sustainable economic development. 

Binh and representatives of other founding countries of the AIIB signed the articles of agreement for the Chinese-led development bank in Beijing on June 29.

AIIB, a multilateral financial institution based in Beijing, will have total authorized capital of US$100 billion. The bank’s main objectives are to boost sustainable economic growth through investment in regional infrastructure, with a focus on transport, energy, telecommunications, agriculture, environment and urban development.

The bank currently has 57 founding members and is expected to make its debut at the end of this year.

Speaking to the media in Beijing, Binh said becoming one of the bank’s founders is in line with Vietnam’s policy for active and responsible international economic integration. 

Vietnam and other ASEAN countries were among the first to support the idea of the AIIB, presented by Chinese President Xi Jinping at the October 2013 APEC summit, and join negotiations for the bank’s establishment, he said.

The move showed Vietnam’s willingness to build, maintain and reinforce a favorable environment for the comprehensive partnership with China in the economic, trade and investment sectors. 

Binh said Vietnam needs huge investment capital for infrastructure through 2020 but domestic sources will not be enough. As concessional loans from international institutions such as the World Bank and the Asian Development Bank will be gradually phased out as the country has become a middle-income country, it is vital to find capital from other sources.

Binh said as a founding member, Vietnam has certain rights, including having a voice in the policy making process or holding some executive position.


----------



## TaiShang

*China’s AIIB hopes chime with Seoul’s plans*
By Jaeho Hwang Published: 2015-9-14 19:38:01







Illustration: Liu Rui/GT

Jin Liqun, president-designate of the Asian Infrastructure Investment Bank (AIIB), met with South Korea's President Park Geun-hye, ministers and vice ministers, and entrepreneurs during his visit to South Korea on September 8-9. He talked about the significance of the foundation of the multilateral development bank, plans for the bank's operation and development schedules. The president-designate also discussed ways to enhance cooperation between AIIB member states, and praised South Korea for its active collaboration in the initial stage of the bank's establishment. 

*The AIIB chief's choice of Seoul as his first destination not only has great significance in its timing, but also has strategic implications for Sino-South Korean bilateral ties, China's foreign policy and the regional economy.*

The Chinese economy has transformed from the stage of torrid double-digit economic growth to that of steady, medium-to-rapid growth focused on quality above quantity. The AIIB will enable China to dump excessive capacity within its economy and to expand its trade markets. The development bank also helps Beijing to maintain its foreign exchange reserves at a reasonable level and to internationalize the yuan.

*The China-led bank is also expected to ensure sustained growth of the Asian economies and to strengthen economic cooperation between China and other Asian countries.* The investment in infrastructure, including roads, seaports, railways, and power plants, in underdeveloped parts of Asia, will contribute to economic development of the continent. 

China's foreign policy under President Xi Jinping's new leadership comes down to the "One Belt, One Road" (OBOR) initiative. The OBOR deepens friendly ties with partner nations while bringing economic benefits to China at the same time.

*The AIIB and the initiative complement each other. Membership of 57 countries in the China-led bank, despite opposition from the US, was a diplomatic and economic victory over Washington.* The development institution seeks to level the playing field where the US-led World Bank and the Japan-dominated Asian Development Bank are currently most prominent, enabling friendly competition between the banks. 

*This will keep the US-led global financial order in check and elevate China's status on the international stage. The presence of the China-led development bank will also influence the future improvement in the governance of other multilateral financial institutions.*

South Korea has a 3.81 percent stake in the AIIB - the fifth largest among the bank's founding members. *Korean firms, equipped with know-how they have accumulated in Middle East construction projects, will actively seek to join massive infrastructure-building projects in Asia, which will lead to remarkable growth. *

*Joint projects by the AIIB and Korean firms are already underway. *Under the AIIB structure, aid recipients must first make a proposal to the AIIB about development projects. Therefore, it is a good idea to make preemptive suggestions that can influence investor states. *All the better if South Korean and Chinese firms jointly identify and join projects with good prospects.*

South Korea's membership of the AIIB will expand the scope of Sino-South Korean relations from the economy to politics and diplomacy. South Korea is one of the most successful examples of China's regional diplomatic policy of "amity, sincerity, mutual benefit and inclusiveness." 

*Seoul's friendly ties with Beijing will deliver a positive message to the international community, as well as improving Beijing's image globally.*

Seoul should be always ready for the reunification of the Korean Peninsula. *Park, in her meeting with her Chinese counterpart Xi, described South Korea's plan to establish a Northeast Asian Development Bank when the condition is right, or, for example, when North Korea is denuclearized. *The prospective development bank specializes in Northeast Asian regions including North Korea, the three provinces of Heilongjiang, Jilin, and Liaoning in Northeast China, and the maritime territory in the Russian Far East. I hope the bank can evolve into an institution that complements the AIIB, and in a broader perspective, harmonizes with Park's Eurasia Initiative and the OBOR.

Seoul, despite unstable inter-Korean ties, expects the China-led development bank to play a constructive role in North Korea.

*The AIIB represents a successful diplomatic move by China that has made it one of the most prominent players on the international stage.* The bank's president-designate Jin stressed in his visit to Seoul that the AIIB will generate a pipeline for capital, technology, and manpower aimed at investing in Asian infrastructure, and the bank will be managed on the basis of transparency, openness, independence and responsibility. The foundation and development of the AIIB marks China's evolution into a global economic leader. 

_The author is a professor at the Division of International Studies, Hankuk University of Foreign Studies in Seoul, South Korea. opinion@globaltimes.com.cn_

Reactions: Like Like:
3


----------



## Keel

ahojunk said:


> *J**apan didn't join the AIIB (under pressure from US) but still want a piece of the infrastructure cake in Asia.
> What a joke! Oh! it hurts to see India and Russia have more say in AIIB than Japan.
> If Japan had joined, it would be number two instead of just being a spectator from outside.
> Come on Japan, get out from under the US skirt.*
> 
> ----------------------------------
> *Japan unveils $110 billion plan to fund Asia infrastructure, eye on AIIB*
> Thu May 21, 2015 6:50am EDT
> TOKYO | By Leika Kihara and Linda Sieg
> 
> Japan unveiled a plan on Thursday to provide $110 billion in aid for Asian infrastructure projects, as China prepares to launch a new institutional lender that is seen as encroaching on the regional financial clout of Tokyo and its ally Washington.
> 
> The amount of Japanese funds, to be invested over 5 years, tops the expected $100 billion capitalisation of the Asian Infrastructure Investment Bank (AIIB), the Beijing-sponsored lender scheduled to begin operations next year.
> 
> Japanese officials said the plan, announced by Prime Minister Shinzo Abe at a symposium of Asian officials and experts, represents a 30 percent increase over Tokyo's past infrastructure funding.
> 
> Japan said it wants to focus on "high quality" aid, for example, by helping recipients tap its expertise in reducing pollution while building roads and railways. That's an implicit contrast with the AIIB, whose projects Washington has said may not adequately safeguard the environment.
> 
> "We intend to actively make use of such funds in order to spread high-quality and innovative infrastructure throughout Asia, taking a long-term view," Abe said in a speech announcing the plan.
> 
> About half the funds will be extended by state affiliated agencies in charge of aid and loans and the rest in collaboration with the Asian Development Bank (ADB).
> 
> Japan hopes the aid will help draw private funds to help meet the vast demand for infrastructure in Asia.
> 
> The United States and Japan were caught off guard when a total of 57 countries, including Group of Seven members Britain, Germany and France jumped on board the AIIB bandwagon by March.
> 
> The two allies have stayed out of the China-led institution, seen as a rival to the U.S.-dominated World Bank and Japan-led Asian Development Bank, citing concerns about transparency and governance - although Tokyo for one is keeping its options open.
> 
> Finance officials said Japan's aid plan had long been in the works as part of a Group of 20 pledge to meet global needs.
> 
> But worried that Japan may look less pro-active than Beijing, Tokyo also wants to showcase its support for the region.
> 
> "We had thought it was better not to speak up much, but that doesn't get through," Koichi Hagiuda, a special aide to Abe in his Liberal Democratic Party, told Reuters.
> 
> "So some demonstration seems to be needed."
> 
> Japanese and Chinese finance officials will meet in Beijing on June 6 and may discuss the AIIB, but Tokyo looks unlikely to make a decision on joining any time soon.
> 
> LDP lawmakers looking into the matter will put together a report later this month or in early June, but will only state the pros and cons of joining or staying out, said Masahiko Shimayama, a member of the party panel.
> 
> "I think it's unlikely that the government would make a decision on when to join based on our report," he told Reuters.
> 
> Tokyo, which given the size of its economy could become the No. 2 donor if it decides to join the AIIB, may well keep its powder dry for some time to come.
> 
> "If it (AIIB) becomes a proper financial institution for the sake of Asia, there is no reason to be embarrassed about joining later," Hagiuda said.
> 
> The United States and Japan agreed last month that the World Bank and ADB should team up with the AIIB in syndicated loans as a way to help the new lender establish strong standards.
> 
> The AIIB is holding a meeting of founder members in Singapore this week to decide on the articles of association and operational details. A delegate to the conference, speaking on condition of anonymity, said it was unlikely the new bank could start lending at the start of 2016 as predicted, given the need for member countries to get approvals from their legislatures.
> 
> "China hopes that members get such approvals by year-end and the operations start from the next year, said the Asian delegate. "But I wonder if it is possible, given domestic political situations in each country."
> 
> (Additional reporting by Jongwoo Cheon in Singapore; Editing by Raju Gopalakrishnan)





Jpn wont join AIIB esp when Abe's in charge.

Reactions: Like Like:
2


----------



## JSCh

*Over 20 countries on 'waiting list' to join AIIB: China*
_POSTED: 19 Sep 2015 19:10 _

_More than 20 countries are waiting to join the China-initiated Asian Infrastructure Investment Bank (AIIB), its designated president said on Saturday (Sep 19) as he allayed concerns it was aimed to challenge US and Japanese influence in the region._

SINGAPORE: More than 20 countries are waiting to join the China-initiated Asian Infrastructure Investment Bank (AIIB), its designated president said on Saturday (Sep 19) as he allayed concerns it was aimed to challenge US and Japanese influence in the region.

The number could bring the AIIB on a par with or even surpass membership in the Japan-led Asian Development Bank (ADB), which currently has 67 members, 19 of them outside of the Asia Pacific, according to its website.

"We have 57 countries (which are potential founding members) and to my knowledge ... more than 20 countries are on the waiting list," AIIB president-designate Jin Liqun told delegates of the Singapore Summit conference, without naming them.

"That makes it more than 70. I'm sure there will be more countries which will be interested," added Jin, a former Chinese vice finance minister who was put forward by Beijing to head the bank and was elected in August by the prospective founding members.

The AIIB has been viewed by some as a rival to the Washington-based World Bank and the Manila-based ADB, which has been headed by Japan, its biggest donor, since it was founded in 1966.

The US and Japan -- the world's largest and third-largest economies, respectively -- have notably declined to join the AIIB although they are members of the ADB, but Jin said the door is open to both.

"It takes longer for some countries to reach their internal consensus in making their decision," he said.

"We've been very much patient. As you know, the door is open to all of the countries and if they make a decision just pick up the phone, make a call and we can handle the rest of the business," he said, referring to the US and Japan.

Of the 57 AIIB potential founding members, 50 have already signed, including Australia, while the seven others have until the end of the year to affix their signatures.

The bank will be based in Beijing and will have a capital of US$100 billion, with US$20 billion paid initially. It is expected to start operations next year.

China will be the biggest shareholder with 30 per cent. Among non-Asian participants, Germany is the largest shareholder with 4.5 per cent, followed by France with 3.4 per cent and Brazil on 3.2 per cent.

Jin said the AIIB is not aimed at challenging the ADB and the World Bank for influence in Asia as the region's funding requirements are so massive.

He cited ADB estimates that Asia's infrastructure demand could reach US$730 billion per year by 2020, vastly exceeding available resources from existing multilateral lenders.

"Creating AIIB has never been about challenging existing institutions. The world stage is spacious enough to allow many actors to perform," Jin said.

- AFP/ec

Over 20 countries on 'waiting list' to join AIIB: China - Channel NewsAsia

Reactions: Like Like:
12


----------



## ahojunk

*Up to 20 Countries Waiting to Join China-Led AIIB, President-Designate Says*
*Jin Liqun says bank won’t favor Chinese companies and will invest in projects like railroads and power*




_Jin Liqun, who was named president-elect of the Asian Infrastructure Investment Bank in August, said as many as 20 countries are looking to join the bank._

By JAKE MAXWELL WATTS
Sept. 19, 2015 8:42 a.m. ET

SINGAPORE—A China-led infrastructure bank that is expected to rival the likes of the World Bank and Asian Development Bank in Asia has been approached by as many as 20 additional prospective members and is looking to begin funding its first projects as soon as six months from now, its new leader said.

Jin Liqun, president-designate of the Asian Infrastructure Investment Bank, also told a conference here Saturday that the new bank wouldn’t select projects to favor Chinese companies and wouldn’t act as “China’s bank”.

Mr. Jin said the AIIB will invest in core infrastructure projects such as railroads and power, but retain the option to broaden its portfolio into associated investments such as environmental investments.

“Some projects are quite ready,” Mr. Jin said.

The AIIB was launched in June with representatives of 57 countries present, 50 of whom formerly signed up on the day. The Beijing-based bank is one of several projects that President Xi Jinping has unveiled recently in a bid to expand China’s influence and financial clout in Southeast and Central Asia.

The bank came together in less than two years amid strong global interest. It was seen as a propaganda victory for China when U.S. allies such as the U.K. and Germany joined. Though the bank hasn't yet begun lending, it faces the mammoth task of negotiating a complicated political and economic landscape, and not just in Asia. Critics including Washington have already raised concerns that the bank would have lower environmental and ethical standards than other multilateral banks.

Mr. Jin, who was named as interim leader of the AIIB last month and is a Chinese national and former vice finance minister of that country, shrugged off such concerns on Saturday.

“AIIB will be a good global citizen,” he said, adding that the bank will operate with a focus on “transparency, openness, independence and accountability.”

Asked at the conference whether the bank might have an institutional bias toward Chinese companies, or against companies and individuals from countries that haven't joined such as Japan and the U.S., Mr. Jin said such rumors were unfounded.

“China is the major shareholder. But this does not mean that this is China’s bank. The bank is not owned, managed or operated by China,” he said. “The bank practices universal procurement and universal recruitment,” and wouldn't favor Chinese companies over those from, say, the U.S., he added.

The bank’s voting structure means that China will retain the upper hand as the largest shareholder, according to its articles of incorporation and people close to the bank. China has offered to forgo outright veto power in day-to-day operations, which has helped win over some key founding members.

The AIIB’s approach to infrastructure investment would streamline decision-making and aim to be more effective than the World Bank or ADB, said Mr. Jin. Instead of its board having direct decision-making authority over individual projects, he said he would like to see the bank’s management make decisions and its board hold them to account.

Existing multilateral institutions are “hugely important” with “a strong track record,” said Mr. Jin. “However, they were designed to meet different needs at different times against different historical backgrounds.”

If it is to be successful, the AIIB will have to negotiate a tricky regulatory and political environment across Asia, particularly in the less developed markets that Mr. Jin said would be an investment priority.

The Asian Development Bank estimates that some $8 trillion of infrastructure investment is needed in Asia between 2010 and 2020, a sum that existing institutions may struggle to fill. Mr. Jin said that while red tape and regulation can be difficult to negotiate, many projects in Asia are waiting to begin because of the limited resources of existing investment banks.

It is reasonable for the AIIB to expect a rate of return of as much as 6% to 10%, he said, without elaborating or providing a time frame for investment returns. “Overall, the bank has to be profitable,” he said. “We should not have too much of a risk appetite,” he added. “However, without risks you cannot get returns.”

—Mark Magnier in Beijing contributed to this article

Reactions: Like Like:
8


----------



## TaiShang

*China to Rearrange World Financial System – German Media*

17:22 23.09.2015

*With the establishment of the Asian Infrastructure Investment Bank (AIIB), China has started to reorganize the world’s financial system. Asian countries are no longer solely dependent on the IMF and the World Bank and able to have a major influence on world’s financial markets, DWN reported.*

The establishment of the bank is one of the biggest geopolitical successes of China in recent years, the newspaper wrote. It would help the country to counterbalance the IMF and the World Bank, which are dominated by the US.

Due to its rapidly growing economy, China considers itself not sufficiently represented in the world financial system and constantly vows for its reform. The United States in turn sees major risks arising from the creation of the financial institution as it fears losing control over financial markets and has therefore tried to prevent the foundation of the AIIB.





AIIB President Describes Launch by End of 2015 as Priority

An interesting fact is that the establishment of the bank almost failed due to the doubts of the Chinese political elite who were skeptical about China’s ability to lead a multilateral bank and pointed to the lack of experience of Beijing. Some politicians also had doubts concerning the financing and the feasibility of the project.

The internal government debates started in spring 2013 and lasted about six months. Only after the inauguration of the new President Xi Jinping did the plan received a new impetus. Xi Jinping viewed the AIIB as an ideal institution to finance China's new infrastructure and export strategy as well as to strengthen the Eurasian states along the former Silk Road.

Nobody could imagine the AIIB would be so successful, or that so many people would be interested in it, a Chinese source told Reuters.

The idea of the bank’s establishment has been met with a great interest worldwide. The Gulf States as well as major European countries announced their support for the project — to Beijing's surprise and contrary to the demands of the United States, DWN wrote.


Read more: China to Rearrange World Financial System – German Media

Reactions: Like Like:
4


----------



## TaiShang

*Closer Look: How AIIB, BRICS Bank Are Facing Up to Early Challenges*

The two new development banks are nearing their launch dates and their first hurdles, but already appear to have strategies in place for clearing them

By staff reporter Wang Liwei






(Beijing) – With a China-led multilateral bank three months from its official launch and a new bank opened by five emerging economies also set to open, experts say the institutions must live up to international standards by learning lessons both good and bad from established multilateral institutions.

Jin Liqun, president-elect of the Asian Infrastructure Investment Bank (AIIB), said at a news conference at the end of August that an interim secretariat under his leadership has been focusing its efforts on hammering out lending and oversight policies to pave the way for the bank's opening before the end of the year.

The five countries behind the New Development Bank – the BRICS comprising Brazil, Russia, India, China and South Africa – have begun a recruitment drive and are looking for potential projects, the bank's vice president, Leslie W. Massdorp, said in a recent interview with Caixin.

*The two banks were created because existing international financial institutions, such as World Bank and Asian Development Bank, are under intense scrutiny over perceived inefficiency amid soaring demand for infrastructure investment around the world.*

Yukon Huang, a senior associate at the Carnegie Endowment for International Peace, a non-government think-tank, said that a major challenge facing the AIIB is whether it can build an effective system of governance that balances the interests of stakeholders and the needs of recipient countries.

*Unlike a private company, where members of a board of directors are usually led by a chairman and CEO, Huang said that each of the 20-plus directors at the World Bank wield significant influence over decision-making and daily operations, meaning project approvals involve lengthy negotiations.*

Huang, former head of the World Bank's China division, said the AIIB will try to be more innovative by introducing non-executive directors into its board in an attempt to speed up consensus-building.* However, allowing the more than 50 stakeholders in the bank to have their say without compromising efficiency will be a challenge,* he said.

The two financial institutions will also face hurdles regarding compliance with international standards for environmental protection and labor rights, all while juggling a diverse range of national interests, experts said.

David Dollar, head of the World Bank's China division, said the AIIB is likely to adopt standards similar to those at World Bank, Asian Development Bank and other multilateral institutions, "but the key is if and how these standards will be enforced."

The existing standards for environmental and labor safeguards are reasonable, but also high, Dollar said. He said the AIIB should not be as concerned about risk as the World Bank is. That institution sometimes took environmental and labor safeguards so seriously that potential clients were reluctant to come forward with project proposals because they were fearful of lengthy approval procedures.

Maasdorp said a good place for the BRICS bank to start is borrowing from policies the Asian Development Bank and World Bank have put in place.* However, he said the New Development Bank will also take into account the diverse social and political systems used in the five member countries when nailing down governance policies. To that end, the BRICS bank will set up a branch in South Africa, in accordance with its charter.*

The AIIB may not rush into opening offices outside of its headquarters in Beijing due to cost-effectiveness worries, Dollar said. Beijing is close enough to most member states and a regional branch may not add much to efficiency, he said.

Experts said both the AIIB and the BRICS bank may want to partner with existing multilateral institutions on their first projects. Suma Chakrabarti, the president of the European Bank for Reconstruction and Development, has already expressed a desire to cooperate with the AIIB, though officials from the China-led institution have not publicly responded.

Dollar suggested that the AIIB seek to join projects financed by the European bank, and use the experience to learn about feasibility studies and risk controls. Existing international banks would love to find a partner that helps shoulder a project's risks, he said.

Massdorp said the BRICS bank wants such a partnership because it may take the new institution some time to attract the talent and develop the oversight system necessary for handling a project on its own. The New Development Bank is waiting for authorities in member countries to come up with projects, and their first undertaking is likely to involve the promotion of clean energy.

Reactions: Like Like:
3


----------



## ahojunk

Looks like the Philippines wanted to wait for US and Japan to give the nod. If that is the case, the Philippines might as well don't bother.

--------------
*PH membership in AIIB to depend on US, Japan*
By: Ben O. de Vera
Philippine Daily Inquirer
01:22 AM September 18th, 2015

THE PHILIPPINES will likely fast-track its membership in China-led Asian Infrastructure Investment Bank (AIIB) if the United States and Japan will also take part in its establishment.

Asked if the reports that AIIB’s prospective members are seen expanding to over 70 countries will make it more appealing for the Philippines to join, a ranking finance official told reporters: “Definitely, of course.”

“The more members it has, the better, as there are more eyes to watch over the running of the bank,” said the government official, who is privy to ongoing talks for the Philippines to be a founding member of AIIB.

In June, the Philippines deferred signing the articles of agreement for the establishment of AIIB, even as Finance Secretary Cesar V. Purisima maintained that the country “remains a prospective founding member.”

“As the deadline to sign is in December 2015, the Philippines is taking the time given to prudently consider its membership,” Purisima had said.

Purisima earlier said that the Philippines had “concerns about the governance of AIIB.”

“We do hope that AIIB will function based on purely financial basis, and not political,” Purisima said at a Center for Strategic and International Studies conference in the US in June.

Under the articles of agreement, the Philippines must shell out $979.1 million or about P44.2 billion for capital subscription. AIIB will have an initial authorized capital stock of $100 billion.

Last year, the Philippines, through the Department of Finance, signed a non-binding agreement to join discussions aimed at threshing out issues ahead of the bank’s formal establishment.

Last June 29, 50 countries signed in Beijing AIIB’s articles of agreement, which will lead to the bank’s establishment by year-end.

To date, 51 countries already signed the articles of agreement, as Malaysia did so last month.

Besides the Philippines, the five other prospective members that have yet to sign the articles of agreement were Denmark, Kuwait, Poland, South Africa and Thailand. AIIB originally had 57 prospective member-countries.

“The articles [of agreement] remain open for signing… until the end of 2015,” according to AIIB’s website.

China will hold the biggest stake in the lender at 30.3 percent, equivalent to $29.8 billion in initial subscription. India will have to infuse $8.4 billion, while Russia’s contribution to the capital will be $6.5 billion. The 37 prospective founding-members in the Asia-Pacific region are expected to contribute three-fourths of the capitalization or $75 billion.

The largest initial subscription to AIIB by a non-Asian country will be that of Germany, at $4.48 billion. In all, the 20 prospective non-regional members will have to shell out the remaining $25 billion.

The Beijing-headquartered AIIB said its foundation “will be built on international best practices and the lessons and experiences of existing multilateral development banks and the private sector.”

Reactions: Like Like:
2


----------



## TaiShang

In retrospect it can be seen that Xi Jinping walked all over Obama during his recent visit upstaging him on all fronts. By backtracking on opposition to China's AIIB and New Silk Road initiatives Obama managed to save some face.

***




White House declares truce with China over AIIB

Officials said that Washington secured a pledge from Beijing to increase its financial contributions to the World Bank, the FT reports.

Reactions: Like Like:
6


----------



## cirr

Increasing our contributions to the existing financial institutions such as the World Bank is not a problem since it also increases our says in the said institutions。

Reactions: Like Like:
4


----------



## TaiShang

cirr said:


> Increasing our contributions to the existing financial institutions such as the World Bank is not a problem since it also increases our says in the said institutions。



Definitely. China is in no way aiming to altogether overhaul the established world order.

It in fact wishes to work inside the existing framework while subjecting it to reforms to better reflect the rising power, China.

When the existing framework proves to be reactionary like the IMF or the ADB, then China sets up alternative frameworks. Again, these frameworks are not to bring down the one established in large part by the US, but, to exist together and provide an alternative for other nations that wish to participate. 

In all senses, China is a harmonious, peaceful rising nation.

Reactions: Like Like:
5


----------



## ahojunk

*US and China settle AIIB dispute*
GBTIMES BEIJING
2015/09/28





_Members of the AIIB and the signing ceremony for the bank's Articles of Agreement in June. (Photo: China News Service)_

The United States and China have settled their differences over the Beijing-led Asian Infrastructure Investment Bank (AIIB) during President Xi Jinping’s first state visit to the country.

The US had previously initiated a campaign to persuade allies not to join the bank, widely seen as a rival to established lenders like the World Bank and the Asian Development Bank.

As part of the assurances sought by the US, Beijing has committed to “meaningfully increase” its contributions to existing financial institutions.

President Xi also pledged that the AIIB would operate in accordance with the highest international standards, addressing concerns of the US, as well as its allies, about the new bank. 

The Financial Times reports that the truce is indicative of a change in the US' approach towards China, with the Obama administration eager to put past suspicions behind them and resume normal relations on international economics.

Reactions: Like Like:
3


----------



## TaiShang

ahojunk said:


> *US and China settle AIIB dispute*
> GBTIMES BEIJING
> 2015/09/28
> 
> View attachment 261778
> 
> _Members of the AIIB and the signing ceremony for the bank's Articles of Agreement in June. (Photo: China News Service)_
> 
> The United States and China have settled their differences over the Beijing-led Asian Infrastructure Investment Bank (AIIB) during President Xi Jinping’s first state visit to the country.
> 
> The US had previously initiated a campaign to persuade allies not to join the bank, widely seen as a rival to established lenders like the World Bank and the Asian Development Bank.
> 
> As part of the assurances sought by the US, Beijing has committed to “meaningfully increase” its contributions to existing financial institutions.
> 
> President Xi also pledged that the AIIB would operate in accordance with the highest international standards, addressing concerns of the US, as well as its allies, about the new bank.
> 
> The Financial Times reports that the truce is indicative of a change in the US' approach towards China, with the Obama administration eager to put past suspicions behind them and resume normal relations on international economics.



I do not know what is there to settle... 

AIIB already took hold and US did all it can to stop it and failed. 

China does certainly not need US endorsement at the moment. 

Xi must have given Obama some face-saving opportunity.

Reactions: Like Like:
4


----------



## ahojunk

China, U.S. achieve breakthrough over AIIB: report
2015-09-28 09:00 | Global Times | Editor: Li Yan

Officials in the U.S. have declared "what amounts to a truce in their campaign over China's new Asian Infrastructure Investment Bank (AIIB)," claiming that they have secured commitments from the Chinese central government to ease Washington's concerns, the Financial Times reported Sunday, citing U.S. officials. 

China will also "meaningfully increase" its financial contributions to the World Bank and other potential regional financial institutions, the Financial Times report said.

The AIIB, initiated by Chinese President Xi Jinping in 2013 to help finance infrastructure projects in Asia, is expected to be officially established by the end of this year.

A total of 50 prospective founding members of the AIIB signed in Beijing on June 29 the bank's articles of agreement that outlines the bank's governance structure.

The Obama administration, during last week's State visit by Chinese President Xi Jinping, also emphasized its pledge to back China's bid for the inclusion of the yuan in the basket of reserve currencies of the International Monetary Fund (IMF) as long as China is declared worthy by the IMF.

During President Xi's visit, Washington had secured a pledge from China to increase its financial contributions to the World Bank and regional development banks, the Financial Times reported, citing senior U.S. officials.

Reactions: Like Like:
4


----------



## ahojunk

Another one in the bag.

-------------
Thailand signs AIIB agreement

BEIJING, Sept. 30 (Xinhua) -- Thailand signed the Asian Infrastructure Investment Bank (AIIB) Agreement here Tuesday, the Chinese Ministry of Finance (MOF) announced Wednesday.

Thailand is the 52nd of 57 prospective founding members to sign the document. The others are still waiting for administrative approvals at home.

After signing the agreement, all of the 57 members must get the green light from their legislatures by Dec. 31, 2016, before becoming a founding members of the bank.

"All the prospective members are now pushing to quicken the legal procedures so that the AIIB can be established before the end of 2015," said the MOF.

Reactions: Like Like:
6


----------



## TaiShang

*AIIB to invest in Pakistan's infrastructure development*
October 8, 2015





The president-designate of the Asian Infrastructure Investment Bank (AIIB) Jin Liqun (L) and Pakistani Finance Minister Ishaq Dar attend a press conference in Islamabad, capital of Pakistan, on Oct. 7, 2015. The visiting president-designate of the AIIB Jin Liqun Wednesday showed interest in financing infrastructure projects in energy, transport, sea port and urban development areas in Pakistan. [Xinhua]


The visiting president-designate of the Asian Infrastructure Investment Bank (AIIB) Jin Liqun Wednesday showed interest in financing infrastructure projects in energy, transport, sea port and urban development areas in Pakistan.

Jin, who was on his first visit to a middle-income emerging prospective founding member of the AIIB since he was named the official candidate for the bank's president in August, met with Pakistani Prime Minister Nawaz Sharif and held talks with Pakistani cabinet ministers on cooperation and the AIIB's investment in Pakistan.

Sharif told Jin that his government has invested a lot of resources in energy and infrastructure projects with the help of China.

Addressing a news conference along with Pakistani Finance Minister Ishaq Dar in Islamabad, Jin said Pakistan has a great potential in the infrastructure sector, which will pave the way for sustainable economic development.

"The bank is looking forward for closer cooperation with the country's public and private sector," he said, adding that the bank's officials will be visiting Pakistan very soon to discuss collaboration in different projects.

"We talked about cooperation between AIIB and Pakistan, particularly with regard to infrastructure projects. We believe that your country has a great potential. We believe infrastructure investment in energy sector, transport, electric power, sea ports, urban development and water supply will all pave the way for sustainable development of your country in the decades to come," said the president-designate.

He went on to say that the AIIB is looking forward to very close cooperation with its partners in Pakistan -- the government and particularly the private sector.

"We believe we have a great future as long as we work together. I'm sure we would be having a great institution which can serve the interest of all the 57 prospective founding members and more countries are waiting to join this bank," Jin said.

He said the bank will be working closely with existing multilateral development banks such as the World Bank, the Asian Development Bank and other development banks.

He also lauded Pakistani government's economic achievements " under the very very tough global economic situation" and pointed out that Pakistan has played a very crucial role in the establishment of the Asian Infrastructure Investment Bank.

Dar said that Pakistan will welcome the AIIB funding for the country's infrastructure development. He also vowed full support of the AIIB.

@waz , @Horus

Reactions: Like Like:
4


----------



## ahojunk

*Azerbaijan to pay for its share in AIIB*
Baku, Azerbaijan, Oct. 7

By Azad Hasanli – Trend:

Azerbaijan will pay for its participation in the capital of the Asian Infrastructure Investment Bank (AIIB) in 2016, Azerbaijani Finance Minister Samir Sharifov told reporters Oct.7.

“Azerbaijan must pay $50 million for its share,” he said, adding that in 2016, the government will pay about 20 percent of the sum of $50 million.

“This sum is divided into two parts, we will pay for the first part and the second part is considered to be withdrawn, since it’s paid only in case of emergency,” Sharifov said.

At the same time, the minister didn’t rule out the possibility of changing the amount of the sum that Azerbaijan should pay.

The Azerbaijani government officially expressed interest in becoming one of the AIIB founders March 31, 2015. In April, Azerbaijan was confirmed as one of the countries that joined AIIB.

The objectives of the Asian Infrastructure Investment Bank are to promote the economic development and cooperation in Asia by investing in infrastructure and other productive sectors, which will be considered as appropriate; to develop the regional cooperation and partnership in addressing the tasks in the field of development, to closely cooperate with other multilateral financial institutions.

The investments in infrastructure of developing regional members, including the power engineering, transport and telecommunications, agriculture, water supply, environment, urban planning and other productive sectors will be the priority areas of AIIB funding.

AIIB’s authorized capital is $100 billion. The share of regional members of the bank will hit 75 percent. China will be the largest shareholder of the bank. Its share is 29.78 percent of the voting shares. Azerbaijan's share in the bank's capital will hit 0.25 percent. Some $254.1 million will be invested in their purchase.

Currently, 1.6 percent of the bank's shares remain undistributed.

Reactions: Like Like:
6


----------



## ahojunk

*ADB holds out hand of friendship to AIIB*
08/10/2015 | Anthony Rowley

Positive comments by the head of the Asian Development Bank about his supposed rival, the China-led AIIB, has heightened speculation the pair have agreed not to fight turf wars

The head of the Asian Development Bank has given a strong signal he sees a key role for the China-led Asian Infrastructure Investment Bank, fuelling speculation the two bodies have reached a tacit deal not to engage in turf wars.

ADB president Takehiko Nakao said that “additional effort” was needed, particularly in terms of addressing the region’s infrastructure deficit.

In an interview with Emerging Markets, Nakao indicated his belief that there was room for a new player on the Asian development scene.

“The $8tr infrastructure deficit we estimate for the period from 2010 to 2020 continues to be a defining development challenge for Asia and the Pacific,” he said.

Taken together, all existing source of finance would “help address this deficit, but additional effort is needed,” Nakao stressed.

When the ADB president paid a visit to Jin Liqun, president-elect of the AIIB, at the office of the AIIB Interim Multilateral Interim Secretariat in Beijing in September the two men were all smiles as they discussed the need to “deepen co-operation between [their] two institutions”.

This contrasted with the rather defensive statement that the heads of all the major regional development banks including the ADB — plus the IMF — signed last year urging their member countries to be wary of dealing with “new entrants”.

*EURASIAN DEVELOPMENTS*

The cordiality and closeness of the Nakao-Jin relationship now appears to reflect more than the fact that Jin was once a vice president at the ADB, insiders said.

It suggests that the AIIB’s geographic and sectoral emphasis will be different from that of the ADB.

The AIIB is expected to devote itself largely to supporting Chinese president Xi Jinping’s grand plan for building Eurasian infrastructure networks, rather than going head to head with the ADB on a full spectrum of development projects throughout Asia.

In fact, the AIIB is more likely to serve as a “platform for co-operation” between the AIIB and the ADB, Yuqing Xing of the Graduate Research Institute for Policy Studies (GRIPS) in Tokyo told Emerging Markets.

In other areas of Asian infrastructure provision, needs are vast, Nakao said. “About half of the estimated $8tr in infrastructure [needs are] in energy and electricity. The need in telecommunications and transport is over $3.5tr and the remainder in water and sanitation.”

The ADB’s priority is “cleaner and greener infrastructure projects, in clean energy, energy efficiency projects, sustainable transportation or urban and rural water supply”.

In the few public comments that he has made so far on the role of the Beijing-based AIIB, Jin has indicated the new lending institution, which is due to begin operations early in 2016 will also be a “clean and green” as well as administratively “lean” institution.

The claim by the AIIB that it is “leaner” — and therefore more efficient — than other multilateral lending institutions has struck a chord, if not exactly a nerve, with Nakao. “Since I became president in April 2013 I have been initiating [various] reforms” at the ADB, he said.

He cited as examples “streamlining procedures, delegating more authority to resident missions closer to the ground” than the ADB’s head office in Manila, as well as “expanding lending capacity, strengthening private sector operations”.

Reactions: Like Like:
4


----------



## JSCh

Poland's Ambassador to China signed the Articles of Agreement of the Asian Infrastructure Investment Bank (AIIB) on October 9, 2015 in Beijing. Poland is the 53rd signatory of the Articles.

Poland's Ambassador to China signed the Articles of Agreement of the Asian Infrastructure Investment Bank - NEWS - AIIB






There are 57 prospective members. 53 had signed. 

The remaining members are Denmark, Kuwait, Philippines and South Africa. They have until the end of the year to sign to become founding member.

Reactions: Like Like:
5


----------



## ahojunk

*Cambodia seeks parliament approval to invest in AIIB*
Xinhua News Agency on Oct 9, 2015 @ 10:56 PM

PHNOM PENH, Oct. 9 (Xinhua) -- The Cambodian government is seeking ratification from the National Assembly to invest 62.3 million U.S. dollars in the China-initiated Asian Infrastructure Investment Bank (AIIB), a spokesman said on Friday.

Phay Siphan, spokesman for the Council of Ministers, said the cabinet meeting, which was chaired by Prime Minister Hun Sen, agreed to send the agreement on the establishment of AIIB to the National Assembly for approval.

"Cambodia will invest 62.3 million U.S. dollars to purchase 623 shares in equivalent to 0.0635 percent of the AIIB's total capital, " he wrote on his Facebook page after the meeting.

Under the agreement, Cambodia will contribute 20 percent or 12. 46 million U.S. dollars of its total investment amount to the bank at the initial stage and the remaining amount will be required to pay in phases within 10 years, he said.

"Investing in the AIIB will provide Cambodia a new source of finance in medium and long terms," he said.

The Memorandum of Understanding on Establishing the AIIB specified that its authorized capital is 100 billion U.S. dollars.

AIIB is an international financial institution proposed by China in 2013 and was launched in Beijing in October 2014 with an aim of providing finance to infrastructure projects in Asia.

AIIB, comprised of 57 countries as founding members, will be officially established by the end of 2015.

Reactions: Like Like:
4


----------



## ahojunk

Malaysia pledges US$219 million to AIIB over five years
October 16, 2015, Friday

KUALA LUMPUR: Malaysia has pledged US$218.8 million (US$1 = RM4.14) for the setting up of the Asian Infrastructure Investment Bank (AIIB).

“The investment will be paid over the next five years,” Deputy Foreign Minister Datuk Seri Reezal Merican Naina Merican told reporters after opening the 6th ASEAN Connectivity Symposium here, today.

On Aug 21, Malaysian Ambassador to China Datuk Zainuddin Yahya signed the Articles of Agreement of the AIIB at China’s Foreign Affairs Ministry in Beijing.

To date, 53 of the 57 prospective founding countries have signed the agreement, with Malaysia being the 51st signatory.

Initiated by China, AIIB, with about US$100 billion in fund, is aimed at promoting infrastructure interoperability and common development in Asia. -BERNAMA

Reactions: Like Like:
3


----------



## ahojunk

Britain was the first of the US allies to join the AIIB. Now China is saying thank you.

---------------
Xinhua Insight: AIIB ushers in "golden decade" for China, Britain
English.news.cn | 2015-10-18 11:14:08 | Editor: Tian Shaohui
by Xinhua writer Liu Xinyong

BEIJING, Oct. 18 (Xinhua) -- At the invitation of Queen Elizabeth II, President Xi Jinping will pay a state visit to Britain from Oct. 19 to Oct.23, the first such visit by a Chinese president in a decade.

The visit will raise bilateral ties to a whole new level and usher in a new "golden decade," strengthened by Britain's active involvement in the Asian Infrastructure Investment Bank (AIIB), a China-advocated multilateral development institution tasked with financing infrastructure construction in Asia.

British Chancellor of the Exchequer George Osborne, during his China visit last month, promised that Britain will work with China to make AIIB a professional, responsible, transparent and effective financing platform.

"We want a golden relationship with China that will help foster a golden decade for this country. It is an opportunity that the UK can't afford to miss," according to an opinion piece by Osborne and Jim O'Neill, commercial secretary to the Treasury, in The Guardian. "Simply put, we want to make the UK China's best partner in the West."

Britain announced its intention to join the AIIB in mid-March. It was the bank's first Western founding member.

"Britain's positive attitude toward the AIIB was an exemplary move for opening a new chapter of golden relationship between the two countries," said Feng Zhongping, deputy head of China Institutes of Contemporary International Relations.

Britain led the way for other Western countries to join the AIIB. The institution can gain invaluable experience from Britain's expertise in the financial sector, Feng said.

As an international financial hub, Britain has a lot to share with China. Meanwhile, the City of London has sought to become a key Western hub for Chinese-yuan trade since 2012, offering the country an additional edge in AIIB participation.

Cui Hongjian, head of the European division under the China Institute of International Studies, concurred with Feng, "cooperation in the AIIB will help raise mutual trust."

The two countries can build on AIIB cooperation to seek closer relations in all aspects.

China and Britain entered into a "comprehensive strategic partnership" in 2004. In the past decade, huge improvements have been made in political, economic and people-to-people exchanges.

To enhance political trust, the two countries completed mechanisms for bilateral exchange, including the annual meeting between the Chinese premier and British prime minister; high-level cultural exchange mechanism; and the China-Britain strategic dialogue.

Economic and trade ties have also expanded, with annual trade surging from about 20 billion U.S. dollars in 2004 to more than 80 billion dollars in 2014.

Now, as the comprehensive strategic partnership enters its second decade, both sides are looking toward a bright future.

Britain hopes that a stronger relationship with China will ensure its prosperity, said Feng.

Since the European debt crisis, Britain has begun seeking cooperation opportunities outside Europe that are more stable and reliable. China is an ideal choice as sound economic fundamentals remain despite a slowing trend in recent years.

China's economy expanded by an average annual rate of 8 percent from 2011 to 2014, before falling to 7 percent in the first half of this year. Britain, on the other hand, posted annual growth of less than 3 percent in the same period.

"Undoubtedly, Britain wants to grow alongside a healthily growing economy," said Cui.

During Xi's visit, he is scheduled to deliver an important speech in London, where he will expound China's domestic and foreign policies and chart the future course for economic and trade cooperation.

The two sides are looking to explore new areas that will bring mutual benefits, according to Feng.

Britain is China's second largest trading partner within the European Union, while China is Britain's fourth-largest trading partner.

Last year, transportation equipment and precious metal accounted for more than 50 percent of British exports to China, while labor-intensive products, such as textiles toys and furniture, were featured heavily in Britain's import catalog from China.

Britain has opened its gates wide for Chinese investment, which witnessed an annual growth rate of 85 percent in the previous five years. It has become China's top investment destination within Europe.

In the plan to transform the north of England into an economic powerhouse, Britain needs Chinese investment to revitalize its northern industrial cities such as Manchester and Liverpool.

China's foreign ministry has said the visit will enhance economic and trade cooperation, with the signing of inter-government agreements and cooperation projects between companies.

Looking ahead, Xi's visit is going to lay a solid foundation for the golden decade ahead, Feng said.

Editor's note:

Chinese President Xi Jinping will pay a state visit to Britain between Oct. 19 and 23, the first by a Chinese head of state in a decade. Xinhua is wiring a series of in-depth stories on Chinese-British relations and the visit.

Reactions: Like Like:
4


----------



## TaiShang



Reactions: Like Like:
2


----------



## ahojunk

*Chinese legislature starts process of ratifying AIIB agreement*
(Xinhua) Updated: 2015-10-20 09:55

BEIJING - China's top legislature will deliberate a proposal concerning the approval of the AIIB agreement at a bimonthly session from Oct 30 to Nov 4, among other proposals and draft laws.

The Asian Infrastructure Investment Bank (AIIB), a China-advocated multilateral development institution tasked with financing infrastructure construction across Asia, has been signed by 53 out of the 57 founding members as of Oct 9.

The session will also consider proposals about a draft law on promoting the nation's booming film industry, a draft charity law and a draft law on deep sea resource exploiting, according to a statement from a meeting of the chairs of the National People's Congress (NPC) Standing Committee on Monday, which was presided over by the committee's chairman Zhang Dejiang.

The Supreme People's Court and the Supreme People's Procuratorate will have their reports reviewed at the upcoming meeting, which will also see the removal and appointment of officials.

Reactions: Like Like:
5


----------



## Bussard Ramjet

Building Asia’s new bank: An address by Jin Liqun, president-designate of the Asian Infrastructure Investment Bank | Brookings Institution


A good good talk. 

He has always been a great speaker, and a great promoter of China's interests. A must must watch! 

You must just see this video. A must see, the way he demolishes the US crowd, infront of them.


----------



## Bussard Ramjet

@AndrewJin @TaiShang @cirr @cnleio @Shotgunner51 @tranquilium @FairAndUnbiased

Just see at 11:47

"We have never over reacted to hurtful and negative comments over our initiative.

We are very calm, we will remain very serene.

(a small laugh)
*
And you see fierce opposition and behind the screen lobbying against China.... could be .... could be handled*"


----------



## 大汉奸柳传志

We call him “babarian handler” for a good reason.


----------



## Bussard Ramjet

utp45 said:


> We call him “babarian handler” for a good reason.



Meaning?


----------



## 大汉奸柳传志

Bussard Ramjet said:


> Meaning?


he is a natural for sway foreigners


----------



## ahojunk

*AIIB to be run with highest standards of '21st century governance'*
Xinhua | Updated: 2015-10-22 17:14

WASHINGTON - The Asian Infrastructure Investment Bank (AIIB) will be built into a new type of development bank with "21st century governance," said Jin Liqun, president-designate of the institution, on Wednesday.

"I've decided to take up this honorable job, understanding that Chinese leaders intended to create a first-class multilateral development institution with 21st century governance," said Jin at an event held by Brookings Institution, a Washington-based think tank.

"I will not have taken this job without this condition," said Jin, who has many years of experience as high-ranking officials at the World Bank and the Asian Development Bank.

Jin was appointed by the Chinese government in February 2014 to head the Working Group to establish the AIIB, which has once been widely doubted by Western countries, especially the United States.

Now, the bank has 57 prospective founding countries including several US allies and will have an authorized capital of $100 billion. It is expected to start operation by the end of this year.

Jin said the creation of the AIIB is the results of the efforts of all the prospective founding members who agreed that the governance of the institution should be measured up to "the highest possible standards," combining the merits of the existing multilateral development banks and those of the successful private sector companies.

"When you see today the results of the efforts of all the prospective founding members, a new type of development bank is taking shape, a new development bank with 21st century governance," said Jin.

Jin said depending on rigorous implementation of the governance, the AIIB will be *"lean, clean and green."*

To keep lean means there should be no redundant positions, said Jin. "If you allow one redundant position today there will be two, there will be three and there will be four. Once the redundancies become massive, it' s very hard for you to cut it out. So we have to be cautious of keeping lean."

Jin vowed to take a "zero tolerance" approach toward corruption in the AIIB as he has already done very successfully in the World Bank when his team managed about $40 billion.

"Under my leadership not a single staff member was involved in corruption cases. None of them was put into prison just because I implemented the anti-corruption policy. It's the implementation. It's not the policy on papers that matters. It's the way you deal with it in a very tough way. If you as a head is clean nobody dares to do it. That's the key." Jin said.

The AIIB will enjoy a "first-class top management" as the bank will have universal recruitment and universal procurement, a new feature of AIIB compared to the existing multilateral development banks and the fundamental guarantee for its success, said Jin.

"We do not reject any nationals even if their countries are not members. We do not reject professionals from the highest caliber just because their passports. We do not reject any companies to help develop infrastructure just because their countries are not members," said Jin.

Talking about the relationship between the AIIB and the World Bank, the Asian Development Bank and other existing multilateral development banks, Jin said the AIIB is not a rival to them and is cooperating with them very smoothly at present.

"Hopefully the AIIB will also be a boost to the reform process in those institutions," he added.

Jin also said the AIIB is not created exclusively for the Belt and Road Initiative, but a bank to cover all the developing countries in Asia.

"Of course some countries in the 'One Belt and One Road' area are members, we certainly should help them, but we will not neglect those countries which are not part of it," he said.

The professional teams in the AIIB are preparing for the first batch of projects which might be launched in the second quarter of 2016, Jin said.
.

Reactions: Like Like:
5


----------



## TaiShang

ahojunk said:


> *AIIB to be run with highest standards of '21st century governance'*
> Xinhua | Updated: 2015-10-22 17:14
> 
> WASHINGTON - The Asian Infrastructure Investment Bank (AIIB) will be built into a new type of development bank with "21st century governance," said Jin Liqun, president-designate of the institution, on Wednesday.
> 
> "I've decided to take up this honorable job, understanding that Chinese leaders intended to create a first-class multilateral development institution with 21st century governance," said Jin at an event held by Brookings Institution, a Washington-based think tank.
> 
> "I will not have taken this job without this condition," said Jin, who has many years of experience as high-ranking officials at the World Bank and the Asian Development Bank.
> 
> Jin was appointed by the Chinese government in February 2014 to head the Working Group to establish the AIIB, which has once been widely doubted by Western countries, especially the United States.
> 
> Now, the bank has 57 prospective founding countries including several US allies and will have an authorized capital of $100 billion. It is expected to start operation by the end of this year.
> 
> Jin said the creation of the AIIB is the results of the efforts of all the prospective founding members who agreed that the governance of the institution should be measured up to "the highest possible standards," combining the merits of the existing multilateral development banks and those of the successful private sector companies.
> 
> "When you see today the results of the efforts of all the prospective founding members, a new type of development bank is taking shape, a new development bank with 21st century governance," said Jin.
> 
> Jin said depending on rigorous implementation of the governance, the AIIB will be *"lean, clean and green."*
> 
> To keep lean means there should be no redundant positions, said Jin. "If you allow one redundant position today there will be two, there will be three and there will be four. Once the redundancies become massive, it' s very hard for you to cut it out. So we have to be cautious of keeping lean."
> 
> Jin vowed to take a "zero tolerance" approach toward corruption in the AIIB as he has already done very successfully in the World Bank when his team managed about $40 billion.
> 
> "Under my leadership not a single staff member was involved in corruption cases. None of them was put into prison just because I implemented the anti-corruption policy. It's the implementation. It's not the policy on papers that matters. It's the way you deal with it in a very tough way. If you as a head is clean nobody dares to do it. That's the key." Jin said.
> 
> The AIIB will enjoy a "first-class top management" as the bank will have universal recruitment and universal procurement, a new feature of AIIB compared to the existing multilateral development banks and the fundamental guarantee for its success, said Jin.
> 
> "We do not reject any nationals even if their countries are not members. We do not reject professionals from the highest caliber just because their passports. We do not reject any companies to help develop infrastructure just because their countries are not members," said Jin.
> 
> Talking about the relationship between the AIIB and the World Bank, the Asian Development Bank and other existing multilateral development banks, Jin said the AIIB is not a rival to them and is cooperating with them very smoothly at present.
> 
> "Hopefully the AIIB will also be a boost to the reform process in those institutions," he added.
> 
> Jin also said the AIIB is not created exclusively for the Belt and Road Initiative, but a bank to cover all the developing countries in Asia.
> 
> "Of course some countries in the 'One Belt and One Road' area are members, we certainly should help them, but we will not neglect those countries which are not part of it," he said.
> 
> The professional teams in the AIIB are preparing for the first batch of projects which might be launched in the second quarter of 2016, Jin said.
> .



AIIB will be a role model for IMF, the ADB and the likes. Talking about learning from the best... At times, student becomes a better teacher.

Reactions: Like Like:
3


----------



## JSCh

* Denmark signs AIIB agreement *
Xinhua, October 28, 2015

China and Denmark signed an agreement over the latter's participation in the Asian Infrastructure Investment Bank (AIIB) in Beijing on Tuesday.






Denmark has signed an agreement over the participation in the Asian Infrastructure Investment Bank. [File Photo: qq.com]​
Chinese Foreign Minister Wang Yi and his Danish counterpart Kristian Jensen witnessed the signing in Beijing.

China appreciates Denmark's joining the AIIB, Wang said.

The China-initiated AIIB is a multilateral development institution tasked with financing infrastructure construction across Asia. The 60-article agreement outlines the financial share of each member, policy making, business and operational systems, and governance structure.

After signing the agreement, all of the 57 members must get the green light from their legislatures by Dec. 31, 2016, before becoming founding members of the bank.

Wang said China hopes to promote relations with the European Union and strengthen exchanges and cooperation with Denmark on global and regional issues.

Jensen said Denmark is ready to participate in the Belt and Road Initiative, support the AIIB's operation and cooperate with China on other international affairs.

Denmark will abide by the one-China policy, maintain bilateral high-level visits, and support the partnership between China and the EU, he vowed.

On Monday, Chinese State Councilor Yang Jiechi met with Jensen, who is on an official China visit from Sunday to Tuesday.

*****

3 prospective members remaining that has not yet sign.
Kuwait, Philippines and South Africa.

Reactions: Like Like:
6


----------



## TaiShang

JSCh said:


> * Denmark signs AIIB agreement *
> Xinhua, October 28, 2015
> 
> China and Denmark signed an agreement over the latter's participation in the Asian Infrastructure Investment Bank (AIIB) in Beijing on Tuesday.
> 
> 
> 
> 
> 
> Denmark has signed an agreement over the participation in the Asian Infrastructure Investment Bank. [File Photo: qq.com]​
> Chinese Foreign Minister Wang Yi and his Danish counterpart Kristian Jensen witnessed the signing in Beijing.
> 
> China appreciates Denmark's joining the AIIB, Wang said.
> 
> The China-initiated AIIB is a multilateral development institution tasked with financing infrastructure construction across Asia. The 60-article agreement outlines the financial share of each member, policy making, business and operational systems, and governance structure.
> 
> After signing the agreement, all of the 57 members must get the green light from their legislatures by Dec. 31, 2016, before becoming founding members of the bank.
> 
> Wang said China hopes to promote relations with the European Union and strengthen exchanges and cooperation with Denmark on global and regional issues.
> 
> Jensen said Denmark is ready to participate in the Belt and Road Initiative, support the AIIB's operation and cooperate with China on other international affairs.
> 
> Denmark will abide by the one-China policy, maintain bilateral high-level visits, and support the partnership between China and the EU, he vowed.
> 
> On Monday, Chinese State Councilor Yang Jiechi met with Jensen, who is on an official China visit from Sunday to Tuesday.
> 
> *****
> 
> 3 prospective members remaining that has not yet sign.
> Kuwait, Philippines and South Africa.



December 31, 2015 is the deadline to sign the Terms of Agreement by the prospective member states, if I am not mistaken. 

Looks like the process will go no smoothly and the AIIB will be on track from 2016 onwards.

Reactions: Like Like:
3


----------



## ahojunk

Top legislature starts AIIB agreement ratification process
English.news.cn | 2015-10-30 21:33:02 | Editor: huaxia

BEIJING, Oct. 30 (Xinhua) -- China's top legislature on Friday began deliberating the ratification of the Asian Infrastructure Investment Bank (AIIB) agreement, which will lay the legal framework for the bank.

The China-advocated multilateral development institution is tasked with financing infrastructure construction across Asia. The 60-article agreement discussed by the legislature outlines the financial share of each founding member as well as rules on policy making, governance structure, and business and operational systems.

The AIIB will promote sustainable development of the Asian economy, create wealth and improve infrastructure connections, Finance Minister Lou Jiwei said while briefing lawmakers at the opening of the five-day bimonthly session of the National People's Congress Standing Committee.

The bank will cooperate with other multilateral and bilateral development organizations to promote regional cooperation and deal with challenges, according to Lou.

The AIIB shows that China is committed to establishing an open, just and transparent international economic governance system, and it will provide a new platform for cooperation among member states, he said.

All 57 members of the bank must ratify the agreement by Dec. 31, 2016, to become founding members.

With authorized capital of 100 billion U.S. dollars, the AIIB will invest in sectors including energy, transportation, urban construction and logistics as well as education and healthcare.

Asian members' contribution of capital is three times that of non-Asian members.

Based on the capital contribution, China holds a voting stake of around 26 percent, the highest among all members. As new members join, all founding members' shares and voting stakes will be "gradually diluted," Lou explained.

He said that Jin Liqun, president-designate of the institution and head of the working group to establish the AIIB, will be formally elected AIIB president at the first board of directors' meeting, scheduled after the formal establishment of the bank.

Jin has held positions with the World Bank and the Asian Development Bank.

The AIIB has, with reference to the common practice of multilateral development banks, set up a three-tiered structure, consisting of a board of governors, a board of directors and a management team.

Jin earlier said the AIIB will be "lean, clean and green," which means there should be no redundant positions.

Lou said the AIIB should be exempted from all taxes and tariffs and its staff salaries should also be exempted from taxation.

Though all state-backed initiatives, the AIIB, the New Development Bank for BRICS countries and the Silk Road Fund will work independently.

Reactions: Like Like:
4


----------



## ahojunk

*BRICS bank, AIIB well on track for start of operations*
(Xinhua) Updated: 2015-10-29 09:47

BEIJING - Preparations are going smoothly for the New Development Bank (NDB) for BRICS countries, and the Asian Infrastructure Investment Bank (AIIB), officials said Wednesday.

The NDB, initiated by BRICS members -- Brazil, Russia, India, China and South Africa -- is expected to approve its first loans next April, said NDB vice president Vladimir Kazbekov at a seminar in Beijing.

The bank has already received loan applications and is hoping to issue its first loan to an energy-efficient project, Kazbekov said, noting that the bank plans to increase its staff to 100 from more than 20.

Aimed at financing infrastructure projects, mainly in BRICS countries, the NDB opened in Shanghai in July and is scheduled to start operations at the end of this year or early 2016.

Work is also going well for the multilateral AIIB, with formal operations beginning next year, said Chen Huan, who is in charge of preparations for the bank's launch.

The bank will invest in sectors like energy, transportation, urban construction and logistics as well as education and health care, according to Chen.

China is accelerating the approval process for the AIIB agreement, which will lay the legal framework for the bank, said Zheng Quan, an official with the Ministry of Finance.

With authorized capital of $100 billion, the AIIB is designed to finance infrastructure in Asia. China, India and Russia are its three largest shareholders.

Reactions: Like Like:
3


----------



## alaungphaya

This thread should be cleaned up a bit and made a sticky.


----------



## Echo_419

ahojunk said:


> *BRICS bank, AIIB well on track for start of operations*
> (Xinhua) Updated: 2015-10-29 09:47
> 
> BEIJING - Preparations are going smoothly for the New Development Bank (NDB) for BRICS countries, and the Asian Infrastructure Investment Bank (AIIB), officials said Wednesday.
> 
> The NDB, initiated by BRICS members -- Brazil, Russia, India, China and South Africa -- is expected to approve its first loans next April, said NDB vice president Vladimir Kazbekov at a seminar in Beijing.
> 
> The bank has already received loan applications and is hoping to issue its first loan to an energy-efficient project, Kazbekov said, noting that the bank plans to increase its staff to 100 from more than 20.
> 
> Aimed at financing infrastructure projects, mainly in BRICS countries, the NDB opened in Shanghai in July and is scheduled to start operations at the end of this year or early 2016.
> 
> Work is also going well for the multilateral AIIB, with formal operations beginning next year, said Chen Huan, who is in charge of preparations for the bank's launch.
> 
> The bank will invest in sectors like energy, transportation, urban construction and logistics as well as education and health care, according to Chen.
> 
> China is accelerating the approval process for the AIIB agreement, which will lay the legal framework for the bank, said Zheng Quan, an official with the Ministry of Finance.
> 
> With authorized capital of $100 billion, the AIIB is designed to finance infrastructure in Asia. China, India and Russia are its three largest shareholders.



Hopefully the banks will be able to fulfill the aspirations of the developing world

Reactions: Like Like:
1


----------



## ahojunk

The start of AIIB operations is getting closer by the day.....

-------------------------
*China's legislature ratifies AIIB agreement*
CCTV.com | 11-05-2015 00:45 BJT

BEIJING, Nov. 4 (Xinhua) -- China's top legislature on Wednesday ratified the Asian Infrastructure Investment Bank (AIIB) agreement, which establishes the legal framework for the bank.





_Zhang Dejiang, chairman of the Standing Committee of the National People's Congress (NPC), presides over the closing meeting of the 17th session of the 12th NPC Standing Committee, in Beijing, capital of China, Nov. 4, 2015. (Xinhua/Huang Jingwen)_

Lawmakers voted on the agreement at the closing meeting of the bimonthly session of the National People's Congress (NPC) Standing Committee. The ratification is a significant step closer to the AIIB's formal establishment, slated for the end of 2015, as China is the bank's largest shareholder.

The China-backed multilateral development institution is tasked with financing infrastructure construction across Asia.

Among the bank's 57 prospective founding members, 54 had signed the agreement as of last month, and the other three are expected to sign before the end of this year. All prospective members should have their legislatures ratify the agreement before the end of 2016 to formally become founding members.

As long as at least 10 signatories, and no less than 50 percent of the capital contribution, obtain legislative approval, the agreement will become effective, Finance Minister Lou Jiwei told lawmakers.

Lou said Myanmar, Singapore and Brunei have received legislative approval, with more than 30 percent in capital contribution.

The 60-article agreement outlines the financial share of each founding member as well as rules for policymaking, governance structure, and business and operational systems.

The AIIB will promote sustainable development of the Asian economy, create wealth and improve infrastructure connections, Lou said.

The bank will cooperate with other multilateral and bilateral development organizations to promote regional cooperation and deal with challenges, according to Lou.

The AIIB shows that China is committed to establishing an open, just and transparent international economic governance system, and it will provide a new platform for cooperation among member states, he said.

With authorized capital of 100 billion U.S. dollars, the AIIB will invest in sectors including energy, transportation, urban construction and logistics as well as education and health care.

Asian members' financial contribution is three times more than non-Asian members.

Based on the capital contribution, China holds a voting stake of around 26 percent, the highest of all members. As new members join, all founding members' shares and voting stakes will be "gradually diluted," Lou explained.

He said that Jin Liqun, president-designate of the institution and head of the working group to establish the AIIB, will be formally elected AIIB president at the first board of directors' meeting, slated for after the formal establishment of the bank.

Jin has held positions with the World Bank and the Asian Development Bank.

The AIIB has a three-tier structure -- a board of governors, a board of directors and a management team.

Jin earlier said the AIIB will be "lean, clean and green."

Lou said the AIIB should be exempted from all taxes and tariffs and the wages of its staff should also be exempted from taxation.

Though all state-backed initiatives, the AIIB, the New Development Bank for BRICS countries and the Silk Road Fund will work independently.

Reactions: Like Like:
5


----------



## JSCh

*Best int'l norms are not Western ones: president-designate of AIIB*
2015-11-11 11:07 Xinhua _Editor: Mo Hong'e
_
"The so-called best international standards are not Western ones. Do not confuse the two things," Jin Liqun, president-designate of the Asian Infrastructure Investment Bank (AIIB), said in London on Monday.

"We do not recognize Western criteria as the best ones. Otherwise, why did the financial crisis and the debt crisis break out in Western countries? We need to learn merits from the West, but we also need to discard their demerits," Jin told Xinhua in an interview during the Boao Forum for Asia (BFA) Financial Cooperation Conference in London.

He said the AIIB will absorb the development experience from various countries and regions, especially China's experience. "We will make a new set of guidelines, something we want to follow."

"I think the AIIB must represent the development situations of developing countries and regions. Otherwise, it does not make sense."

He said cooperation between the AIIB and other multilateral institutions will be very broad.

"The World Bank Group, the Asian Development Bank, the European Investment Bank, the European Bank for Reconstruction and Development (EBRD) and so on all want to cooperate with the AIIB. We are also willing to cooperate with them," he said.

"Other institutions will not cooperate with us if we do not reach international standards and a certain level of governance. I am proud to say that our policies are as good as others'. In some places, we are even better than them as we have absorbed their experience," he said.

Infrastructure projects often require billions of U.S. dollars. The funds are too large for an individual bank to raise. "We can share costs and spread risks by working together," said Jin.

China has applied to join the EBRD recently, drawing lots of attention.

Jin said the EBRD wanted to expand eastwards and southwards. "We and the EBRD have already cooperated in central Asia and west Asia. The two banks have lots of opportunities to work together, which can promote the Eurasia connections."

He believes institutions need to strengthen cooperation not only on specific projects, but also on policies.

Commenting on whether Taiwan can join the AIIB, Jin said there is no obstacle for Taiwan to join the AIIB. "We just need to discuss the appropriate manner for Taiwan to join (the AIIB)."

Talking about the AIIB's mechanism against internal corruption, Jin revealed the bank will set up an integrity department. "In order to prevent interest conflicts and to avoid suspicion, the head of the department cannot be Chinese if the AIIB president is a Chinese," he said.

The BFA Financial Cooperation Conference was held here on Monday, gathering more than 400 government officials, businessmen and academics from 22 Asian and European countries and regions.

Reactions: Like Like:
5


----------



## TaiShang

JSCh said:


> "The so-called best international standards are not Western ones. Do not confuse the two things, Jin Liqun, president-designate of the Asian Infrastructure Investment Bank (AIIB), said in London on Monday.



Perhaps the best quote of the year.

Definitely so. One cannot have best international standards that are trade-marked to a single political entity （the West). There is no such one size fits all system that is "best" for everybody. Maybe the West should learn to apply the plurality and diversity they upheld in their domestic societies to the global society. 



JSCh said:


> "We do not recognize Western criteria as the best ones. Otherwise, why did the financial crisis and the debt crisis break out in Western countries?



This is a perfect example of immanent critique. One needs to be trained in Marxist thought to know what it really means.



JSCh said:


> We need to learn merits from the West, but we also need to discard their demerits



The final touch: eclecticism, which the most important component of pragmatism. Without being eclectic, progress cannot be made and sustained.

Reactions: Like Like:
4


----------



## JSCh

*New Zealand Parliament passes legislation to join AIIB*
Xinhua 2015-11-12 13:12

New Zealand's Parliament on Thursday passed legislation enabling the country to become a founding member of the China-led Asian Infrastructure Investment Bank (AIIB).

Finance Minister Bill English welcomed the passing of the International Finance Agreements Amendment Bill, saying the decision to join would help build and consolidate New Zealand's economic and political relationships in Asia.

"Our involvement in the negotiations to establish the bank has contributed to the emergence of a genuinely multilateral 21st Century institution with New Zealand continuing to play a useful role including advocating for good governance and high lending standards," English said in a statement.

"Asia is incredibly important to New Zealand's future. The region is full of opportunity for New Zealand and our strong ties with Asian countries mean we are well placed to take advantage of those opportunities."

The AIIB was being established to foster sustainable economic development and to promote regional cooperation and partnership and was expected to begin operation early next year.

New Zealand was the first Western developed country to join negotiations to establish the bank and signed up in June.

New Zealand's paid in capital would be around 125 million NZ dollars (82 million U.S. dollars), paid over five years.

Reactions: Like Like:
4


----------



## ahojunk

*AIIB will introduce anti-graft safeguards*
By Zhang Chunyan (China Daily)
Updated: 2015-11-11 10:27





Jin Liqun, president-designate of the Asian Infrastructure Investment Bank

Bank's chief vows 'zero tolerance' to prevent corruption at new institution

The Asian Infrastructure Investment Bank will set up an ethics integrity department and encourage employees to reports by stamp out corruption, said Jin Liqun, president-designate of the institution.

The bank will launch its first projects in the second quarter of next year, Jin said, adding that projects will focus on electricity, transportation and water supply, as these are in high demand.

Jin vowed to take a "zero tolerance" approach to corruption in the AIIB at a conference organized by the Boao Forum for Asia in London on Monday.

"In the future we will set up an ethics integrity department to inspect corruption," Jin said, adding that the leader of the department must have a good reputation.

"In order to avoid any conflict of interest, we cannot have a Chinese be the leader of the integrity department when the bank president is a Chinese. It does not mean that Chinese officials are not good enough to be in this position, but we need to avoid skepticism."

Jin said that the president cannot fire the leader of the integrity department without providing the board with concrete justification. This is to avoid the president having absolute power; otherwise the leader of the integrity department will not to report improper behavior by the president, Jin said.

Also, employees will be encouraged to report corrupt behavior in the bank, Jin said, adding that once such an infringement is confirmed, the person responsible for it would be disciplined.

The AIIB was proposed by China two years ago and is due to launch by the year's end.

As a former Chinese vice-minister of finance and veteran of development banks such as the Asian Development Bank and the World Bank, Jin was named the inaugural president in August.

The AIIB will be built into a new type of development bank with first-class standards, Jin said. However, he said that "the best international standard" does not equal Western standards.

Taiwan's entry into AIIB was "a domestic affair", Jin said, adding that "family members" can discuss it, and it doesn't require intervention from others.

Reactions: Like Like:
2


----------



## LowPost

*Indian Government Approves Ratification of AIIB Articles of Agreement*

The Indian Cabinet Ministers have approved the ratification of the Articles of Agreement of the Asian Infrastructure Investment Bank (AIIB), the Indian Finance Ministry said in a statement Wednesday.
NEW DELHI (Sputnik) — On Tuesday, the Russian government approved the draft law on ratification of the AIIB Articles of Agreement.


"India is one of the major potential borrowers of AIIB resources. India is the second largest AIIB participant after China. We expect that with India's participation, AIIB will be able to get more resources for the necessary infrastructure development," the statement read.

 
The AIIB, an international financial institution proposed by China to invest in infrastructure projects in the Asia-Pacific region, was created in October 2014 and currently has 57 founding members.

Indian Government Approves Ratification of AIIB Articles of Agreement

Reactions: Like Like:
2


----------



## TaiShang

*BRICS Bank & AIIB to strengthen global financial system - Putin*
Published time: 17 Nov, 2015 09:50





© Alexei Nikolskyi / Reuters

The BRICS New Development Bank and China’s Asian Infrastructure Investment Bank will contribute to the strengthening and stability of the global financial system, according to Russian President Vladimir Putin.

_"Russia is actively participating in the work of the new financial institutions – the BRICS Bank and the Asian Infrastructure Investment Bank. I am sure their activities will help to develop the Asia-Pacific region and will also help to strengthen the global financial system and make it more stable,"_ Putin wrote in an article ahead of the Asia-Pacific Economic Cooperation (APEC) summit in the Philippines.

The President added that Russia is doing its best to establish a proper business environment. Those efforts have already been acknowledged, according to Putin, as over the last four years Russia jumped 69 positions in the World Bank’s “Doing Business” rating, from the 120th place to 51st.

*READ MORE: AIIB and BRICS bank not rivals but complementary – economy minister*

The BRICS New Development Bank (NDB) was established by the five member states – Brazil, Russia, India, China and South Africa – in 2014. Its main goal is to promote sustainable development in BRICS countries. In July the bank opened in Shanghai with startup capital of $50 billion.

The China-led Asian Infrastructure Investment Bank (AIIB) was launched in October 2014 and has 57 countries as its founding members from Asia, Europe, Latin America, Africa and Oceania. The bank will finance infrastructure projects in the Asia-Pacific Region, such as roads, railways, and airports. China has 20.06 percent of the voting share and India 7.5 percent. Russia has the third largest stake with 5.92 percent. The initial capital of the AIIB will be $50 billion and is expected to be increased to $100 billion. The headquarters will be located in Beijing.

Reactions: Like Like:
4


----------



## TaiShang

*AIIB to lend up to US$15b every year, says top official*
December 2, 2015




Jin Liqun, president-designate of the Asian Infrastructure Investment Bank.[Provided to China Daily]


The Asian Infrastructure Investment Bank,* the new international development bank led by China,* plans to lend $10 billion to $15 billion a year for the first five or six years, a top official said on Tuesday.

*The new lender, which will be inaugurated later this month, plans to conduct its first board meeting next month and will support infrastructure development and connectivity in Asia, said Jin Liqun, the president-designate of the AIIB.*

"The bank is neither a Chinese bank nor a bank owned by the Chinese government, but one owned by all participating countries," said Jin in Beijing on Tuesday.

*Jin did not specify any priority projects for the AIIB or the countries that would be the beneficiaries of initial loans, but said around 30 countries are waiting in line for membership and this would increase the bank's capital.*

"There are 50 applicants in the fray for the position of deputy head of the AIIB," said Jin, the former chairman of investment bank China International Capital Corp.

Urging European experts to join the lender, Jin said their services are necessary for the AIIB during the growth phase. Going forward, the AIIB will look to jointly fund infrastructure projects in Europe.

"The AIIB should not be limited to Asian countries, and it can only succeed if European and countries from other continents join," said Jin.

Jin, however, said that the idea of having more members is not because Asia is not up to the job, but rather the emphasis that developed countries, particularly European countries, could share their experiences in running international institutions.

"It is crazy to reject any other countries in the world and not to seek advice in running the bank, and for European countries, joining the AIIB is an opportunity to do different things and do things differently," Jin said.

The United Kingdom applied to join the AIIB as a founding member in March, and this has prompted more European countries to follow suit, he said.

*Suma Chakrabarti, president of the European Bank for Reconstruction and Development, said earlier that the AIIB has important implications for EBRD as the combined strength of the two could allow them to take on much larger projects.*

*EBRD said it is keenly eyeing opportunities to work closely with the AIIB.*

According to Jin, the US dollar would be the operating currency of the AIIB for its convenience while *the bank would also take into consideration financing requests in other currencies, including the yuan.*

In response to doubts and skepticism about the creation of the AIIB and whether it will compete with existing institutions, Jin said each phase of development should have a new type of modern institution to meet the needs of that time, citing examples like the Asian Development Bank set up half a century ago.

Allaying concerns and the harsh, sometimes hostile comments on what China needs to do and whether it was necessary to set up the AIIB, Jin said there is no doubt that Asia's infrastructure development will take off in the next 15 to 20 years.

"It's important to explore the possibilities of a new type of bank and a new approach to deal with the emerging economic and social development issues, as the backlog in Asia's infrastructure development has contributed to a bottleneck in social development, climate change and other serious problems," he said.

The bank has already initiated talks with other institutions, including the ADB and the World Bank, said Jin.

Cyril Muller, former director for banking and debt management in the World Bank Treasury, said in March during the Boao Forum for 2015 Asia Annual Conference that AIIB could learn from previous experience and cooperate with existing organizations.

Reactions: Like Like:
6


----------



## JSCh

*AIIB outlines 5 core areas for investment*
China Daily, 2015-12-04 10:15

The China-led Asian Infrastructure Investment Bank will invest in five major areas during its initial stages－energy, transportation, rural development, urban development and logistics－a top official said on Thursday.

The bank will later expand the investment to other areas such as education and healthcare to promote social development, said Chen Huan, chief officer of the Multilateral Interim Secretariat of AIIB, during the 6th China-South Korea Banking Development Forum in Shanghai.

The scale of project investment and bond issuance will not be huge at first. The bank is planning to issue bonds worth $100 million to $500 million in the first year of operation and is still waiting for approval by the board of directors. It is likely to issue nonrated bonds at the beginning.

Chen told the forum that AIIB is expected to meet the requirements for operation by the end of this month. Twelve of the 57 founding members have approved the bank's charter so far and they account for more than 40 percent of the total capital. India and Russia are likely to approve the charter by the middle of this month.

The mission of the AIIB is to mobilize social capital. The size of investment for an infrastructure project is so huge that the bank has to share the risk with others, he said.

"The policy framework and investment environment is fairly poor in underdeveloped countries and needs improvement. That's why it is necessary to set up an international financial institution like the AIIB. We will go to these countries first to handle the risk and solve the problems associated with government policies, thus guiding commercial banks to participate in the region's infrastructure projects," he said.

Cao Honghui, vice-president of the research institute at China Development Bank Corp, who played an active role in the preparation of the AIIB, said loans will be the major form of investment. However, the lender will not rule out the possibility of setting up investment funds or providing guarantee services and equity investment services at a later date.

Suh Jae-hong, director general for international cooperation of the Financial Services Commission, South Korea's top financial regulator, said it is hard to assess the risk and profitability of infrastructure projects in Asia's emerging markets. Therefore, the Chinese and South Korean banks need to build a strategic cooperative partnership.

Last month, Premier Li Keqiang proposed the establishment of an Asian financial cooperation association at the 18th ASEAN Plus Three Summit in Kuala Lumpur.

Yang Zaiping, executive vice-president of the China Banking Association, told the forum on Thursday that the CBA is authorized to lead preparations for the founding of the Asian financial cooperation association, in the hope that Asia will have a bigger say and greater influence in global finance.

Reactions: Like Like:
6


----------



## Echo_419

TaiShang said:


> *AIIB to lend up to US$15b every year, says top official*
> December 2, 2015
> 
> 
> 
> 
> 
> Jin Liqun, president-designate of the Asian Infrastructure Investment Bank.[Provided to China Daily]
> 
> 
> The Asian Infrastructure Investment Bank,* the new international development bank led by China,* plans to lend $10 billion to $15 billion a year for the first five or six years, a top official said on Tuesday.
> 
> *The new lender, which will be inaugurated later this month, plans to conduct its first board meeting next month and will support infrastructure development and connectivity in Asia, said Jin Liqun, the president-designate of the AIIB.*
> 
> "The bank is neither a Chinese bank nor a bank owned by the Chinese government, but one owned by all participating countries," said Jin in Beijing on Tuesday.
> 
> *Jin did not specify any priority projects for the AIIB or the countries that would be the beneficiaries of initial loans, but said around 30 countries are waiting in line for membership and this would increase the bank's capital.*
> 
> "There are 50 applicants in the fray for the position of deputy head of the AIIB," said Jin, the former chairman of investment bank China International Capital Corp.
> 
> Urging European experts to join the lender, Jin said their services are necessary for the AIIB during the growth phase. Going forward, the AIIB will look to jointly fund infrastructure projects in Europe.
> 
> "The AIIB should not be limited to Asian countries, and it can only succeed if European and countries from other continents join," said Jin.
> 
> Jin, however, said that the idea of having more members is not because Asia is not up to the job, but rather the emphasis that developed countries, particularly European countries, could share their experiences in running international institutions.
> 
> "It is crazy to reject any other countries in the world and not to seek advice in running the bank, and for European countries, joining the AIIB is an opportunity to do different things and do things differently," Jin said.
> 
> The United Kingdom applied to join the AIIB as a founding member in March, and this has prompted more European countries to follow suit, he said.
> 
> *Suma Chakrabarti, president of the European Bank for Reconstruction and Development, said earlier that the AIIB has important implications for EBRD as the combined strength of the two could allow them to take on much larger projects.*
> 
> *EBRD said it is keenly eyeing opportunities to work closely with the AIIB.*
> 
> According to Jin, the US dollar would be the operating currency of the AIIB for its convenience while *the bank would also take into consideration financing requests in other currencies, including the yuan.*
> 
> In response to doubts and skepticism about the creation of the AIIB and whether it will compete with existing institutions, Jin said each phase of development should have a new type of modern institution to meet the needs of that time, citing examples like the Asian Development Bank set up half a century ago.
> 
> Allaying concerns and the harsh, sometimes hostile comments on what China needs to do and whether it was necessary to set up the AIIB, Jin said there is no doubt that Asia's infrastructure development will take off in the next 15 to 20 years.
> 
> "It's important to explore the possibilities of a new type of bank and a new approach to deal with the emerging economic and social development issues, as the backlog in Asia's infrastructure development has contributed to a bottleneck in social development, climate change and other serious problems," he said.
> 
> The bank has already initiated talks with other institutions, including the ADB and the World Bank, said Jin.
> 
> Cyril Muller, former director for banking and debt management in the World Bank Treasury, said in March during the Boao Forum for 2015 Asia Annual Conference that AIIB could learn from previous experience and cooperate with existing organizations.



Brilliant news


----------



## TaiShang

Echo_419 said:


> Brilliant news



So, there seems to be five areas to invest, as @JSCh 's post mentions. These areas clearly reflect the "development" basis of the AIIB.

I wonder who will be the first beneficiaries of the loans and which projects.

Very constructive development.

Reactions: Like Like:
4


----------



## Echo_419

TaiShang said:


> So, there seems to be five areas to invest, as @JSCh 's post mentions. These areas clearly reflect the "development" basis of the AIIB.
> 
> I wonder who will be the first beneficiaries of the loans and which projects.
> 
> Very constructive development.



I hope that the people in charge of issuing loans are not biased.Having said that,I think we will be able to secure a major portion of upcoming loams


----------



## JSCh

*UK says first in G7 to ratify China-backed development bank *
LONDON, Thu Dec 3, 2015 3:00pm GMT

Britain said it had become the first Group of Seven economy to sign off on the rules of a China-backed development bank for Asia, which is seen by the United States as an unwelcome rival to Western-led institutions such as the World Bank.

"This caps a tremendous year for the UK's economic relations with Asia, the fastest growing region of the world economy," British Chancellor George Osborne said in a statement issued on Thursday.

Britain was the first non-Asian country as well as the first from the G7 to ratify the Asian Infrastructure Investment Bank's articles of agreement, he said.

Britain was the first Western nation to join the AIIB earlier this year, prompting other countries to sign up, despite Washington's concerns.

The British government has prioritised developing economic ties with China and welcomed Chinese President Xi Jinping on a state visit in October. But domestic critics said it was placing short-term financial gains above human rights and Britain's longer-term security interests.

The AIIB was launched in Beijing last year to spur transportation, energy, telecommunication and other investment. The United States has previously expressed concerns about whether the AIIB would have sufficiently high standards on governance and environmental and social safeguards.

(Reporting by William Schomberg; Editing by Toby Chopra)

UK says first in G7 to ratify China-backed development bank | Reuters

Reactions: Like Like:
6


----------



## JSCh

*AIIB to invest heavily in infrastructure to interconnect Asia* chinadaily.com.cn 2015-12-16 16:35




Jin Liqun, the president-designate of the AIIB,addresses the the Second World Internet Conference in Wuzhen, East China's Zhejiang province on Wednesday.​
The China-led Asian Infrastructure Investment Bank (AIIB) will invest heavily in infrastructure projects that would help make Asia an interconnected region, Jin Liqun, the president-designate of the AIIB, said Wednesday.

The bank will be officially up and running by the end of this year and its first board meeting will be held in mid Jan, Jin said at the ongoing Second World Internet Conference in Wuzhen, East China's Zhejiang province.

"That marks the first step for the Asian Infrastructure Investment Bank to contribute to the construction of infrastructure facilities that would help build Asia into an interconnected region, including construction of the Internet," Jin said.

The bank will support an international Internet governance system that is multinational, democratic and transparent, according to Jin.

It will also make good use of Internet technologies in selecting infrastructure projects.

"AIIB is committed to using big data to predict all countries' demand for infrastructure and better cater to their needs," said Jin, adding that the bank will invest heavily in the infrastructure projects that would boost connectivity in Asia.

He lauded the role of the Internet in helping develop traditional industries.

The Internet is an important infrastructure to facilitate regional interconnectivity and push forward industrial innovation and integration. The Internet-oriented new economy will activate the traditional economy. Though the traditional industry and infrastructure are indispensable, they can not play their due role without the Internet, Jin said.

Currently the AIIB has 57 prospective founding countries and will have an authorized capital of $100 billion. At the end of June, finance ministers of the founding members gathered in Beijing to sign the AIIB agreement.

Reactions: Like Like:
6


----------



## TaiShang

*AIIB Wins Trust before Opening: AIIB President-Designate*
2015-12-17 






File photo of Jin Liqun, the president-designate of the Asian Infrastructure Investment Bank. [Photo: p-along.com]

The president-designate of the Asian Infrastructure Investment Bank says the lender has earned trust on the international scene.

Jin Liqun made the remarks at the ongoing World Internet Conference, days ahead of the official opening of the new bank.

"When China launched this bank, everyone was concerned that it would be a target that others would attack us. But after two years' preparation, the doubt has been dispelled, because we take other countries' advice and discuss issues based on democracy in the preparation work. We do not boss around, and so we win the trust of others."

*He says the bank will be a lean and clean organization, as digital technology will be used in setting up its structure, helping to prevent corruption.*

The bank has also taken measures to prevent illegal activities launched by terrorists and lawbreakers.

Currently the AIIB has 57 prospective founding countries and will have an authorized capital of 100 billion USD.

It will be officially up and running by the end of this year and its first board meeting will be held in mid-January.

Reactions: Like Like:
5


----------



## JSCh

*Germany becomes AIIB's largest non-regional shareholder*
By Yu Xiaoming(chinadaily.com.cn)
Updated: 2015-12-21 16:30:45






Delegates from 57 member countries attend a signing ceremony of articles of agreement of the Asian Infrastructure Investment Bank (AIIB), at the Great Hall of the People in Beijing, June 29, 2015.[Photo/Agencies]​
Germany, as one of the first partners of the Asian Infrastructure Investment Bank (AIIB), has deposited its instrument of ratification of the bank at the Ministry of Foreign Affairs of China, the German embassy in China said on Monday.

Contributing $4.5 billion, Germany will be the fourth largest capital provider for the AIIB globally and the largest one non-regionally.

Germany will partner with the AIIB closely and attentively concerning the fulfillment of its mandate and tasks, which includes compliance with international standards, the embassy said in a statement.

The executive director from Germany at the AIIB will be based in Beijing, added the embassy.

The AIIB, the new international development bank led by China, currently has 57 prospective founding countries.

With authorized capital of $100 billion, the AIIB will invest in sectors including energy, transportation, urban construction and logistics as well as education and healthcare.

The new lender, which will be inaugurated at the end of this year, plans to lend $10 billion to $15 billion a year for the first five or six years, Jin Liqun, the president-designate of the AIIB, said earlier this month.

Reactions: Like Like:
4


----------



## TaiShang

JSCh said:


> *Germany becomes AIIB's largest non-regional shareholder*
> By Yu Xiaoming(chinadaily.com.cn)
> Updated: 2015-12-21 16:30:45
> 
> 
> 
> 
> 
> 
> Delegates from 57 member countries attend a signing ceremony of articles of agreement of the Asian Infrastructure Investment Bank (AIIB), at the Great Hall of the People in Beijing, June 29, 2015.[Photo/Agencies]​
> Germany, as one of the first partners of the Asian Infrastructure Investment Bank (AIIB), has deposited its instrument of ratification of the bank at the Ministry of Foreign Affairs of China, the German embassy in China said on Monday.
> 
> Contributing $4.5 billion, Germany will be the fourth largest capital provider for the AIIB globally and the largest one non-regionally.
> 
> Germany will partner with the AIIB closely and attentively concerning the fulfillment of its mandate and tasks, which includes compliance with international standards, the embassy said in a statement.
> 
> The executive director from Germany at the AIIB will be based in Beijing, added the embassy.
> 
> The AIIB, the new international development bank led by China, currently has 57 prospective founding countries.
> 
> With authorized capital of $100 billion, the AIIB will invest in sectors including energy, transportation, urban construction and logistics as well as education and healthcare.
> 
> The new lender, which will be inaugurated at the end of this year, plans to lend $10 billion to $15 billion a year for the first five or six years, Jin Liqun, the president-designate of the AIIB, said earlier this month.




？？

I thought UK was to be the largest non-regional shareholder.

@mike2000 is back

Reactions: Like Like:
2


----------



## mike2000 is back

TaiShang said:


> ？？
> 
> I thought UK was to be the largest non-regional shareholder.
> 
> @mike2000 is back



Not really. As far as i know, shares are allocated according to the amount of capital each country allocates to the Bank.
In this regard German has 4.57% shares and 4.15% voting rights Australia has, 3.76% of shares and 3.46% voting rights France has 3.44% shares and 3.19% voting rights. Britain has just 3.11%shares and 2.91% voting rights which is lower than all of the above mentioned Western powers.
You have to note that the U.K was the first major western country(which made all other western countries to follow our lead) to join simply because we wanted to make sure London will be the main trading point of Reminmbi outside Asia/Hong Kong, thus maintaining London's position as the worlds leading global financial center.Which we finally got.
So our Joining was more of symbolic gesture and to strengthen our trade/business/investment relationship.

Reactions: Like Like:
2


----------



## TaiShang

*AIIB formally established in Beijing*
December 25, 2015

The China-initiated Asian Infrastructure Investment Bank (AIIB), a complement to existing international financial system, was formally established Friday in Beijing and expected to start operation early next year.

"The AIIB is legally established as the Articles of Agreement take effect today," said Lou Jiwei, China's Minister of Finance.

The Articles of Agreement outlines the financial share of each founding member as well as rules for policymaking, governance structure, and business and operational systems for the bank. It became effective once the legislatures of 17 members, who hold a combined 50.1 percent stake in the bank, ratified the agreement.

As long as at least 10 signatories, and no less than 50 percent of the capital contribution, obtain legislative approval, the agreement will become effective.

The establishment of the AIIB marks a milestone in the reform of global economic governance system, Lou said.

The AIIB will be operational after board of directors and executive council meet for the first time. The meetings are slated to run from Jan. 16 to 18 in Beijing, according to Lou. The bank's president will be officially appointed and the management team will be in place at the meetings.

The bank will start recruiting new members, Jin Liqun, the bank's president-designate, said in an interview with Xinhua, adding that members of the International Bank for Reconstruction and Development and the Asian Development Bank (ADB) could apply to join the AIIB.

The bank will always be open to new membership, Jin said.

The bank, headquartered in Beijing, now has 57 members.

China, India and Russia are the three largest shareholders, taking a 30.34 percent, 8.52 percent, 6.66 percent stake, respectively. Their voting shares are calculated at 26.06 percent, 7.5 percent and 5.92 percent.

"China is not deliberately seeking a veto power," its stake and voting share in the initial stage are the "natural outcome" of current rules, and may be diluted as more members join, China's Vice Finance Minister Shi Yaobin said in an interview with Xinhua.

As its name suggests, the AIIB will finance infrastructure -- airports, mobile phone towers, railways and roads -- in Asia.

There is a yawning infrastructure funding gap in Asia. The ADB pegged the hole with about 8 trillion U.S. dollars between 2010 and 2020.

While both the ADB and World Bank focus on a broad range of development programs including agriculture, education and gender equality, the AIIB will concentrate on infrastructure alone. The International Monetary Fund, World Bank and ADB have all welcomed the AIIB initiative and see room for collaboration.

With authorized capital of 100 billion dollars, the AIIB will initially prioritize investment in energy, power generation, transportation, rural infrastructure, environmental protection and logistics. It is expected to offer loans to the first batch of projects in mid-2016.

Reactions: Like Like:
4


----------



## ahojunk

TaiShang said:


> *AIIB formally established in Beijing*
> December 25, 2015
> 
> The China-initiated Asian Infrastructure Investment Bank (AIIB), a complement to existing international financial system, was formally established Friday in Beijing and expected to start operation early next year.
> 
> "The AIIB is legally established as the Articles of Agreement take effect today," said Lou Jiwei, China's Minister of Finance.
> 
> The Articles of Agreement outlines the financial share of each founding member as well as rules for policymaking, governance structure, and business and operational systems for the bank. It became effective once the legislatures of 17 members, who hold a combined 50.1 percent stake in the bank, ratified the agreement.
> 
> As long as at least 10 signatories, and no less than 50 percent of the capital contribution, obtain legislative approval, the agreement will become effective.
> 
> The establishment of the AIIB marks a milestone in the reform of global economic governance system, Lou said.
> 
> The AIIB will be operational after board of directors and executive council meet for the first time. The meetings are slated to run from Jan. 16 to 18 in Beijing, according to Lou. The bank's president will be officially appointed and the management team will be in place at the meetings.
> 
> The bank will start recruiting new members, Jin Liqun, the bank's president-designate, said in an interview with Xinhua, adding that members of the International Bank for Reconstruction and Development and the Asian Development Bank (ADB) could apply to join the AIIB.
> 
> The bank will always be open to new membership, Jin said.
> 
> The bank, headquartered in Beijing, now has 57 members.
> 
> China, India and Russia are the three largest shareholders, taking a 30.34 percent, 8.52 percent, 6.66 percent stake, respectively. Their voting shares are calculated at 26.06 percent, 7.5 percent and 5.92 percent.
> 
> "China is not deliberately seeking a veto power," its stake and voting share in the initial stage are the "natural outcome" of current rules, and may be diluted as more members join, China's Vice Finance Minister Shi Yaobin said in an interview with Xinhua.
> 
> As its name suggests, the AIIB will finance infrastructure -- airports, mobile phone towers, railways and roads -- in Asia.
> 
> There is a yawning infrastructure funding gap in Asia. The ADB pegged the hole with about 8 trillion U.S. dollars between 2010 and 2020.
> 
> While both the ADB and World Bank focus on a broad range of development programs including agriculture, education and gender equality, the AIIB will concentrate on infrastructure alone. The International Monetary Fund, World Bank and ADB have all welcomed the AIIB initiative and see room for collaboration.
> 
> With authorized capital of 100 billion dollars, the AIIB will initially prioritize investment in energy, power generation, transportation, rural infrastructure, environmental protection and logistics. It is expected to offer loans to the first batch of projects in mid-2016.


.
This is indeed good news.

More so coming on an auspicious day - Christmas Day!

All the best to the AIIB.

Maybe the next new bank will give more focus to Africa once the AIIB is established and up and running.

Africa needs infrastructure.

Reactions: Like Like:
3


----------



## TaiShang

ahojunk said:


> .
> This is indeed good news.
> 
> More so coming on an auspicious day - Christmas Day!
> 
> All the best to the AIIB.
> 
> Maybe the next new bank will give more focus to Africa once the AIIB is established and up and running.
> 
> Africa needs infrastructure.



Maybe the Silk Road Fund can function like the AIIB and, Africa being one of the routes, provide funds to African nations. In the long run, it is a good investment.

But China needs to be extra cautious, especially in North Africa, because the moment ISIS and the likes kicked out of Syria, they will show up en masse across Africa. The trend is already began as Russia pounds them like there is no tomorrow; they are moving to Libya, Mali and all other terrorist havens created single-handedly by the NATO.

Reactions: Like Like:
4


----------



## JSCh

*AIIB's launch a milestone in global governance reform, to bridge Asia's infrastructure gap*

Xinhua
2015-12-27 08:58
The China-initiated Asian Infrastructure Investment Bank (AIIB) was formally established Friday, marking a milestone in the reform of the global economic governance system as well as in the infrastructure development in the Asia-Pacific region.

Tasked with financing infrastructure construction across Asia, *it took just two years for the bank to develop from an idea on paper to a fully-fledged body with 57 developed and developing nations as prospective founding members.*

Analysts believed the major message behind the AIIB's rapid development is that the establishment of the bank, which upholds high standards and abides by strict regulations, is in line with the best interests of various parties.

Executive Deputy Director-General Zhou Qiangwu of the Asia-Pacific Finance and Development Center -- a think tank funded by the Chinese Ministry of Finance -- said *the rapid and good progress the AIIB has made is partly attributed to China's growing national strength and rising global influence.*

"On the other hand,* it also shows that the government's goal of building the AIIB into an open, transparent and highly-efficient multilateral institution as well as the high standards it is upholding have garnered extensive recognition and strong support across the world," Zhou said.*


*"It is in line with the best interests, and meets the practical needs of various parties," Zhou added.*

Chinese officials have earlier stressed on many occasions that the bank will employ international, normative and high standards in its governance structure, operational policies and human resource management to avoid repeating past mistakes and ensure sound progress in a professional and efficient operation.

The AIIB's establishment was regarded by many analysts as "a milestone event."

The existing global economic governance system has failed to reflect the status quo of the world economy, said Zhou, adding that it has also failed to safeguard the rights and interests the developing countries, including China, deserve, said Zhou.

"The formal launch of the AIIB, which is a late starter in the regional multilateral development institutions, will help accelerate reform of the global economic governance system," Zhou said.

Actually, the "catfish effect" brought about by the establishment of the AIIB has already emerged around the world.

Last week, U.S. Congress approved long-stalled reforms of the International Monetary Fund that will give greater voice to emerging-market countries.

With the rise of the AIIB, the Asian Development Bank (ADB) has also speeded up its paces in financial reforms so as to increase its lending capacity by more efficiently and effectively utilizing its existing resources.

At the 48th ADB Annual Meeting in May, ADB President Takehiko Nakao stressed the need to accelerate reforms and enhance the bank's lending capacity so as to ensure the bank could continue to play a constructive role.

"Now, the AIIB has already become a platform to improve global financial governance system," said Zhang Jianping, director of the International Economic Cooperation Institute of the National Development and Reform Commission.

Meanwhile, the AIIB's establishment will also boost the strength of multilateral development organizations and promote infrastructure development and economic growth in the Asia-Pacific region.

The ADB's 2010 report on the infrastructure needs of 21 Asian economies estimated Asia's infrastructure gap at around 8 trillion U.S. dollars over the period 2010-2020.

"The AIIB will greatly boost infrastructure investment from multilateral development institutions in developing countries and emerging economies, thus promoting their economic growth," Zhou said.

However, analysts also pointed out that the AIIB, while injecting fresh impetus into the global economic governance system and economic development of the Asia-Pacific region, is also faced with many challenges, such as how to keep balance between quality and efficiency.

But Zhou believed the AIIB "will not sacrifice high standards for the needs to develop regional economy."

"Instead, the AIIB will steadily make headway and gradually enhance its lending capacity," Zhou added.

Reactions: Like Like:
7


----------



## JSCh

*Philippines to join AIIB *
2015-12-30 15:48:54

MANILA, Dec. 30 (Xinhua) -- Philippine President Benigno S. Aquino III has approved the country's participation in the China-initiated Asian Infrastructure Investment Bank (AIIB), senior government officials said Wednesday.


Presidential Communications Operations Office Secretary Herminio Coloma Jr. said Aquino gave his go-ahead signal following the recommendation of Finance Secretary Cesar Purisima.

In a separate statement, Purisima said the Philippines will be signing the Articles of Agreement (AOA) of the AIIB before year-end.

The government believes that the AIIB will augment and complement existing multilateral institutions in accelerating economic growth, he said.

"Our shared pursuit of growth and development has only become more challenging as the global environment becomes increasingly complex. We thus welcome platforms where countries can work towards shared development goals in the spirit of partnership," Purisima said.

In a globalized world, connectivity is the name of the game. The AIIB is a "promising institution" addressing investment needs, and will help close financing gaps in many countries, he said.

"I also see this as a chance for greater collaboration with member countries, especially with ASEAN, on regional infrastructure goals," he added.

The Asian Development Bank has estimated Philippine infrastructure financing needs from 2010 through 2020 to be at 127.12 billion U.S. dollars, requiring an annual investment of 11.56 billion U.S. dollars.

The total capital stock of the AIIB is 100 billion U.S. dollars, 20 percent of which is paid-in. The indicative paid-in capital of the Philippines is 196 million U.S. dollars (payable in five years or 39 million U.S. dollars per annum).

"The Philippines has taken the matter of our membership in AIIB very seriously," Purisima said, adding, "We are confident that the Bank's organization design and oversight mechanisms are committed to transparency, independence, openness, and accountability."

"We are likewise optimistic that AIIB's decision-making processes are geared towards making it a lean, clean, green institution run like a true multilateral."

Full powers to sign the AOA on behalf of the Philippines were granted by Aquino to Purisima, or in his absence, Philippine Ambassador to the People's Republic of China Erlina F. Basilio.

"The Philippines stands to gain from signing on as a Founding Member. We can look forward to deepening our country's technical expertise in infrastructure as we expand bankable projects.

"Further, as the AIIB has no restriction on the procurement of goods and services from any country, we may foresee market expansion for infrastructure-related industries, widening job and business growth opportunities," Purisima added.

The opening ceremony and inaugural meeting of the Board of Governors and the Board of Directors in Beijing will take place on the third week of January 2016. Members have until December 2016 to complete domestic ratification and other approval processes, as well as to pay the initial tranche of the corresponding paid-in capital.

Editor: xuxin​

Reactions: Like Like:
8


----------



## ahojunk

What? After all the ruckus kicked up by Noynoy.

What a turnaround, but I am not the least surprised.

Well, money talks & bullsh*t walks.

Noynoy has now come to his senses and is obviously looking at the big picture.

Well done & good job, Mr. Finance Secretary Cesar Purisima.

Reactions: Like Like:
6


----------



## TaiShang

ahojunk said:


> What? After all the ruckus kicked up by Noynoy.
> 
> What a turnaround, but I am not the least surprised.
> 
> Well, money talks & bullsh*t walks.
> 
> Noynoy has now come to his senses and is obviously looking at the big picture.
> 
> Well done & good job, Mr. Finance Secretary Cesar Purisima.



Better late than never. I guess, even after Jan 2016, the door will remain open for new members, although, the process will likely be tougher. This means Taiwan province still has a chance.

Reactions: Like Like:
5


----------



## ahojunk

TaiShang said:


> Better late than never. I guess, even after Jan 2016, the door will remain open for new members, although, the process will likely be tougher. This means Taiwan province still has a chance.


@TaiShang 

I don't think there is any problem for Taiwan joining the AIIB. 

Taiwan just need to propose a suitable name that China agrees, and Taiwan is in.

Reactions: Like Like:
5


----------



## TaiShang

ahojunk said:


> @TaiShang
> 
> I don't think there is any problem for Taiwan joining the AIIB.
> 
> Taiwan just need to propose a suitable name that China agrees, and Taiwan is in.



Yes. But, for some reason, TW resisted the title "Taibei, China" for AIIB although they joined the ADB under the same title -- otherwise Mainland would not allow it to happen.

I guess pre-elections, the issue is put on hold. Afterwards they will consider it because there are interest groups that push for the membership under whatever title. Besides, "Taibei, China" is what Taiwan is all about.

Reactions: Like Like:
4


----------



## JSCh

*Beijing to host 1st AIIB meeting*
Updated: 2016-01-07 /By Zheng Yangpeng (China Daily)

The Asian Infrastructure Investment Bank is to hold its annual meetings in June each year, with the first being convened this year in Beijing, according to a Finance Ministry official.

The meeting will come just five months after the bank becomes formally operational this month, according to the official, who declined to be named.

The first meetings of the bank's board of governors and board of directors, due to be held from Jan 16 to 18, will elect the first president and 12 constituency directors. It will also draw up rules on operations, financing and human resources.

The AIIB's annual meetings will gather governors - usually represented by finance ministers of each founding member. The meetings could also be held in other cities, the official said.

When the $100 billion multilateral lender was formally launched on Dec 25, 17 prospective founding members, representing 50.1 percent of the subscribed capital, had seen their domestic legislatures ratify the bank's charter - a critical condition for the bank to be legally valid.

Since then, another two members, Russia and the Maldives, have approved the charter, with the 19 countries representing 56.77 percent of the subscribed capital.

The other 38 prospective founding members are expected to have the charter - formally known as the Articles of Agreement - approved domestically before the deadline at the end of this year.

Countries that have not formally subscribed to the charter will be allowed to take part in this month's board of governors and directors meetings as observers and constituency representatives.

The AIIB is likely to welcome more countries this year. Nations can join as long as they receive approval from more than half of the governors who hold more than half of the voting rights.

Jin Liqun, president-designate of the bank, wrote in an article published in People's Daily on Tuesday that the first loans are expected to be granted in the second quarter.

Initial priority financing sectors include energy and power, communications, rural development, water supply and treatment, environmental protection and logistics.

Jin said the AIIB is committed to investing in digital infrastructure.

The bank has been born in the information era, so Internet-based innovative thinking and the ability to contribute to information infrastructure will become the bank's "unique advantage".

It can also draw on the experience of established multilateral development banks, giving it another advantage, Jin said.

"The AIIB will seriously study the Chinese government's Internet Plus strategy and the European Union's Digital Single Market initiative as well as other digital initiatives proposed by developing countries," Jin added.

zhengyangpeng@chinadaily.com.cn

*A bank is born*

*October 2013:* President Xi Jinping, in a speech in Jakarta, proposes AIIB as an institution that will finance infrastructure construction and promote regional connections.

*Oct 24, 2014:* 21 Asian countries sign MOU on establishing the bank.

*March 2015:* Britain applies to join AIIB as prospective founding member, followed by France, Italy and Germany.

*April 15:* Number of AIIB prospective founding members finalized at 57.

*June 29:* Delegates from the 57 attend signing ceremony for the Articles of Agreement.

*Dec 25:* AIIB formally established in Beijing as AOA take effect.

Reactions: Like Like:
5


----------



## TaiShang

Inclusive AIIB to boost sustainable growth - China.org.cn

By Zhang Zhouxiang
China Daily, January 15, 2016





Propping up the RMB [By Jiao Haiyang/China.org.cn]


Asian Infrastructure Investment Bank's opening ceremony will start in Beijing on Jan 16.On the eve of the event, China Daily's Zhang Zhouxiang sought the views of three experts on the AIIB's role in the world financial system and its influence on the global economy. Following are excerpts from the interviews:

The AIIB is both inclusive and open, and a global financial institution that believes in equality. That the Philippines joined the AIIB as a founding member on Dec 30, 2015, before the deadline, conclusively proves the bank is indeed open and inclusive, and it will boost development and cooperation in the region and beyond. It is important to note that the Philippines joined the AIIB despite having a maritime dispute with China.

The bank's openness is also reflected in the flexibility for the countries that have not yet ratified the AIIB agreement. More than 17 countries have ratified the AIIB agreement to become formal members, and one cannot rule out the possibility of some countries quitting the institution for not doing so. The AIIB council, however, could accept them as observers while the bank's board of directors might allow their representatives to attend meetings, and both measures will enable them to be part of the AIIB cooperation mechanism in a certain way.

In other words, the AIIB is open and innovative - very different from the US-led Trans-Pacific Partnership Agreement - and will not exclude members from the trading bloc even if they fail to ratify the agreement before the deadline expires.

_Chen Fengying, a senior researcher at the World Economy Research Center, China Institutes of Contemporary International Relations_

The AIIB will play a complementary role to the existing global financial institutions such as the World Bank and the Asian Development Bank, and together they can build a dynamic financial system to support global growth. The AIIB will be cooperative in nature, and its focus will be on infrastructure.

Of course, the AIIB will compete with other financial institutions but for the betterment of all economies. For instance, after China initiated the move to establish the AIIB, the World Bank increased its investment in Indonesia and began paying greater attention to Pakistan. No financial institution wants to lag behind when it comes to common efforts, but the AIIB won't compete with the ADB and World Bank to challenge the existing world financial order.

Besides, the AIIB will help emerging markets enjoy greater say in global financial matters by promoting economic cooperation and sustainable growth.

Although the name Asian Infrastructure Investment Bank suggests the bank's focus will be on Asia, its influence will not be limited to Asia. The AIIB will provide a platform for Asian economies and their partners to work with each other and propel the economic integration of Asia and the regions beyond.

Some Western media outlets have compared the AIIB with the US Marshall Plan, which was aimed at the economic revival of Europe after World War II. The comparison was not heard for some time, but it is being used again as the AIIB's opening ceremony approaches.

*There are fundamental and obvious differences between the AIIB and the Marshall Plan. The AIIB is a formal international institution comprising 57 members that have vowed to work in a cooperative and democratic way. Also, despite floating and executing the idea of the AIIB, China does not seek dominance over the bank or control over other members. In contrast, the Marshall Plan was dominated by the US, and Western European countries got "help" from it instead of "participating" in it.*

Besides, the AIIB will function according to market rules and invest only in programs that have market potential. The AIIB is an open and fair financial institution whereas the Marshall Plan was driven by political interests and imposed strict conditions on the aid-receiving countries.

China has already made it clear that the AIIB will not impose any political conditions on any member. The fact that the Philippines has joined the AIIB in spite of having a maritime dispute with China is the best example of the AIIB's openness and, hence, it is absurd to compare it with the Marshall Plan.

_Xu Hongcai, director of the Department of Economic Research at the China Center for International Economic Exchanges_

Reactions: Like Like:
7


----------



## ahojunk

I like this picture. It says a lot!.

Looks like China is very generous. She is putting money into the AIIB and not borrowing from it. 
I consider Australia to be part of Asia (although some might disagree), and hope that we can borrow some from AIIB for our infrastructure projects.
----------------
*China not currently considering borrowing from its new development bank: state media*






JAN 15, 20161:05 PM

[BEIJING] China is not currently considering borrowing from its new international development bank to bankroll domestic projects, the state-run People's Daily said on Friday.

The comments were made ahead of the bank's opening ceremony in Beijing on Saturday which both President Xi Jinping and Premier Li Keqiang are expected to attend.

The China-backed Asian Infrastructure Investment Bank (AIIB) is focused on helping build infrastructure in other developing countries in Asia, amid a global economic downturn and a lack of infrastructure in the region, the newspaper quoted China's finance minister Lou Jiwei as saying. "China is entitled to receive AIIB loans for projects but when considering that other countries in the region have more pressing needs to develop their infrastructure, China suggests the first priority should not be to fund domestic projects," the mouthpiece of the Chinese Communist Party wrote.

The AIIB will focus on infrastructure projects in Asia, distinguishing itself from other development banks like the World Bank and the Asian Development Bank, which primarily work on poverty alleviation, the newspaper said, adding that the AIIB will complement, rather than compete, with other development banks.

The AIIB is expected to invest US$10 billion to US$15 billion this year and will make its loan facility available in the second quarter of 2016.

REUTERS

Reactions: Like Like:
5


----------



## Bennedict

*RI to propose six projects to AIIB for financing*






Tassia Sipahutar, The Jakarta Post | Business | Fri, January 15 2016, 5:23 PM -

Indonesia will propose six infrastructure projects for financing to the Asian Infrastructure Investment Bank (AIIB), as the China-backed multilateral institution is slated to officially launch operations next week.

According to Finance Minister Bambang Brodjonegoro, the projects to be proposed will focus on several sectors, namely energy, roads and drinking water.

“We are going to propose those projects for the period of 2016 and 2017. Their combined costs exceed US$2 billion. For instance, the energy project is part of [state electricity company] PLN’s work to develop 10,000 megawatts of electricity across the country,” he said on Thursday.

The AIIB is a new multilateral institution comprising 57 member countries, 37 of which are Asian. It was formally established in November 2014, when 22 Asian countries gathered in Beijing, China, to sign a memorandum of understanding on the bank.

Bambang did not disclose the amount of loans that Indonesia planned to borrow, saying that some of the projects would be funded using a co-financing scheme with other multilateral institutions.

He insisted that the membership within the AIIB was key for Indonesia to expand financing options for its various infrastructure projects.

“At present, our funding pool is made up of state budget funds and funds from other multilateral
institutions, such as the World Bank, ADB [Asian Development Bank] and IDB [Islamic Development Bank],” he said.

In 2016, the government set aside Rp 313.5 trillion ($22.59 billion) in the state budget for infrastructure projects, the second largest funding allocation after education.

During his visit to Jakarta in November, AIIB president-designate Jin Liquin said that the institution was committed to supporting the economic development of Indonesia because it had been a very active participant in various negotiations and an active supporter of the new institution.

Meanwhile, Bambang said that even though Indonesia’s stake within the AIIB was rather small, it was able to form a constituency of six countries, including Cambodia, Laos, Maldives, Myanmar and Sri Lanka.

*Indonesia is currently listed as the eighth biggest donor within the AIIB, with paid-up capital of $672 million and a stake of 3.4 percent.*

It has installed Bambang as Indonesia’s governor at the bank and Sofyan Djalil — now head of the National Development Planning Board (Bappenas) — as its alternate governor.

In addition to the governor position, Indonesia has also appointed Andin Hadiyanto, who is expert staff to the Finance Ministry overseeing macroeconomics, as an executive director at the AIIB.

“We are looking to propose other Indonesians to fill in the positions of vice president and director general as well. It’ll make our communications easier,” Bambang said. -

RI to propose six projects to AIIB for financing | The Jakarta Post

Reactions: Like Like:
6


----------



## ahojunk

Indonesia is very quick off the mark! Congrats.

But you have competition. Pakistan is not too far behind, lol.

--------------
Pakistan *Finance minister arrives in China for AIIB meetings*
January 15, 2016






*BEIJING –* Minister for Finance and Economic Affairs Senator Ishaq Dar arrived in Beijing on Friday to attend the inaugural meeting of the Board of Governors of the Asian Infrastructure Investment Bank (AIIB).

The minister will also hold meetings with heads of other banking and financing institutions. Soon after his arrival, the minister had interactive sessions with leading Chinese print and electronic news media.

He shared his views on the prospects of AIIB, the significance the bank for Pakistan as well as the bilateral cooperation between the two countries in the realm of finance and economy.

He also spoke about the China-Pakistan Economic Corridor (CPEC) and its potential to transform the entire region. Talking to Chinese media, Dar said that, while some countries were initially skeptical about AIIB's role, yet Pakistan firmly believed from the very onset that AIIB would play a complementary role and it is a matter of satisfaction for us that AIIB is now a reality.

He said that keeping in view the appetite and demand for infrastructure development in this region, AIIB’s potential to bridge the need and supply gap of fund needed for infrastructure development in this region is tremendous. Since the signing of AIIB MoU to that of articles of agreement, the process has been fairly positive and transparent and international best practices have been followed. The process has taken a number of rounds on consultations.

Reactions: Like Like:
6


----------



## ahojunk

What? Today is Saturday and they are having the opening ceremony!

-----------------
Opening Ceremony of AIIB Launches in Beijing
2016-01-16 13:57:37 | Xinhua | Web Editor: Wang Kun





The opening ceremony of the Asian Infrastructure Investment Bank (AIIB) launches in Beijing, capital of China, Jan. 16, 2016. [Photo: Xinhua]





The opening ceremony of the Asian Infrastructure Investment Bank (AIIB) launches in Beijing, capital of China, Jan. 16, 2016. [Photo: Xinhua]

Reactions: Like Like:
5


----------



## ahojunk

AIIB Office Building Ready for Business

Some pictures of the new AIIB headquarters in Beijing. They were taken on Jan 13, 2016.

Reactions: Like Like:
3


----------



## cirr

ahojunk said:


> AIIB Office Building Ready for Business
> 
> Some pictures of the new AIIB headquarters in Beijing. They were taken on Jan 13, 2016.
> 
> View attachment 287424
> 
> 
> View attachment 287425
> 
> 
> View attachment 287426



Is this AIIB's interim office？

I thought a plot of land to the east of the CPPCC Assembly Hall was chosen for the AIIB‘s headquarters。

Reactions: Like Like:
5


----------



## TaiShang

ahojunk said:


> "China is entitled to receive AIIB loans for projects but when considering that other countries in the region have more pressing needs to develop their infrastructure, China suggests the first priority should not be to fund domestic projects。"



I think what is more significant for China is to take part in those infrastructure projects.



ahojunk said:


> What? Today is Saturday and they are having the opening ceremony!
> 
> -----------------
> Opening Ceremony of AIIB Launches in Beijing
> 2016-01-16 13:57:37 | Xinhua | Web Editor: Wang Kun
> 
> View attachment 287396
> 
> The opening ceremony of the Asian Infrastructure Investment Bank (AIIB) launches in Beijing, capital of China, Jan. 16, 2016. [Photo: Xinhua]
> 
> View attachment 287399
> 
> The opening ceremony of the Asian Infrastructure Investment Bank (AIIB) launches in Beijing, capital of China, Jan. 16, 2016. [Photo: Xinhua]



That was indeed a very speedy development, from the initial idea to actual implementation. The setting of the launch looks very professional. I also liked the logo. It is very obvious that China puts a lot of effort to this project.

Reactions: Like Like:
1


----------



## ahojunk

cirr said:


> Is this AIIB's interim office？
> 
> I thought a plot of land to the east of the CPPCC Assembly Hall was chosen for the AIIB‘s headquarters。


.
If the AIIB has this plot of land, then I would think that this building would be an interim office.

---------
On another topic -

The Taiwan elections confirmed that the DPP won the presidency.

Now, I wonder how the Taiwanese application to join the AIIB will play out.

Reactions: Like Like:
3


----------



## ahojunk

As expected, there is a lot of news on AIIB lately.

-------
*AIIB board of governors holds inaugural meeting*
By Zhang Yue (chinadaily.com.cn)
Updated: 2016-01-16 17:11





_Attendees take smartphone photos of a sculpture following the opening ceremony of the Asian Infrastructure Investment Bank in Beijing, China, Jan 16, 2016. [Photo/Agencies]_

The inaugural meeting of the Board of Governors of the Asian Infrastructure Investment Bank (AIIB) was held at the Diao Yutai guest house on Saturday afternoon. Chinese premier Li Keqiang addressed the meeting.

"The inaugural meeting of the AIIB board of governors means that the AIIB is now officially coming into operation as an Asia-based multilateral finance institution, and this is of great significance in the transition of world economic governance," Li said during the speech.

He said that Asia, as a place with large potential of economic development and which shows vivid momentum of growth, will continue to be the engine of economic development worldwide. As the world economy is still in very weak recovery, Asia should fully play its role as an engine efficiently, which requires countries in Asia to have well-facilitated infrastructure as well as good communication.

During his speech, he mentioned about his meeting with Suma Chakrabarti, president of the European Bank for Reconstruction and Development, on Friday, which also marks China officially joining the EBRD. Li said that such cooperation with other multilateral financial institutions will be increasingly important in the future. The AIIB will also provide a new platform for developing countries to enlarge economic cooperation, and provide better opportunities for North-South cooperation.

Chinese finance minister Lou Jiwei presided over the inaugural meeting. Lou was elected as the AIIB's first chairman of the AIIB board of governors during the AIIB inaugural ceremony in the morning. Indonesian finance minister Bambang P.S. Brodjonegoro and German finance state secretary Thomas Steffen, were both elected vice-chairmen of the AIIB board of governors, and spoke at the meeting.

The inaugural meeting started with a group photo session with the representatives of the 57 founding member countries of AIIB and Premier Li Keqiang. Jin Liqun, the newly elected president of AIIB, signed the cooperation agreement with the Beijing municipal government as the city will be where the AIIB headquarters is located.

The AIIB is designed to have a board of governors, a board of directors, and senior management. The board of governors is the bank's top decision-making body.

Contact the writer at _zhangyue@chinadaily.com.cn_

Reactions: Like Like:
6


----------



## Shotgunner51

ahojunk said:


> As expected, there is a lot of news on AIIB lately.
> 
> -------
> *AIIB board of governors holds inaugural meeting*
> By Zhang Yue (chinadaily.com.cn)
> Updated: 2016-01-16 17:11
> 
> View attachment 287669
> 
> _Attendees take smartphone photos of a sculpture following the opening ceremony of the Asian Infrastructure Investment Bank in Beijing, China, Jan 16, 2016. [Photo/Agencies]_
> 
> The inaugural meeting of the Board of Governors of the Asian Infrastructure Investment Bank (AIIB) was held at the Diao Yutai guest house on Saturday afternoon. Chinese premier Li Keqiang addressed the meeting.
> 
> "The inaugural meeting of the AIIB board of governors means that the AIIB is now officially coming into operation as an Asia-based multilateral finance institution, and this is of great significance in the transition of world economic governance," Li said during the speech.
> 
> He said that Asia, as a place with large potential of economic development and which shows vivid momentum of growth, will continue to be the engine of economic development worldwide. As the world economy is still in very weak recovery, Asia should fully play its role as an engine efficiently, which requires countries in Asia to have well-facilitated infrastructure as well as good communication.
> 
> During his speech, he mentioned about his meeting with Suma Chakrabarti, president of the European Bank for Reconstruction and Development, on Friday, which also marks China officially joining the EBRD. Li said that such cooperation with other multilateral financial institutions will be increasingly important in the future. The AIIB will also provide a new platform for developing countries to enlarge economic cooperation, and provide better opportunities for North-South cooperation.
> 
> Chinese finance minister Lou Jiwei presided over the inaugural meeting. Lou was elected as the AIIB's first chairman of the AIIB board of governors during the AIIB inaugural ceremony in the morning. Indonesian finance minister Bambang P.S. Brodjonegoro and German finance state secretary Thomas Steffen, were both elected vice-chairmen of the AIIB board of governors, and spoke at the meeting.
> 
> The inaugural meeting started with a group photo session with the representatives of the 57 founding member countries of AIIB and Premier Li Keqiang. Jin Liqun, the newly elected president of AIIB, signed the cooperation agreement with the Beijing municipal government as the city will be where the AIIB headquarters is located.
> 
> The AIIB is designed to have a board of governors, a board of directors, and senior management. The board of governors is the bank's top decision-making body.
> 
> Contact the writer at _zhangyue@chinadaily.com.cn_



More pics at the inaugural meeting of board of governors:

Reactions: Like Like:
8


----------



## AndrewJin

Shotgunner51 said:


> More pics at the inaugural meeting of board of governors:
> 
> View attachment 288143
> View attachment 288144
> View attachment 288145


A new era officially begins!

Reactions: Like Like:
9


----------



## ahojunk

*The $100 billion AIIB opens for business: Will China's multilateral ambitions soar or sour?*
19 January 2016 10:42AM

The China-led Asian Infrastructure Investment Bank (AIIB) officially opened for business on 16 January after a sufficient number of countries formally approved the bank’s Articles so it could formally be declared a legal entity.






Chinese President Xi Jinping said the AIIB launch was an ‘historical moment’ and China’s Finance Minister, Lou Jiwei, said it marked the reform of the global economic governance system. An article by Teymoor Babili in Al Jazeera claimed the AIIB would reshape the economic and trading status in Asia.

The establishment of the AIIB is significant, but not because it will soon dominate infrastructure financing in Asia; indeed it plans to lend only US$1.5 billion this year. Rather, its importance lies in the fact that it shows China is increasing its imprint on the global economic order.

When China first proposed the AIIB, it was viewed by some as a challenge to US international economic leadership and the western dominated multilateral development banks (MDBs).

Framing the AIIB in terms of rivalry between the US and China makes a compelling narrative. And the AIIB was a diplomatic disaster for the US when it failed to convince some key allies not to join the bank. But China did not propose the AIIB to challenge the role and significance of the US. It was the ham-fisted US response that turned the issue into a question of US influence.

It is also misleading to view the AIIB as largely the result of China’s dissatisfaction with the slow progress of governance reform in the existing MDBs. China is underrepresented in these banks, it wants a bigger say and is disillusioned with the slow pace of reform. But even if there had been faster progress in reforming the MDBs, China would still have established the AIIB.

It is directly in China’s interests to have a multilateral body focused on Asia’s infrastructure needs. The AIIB has to be seen in the context of President Xi’s signature foreign economic policy; the One Belt, One Road initiative. It is no coincidence that the AIIB was simultaneously announced with One Belt, One Road. Advancing the connectivity between Asia and Europe involves investing in the infrastructure of many countries in Asia,

Viewed in isolation, committing resources to a multilateral bank could be seen to limit China’s freedom to finance infrastructure projects in Asia. But multilateralising financing decisions can insulate China from the political tension and push-back that can come from bilateral financing. Countries may be more accepting to financing from a multilateral institution, even if it led by China, than directly from China. Moreover a high quality multilateral bank will be positive for China’s image in the region.

The irony is that while a large part of the initial reaction to the AIIB was a concern that it would not meet the governance standards of existing MDBs, it is very much in China’s interest to ensure the AIIB truly is a multilateral and not a Chinese dominated institution.

Progress so far in establishing the AIIB has been sound and China deserves credit. The Articles largely mirror those of the other MDBs and the first AIIB President, Jin Liqun, has indicated that the AIIB will be a 'sibling' and not a rival to the other MDBs. It is important that the AIIB meets the standards of the MDBs, particularly in terms of environmental and social safeguards, but this does not mean it has to be a replica of the other banks. AIIB members should use the opportunity provided by the creation of a new bank to demonstrate how the efficiency of the existing MDBs can be improved.

The AIIB President is wisely taking a cautious approach to establishing the bank. It will be under intense international scrutiny and all the credit China has gained will be lost if there is any suggestion that the concerns of those who opposed it were being realised and it was a China dominated body. The AIIB President has appropriately indicated that in its establishment phase the bank will draw on the expertise of the existing MDBs and focus on co-financing arrangements. He has also said the need to attain a high credit rating and issue dollar denominated bonds will initially constrain the AIIB’s leverage ratio and project selection. This is appropriate.

But this conservative approach may mean the AIIB does not expand as fast as China may have hoped. China will have to resist the temptation to seek a dominant influence over a bank it created and is by far the largest shareholder in. 

The success of an MDB depends on the quality, rather than the quantity of its lending. Even with a capital base of $US100 billion, the AIIB can only hope to make a small contribution to meeting Asia’s vast infrastructure needs through direct lending. If the AIIB wants to have a sizeable impact, it should focus on helping countries access private financing. This will involve helping countries enhance their infrastructure project selection and preparation as well as improving their investment environments. The AIIB could make a significant contribution by specialising in accumulating expertise and sharing experience in complex infrastructure investments.

It is important to ensure that the AIIB is a success. If China demonstrates that it can successfully establish and lead a multilateral bank, this may encourage China to take further multilateral initiatives. This would not only be in China’s interest, it would benefit the global economy.

Reactions: Like Like:
4


----------



## TaiShang

I guess this infographics by Global Times has been shared somewhere already. But, it is a nice wrap-up of the AIIB and good to refresh our memories at this point:

Reactions: Like Like:
5


----------



## Gibbs

Great step towards Asian solidarity, Initiated by Beijing.. What are the reasons for the stalling of Taiwan's application though ? And Japan might be missing the ship here

Reactions: Like Like:
2


----------



## Gibbs

Sri Lanka to obtain membership of Asian Infrastructure Bank with USD 268mn | Lanka Business Online






Jan 21, 2016 (LBO) – The Cabinet has approved the draft bill to enable Sri Lanka to obtain the formal membership of the Asian Infrastructure Investment Bank through ratification of the required agreement.

Sri Lanka has signed the agreement as an initial member to establish this bank on 29 June 2015 in Beijing, China.

57 countries comprised of 37 countries in the region and 20 countries out of the region have pledged support for the bank.

The bank will have an authorized capital of 100 billion US dollars which will be contributed 75 percent by regional countries and the balance 25 percent by countries outside the region.

A quota is allocated to each country depending on their GDP. Sri Lanka will have to subscribe to around 268 million US dollars.

*The Cabinet has also approved to join the ‘Group G’ led by Indonesia to form a constituency of the Asian Infrastructure Investment Bank.*

The main objective of the infrastructure bank is to develop infrastructure and to enhance the relationship in the Asian region.

Reactions: Like Like:
2


----------



## ahojunk

This is good. Common sense prevails!

-------
AIIB to Abstain From Involvement in Projects in Disputed Areas - President
00:10 23.01.2016





*The China-led Asian Infrastructure Investment Bank (AIIB) will not be involved in any projects in disputed areas, the bank's head, Jin Liqun, said Friday.*

BEIJING (Sputnik) — The bank president said that the financial institution took decisions on the basis of financial and economic considerations but not political ones.

*"Our articles of the agreement clearly state that AIIB will not participate in any project in disputed areas. We are very attentive to the needs, requirements and interests of borrowing countries that are party to the bank," Jin said.*

AIIB, with 57 founding member countries and $100 in initial capital, is seen as a rival to Western-dominated institutions such as the World Bank and the International Monetary Fund.

The bank formally launched operations on January 16.

Reactions: Like Like:
1


----------



## Echo_419

ahojunk said:


> This is good. Common sense prevails!
> 
> -------
> AIIB to Abstain From Involvement in Projects in Disputed Areas - President
> 00:10 23.01.2016
> 
> View attachment 289121
> 
> *The China-led Asian Infrastructure Investment Bank (AIIB) will not be involved in any projects in disputed areas, the bank's head, Jin Liqun, said Friday.*
> 
> BEIJING (Sputnik) — The bank president said that the financial institution took decisions on the basis of financial and economic considerations but not political ones.
> 
> *"Our articles of the agreement clearly state that AIIB will not participate in any project in disputed areas. We are very attentive to the needs, requirements and interests of borrowing countries that are party to the bank," Jin said.*
> 
> AIIB, with 57 founding member countries and $100 in initial capital, is seen as a rival to Western-dominated institutions such as the World Bank and the International Monetary Fund.
> 
> The bank formally launched operations on January 16.



Very good move


----------



## ahojunk

*China-Led Development Bank AIIB Will be Lean, Clean and Green, Says its President*
*Jin Liqun said the new lender will set itself apart from other similar institutions*






By Lingling Wei
Jan. 22, 2016 11:25 a.m. ET

DAVOS, Switzerland—The president of a new China-led development bank said the lender aims to set itself apart from other similar institutions with a more efficient structure, strong governance and a focus on environmental-friendly projects.

The Asian Infrastructure Investment Bank, which was inaugurated this past weekend, will be “*lean, clean and green*,” said Jin Liqun, head of the bank, at the World Economic Forum on Friday.

The bank, known as the AIIB, is starting out with $100 billion in capital and was conceived a little more than two years ago by Beijing as China’s answer to the World Bank and Asian Development Bank, institutions dominated by Washington and Tokyo, respectively. The bank has delivered a foreign-policy coup for China by attracting 57 founding members, far more than expected, including such U.S. allies as the U.K., Germany, France and Australia.

Chinese officials have said the new bank will complement and improve on, rather than upend, the global order in which it is a stakeholder. Still, many political analysts say a jockeying for influence with Washington has been a main force behind AIIB. The new bank also comes as Chinese President Xi Jinping is ramping up an ambitious plan to finance and build roads, ports and other infrastructure throughout Asia—in an initiative known as One Belt, One Road. Some critics say the bank could be used by Beijing to advance its own goals.

“AIIB was not created to finance One Belt, One Road,” said Mr. Jin, a well-respected former official at China’s Finance Ministry. Still, the lender may find itself providing funding to projects in the same countries as outlined in the One Belt, One Road initiative.

“We do want to strike a proper balance between many countries and sectors,” Mr. Jin added.

As the bank begins its operations, analysts say Mr. Jin, who has also worked at the World Bank and the Asian Development Bank, will need to show it can operate without employing some of the practices that have undercut China’s reputation at home, such as corruption and environmental blight.

“I’m a Chinese national. I’m certainly aware of those concerns,” said Mr. Jin, who speaks flawless English and often quotes Western literature. He pointed to his previous experiences at the Finance Ministry, the World Bank and the Asian Development Bank. During those years, Mr. Jin said, “not a single person in our department was engaged in corruption.”

The bank, which will start out co-financing existing World Bank and Asian Development Bank projects, plans to lend some $1.5 billion this year.

Mr. Jin said AIIB won't be involved in any projects in “disputed areas” and will be “sensitive” to the needs and demands from different countries.

“AIIB is an apolitical institution,” he said. “But to be apolitical, you have to be politically sensitive.”

Reactions: Like Like:
3


----------



## ahojunk

*Jin Says AIIB May Lend $2 Billion, Announce Projects in June*
Bloomberg News 
January 22, 2016 — 8:48 PM AEDT

AIIB plans to raise $300 million to $500 million in bond sales
China-led development bank formally opened Sunday in Beijing
Asian Infrastructure Investment Bank President Jin Liqun said the new China-led institution is planning to lend at least $2 billion to different projects in 2016 and may announce the first batch of investments around June.

The AIIB will seek to raise $300 million to $500 million by selling bonds in April or May, Jin said in an interview Friday on the sidelines of the annual World Economic Forum in Davos, Switzerland.

There are 30 to 40 nations waiting to join the AIIB, which could push membership to about 100 countries from the founding 57, Jin said earlier in a Bloomberg Television interview. He added that it’s not good to push countries to join the lender if they aren’t ready.

Jin worked at the World Bank and the Asian Development Bank on China’s behalf, and was a former monetary policy committee member and supervisory chairman of China’s sovereign wealth fund. The AIIB formally opened its doors this month in Beijing, a key economic milestone for President Xi Jinping and his goal for China to achieve the same great-power status enjoyed by the U.S. The U.S. and Japan haven’t joined AIIB.

Jin said China’s stock market, which is in a bear market for the second time in seven months, needs to be broader and deeper. He said the country is moving to a new stage of development and must deal with that challenge after 35 years of fast economic growth.

The U.S. economy is "picking up," Jin said, and it wasn’t a mistake for the Federal Reserve to raise interest rates last month after keeping them near zero for seven years.

Reactions: Like Like:
4


----------



## ahojunk



Reactions: Like Like:
2


----------



## ahojunk

These 2 infographics give a pretty good summary of AIIB.

Reactions: Like Like:
3


----------



## LowPost

*New China-led bank 'will be inclusive'*

*President of AIIB says Beijing will not use veto power and pledges 'lean, clean and green' governance*

Jin Liqun often starts work at 7 am and leaves the office at 7 pm. After a grueling day's work, he has dinner and walks for an hour in a park beside his Beijing home.

And he is still not done. He then burns the midnight oil, reading documents before bed.

No wonder travel provides some relief. The 67-year-old says he retires to his hotel room soon after the day's work is done and indulges in what he calls a luxury: Adequate sleep.

"Having enough sleep is crucial to staying healthy while working under tremendous work pressure," said Jin, president of the newly established 57-member Asian Infrastructure Investment Bank during a recent interview with China Daily at the annual meeting of World Economic Forum in Davos.

While preparing for the launch of China-led AIIB, Jin says he read every word in all the documents written by experts and gave his opinion.

"Some may say I like micromanagement but at the first stage of launching such an institution, I have to know every detail. Once we put our articles of agreement, policies, regulations and sound governance in place, we can rely on professionals for implementation."

While absorbing the experiences and lessons in conceptualizing President Xi Jinping's idea of setting up a multilateral development bank, Jin says the AIIB is in many ways different from the World Bank and the Asian Development Bank, where he has a long track record.

First, Jin says, the AIIB is inclusive and open, and China has no intention of exercising its "veto power" despite the fact that it has that right because of the country's economic size and shareholding.

"There are still many countries on the waiting list (to join the bank) and when the new members come in, China's voting power will be diluted. As such, the de facto veto power will be gone over time," says Jin.

AIIB was set up in January in Beijing after two years of negotiations to decide membership, governance structure and basic policy stance. Members agreed on crucial decision-making processes by introducing a "fixed" special majority, which consists of two-thirds of the members representing three-fourths of voting rights.

China, the largest AIIB shareholder, has 26.6 percent of voting rights, which are determined by the size of its economy, says Jin. "We will not increase the special majority to just keep China's veto power intact."

Jin says this is a major difference compared with older institutions such as the World Bank, in which the United States has always retained veto power by amending the articles of agreement, increasing the special majority when its voting power went down as new members joined.

When the World Bank began operations, the US had 25 percent voting rights, which gave it veto power. And when the voting rights decreased to 20 percent, the World Bank increased the special majority to 81 percent. And now with its voting rights at 16.6 percent, the special majority is 85 so that the US continues to wield veto power.

"In the new era of changing international circumstances, China should not approach it this way," says Jin. "This is how China shows its sincerity."

To show the bank's inclusiveness and openness, Jin says, China always asks three questions to frame the mechanisms for decision-making.

"If most of the shareholders don't like it, why do you insist? If most of the countries oppose it, why do you want to do it? And if most countries like it, why do you oppose it?"

Jin says when China mooted the idea of setting up the AIIB, there were many doubts and concerns, but it is now welcomed by many countries. "This is the process of China gaining credibility and building up mutual trust by collective consultation and making decisions through democratic approaches."

He says the inauguration of the AIIB is just the first step in a long journey, and the most important thing is to turn plans into reality by meeting the infrastructural demands of countries in need.

He says the AIIB aims to recruit 100-150 professionals worldwide this year. "There is no rush to expand and we need to hunt for qualified talent and experts carefully. The AIIB currently has about 50 staff members.

Emphasizing his concept of keeping AIIB being "lean, clean and green", Jin says the bank is determined to cut red tape and reduce bureaucracy.

Unlike the World Bank or the Asian Development Bank, which sometimes set up offices in countries where they are involved, the AIIB will borrow from the experience of the private sector and assign experts and staff for each project.

"When there are projects in a country, we send our staff; and when the projects finish, we leave."

When the number of projects increases in a region or country, Jin says it is likely the bank will set up a regional hub or liaison office. "But we will avoid duplication between headquarters and regional hubs in decision-making."

Jin also stresses that the institution will have zero tolerance toward corruption, even with some doubting whether it is possible to achieve that in a China-led multilateral development bank.

According to him, one Western stereotype goes this way: If there is corruption in other institutions, they say, "well, it happens". And if it happens in a China-led institution, they say, "I told you so".

Jin says not everybody or every organization is corrupt.

For example, he says, after his stint in the Work Bank in the 1990s, he started to supervise $50 billion worth of projects financed by the World Bank and the ADB.

"There was not a single case of corruption when I was in charge of those projects. First of all, I myself must be clean and then I can ask others to follow."

http://europe.chinadaily.com.cn/business/2016-01/29/content_23315088_3.htm

Reactions: Like Like:
4


----------



## ahojunk

_5 vice presidents with two from Europe, why?_

---------
AIIB appoints senior leadership team
2016-02-05 16:15 | Xinhua | Editor: Gu Liping

The Asian Infrastructure Investment Bank (AIIB) appointed five vice presidents with work experience in both developed and emerging economies as well as multilateral institutions on Friday.

The new development bank appointed Danny Alexander, who was chief secretary to the UK Treasury from 2010 to 2015, as vice president and corporate secretary, according to an AIIB press release.

Kyttack Hong, chairman and CEO of the Korea Development Bank, will serve as vice president and chief risk officer.

D.J. Pandian, another vice president who had an extensive career spanning 30 years with the Indian Administrative Services, will also be the bank's chief investment officer.

Joachim von Amsberg, currently vice president of development finance at the World Bank, will serve as the AIIB's vice president of policy and strategy.

The bank also appointed Luky Eko Wuryanto, who has served in senior positions in the Indonesian government for 20 years, as vice president and chief administration officer.

AIIB President Jin Liqun, former vice finance minister of China, said the leadership team is "an exceptionally strong and committed group who will bring wide and varied experience and a wealth of expertise that will serve the bank well".

Proposed by China, the AIIB aims to support infrastructure projects in Asia and has 57 prospective founding members with an authorized capital of 100 billion U.S. dollars.

The bank was formally established in Beijing in December 2015 and started operation in January. Chinese Finance Minister Lou Jiwei was elected as the first chairman of the AIIB board of governors.

Reactions: Like Like:
2


----------



## TaiShang

ahojunk said:


> _5 vice presidents with two from Europe, why?_
> 
> ---------
> AIIB appoints senior leadership team
> 2016-02-05 16:15 | Xinhua | Editor: Gu Liping
> 
> The Asian Infrastructure Investment Bank (AIIB) appointed five vice presidents with work experience in both developed and emerging economies as well as multilateral institutions on Friday.
> 
> The new development bank appointed Danny Alexander, who was chief secretary to the UK Treasury from 2010 to 2015, as vice president and corporate secretary, according to an AIIB press release.
> 
> Kyttack Hong, chairman and CEO of the Korea Development Bank, will serve as vice president and chief risk officer.
> 
> D.J. Pandian, another vice president who had an extensive career spanning 30 years with the Indian Administrative Services, will also be the bank's chief investment officer.
> 
> Joachim von Amsberg, currently vice president of development finance at the World Bank, will serve as the AIIB's vice president of policy and strategy.
> 
> The bank also appointed Luky Eko Wuryanto, who has served in senior positions in the Indonesian government for 20 years, as vice president and chief administration officer.
> 
> AIIB President Jin Liqun, former vice finance minister of China, said the leadership team is "an exceptionally strong and committed group who will bring wide and varied experience and a wealth of expertise that will serve the bank well".
> 
> Proposed by China, the AIIB aims to support infrastructure projects in Asia and has 57 prospective founding members with an authorized capital of 100 billion U.S. dollars.
> 
> The bank was formally established in Beijing in December 2015 and started operation in January. Chinese Finance Minister Lou Jiwei was elected as the first chairman of the AIIB board of governors.




I think China really wants to get Europe involved because the OBOR is essentially a Eurasianist project and the AIIB is an important leg of it.

***

*China vows win-win cooperation between OBOR, Juncker plan *
Xinhua, February 18, 2016

China vowed to take efforts with Europe to make the synergies between the country's ambitious One Belt One Road (OBOR) initiative and the EU's (European Union) 315-billion-euro investment plan a win-win cooperation.

"It is highly encouraging that China and the EU are getting to grips with the enormous possibilities and opportunities presented by the One Belt One Road initiative," Yang Yanyi, head of Chinese Mission to the EU, told Xinhua.

The "Belt and Road" initiative, proposed by Chinese President Xi Jinping in 2013, was widely viewed as a major strategic move for China as it seeks to link China with Europe through central and western Asia via the New Silk Road Economic Belt and connect China with southeast Asian countries, Africa and Europe through the 21st Century Maritime Silk Road.

China and the EU declared to build synergies between the initiative and the European Commission President Jean-Claude Juncker's investment plan during the seventeenth China-EU summit in last June. Three months later during a high-level economic dialogue, Brussels announced that China became the first non-EU country to announce contribution to the Juncker Plan.

This year continued to witness progress on cooperation between the two projects, particularly in prioritized areas including connectivity, financing and digital economy, Yang told a workshop in European Parliament on Wednesday.

With infrastructure as a part of great significance both in One Belt One Road initiative and the Juncker Plan, Beijing and Brussels agreed to further improve their infrastructure links.

In January, the first working group meeting of China-EU connectivity Platform was convened as a follow-up to the MOU on the establishment of EU-China connectivity platform.

They agreed to share information, promote seamless traffic flows and transport facilitation, develop synergies between relevant initiatives and projects, identify cooperation opportunities between respective policies and sources of funding.

The two sides will work to "actively explore business and investment opportunities" and create a favorable environment for sustainable and inter-operable cross-border infrastructure networks in countries and regions between China and the EU, said Yang.

On financing, China has already made public and motivated its interest in participating in the European Fund for Strategic Investment, a core fund worth up to 21 billion euros functioning as the main channel to mobilize the Juncker Plan.

The two sides have so far held three meetings of technical working group on China-EU Cooperation on Investment. During the latest one in January, experts from China's Silk Road Fund, designed in part to foster investment in countries under the One Belt One Road initiative, the European Commission, and the European Investment Bank exchanged views on co-investment vehicle.

"Both sides are committed to developing concrete opportunities for China to invest in the investment plan for Europe," the ambassador said.

On digital economy, the two sides sought to achieve a better synergy between Europe's digital agenda and China's Internet Plus strategy and to benefit the 1.1 billion Internet users in both China and the EU.

They signed a key partnership on 5G telecommunications in September and now, according to Yang, were taking steps to deepen dialogues and cooperation in areas of information and communications technology.

Yang said China's One Belt One Road initiative was "very straightforward", aiming to forge closer economic ties, deepen co-operation and expand development in the Eurasian region, and build a community of common interest.

Under this initiative, "either building a network of road or high speed rail will not just be a matter of financing, rather it calls for local players, communities, national and local governments to participate meaningfully and in a way," Yang noted.

Thus, "only a shared sense of dignity and collectivism could underpin the mutual benefit and trust that promotes sustainable long term cooperation in any domain."

The ambassador called for joint efforts from the EU side for further cooperation. "Only through win-win cooperation can we make big and sustainable achievements that are beneficial to all," she said.

Reactions: Like Like:
2


----------



## ahojunk

*Poland to invest hundreds of millions into AIIB*
February 25, 2016







The Sejm has completed the first reading of a bill ratifying the creation of the Asian Infrastructure Investment Bank (AIIB). No MP declared any objections to the bill, paving the way for Poland to fully participate in its formation.

The Bank is a new Chinese initiative, designed to be an alternative for international financial institutions dominated by the USA, such as the IMF or the World Bank. It will simultaneously act as an engine for infrastructural investments and the economic development of China. Along with 56 other countries, Poland signed a deal on the June 29, 2015 declaring that it would engage in the bank’s creation.

Vice-minister of Foreign Affairs Katarzyna Kacprzyk told the members of the Sejm that “the decision to involve Poland in this undertaking was supported by a thorough analysis,” which showed that the deal would be beneficial for Poland. She also added that the establishment of the bank would help strengthen relations between China and Poland as well as other Asian countries, giving Polish businesses more opportunities to expand in those regions.

The AIIB’s capital is to amount to $100 billion; each individual country’s contribution will depend on its GDP and the purchasing power of its currency.

Reactions: Like Like:
4


----------



## TaiShang

*AIIB will address Taiwan's membership bid under 'One China' principle*
Xinhua, April 13, 2016

The Chinese mainland said Wednesday that the Asian Infrastructure Investment Bank (AIIB) would address the issue of Taiwan's membership request under the "One China" principle.

An Fengshan, spokesperson of the Taiwan Affairs Office of the State Council, made the remarks at a regular press conference on Wednesday.

At the same briefing, when answering a question about the decision by Taiwan's legislature authority to delete an article that prohibited the alteration, deletion or defacing of travel documents it issued, An said the Chinese mainland had already made clear that it opposed all "Taiwan independence" secessionist activities.

Reactions: Like Like:
2


----------



## TaiShang

*ADB official joins AIIB *
Xinhua, April 15, 2016

The Asian Infrastructure Investment Bank (AIIB) has appointed Hamid Sharif, an official of the Asian Development Bank (ADB), as the first Director General of compliance, effectiveness and integrity (CEI).

"I am delighted to announce Mr. Sharif's appointment to this important leadership position," AIIB President Jin Liqun said in a statement on Thursday.

"The CEI Unit plays a fundamental role in the Bank's governance and Mr. Sharif brings with him more than two decades of rich experience in the public and private sectors," Jin said.

The Director General of the CEI Unit reports to the Board of Directors of AIIB. The CEI Unit's mandate includes monitoring and evaluating the Bank's portfolio, ensuring policy compliance, and overseeing internal and external grievance procedures.

Sharif is currently ADB country director for China where he oversees a 10 billion U.S. dollar investment portfolio.

Reactions: Like Like:
2


----------



## ahojunk

*World Bank joins AIIB on financing for joint projects*
2016-04-14 08:56 | Xinhua | Editor:Li Yan

World Bank and the AIIB on Wednesday signed the first co-financing framework agreement, paving the way for their cooperation on joint projects this year. 





World Bank President Jim Yong Kim (R) and Asian Infrastructure Investment Bank (AIIB) President Jin Liqun sign the first co-financing framework agreement at the headquarters of World Bank in Washington D.C., the United States, April 13, 2016. (Photo: Xinhua/Yin Bogu)

Reactions: Like Like:
3


----------



## TaiShang

*AIIB, ADB Sign MOU on Cooperation*
2016-05-02






A photo taken on Jan. 13, 2016 shows a logo carved on a stone outside the office building of the Asian Infrastructure Investment Bank (AIIB) in Beijing. Photos of the newly decorated office building were released on Jan. 13, 2016. The unveiling ceremony is scheduled to be held between Jan. 16 and 18 in Beijing. [Photo: CFP]

*The Asian Infrastructure Investment Bank (AIIB) and Asian Development Bank (ADB) on Monday signed a memorandum of understanding (MOU) to strengthen cooperation*, the AIIB said in a statement.

The two financial institutions inked the MOU in the German city of Frankfurt, where the ADB is holding its 49th annual meeting of its board of governors.

*The agreement sets the stage for jointly-financed projects.* Discussions have already begun about the co-financing of road and water projects.

*The first of these projects is expected to be Pakistan's M4 highway, a 64-kilometer motorway connecting Shorkot to Khanewal in Punjab Province, according to the statement.*

AIIB and ADB agreed to strengthen co-operation, including co-financing, at the strategic and technical levels on the basis of "complementarity, value added, institutional strengths and comparative advantages, and mutual benefit," according to the MOU.

"I am delighted to take a further step forward in our partnership with ADB," AIIB president Jin Liqun said. "AIIB looks forward to deepening our already strong relationship and expanding our collaboration as we seek to address the significant infrastructure financing needs in the Asia region."

"ADB has been working closely with AIIB throughout its establishment process. We will further strengthen cooperation in the areas of sustainable growth, poverty reduction, and combatting climate change," said ADB president Takehiko Nakao.

Through co-financing, knowledge transfer, and joint policy dialogues with member countries, the two institutions will work together across the areas of energy, transportation, telecoms, rural and agriculture development, water, urban development, and environmental protection.

The two institutions will undertake regular high-level consultations and data collection to implement the Sustainable Development Goals and the COP21 climate agreement, according to the statement.

AIIB, located in Beijing, was formally established in Beijing in December last year and started operation in January.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.

*Established in 1966, ADB is owned by 67 members -- 48 from the region. In 2015, ADB assistance totaled 27.2 billion U.S. dollars, including co-financing of 10.7 billion U.S. dollars. *

Reactions: Like Like:
4


----------



## TaiShang

*EBRD, AIIB deepen cooperation with MOU*
Xinhua, May 12, 2016

The Asian Infrastructure Investment Bank (AIIB) and the European Bank for Reconstruction and Development (EBRD) agreed on Wednesday to deepen cooperation between their two organizations.

The two development banks signed a Memorandum of Understanding (MOU) at the EBRD's annual meeting here.

Under the MOU, the banks agree to deepen their promotion of economic development and investment in countries where both are active.

*The EBRD said in a statement that it had been a strong supporter of the AIIB from its inception and shared with the AIIB its experiences in such areas as investment processes and the development of infrastructure and energy projects.*

The EBRD statement quoted AIIB President Jin Liqun as saying: "Today we take another important step forward in deepening our collaboration with the EBRD, aiming to address the significant funding needs for infrastructure investment across Asia and the rest of the world. We... look forward to continuing to build on this meaningful partnership."

EBRD President Sir Suma Chakrabarti said: "I very much welcome the role that the AIIB will play in helping to narrow the huge infrastructure investment gap that emerging economies face. We have already built up close ties with the AIIB and shared our own experiences. I now look forward to strengthening this association and working together on joint projects."

The MOU notes cooperation will take place in the form of regular dialogue at the level of senior management, exchanges of information on respective policies and strategies and on activities in common areas where the banks invest.

*The two institutions have already started cooperation, according to the EBRD statement. The first joint project, a road linking Dushanbe, Tajikistan, with the Uzbek border, will form part of the east-west highway in Central Asia.*

*The EBRD board of directors has just approved the project for financing, and the AIIB board is expected to consider AIIB financing in June, the statement said.*

The two banks are currently considering other joint infrastructure projects in Central Asia, it added.

Reactions: Like Like:
1


----------



## ahojunk

It is very good to see Russia playing an active role in AIIB.

--------------------------
*Putin invites AIIB to participate in Russian projects*
Thu May 19, 2016 8:46 AM





_Russian President Vladimir Putin invited the China-led Asian Infrastructure Investment Bank (AIIB) to take up projects in Russia._

*Russian President Vladimir Putin invited the Asian Infrastructure Investment Bank (AIIB) to participate in the development of national projects in Russia*.

“We can offer a number of projects: railway system expansion, developing infrastructure along the Northern Sea Route and in special economic zones of the [Russian] Far East,” said Putin at a meeting with the AIIB President Jin Liqun on Wednesday.

The Russian President also expressed the hope that the AIIB would play an important role in the global financial system complementing the International Monetary Fund (IMF).

The AIIB head came to Sochi to take part in the ASEAN-Russia Summit that will be held on May 19-20.

China officially launched the AIIB in January – a bank which is seen as an emerging rival to powerful Western-led financial institutions such as the World Bank, the Asian Development Bank and the International Monetary Fund.

The AIIB – that was founded in October 2014 - is part of Beijing’s efforts to change the unwritten rules of global development finance.

It was created to invest in infrastructure projects in the Asia-Pacific region. In October 2014, the Articles of Agreement establishing the bank were signed by 21 states.

The China-led bank has 57 members from Asia, Europe, Latin America, Africa and Oceania. Along with China, India and Russia have received the largest share of votes on the board of directors.

Despite opposition from Washington, many US allies including Australia, Britain, German, Italy, the Philippines and South Korea have agreed to join the AIIB in recognition of China's growing economic clout.

Authorities have said that the bank aims to provide financial facilities for a chain of development projects including the construction of dams, ports, power plants and telecommunications networks across Asia.

The AIIB is headquartered in Beijing and its lean structure will be overseen by an unpaid, non-resident board of directors which, architects say, would save it money and friction in decision-making.


----------



## TaiShang

ahojunk said:


> The AIIB head came to Sochi to take part in the ASEAN-Russia Summit that will be held on May 19-20.



AIIB's participation in regional forums is very critical to render the institution a regional and international one.

AIIB should indeed prioritize Russia in order both to explore the immense investment potential in the Northeastern parts of the country and to send a clear message to the US and its minions who are hopelessly trying to coerce Russia into submission by unilaterally levying sanctions.

Any sanction against Russia should have been ratified by a UNSC resolution (where Russia is a permanent member); otherwise, it is unilateral and illegal.

Reactions: Like Like:
1


----------



## ahojunk

Change of government in Canada, hence the change in attitude and policy. The new Canadian government realizes that "money talks, bullsh*t walks" ..... 
It's better late than never. But Canada has to wait for an invitation to join. 

---------------------
*Canada ‘actively considering’ another crack at joining the AIIB, Asia’s burgeoning banking giant*
Gordon Isfeld | May 23, 2016 1:18 PM ET





_Canada will have to wait for a formal invitation from Asian International Investment Bank because the previous Conservative government did not commit to joining the fledgling investment organization before the original deadline._

OTTAWA – Reading between the lines, it’s clear to see in recent statements by government officials that Canada is close to joining the Asian International Investment Bank — the newest, and one of the largest, money lenders for global development. 

Finance Minister Bill Morneau acknowledged as much over the weekend as he and his Group of Seven counterparts wrapped up their economic summit in Sendai, Japan. While not confirming an agreement was all but done, Morneau said Ottawa has “a positive perspective on the impact that it (the AIIB) can have on infrastructure investment and the impact on the global economy.”

“I think we’re waiting for the bank to take the next step, and we’re actively considering our position and see the positive outcomes that this new bank can have for the economy,” the minister told Canadian reporters in a weekend conference call.

The federal government has been monitoring the growing number of members of the Beijing-based investment bank, in the works since 2013 but only officially launched at the start of this year with almost 60 country members. 

The AIIB — seen as a possible financing competitor for the Washington-based International Monetary Fund and the Paris-based Organization for Economic Development and Co-operation — will hold its inaugural annual general meeting June 25 and 26 in Beijing.

The previous Conservative government did not commit to joining the fledgling investment organization before the original deadline. Now, Canada will need to wait for a formal invitation — something that could be issued during or shortly after the June AGM.

The new Liberal government sees the AIIB as a “positive force for infrastructure investment … and as the bank considers its possibility for inviting other members, we’ll come forward with our decision,” Morneau said.

“I can tell you one thing that came up clearly in those meetings (in Sendai) is the importance of the Asia Pacific region,” he added.

“These meetings, for us, are a very positive opportunity to demonstrate our leadership on important international issues — but also to send a message to our G7 colleagues that Canada is back, that we’re engaged and we want to be a global leader. It is, for us, also a good opportunity to promote our trade and investment goals in Canada and our … important strong relationship with the Asia Pacific region.”

Morneau added that the region is “a fast-growing partner for Canada,” with two-way trade amounting to $170 billion a year. “Our goal, of course, is to create new markets for Canadian-made goods and help consumers with better selection.”

“We’re looking forward to strengthening our relationships and our partnerships in the Asia Pacific region,” he told reporters in the conference call.

Chrystia Freeland, Canada’s minister of international trade, said in a recent speech that it was “very clear” that not joining the AIIB earlier “was a lost opportunity of the previous government.”

The Finance Department, in a statement in mid-May, emphasized that the government is “giving careful consideration to joining the Asian Infrastructure Investment Bank.”

However, the department said, the AIIB “has yet to formally indicate that it is accepting new members.”

Reactions: Like Like:
3


----------



## ahojunk

EIB president visits China to strengthen ties on climate change, AIIB
By Liang Linlin, Shuai Rong

BRUSSELS, May 27 (Xinhua) -- The European Investment Bank (EIB) President Werner Hoyer embarked on a five-day visit to China on Thursday, seeking to enhance cooperation on addressing climate change and strengthen ties with the Asian Infrastructure Investment Bank (AIIB).

The trip marks the first visit to China by a president of the Europe's long-term lending institution since 2007, the EIB said in a statement, adding that the key focus of the visit is to strengthen partnership with China to better tackle climate change.

"Tackling climate change is a global challenge and since 2010 has been the main focus of the European Investment Bank's engagement in China. China is a key partner for the EU's bank and together we look forward to achieving our common goals in the years ahead," Hoyer was quoted as saying ahead of the visit.

The EIB believed Hoyer's visit would enable the bank and its Chinese partners to strengthen cooperation to support crucial investment in China, according to the statement. The EIB will work with the Chinese side to back climate-related investment, Hoyer was quoted as saying in the statement.

The EIB is the world's largest lender for climate-related investment and a global leader in issuing green bonds.It provided 20.6 billion euros (23.05 billion U.S. dollars) for climate-related project worldwide in 2015, according to figures released by the EIB.

Last year, EIB support for climate finance outside Europe represented 30 percent of overall lending, and the EIB said it is committed to raise the share of climate financing outside the EU in developing countries to 35 percent by 2020.

ENHANCING TIES WITH AIIB

On the agenda is also enhancing relations with the AIIB, the China-initiated multilateral bank joined by more than 10 European countries. During the trip, the EIB is expected to ensure frequent, regular and strategic dialogues with the AIIB.

The two sides have worked "closely" during AIIB's creation, Hoyer told Xinhua during an interview, adding he was impressed by China's openness when consulting with the EIB on technical and financial experience.

The EIB will work with AIIB to streamline joint financing of projects, it said.

The EIB has its permanent representative in Beijing with an office operating for years.

Chinese Mission to the EU said China and Europe have accelerated their financial cooperation under the Belt and Road Initiative and the European Investment Plan since the start of this year.

The two sides have held technical working group meetings on investment cooperation with EIB experts involved.

China proposed to launch the Belt and Road Initiative in 2013, seeking to link the country with Europe through central and western Asia via the Silk Road Economic Belt and connect China with southeast Asian countries, Africa and Europe through the 21st Century Maritime Silk Road.

As infrastructure construction forged a vital part of the initiative, Beijing launched the establishment of the AIIB, a complement to the existing international financial system focusing on infrastructure investment. The bank started operation in January.

The European Commission, the bloc's executive body, launched the European Investment Plan in November 2014, aiming to boost Europe's economy and help decrease the jobless rate. China became the first non-EU country to announce its contribution to the plan in September 2015.

Reactions: Like Like:
2


----------



## TaiShang

ahojunk said:


> Change of government in Canada, hence the change in attitude and policy. The new Canadian government realizes that "money talks, bullsh*t walks" .....
> It's better late than never. But Canada has to wait for an invitation to join.
> 
> ---------------------
> *Canada ‘actively considering’ another crack at joining the AIIB, Asia’s burgeoning banking giant*
> Gordon Isfeld | May 23, 2016 1:18 PM ET
> 
> View attachment 307323
> 
> _Canada will have to wait for a formal invitation from Asian International Investment Bank because the previous Conservative government did not commit to joining the fledgling investment organization before the original deadline._
> 
> OTTAWA – Reading between the lines, it’s clear to see in recent statements by government officials that Canada is close to joining the Asian International Investment Bank — the newest, and one of the largest, money lenders for global development.
> 
> Finance Minister Bill Morneau acknowledged as much over the weekend as he and his Group of Seven counterparts wrapped up their economic summit in Sendai, Japan. While not confirming an agreement was all but done, Morneau said Ottawa has “a positive perspective on the impact that it (the AIIB) can have on infrastructure investment and the impact on the global economy.”
> 
> “I think we’re waiting for the bank to take the next step, and we’re actively considering our position and see the positive outcomes that this new bank can have for the economy,” the minister told Canadian reporters in a weekend conference call.
> 
> The federal government has been monitoring the growing number of members of the Beijing-based investment bank, in the works since 2013 but only officially launched at the start of this year with almost 60 country members.
> 
> The AIIB — seen as a possible financing competitor for the Washington-based International Monetary Fund and the Paris-based Organization for Economic Development and Co-operation — will hold its inaugural annual general meeting June 25 and 26 in Beijing.
> 
> The previous Conservative government did not commit to joining the fledgling investment organization before the original deadline. Now, Canada will need to wait for a formal invitation — something that could be issued during or shortly after the June AGM.
> 
> The new Liberal government sees the AIIB as a “positive force for infrastructure investment … and as the bank considers its possibility for inviting other members, we’ll come forward with our decision,” Morneau said.
> 
> “I can tell you one thing that came up clearly in those meetings (in Sendai) is the importance of the Asia Pacific region,” he added.
> 
> “These meetings, for us, are a very positive opportunity to demonstrate our leadership on important international issues — but also to send a message to our G7 colleagues that Canada is back, that we’re engaged and we want to be a global leader. It is, for us, also a good opportunity to promote our trade and investment goals in Canada and our … important strong relationship with the Asia Pacific region.”
> 
> Morneau added that the region is “a fast-growing partner for Canada,” with two-way trade amounting to $170 billion a year. “Our goal, of course, is to create new markets for Canadian-made goods and help consumers with better selection.”
> 
> “We’re looking forward to strengthening our relationships and our partnerships in the Asia Pacific region,” he told reporters in the conference call.
> 
> Chrystia Freeland, Canada’s minister of international trade, said in a recent speech that it was “very clear” that not joining the AIIB earlier “was a lost opportunity of the previous government.”
> 
> The Finance Department, in a statement in mid-May, emphasized that the government is “giving careful consideration to joining the Asian Infrastructure Investment Bank.”
> 
> However, the department said, the AIIB “has yet to formally indicate that it is accepting new members.”



Then Canada will just be a regular member, but not a founding member. Still better than nothing.

Reactions: Like Like:
2


----------



## ahojunk

_Wow! 100 members by end of year. That's very good progress._

-----------------
AIIB president says bank to have 100 members by year end
Source: Xinhua | 2016-06-01 14:52:49 | Editor: huaxia





_World Bank Group President Jim Yong Kim (R) and Asian Infrastructure Investment Bank(AIIB) President Jin Liqun shake hands after signing the first co-financing framework agreement at the headquarters of World Bank in Washington D.C., the United States, April 13, 2016. (Xinhau/Yin Bogu)_


BEIJING, June 1 (Xinhua) -- The Asian Infrastructure Investment Bank (AIIB) will expand its membership from 57 to nearly 100 countries and regions this year, AIIB president Jin Liqun said.

Some 30 countries are waiting to join the AIIB, 20 have expressed "firm commitment," Wednesday's China Daily cited Jin as saying.

While the United States and Japan have declined to join the bank, Jin said all countries would work together, regardless of the bank membership.

"The door will remain open," Jin said, adding that U.S. and Japanese companies will be treated equally and fairly by the AIIB, according to the newspaper.

According to the AIIB chief, the bank will announce its the first round of infrastructure projects this month, and the second and third rounds by the end of the year.

Jin said the bank will extend funding to non-Asian countries with "strong economic relations" with the continent and from physical infrastructure projects to sectors including education, health care, and urban planning and management.

Beijing-based AIIB was officially established late last year. With authorized capital of 100 billion U.S. dollars, it prioritizes investment in energy, power generation, transportation, rural infrastructure, environmental protection and logistics.

Reactions: Like Like:
1


----------



## ahojunk

_This is good news. OBOR is helping AIIB and vice versa._

--------
*BRICS bank, AIIB ready to follow China by financing Moscow-Kazan high-speed railroad*
Business & Economy June 03, 15:48 UTC+3 

*The total cost of the Moscow-Kazan high-speed railway line is estimated at $16.9 bln, while the section may later be extended to China, connecting the two countries across Kazakhstan*

SOCHI, June 3. /TASS/. The New Development Bank BRICS (NDB BRICS) and Asian Infrastructure Investment Bank (AIIB) are ready to follow China by financing Moscow-Kazan high-speed railroad, First Vice-President of Russian Railways state-owned monopoly Alexander Misharin said Friday.

"We’ve met the head of the bank (NDB BRICS - TASS) to demonstrate our model, they are satisfied with it and say they will follow suit in case we strike a bargain with Chinese banks. The New Development Bank BRICS can invest up to $500 mln. AIIB is a big bank, which can invest billions but it’s not going to be the first, it may be the second," he said, adding that "potentially they are ready."

Earlier Misharin said that Russian Railways had applied for finances from the New Development Bank for a few infrastructure projects, including the Moscow-Kazan high-speed railroad, and planned to apply to the Asian Infrastructure Investment Bank for funds.

The total cost of the Moscow-Kazan high-speed railway line is estimated at 1.068 trillion rubles ($16.9 bln). The Moscow-Kazan section may later be extended to China, connecting the two countries across Kazakhstan.

China plans to extend a loan in the amount of 400 bln rubles ($6.2 bln) loan for 20 years for the high speed railway construction and allocate over 100 bln rubles as a contribution to the equity capital of the special project vehicle.

The Moscow-Kazan High Speed Railway’s total length will stand at around 770 kilometers. Trains may go at a speed of 350-400 kilometers per hour, and the time en route between the two cities could be 3-3.5 hours against the current 14 hours.

More:
http://tass.ru/en/economy/879988

Reactions: Like Like:
1


----------



## ahojunk

_AIIB is starting to be functional and beneficial to its members ...... For a start, AIIB is co-financing with ADB. Aha, Japan and US are trying to get a piece of the action through the back door._

--------
*Pakistan project gets first ADB, AIIB co-financing scheme*
10 Jun 2016 at 16:50

MANILA - The Asian Development Bank and the newly established Asian Infrastructure Investment Bank are embarking on their first co-financing scheme, with the former approving on Friday a $100 million loan for a highway construction project in Pakistan.

The Manila-based ADB said the China-led AIIB, which started operations in January, is expected to provide a loan of the same amount later this month, while Britain's International Development Department has committed $34 million in grant.

"This is a historic milestone for ADB and AIIB as we jointly aim to meet the pressing infrastructure needs in Asia and the Pacific region," ADB president Takehiko Nakao said in a statement.

The project involves building the remaining 64-kilometre-long, four-lane stretch of the M-4 National Motorway that connects Shorkot and Khanewal in Punjab province, the ADB said.

"The project has strategic value to Pakistan as it supports north-south connectivity, new trade and business opportunities, which will boost jobs and cut poverty," Nakao added.

Amid speculation that the AIIB was established to rival the 50-year-old ADB and erode its role in the region, Nakao said earlier that he and AIIB president Jin Liqun have discussed since last year plans for co-financing as they acknowledge the huge requirement for infrastructure investment in the region.

With an authorised capital stock of $100 billion, the AIIB was formally established in December last year by more than 50 founding member countries including Thailand.

The ADB, on the other hand, was established in 1966 and is currently owned by 67 members, of which 48 are from the region. It said that in 2015, the bank's assistance through loans, grants, technical assistance and co-financing totaled $27.2 billion.

Japan and the United States -- major contributors to the ADB -- have chosen not to join the AIIB yet, saying its operation lacks transparency.

Reactions: Like Like:
3


----------



## TaiShang

ahojunk said:


> _AIIB is starting to be functional and beneficial to its members ...... For a start, AIIB is co-financing with ADB. Aha, Japan and US are trying to get a piece of the action through the back door._
> 
> --------
> *Pakistan project gets first ADB, AIIB co-financing scheme*
> 10 Jun 2016 at 16:50
> 
> MANILA - The Asian Development Bank and the newly established Asian Infrastructure Investment Bank are embarking on their first co-financing scheme, with the former approving on Friday a $100 million loan for a highway construction project in Pakistan.
> 
> The Manila-based ADB said the China-led AIIB, which started operations in January, is expected to provide a loan of the same amount later this month, while Britain's International Development Department has committed $34 million in grant.
> 
> "This is a historic milestone for ADB and AIIB as we jointly aim to meet the pressing infrastructure needs in Asia and the Pacific region," ADB president Takehiko Nakao said in a statement.
> 
> The project involves building the remaining 64-kilometre-long, four-lane stretch of the M-4 National Motorway that connects Shorkot and Khanewal in Punjab province, the ADB said.
> 
> "The project has strategic value to Pakistan as it supports north-south connectivity, new trade and business opportunities, which will boost jobs and cut poverty," Nakao added.
> 
> Amid speculation that the AIIB was established to rival the 50-year-old ADB and erode its role in the region, Nakao said earlier that he and AIIB president Jin Liqun have discussed since last year plans for co-financing as they acknowledge the huge requirement for infrastructure investment in the region.
> 
> With an authorised capital stock of $100 billion, the AIIB was formally established in December last year by more than 50 founding member countries including Thailand.
> 
> The ADB, on the other hand, was established in 1966 and is currently owned by 67 members, of which 48 are from the region. It said that in 2015, the bank's assistance through loans, grants, technical assistance and co-financing totaled $27.2 billion.
> 
> Japan and the United States -- major contributors to the ADB -- have chosen not to join the AIIB yet, saying its operation lacks transparency.



Maybe Japan desires to cooperate with the AIIB institutionally through its ADB rather than joining in it as a member. This is likely to assuage US concerns. Big price for a lack of foreign policy sovereignty.

Reactions: Like Like:
1


----------



## mehboobkz

The AIIB official language is *English*.

But the *Veto is Chinese = No = >>>>>









*

Reactions: Like Like:
1


----------



## ahojunk

*AIIB head fields questions from news executives*
(China Daily) Updated: 2016-06-01 09:58





_Jin Liqun (second from left), president of the Asian Infrastructure Investment Bank, and Zhou Li (fourth from left), editorial board member of China Daily, attend the Belt and Road Initiative and Regional Cooperation seminar with other Asian media representatives in Beijing on Tuesday. [Feng Yongbin/China Daily]_

Editor's note: Jin Liqun, president of the Asian Infrastructure Investment Bank, was interviewed by media executives from the Asia News Network at the news organization's board meeting in Beijing on Tuesday.

*How fast will the AIIB expand its membership?*
We have 57 founding members. We have about 30 countries waiting to join, of which we have a firm commitment from about 20 countries. Some of the countries are still working on the internal procedure and can't give us a firm commitment at the moment. The deadline for application is the end of September, and we will try to complete the whole process of membership before the end of this year. So likely, by the end of this year, our membership will be a little less than 100. This is going to be a really international organization with countries from Central and Eastern Europe, Latin America, North Africa and some other regions. So we will be able to work with so many countries across the world. AIIB certainly promotes, first of all, the benefits of Asian countries, but we don't forget about those that are, by definition, not Asian countries. We support other countries that have a direct and indirect impact on Asia's development.

*AIIB is considering some projects in Asia. Are all of those projects with the founding members?*
We are going to deliver the first batch of projects for board consideration in late June. All the projects will be in Asian member countries and I am very happy to see, geographically, they are covering broad areas, including ASEAN countries, south Asian countries and central Asian countries. It's very gratifying to see that geographically we cover so many countries. We will have the second batch and the third batch by the end of this year. At this moment, we are considering projects with Asian member countries. I'm sure very soon we will be able to cover non-Asian countries, particularly if these countries' economic relations with Asian countries are very strong.

*You've mentioned considering investing outside Asia. Very recently, Russian President Putin said he invited the AIIB to invest in Russia. Are you going to consider investing in Russian projects?*
We finance infrastructure projects in any member countries that are eligible for our funding. It's very clear. But as I said, any project proposed by any government must meet our three basic requirements. So I cannot prejudge any project.

*Do you see China's foreign policy complementing the objectives of the organization?*
I was asked by a New York correspondent in Davos: do you think the AIIB is a success in term of diplomacy. My answer is 'Yes'. I have to add the AIIB is a success in terms of diplomacy for all 57 member countries.

*What is the desirable ratio between the number of standalone projects and cofinancing projects? Are you going to provide financing to projects outside of the Chinese government's priorities, such as the Belt and Road Initiative?*
I'm going to get a Japanese national to serve in a very senior position in our bank. Recently your senior officials came to see me, looking for possible cooperation. I believe we can work together to promote development in Asia. We don't have a fixed target with regard to the ratio of standalone projects vis-a-vis cofinancing. We will take in projects that meet our standards.

Probably in the future, there will clearly be a higher proportion of cofinancing projects. When it comes to huge infrastructure projects, it's easy to go over $1 billion, it's not really a great idea for one institution to single-handedly manage the finances of a project.

But also, just because we are a little bit different from the existing institutions, we do not take poverty reduction as a direct objective. Poverty reduction will be a derivative of our efforts, so our focus will be a little bit different.

Some of the projects that cannot be done by some other institutions will be perfectly all right for us to finance. So I also think we could have a clearly greater proportion of free-standing projects, particularly after we have recruited all our operational staff in the next couple of years.

When you recruit people, you really have to be more or less sure if he or she will be a good team worker, if he or she will be working very well and would achieve very high success by working at this institution.

*Imagine that you were in the middle of a board meeting, and I were a board member from Thailand, and my first question to you as a CEO of the AIIB would be: Mr CEO, we seem to have a brand image problem. If we are launching a product, people may think this product is Chinese, it's not international. The No 1 question to the CEO is: how do you plan to correct this brand image?*
We have heard very critical comments on China's initiative. We never, ever, engage in any vocal arguments with these people because it's not worth it. In my view, trust has to be earned. Credibility has to be earned. You cannot talk people into belief. You can exhaust all the nice words in any dictionary and you still fail to convince these people. Just forget about it. Do your job.

If we have a project to upgrade a slum in a country in the ASEAN, do you think this is a Chinese project? We cleanup the dirty water. We provide safe drinking water. We provide electricity to low-income people. When we finance a project in South Asian countries, improving the power transmission system and contributing to the reduction of global warming, do you think this is a Chinese project? None of the projects are Chinese projects. All of these projects, I would say, are benefiting the local people.

China does not want to borrow from this bank. It doesn't make sense for China to start this bank and borrow massively from this bank. India can borrow, India is No 2. China does not want to borrow ... even though China has 30 percent of the bank's shares, contributing 30 percent of the $100 billion. China will also contribute $50 billion as a donation to this bank to establish a special fund.

You may remember President Xi Jinping said that in the last three decades, China has benefited from the general support of the World Bank, the ADB and all the bilateral sources, and now it's China's turn to contribute. That is the basic idea or principle of this institution.

So our first batch of projects will speak volumes for the basic principle of this institution. With the goal of public institutions, combined with the efficiency of private sector companies, we are going to serve as a new role model. That's why we do not want to clone any existing institution. We want to be a new entity with the strong features of private sector companies and public sector companies. That is why we believe this bank is so attractive.

*What is the responsibility of member countries?*
First of all, I want to take issue with you when you say I pick the rosy pictures. I never pick the rosy pictures, I always pick the realistic pictures.... Certainly my picture involves lots of aspirations on what we aim to achieve. This is not my aspiration; it is the aspiration of the people of all these countries. So let's be realistic.

We cannot achieve all these objectives over a really short period of time, but I think we should always aim at all these grand programs, which would benefit all of the people of all the member countries. New members or existing members certainly will place high expectations on this bank.

They certainly try, at least for many developing countries, to get as many resources as possible from this bank. They would like to have as many projects as possible. But we cannot, I think, meet all of their expectations. We must achieve counterbalance and regional balance. Sometimes we have to decline ... because we believe some other projects are more important from the regional perspective. ... Probably, the response from other institutions would be the same. If your project does not measure up to their high standard for environmental protection they cannot do it.

*What is the budget of AIIB?*
I enjoyed living in the Philippines for a good five years when I served as vice-president of the Asian Development Bank. That platform gave me a lot of opportunities to communicate with people in member countries and also helped me learn more about your great country. The Philippines is a founding member, and we certainly will look forward to new opportunity to develop a strong relationship with your country.

We are early in the stages and it's not responsible for me to give you some definite figure of how much we can lend a year, but maybe I can offer you some examples. ADB has a capital base of $160 billion. Roughly, there is $16 billion for lending out in a year. The World Bank has $257 billion; their lending program is probably $25-$26 billion a year. So that kind of reference probably would help you to more or less arrive at a rough idea.

We depend on the experience of the IMF, World Bank and ADB if we want to learn more about the macroeconomic situation of the country. We don't have to duplicate the research in these areas. Instead, we can focus our resources on research in some other areas, such as renewable energy. But we don't have to duplicate the efforts of other institutions.

You see, it is truly important for us to keep in mind any country would have a need, a special, particular need. Just quote Jane Austen. If I remember correctly, "It is a truth universally acknowledged, that a single man in possession of a good fortune, must be in want of a wife." And this wife is a matter of preference.

*What is the investment target of AIIB?*
We start with infrastructure－physical infrastructure, to be exact. But since we have other productive sectors in mind, we can probably finance projects in the future for nonphysical infrastructure. For instance, education and healthcare are nonphysical infrastructure. Or, if we can help a municipal government better design the way it manages, I think it could be very important.

It's certainly important to build roads and streets, but people don't understand if you don't include the traffic lights, if you don't manage the flow of the people in the city, probably no matter how many roads you build, it's still not enough. So you need to better manage the urban problems. That could be part of our efforts.

Now, when it comes to new technology, I have to be cautious about financing. This is not our job. Any investment in new technology has variants. And I don't think it's appropriate to spend our shareholders' money on something with dubious prospects. This should be left for venture capital to take care of. But once the new technology proves workable and effective, we can't miss it.

So in my view, this is the way we can serve our countries. We apply new technology; we do not invest in developing new technology. This is my personal view.

*How long until the United States or Japan joins the AIIB?*
I cannot speak on behalf of the US government or the Japanese government with regard to the membership issues. The door has opened, and will remain open. This is our basic principle. And as we are inclusive, if any country wants to join, they pick up the phone, give us a ring and discuss the rest of the issues. You know, the conditions are all stated in the articles of agreement. But I want to highlight one point, that regardless of the membership of any country in the world, we can work together.

As I said, the companies of the United States and companies of Japan can participate in the international competition, and they will be treated equally and fairly. This is our basic principle.

I have already hired some US nationals to work in this institution, sit in various positions, and I told you that we would have some Japanese nationals. We are still in the recruitment process, interviews. I am sure the Japanese nationals will meet our standards. We are indeed very happy to have any national of any country who can serve this institution. So I highlight this point again and again, that regardless of who is a member, there are various ways that we work for the companies and work for the nationals.

*When you describe reforming distribution, what do you feel was lacking in the decision-making and distribution at IMF, ADB or the World Bank, or whether their decisions were politically motivated, and did that prompt you to advance this idea?*
I think we can evaluate the performance or contribution of any international institution only from a historical perspective. The Bretton Woods institutions were created before the conclusion of the World War II. So it was timely for all these countries to meet in Bretton Woods, New Hampshire. China was also a member. All the last seven days, the Bretton Woods institutions, and the new institutions that were created more or less patterned on these institutions, have contributed enormously to international financial or economic stability, to reconstruction and the readoption of recruitment.

No institution, just like no individual, is perfect. So when we talk about the international financial order, or international economic order, you may have noticed the Chinese position, that we do not intend to upend the existing international financial order because we in China have also benefited from this system, particularly over the last three decades.

Now, I understand these institutions are also trying to improve, to undertake reforms, to make them serve better.

We were all created in the 21st century, meeting the needs of countries from the 21st century, so we have a lot to learn from the existing institutions, and we also enjoy the advantages of the institutions of different cultures. And any institution will make mistakes. I do not think we will be flawless in the future.

I think what is important is, first of all, to understand the reality and acknowledge or confess that you made mistakes－and that you will have the guts to confess and to correct. No mistake is a mistake unless you don't want to take it back. So I think this is very very important for understanding.

It is not appropriate for me to make judgments on the merits or demerits of existing institutions. My job is to learn from the strong points. And I would say this is the shared view of all 57 members of the institution, because they are all members of existing institutions, right? So when some people asked me, 'Aren't you worried about rivalry with the World Bank or ADB?,' I told them that I worked for six years on the board of the World Bank, five years in management. If you think the sibling, the new institution, has sold out the existing institution, I would not agree.

*What is lacking in the practices of existing institutions?*
It's not appropriate for me to comment on the merits or demerits. But one essential fact is that the existing institutions mostly are made of the developed nations. This institution is made by developing nations, so we can offer the development experience of developing countries that has accumulated over the last half-century, particularly the last three decades.

*Will the Chinese government ask the AIIB to finance all its infrastructure projects?*
The United States basically shuffled the order of the World Bank. Japan has numerous financial assistance programs. Many European countries also have their own financing systems. So the way they handle this is also offering some experience.

If I have to be specific about the relationship between AIIB and Chinese financial systems, I do not rule out the possibility that we can work together if they follow our standards and rules. For instance we have Chinese development institutions, and they may finance ideas or infrastructure in some countries.

Reactions: Like Like:
3


----------



## ahojunk

_From a Thai newspaper...._

--------
*A revealing encounter with AIIB president Jin Liqun*
Suthichai Yoon
The Nation June 16, 2016 1:00 am

*Anyone who asks the president of the Asian Infrastructure Investment Bank (AIIB) if his new international financial institution is in fact part of China’s expanding diplomacy had better be prepared for a prolonged exchange. Jin Liqun doesn’t bother with the stonewalling tactics typically used by senior Chinese officials when confronted with a controversial question.*

The 67-year-old former vice minister of finance - and ex-vice president of the World Bank and Asian Development Bank - gave a lively presentation to senior editors from the Asia News Network (ANN) at China Daily's offices recently. The question-and-answer session that followed was a robust exchange of the kind Chinese officials rarely tolerate. 

The China-initiated AIIB now has 57 founding members, which would rise to 100 by the end of the year, said Jin, when the first batch of infrastructure projects will be announced. The United States and Japan have so far shunned entry, but "the door has been open and will remain open", said the president.

But the question on many lips is, how can the bank erase its image of being a diplomatic tool of Beijing? 

As CEO, how would he respond to questions from board members about this "brand image" when the bank launches its "products"? 

Jin, who is fluent in English and French and has a life-long love of Shakespeare, paraphrased English author Jane Austen to hit back at scepticism over China's motivation for creating the bank:

"Scepticism must always be forgiven, you know, because there is no hope of a cure," he said, replacing "selfishness" in the original quote with "scepticism".

Sceptics must be forgiven, of course, because the doubts and suspicion have not emerged out of nowhere. The hype and symbolism have not gone unnoticed. 

As well as being the initiator, China is the biggest single shareholder in the bank, with 30 per cent of the $100,000 billion registered capital. (Thailand has a 1.45-per-cent stake.)

Jin, as the first president, is a Chinese Communist Party member. The bank's offices are located in China: For now, operations are being carried out in a nondescript office tower in Beijing's financial district, with plans to build permanent headquarters in the Olympic Park near the Bird's Nest stadium.

"We will soon appoint a Japanese national in a senior position in the bank," Jin declared, by way of confirming his earlier statement that the AIIB would earn international trust and credibility through its good governance. To qualify for screening by the bank, projects must be "financially sustainable, environmentally friendly and socially acceptable".

The AIIB wouldn't do anything that was driven by politics and would not interfere in political affairs, he insisted.

Although Jin gave a long introductory brief on China's much-hyped "One Belt, One Road" initiative, the president confirmed that Beijing would not borrow from the bank.

"It doesn't make sense for China to start this bank and borrow massively from his bank. India can borrow. India is No 2. China doesn't want to borrow, even though China has 30 per cent of the bank's shares and will also contribute $50 billion as a donation to the bank to establish a special fund," he said.

Sceptics also suggest that the AIIB was designed by China to counter the World Bank, which is dominated by the US and Europe, and the Asian Development Bank (ADB), long under Japan's shadow. But Jin rejected that perception, as well.

The AIIB was not trying to upend the international financial and economic order, he insisted, even though that order has much room for improvement. He cited Chinese President Xi Jinping's statement that China had already benefited from the general support of the World Bank, the ADB and other bilateral sources. "And now it's China's turn to contribute. That is the basic idea or principle of this institution," he added.

But surely there would be no need for a new multilateral financial institution like the AIIB if the World Bank and ADB were already doing a good job. What are their deficiencies?

If the usually jocular Jin felt cornered by that question, he didn't show it. "It's not appropriate for me to make judgements on the merits or demerits of existing institutions. My job is to learn from the strong points."

He admitted to having received an even more direct question in this regard: Wasn't he worried about rivalry from the World Bank and the ADB?

His answer was equally diplomatic and matter-of-fact: "I worked for six years on the board of the World Bank, five years in management. If you think the sibling, the new institution, has sold out the existing institution, I would not agree."

The encounter left many Asian journalists present convinced that Jin Liqun is a banker, a diplomat and a technocrat all rolled into one. According to the Financial Times, Western diplomats have dubbed him Beijing's "chief barbarian handler", meaning his job is to deal with foreigners.

Jin finds the term offensive. "I take exception and issue with this description," he told the FT's Asia editor Jamil Anderlini recently. "I'm not dealing with barbarians, I'm dealing with people in modern civilisations." 

Jin Liqun certainly lived up to that standard during our hour-long exchange.

Reactions: Like Like:
2


----------



## ahojunk

_An opinion piece by a Canadian businesswoman..._

--------
*Canada should join China-led bank, AIIB*
06-13-2016 11:16 BJT

_By Christina Kitova, associate partner Hodges Media Communications, based in Markham Ontario Canada_

The Asian Infrastructure Investment Bank (AIIB) was established on December 25, 2015. The agreement was signed by representatives from 21 different Asian nations. Presently, there are 60 nation members of the AIIB, hailing from all over the world. The bank will finance projects, such as loans to finance infrastructure in the more impoverished regions of Asia.

The creation of the AIIB also gives China greater influence in regard to the International Monetary Fund (IMF). The AIIB offers a strong presence that will encourage multilateral organizations to act more green, efficient and effective, providing a competitive angle that demonstrates AIIB's advantages.

The AIIB offers secure assets to institutional investors, such as issuing long-dated bonds that will provide a measurable return on funding infrastructure.

China-led bank will expand its influence, making it advantageous decision for Canada to join in, since it will provide opportunities for Canada to be a stand alone nation without being overly-influenced by the U.S. and Japan. 

A rebalancing of the global economy has been underway, which offers a great opportunity for Canada to embark on a more diversified portfolio as the nation seeks more trade partnerships with China on the federal and provincial levels. 

The Premier of Ontario Kathleen Wynne has explained that the AIIB could generate much needed revenue for Ontario and create symbiotic business partnerships. 

On the federal level, trade with China is estimated at $170 billion (CD) per year. China also holds over $4 trillion (USD) in foreign reserves. The Chinese currency, yuan is Canada's second most common financial trade currency.

Thus far Britain, Germany, France and Italy have already joined the venture recognizing its benefits. The European G7 membership does trust the stability of China’s economy. It makes logical sense as China is rallying to have the new world reserve currency. 

There's greater demand for the Chinese yuan with a drive to have yuan included within the International Monetary Fund's Special Drawing Rights, which will officially start later this year. 

The trade in yuan has risen from being a marginal 1% to its present 25% trade standing within the last two years and it is projected to accelerate further. There have been clearing centers set up offshore around the world. Russia, United Kingdom and Australia have already signed currency swap agreements.

BRICS (Brazil, Russia, India，China and South Africa) bank is also working with the AIIB on future projects. Canada joining the AIIB can provide better trading opportunities, as well as trade with BRICS countries. The World Bank has expressed an interest in working with the AIIB to eradicate poverty.

AIIB benefits fill the need for more development and the differentiation is what the World Bank specializes in to provide support for developing countries. The AIIB can spur stronger development of infrastructure in Asia, including the One Belt One Road initiative. 

The policy would play a vital road for global trade development. The opportunities for Canada are endless, while also providing trade opportunities with other Asian nations and Russia, since the AIIB could transform economies across Asia that create more business opportunities and to diversify trade portfolios for multiple investing nations. 

The upgrade of free market trade could ease the transport of goods through borders by sea as well as across land, expanding export and import and efficiency.

Canada stands only to gain by joining the AIIB as it has a positive effect upon its economy. It's the right move for Canada to join the AIIB, despite opposition from Washington.





_Christina Kitova, associate partner Hodges Media Communications, based in Markham Ontario Canada_

_(The opinions expressed here do not necessarily reflect the opinions of Panview or CCTV.com.)_

Reactions: Like Like:
1


----------



## TaiShang

ahojunk said:


> The creation of the AIIB also gives China greater influence in regard to the International Monetary Fund (IMF). The AIIB offers a strong presence that will encourage multilateral organizations to act more green, efficient and effective, providing a competitive angle that demonstrates AIIB's advantages.



As opposed to US fear-mongering, the AIIB is not undermining global governance, rather, improving it by correcting the faults in the existing US-led economic regimes.

Reactions: Like Like:
1


----------



## dingyibvs

Very impressive interview by Jin Liqun, very impressive.

Reactions: Like Like:
3


----------



## ahojunk

_AIIB is hiring qualified staff irrespective of where they are from, not necessarily Asia....._

--------
*AIIB names senior staffers*
15-06-16

The Asian Infrastructure Investment Bank (AIIB) has added two more experienced players from the development banking world as it continues to fill its senior ranks.

Gerard Sanders will join in August as general counsel, reporting to president Jin Liqun.

New Zealander Sanders joins from the International Fund for Agricultural Development (IFAD), a UN organisation. He previously spent 20 years at the European Bank for Reconstruction and Development (EBRD), most recently as deputy general counsel.

Thierry de Longuemar, meanwhile, has been named chief financial officer, also reporting to Jin.

The Frenchman has worked as a vice-president at the Asian Development Bank (ADB) for five years, covering finance, administration and risk management. He has 30 years of financial sector experience, including spells at the African Development Bank and ABN Amro.

Jin says: “I am delighted to announce appointments to these important leadership positions. Both Mr Gerard Sanders and Mr Thierry de Longuemar bring with them decades of highly relevant experience that will serve the bank well in the years ahead. I look forward to working with them both when they take up their positions at the bank in the coming months.”

Reactions: Like Like:
1


----------



## AndrewJin

Step by step

Reactions: Like Like:
1


----------



## TaiShang

*AIIB approves $500 mln for first four projects*
CRI, June 25, 2016


The Asian Infrastructure Investment Bank has approved a 165 million US dollar loan for a project in Bangladesh.

It's part of the first batch of loans issued from the China-led development bank.




Photo taken on January 17, 2016 shows the stone monument in front of the headquarters building of the Asian Infrastructure Investment Bank (AIIB) in downtown Beijing, capital of China. [Photo: Xinhua]


The AIIB's Board of Directors has approved 4 loans totaling just over 500-million US dollars to finance 4 separate projects.

AIIB President Jin Liqun says the projects, which cover the fields of energy, urban development and transport, are going to help strengthen regional connectivity.

The Asian Infrastructure Investment Bank, which became operational earlier this year, has a target of lending around 1.2-billion US dollars this year.

It's currently reviewing dozens of different projects put forward by various countries throughout Asia.

Reactions: Like Like:
6


----------



## ahojunk

_Brexit, what a mess..._

--------
*China-led AIIB ready to help soothe Brexit stresses*

PUBLISHED : Saturday, 25 June, 2016, 8:03pm
UPDATED : Sunday, 26 June, 2016, 12:25am

The China-led Asian Infrastructure Investment Bank can join forces with its international peers to help smooth out any volatility and uncertainties following Britain’s decision to leave the European Union, a top official said on Saturday.

Yoo Il-ho, South Korea’s Finance Minister and a member of AIIB’s board of governors, said at the opening ceremony of the first annual meeting of the board of governors in Beijing on Saturday that financial markets had reacted “with shock” to Britain’s decision.

“It is a blow to those who believe in global integration” and “the global financial market is facing greater uncertainty and volatility”, Yoo said. But the bank “can help with the new situation”, he said.

Zhou Xiaochuan, governor of the People’s Bank of China, said on Friday at the International Monetary Fund in Washington: “This is a quite a critical time point because all economists and financial sectors are paying attention to the Brexit, so you need a lot of study, and also global cooperation to deal with the potential impact.”

“The People’s Bank of China has been closely monitoring the development of Britain’s referendum and trying our best to have a good preparation,” he said, speaking in English.

“We especially emphasised enhancing the coordination…with the International Monetary Fund and relevant central banks and other authorities, to safeguard the financial market stability and global economy.”

Separately, AIIB president Jin Liqun said Britain’s decision would not affect its status as a member of the bank.

A senior executive of another multinational development bank at the meeting told the _Sunday Morning Post_ that Brexit had become a hot topic.

“Everyone is discussing Brexit here. It will have long-term impact on the overall financing system,” the executive said.

Vice-Premier Zhang Gaoli also called on the lender to form closer partnerships with existing multinational development banks, such as the World Bank and Asian Development Bank. But Yoo said the AIIB needed to improve its organisation and refine polices if it wanted to seek such closer ties.

“The roles of management and the board should be more clearly defined based on the bank’s Articles of Agreement,” Yoo said.

The bank needed to demonstrate best practice and “put in place a strong operating platform and policies governing the institution”, he said.

Finance Minister Lou Jiwei, who is chairman of AIIB’s board of governors, said *the bank would start procedures to accept new members soon* after the annual meeting, and he hoped that they would be able to officially join early next year.

So far there are *24 potential applicants to join the bank’s existing 57 members, including Hong Kong and Canada*.

The AIIB also announced that its board of directors on Friday had approved its first four funding projects, *worth a total of US$509 million, in power, transport and urban investment in Bangladesh, Indonesia, Pakistan and Tajikistan*.

Three of the projects are to be jointly funded by other multilateral development banks – the World Bank, Asian Development Bank and the European Bank for Reconstruction and Development.

AIIB will take the lead only in the Bangladesh project to upgrade a power distribution system with a loan of US$165 million.

Jin said the bank aimed to “play the role of a catalyst” to mobilise private financing to ease spending pressure of the sovereign governments in infrastructure development.

He said the directors had also approved a special fund to support members with project preparations. The fund will start its operations this autumn, with China as the first donor of US$50 million.

“Our financial position is robust and will be increasingly stronger,” Jin said.

“We expect to bring additional projects to the board in the second half of the year and are working on the pipeline for 2017,” he said in his report to the board after the opening ceremony.

The bank is targeting a total of US$1.2 billion of infrastructure projects this year.

Reactions: Like Like:
3


----------



## TaiShang

ahojunk said:


> The AIIB also announced that its board of directors on Friday had approved its first four funding projects, *worth a total of US$509 million, in power, transport and urban investment in Bangladesh, Indonesia, Pakistan and Tajikistan*.



I would like to see the projects under consideration to be directed at Central Asia and Southeast Asia. These are real potential regions and obviously more stable.

Reactions: Like Like:
4


----------



## Ryuzaki

*India preparing projects worth $2-3 billion for funding by AIIB: Arun Jaitley*

http://www.dnaindia.com/money/repor...lion-for-funding-by-aiib-arun-jaitley-2227881

Reactions: Like Like:
2


----------



## ahojunk

_I think overall, it is a good start for AIIB._

--------
*AIIB promises to lead as new multilateral investment bank *
Xinhua, June 26, 2016





_AIIB President Jin Liqun speaks at the opening ceremony of the first Annual Meeting of the Board of Governors of the Asian Infrastructure Investment Bank (AIIB) in Beijing, capital of China, June 25, 2016. (Xinhua/Li Xin)_


Details that have emerged of the operation and philosophy of the Asian Infrastructure Investment Bank (AIIB) show that it is meeting expectations to lead development cooperation as a new type of multilateral financial institution.

Addressing the AIIB board of governors on Saturday, the bank's President Jin Liqun said that the bank is "now off to a strong start" and has begun to deliver on its commitments to shareholders and the world on organizational performance and corporate governance.

It unveiled the first four projects on Friday with approved financing totaling 509 million U.S. dollars. The funded projects are a *power distribution system upgrade and expansion project in Bangladesh*, a national *slum upgrading project in Indonesia*, a *motorway project in Pakistan* and a *border road improvement project in Tajikistan*. The bank has set a target of lending about 1.2 billion U.S. dollars in 2016.

"A sound corporate culture is taking shape," Jin said before briefing the board of governors on the details of the bank's first several months of operation.

The AIIB was officially opened in January this year, six months after its founding members signed its articles of agreement in Beijing.

The bank was designed specifically to "tackle the challenges and meet the current and emerging needs of its broad shareholder and stakeholder base." It aspires to "exercise exemplary organizational performance and corporate governance, and to deliver timely, cost-effective and sustainable infrastructure financing and services to our clients -- always mindful of the need to protect the natural and human environment," Jin said.

As a newcomer to the family of the world's multilateral development banks, the AIIB has been viewed with suspicion by countries including the United States, who worry that the bank might be aimed to undermine the existing international economic governance system. However, the bank led by China managed to win not only regional developing economies but also developed economies, including European countries.

The AIIB says that the gap for infrastructure financing in Asia has been huge and that the market is big enough for multiple players to coexist. Observers say the AIIB marks a departure from traditional multilateral development banks as it bears the birthmark of seeking win-win development cooperation, largely thanks to the fact that it is led by developing economies and open to both developing and developed economies.

Three of the bank's first four projects were co-financed with other multilateral development banks such as the World Bank, the Asian Development Bank and the European Bank for Reconstruction and Development, the bank said.

"The bank is moving in the right direction with its cooperation agreements with multilateral development banks," Singapore's Senior Minister of State for Law and Finance Indranee Rajah said at the meeting of board of governors on Saturday.

"Going forward, the AIIB could also consider forming similar partnerships with the private lenders to encourage more private sector financing for a critical mass of infrastructure projects in Asia," she added.

The bank is moving in exactly this direction. Jin said that the bank will try to be a pacesetter for public-private partnerships and that it will try to mobilize resources from the private sector to ease the infrastructure financing pressure on governments.

As a multilateral development bank, the AIIB offers a new platform for enriched cooperation and enhanced regional connectivity and integration, partnering with many other initiatives including the Group of 20 global infrastructure connectivity alliance initiative.

The bank aspires to be "lean, clean and green." Jin said on Saturday that the bank takes a measured approach to staffing. With the senior leadership team almost complete and mid-level management staffing under way, it now has a total staff of 39, with another 20 expected to join next month or so. They are supplemented by consultants. The total staff is anticipated to be around 100 by the end of the year.

Observers also hailed its efficiency. Oh Ei Sun, a senior fellow at the S. Rajaratnam School of International Studies, Nanyang Technological University, said that he expects this to be one of the key strengths of the new bank.

"As far as I know, the AIIB is going to be more efficient. Existing multilateral financial institutions typically require the borrowers to go through lengthy procedures and fulfill many conditions aside from the business considerations," Oh said.

Oh also said the AIIB, as an investment bank, has another advantage in its results-focused business model and market-based operation, though it is not profit-driven. It is most likely to be sustainable.

Jin said the bank will substantiate and refine its strategy and deliver strong operation results.

"The bank looks to take its place as one of the leading multilateral financial institutions for cutting-edge infrastructure investments and as a pacesetter for public-private partnerships," he said.

"We will place a premium on supporting infrastructure projects with significant cross-border benefits. We will prioritize sound 'green' infrastructure investments, promoting energy efficiency, renewables, clean transport and other projects that help reduce global warming," he added.

Reactions: Like Like:
4


----------



## ahojunk

_Hong Kong will join the AIIB soon. 
But Taiwan will remain on the outer until their President Tsai agrees to the 1992 consensus._

--------
AIIB President: Hong Kong to Join AIIB Soon
2016-06-27 10:09:55 | CRIENGLISH.com | Web Editor: Guan Chao

Hong Kong will soon become a new member of the Asian Infrastructure Investment Bank (AIIB), AIIB president Jin Liqun said on Sunday.

Singapore-based newspaper Zaobao reports that Jin made the remarks at a press conference for AIIB's first annual meeting of the board of governors, adding that Hong Kong has already submitted an application.

Hong Kong's inclusion in AIIB has been under discussion recently, as the membership means more opportunities for Hong Kong.

Bank of China Hong Kong senior researcher Wang Chunxin thought Hong Kong could have many roles to play in the promotion of "Belt and Road" projects. These include:

- as a major international financing platform
- as an investment partner
- guiding inland enterprises
- facilitating RMB internationalization
- contributing talents

The annual meeting, opened last Saturday in Beijing, was attended by over 600 representatives.

Twenty-four countries, which had submitted applications previously, attended the meeting.

Applicant states or regions may officially join the organization in early 2017, after the AIIB opens its doors once again at the end of September.

The AIIB is an international financial institution proposed by China, aiming to support infrastructure projects in Asia. The bank is an open organization and all economies are welcome to join.

Reactions: Like Like:
4


----------



## ahojunk

_I was surprised that the Philippines has not ratified their entry into the AIIB._

--------
*Duterte to speed up PH entry into AIIB*
*Membership to broaden infra financing options*
By: Ben O. de Vera
@BenArnolddeVera
Philippine Daily Inquirer
04:41 AM June 27th, 2016

INCOMING Finance Secretary Carlos G. Dominguez said the Duterte administration will fast-track the Philippines’ membership in the China-led Asian Infrastructure Investment Bank (AIIB) to widen financing options in line with plans to ramp up infrastructure development.

“The Duterte administration will definitely pursue joining the AIIB as at the forefront of the incoming administration’s socioeconomic agenda is to increase infrastructure spending in the country to 5 percent of the gross domestic product,” Dominguez, through incoming Department of Finance (DOF) spokesperson Paola Alvarez, told the Inquirer.

“With [heavy vehicular] traffic and the lack of basic infrastructure projects being hindrances to Philippine economic prosperity, the membership of the Philippines to the AIIB, an infrastructure-lending bank, is surely something that the people will benefit from,” Dominguez added.

“Together with India, Indonesia, Singapore, Burma (Myanmar), Mongolia, Pakistan, Bangladesh, South Korea, Cambodia as well as Brazil, the United Kingdom, Australia, France, Germany and Spain already being founding members of the AIIB, the Duterte administration sees no reason why Congress would not ratify the Philippines’ membership to the AIIB,” Dominguez said.

On Dec. 31 last year—only a day before the deadline—the Philippines announced that it will become a founding member of the AIIB, which aims to finance developing countries’ infrastructure needs.

The Philippines’ membership, however, remained pending as it was impossible to secure Senate ratification in the remaining days of the 16th Congress ahead of the elections last May. *The country still has until year end to secure Senate approval in order to become a founding member*.

“Rest assured, the DOF will do its part to work closely with the bicameral committees involved in studying the benefits the Philippines will acquire by signing as a member to the AIIB,” according to Dominguez.

Over the weekend, the AIIB convened in Beijing the 2016 annual meeting of its board of directors, which last week approved their first four loans amounting a total of $509 million to finance projects in Bangladesh, Indonesia, Pakistan and Tajikistan.

National Treasurer Roberto B. Tan was scheduled to attend the meeting, but only as an observer pending the Philippines’ membership.

*To become an AIIB member, the Philippines must shell out $196 million, payable in five years or $39 million (over P1.8 billion) per year, as indicative paid-in capital. Members must pay the initial tranche of their respective contributions before this year ends*.

Reactions: Like Like:
4


----------



## TaiShang

ahojunk said:


> _Hong Kong will join the AIIB soon.
> But Taiwan will remain on the outer until their President Tsai agrees to the 1992 consensus._



AIIB offers a huge opportunity for Taiwan industries, especially in terms of IT infrastructure. If Tsai does not wish to be a one-term leader, she needs to be smart as Mr. Ma, and improve economic ties with the Mainland, whose basic precondition is, as you said, the 1992 consensus.

Reactions: Like Like:
5


----------



## ahojunk

_Report from The Korea Herald._

--------
*AIIB considers financing SK E&C-led consortium*
Published : 2016-07-06 10:54
Updated : 2016-07-06 10:59

[THE INVESTOR] The Asian Infrastructure Investment Bank plans to finance a SK Engineering and Construction-led infrastructure project, the Ministry of Land, Infrastructure and Transport said on July 5. 

The AIIB is considering lending US$ 75 million to the South Korean consortium to build a peripheral ring road in Almaty, Kazakhstan. During the AIIB’s first annual meeting held in Beijing in June, the bank announced its plan to finance the Almaty highway, along with four other projects The bank will make a final decision at the board meeting in September. 






_AIIB’s First Annual Meeting of its Board of Governors held in Beijing in June 2016._


The consortium, which includes SK E&C and the state-run Korea Expressway Corporation, has been selected as the preferred bidder for the $900 million project of constructing a 66-kilometer-long highway, with 21 bridges and eight intersections, as part of Kazakhstan’s effort to accommodate increased population in the country’s largest city. The Kazakhstan government will likely make the final decision by end of this year. 

SK E&C is responsible for the construction and Korea Expressway will take on the operation and management. Other financial institutions, including European Bank for Reconstruction and Development, International Finance Corporation and Islamic Development Bank, have decided to lend the consortium as well. 

Once the consortium inks the deal, SK E&C will become the first company in Korea to receive funds from the newly launched AIIB.

Reactions: Like Like:
4


----------



## ahojunk

_Not sure whether South Korea will still get this post._

--------
*After Hong’s exit, Korea may lose AIIB clout*
July 11,2016

Korea might lose its voice in the China-led Asia Infrastructure Investment Bank (AIIB) after the Korean vice president of the bank, Hong Ky-ttack, disappeared after being implicated in a fraud scandal.





Hong Ky-ttack

According to the AIIB on Friday, it will recruit a new vice president after Hong, former chairman of Korea Development Bank (KDB), suddenly took a leave for six months and disappeared. He has been in the job for six months.

The AIIB didn’t say whether the new vice president will be Korean or not.

Hong, 64, is embroiled in a scandal over cooked books at Daewoo Shipbuilding & Marine Engineering (DSME) and the financial aid given the company by the KDB.

Hong revealed to the media last month that the KDB’s acceptance of falsified profit and loss statements by DSME was not its independent decision but a plan decided upon by ministers at confidential meetings in the West Wing of the Blue House. Hong served as KDB Chairman from April 2013 to Feb. 2016.

Nam Sang-tae and Ko Jae-ho, former CEOs of the shipbuilder, were summoned by prosecutors to answer questions about accounting fraud last month and earlier this month. Ko was arrested on July 9.

Hong snagged one of the five vice president positions at the AIIB in February despite criticism and suspicions about his appointment. His appointments to both the AIIB vice president and KDB were criticized as a political appointment stemming from his support of President Park Geun-hye. A fellow alumnus of Sogang University, he served as professor of economics at Chung-Ang University before the Park administration named him a member of its transition committee in 2013.

Hong’s position at the AIIB was vice president of risk management. The AIIB has demoted the position to director general level and is recruiting a new person to fill it up. It has posted a recruitment notice for a new vice president of finance.

Since Korea is the fifth-largest stakeholder in the China-led institution that was officially launched on Jan. 16 - it has a 3.81 percent stake worth about 4 trillion won ($3.4 billion) - there have been expectations that a Korean should play a significant role in the institution to protect the national interest.

The Ministry of Strategy and Finance said in a press release on Saturday that the AIIB has four openings including the finance vice president. It did not mention why the AIIB has opened the recruitment.

“The ministry will do its best to support the appointment of a Korean figure for the positions,” it said. “It is not true Korea has lost the vice president position.”

Media speculated that deployment of a U.S. defense system on the Korean peninsula, which China objects to, might affect the AIIB’s recruitment decision, but the ministry denied the reports.

Reactions: Like Like:
4


----------



## ahojunk

_A view from a Manila Times roving editor...
Pride will prevent the US and Japan from joining. Doesn't matter, they are not missed._

--------
ANALYSIS
*US and Japan need to rethink their stand against AIIB*
August 3, 2016 10:48 pm
by P. VISWA NATHAN, ROVING EDITOR

Six months after its inauguration in Beijing on January 16, the Asia Infrastructure Investment Bank (AIIB), the China-led inter-governmental development institution focused on Asia, has granted its first four loans.

There is one thing particularly noteworthy about these loans. Three of them have, in effect, called the bluff of those who have claimed AIIB was part of a Chinese ploy designed to undermine the Asian Development Bank, the World Bank, and similar institutions.

Action speaks louder than words; and these loans now stand as proofs that AIIB is supporting infrastructure projects in Asia that the ADB, the World Bank, and others cannot fully finance.

A $216.5 million AIIB package is for a slum-upgrading project in Indonesia, which the World Bank and the Islamic Development Bank (IsDB), among others, are also financing.

Similarly, $100 million goes to build the Shorkot-Khanewal section of Pakistan’s M4 national motorway that will also receive $100 million from the ADB and $34 million from Britain’s Department for International Development (DFID).

Also, a $27.5 million AIIB funding is allocated to co-financing with the European Bank for Reconstruction and Development (EBRD) a $105.9 million program for improving Tajikistan’s Dushanbe-Uzbekistan Border road.

In other words, complementing rather than competing is AIIB’s underlying spirit.

The idea for AIIB had taken a long time to materialize. China’s president, Xi Jinping mooted it first in 2013 and discussed it with various world leaders. The following year, Chinese Premier Li Keqiang proposed it at the Boao Forum for Asia, the equivalent of the World Economic Forum. It was initiated in 1998 by three Asia-Pacific leaders—the former Philippine president Fidel Ramos, the former prime minister of Australia Bob Hawke, and the former prime minister of Japan Morihiro Hosokawa. Since then a global conversation on the matter has ensued, which seems to have made the United States nervous.

Washington had once ruled the waves of the Asian waters with its Seventh Fleet and exercised much influence over many Asian countries through the Southeast Asia Treaty Organization as well as economic and military aid in the days it considered China an arch enemy. But that influence has started to wane following the humiliating defeat in the Vietnam War and subsequent dismantling of the air and naval bases in the Philippines.

Nonetheless, it wants to prevent anyone else playing any key role on that turf—which some smart minds in Washington had concluded the AIIB would realize for China. So, Washington has tried to convince its allies as well as others not to support it.

Many have ignored the US plea. Fifty-five countries signed up within six months after the agreement to establish AIIB came into effect. They included 12 of the 18 countries that supported ADB at the start—Australia, Cambodia, India, Indonesia, South Korea, Laos, Nepal, New Zealand, Pakistan, Singapore, Thailand and Vietnam. Since then, the Philippines, Malaysia, Poland, Kuwait, and South Africa have signed on. From the West, almost half of Washington’s NATO allies—Denmark, France, Germany, Iceland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Spain, Turkey, United Kingdom—have also joined.

Apparently, while AIIB is China’s brainchild and China is its largest shareholder, the fact that India, the world’s largest democracy and a fast emerging economic power, is the second largest AIIB shareholder might have made many that Washington pleaded with to think. It might well have been seen in the context of the Asia-Pacific Century that China’s paramount leader Deng Xiaoping talked with the Indian leader Rajiv Gandhi when they met in Beijing in 1988.

Those who became suspicious of AIIB have, meanwhile, overlooked an important factor. That is, what in fact provided the opportunity for this idea to germinate and find space for taking root?

Opinions differ on the question that how well the multilateral organizations like the World Bank, IMF, etc., have helped poor countries in Asia—the region on which the new-born AIIB is focusing—pull out of poverty. In 1966, inaugurating the ADB in Manila over two decades after the founding of the World Bank, the then president of the Philippines Ferdinand Marcos touched on the question. In per capita terms, World Bank loans, he said, translated as $2.80 to Asia and $4.20 to Europe.

Whether or not the ADB in its half-a-century of existence has done any better than World Bank, both these institutions finance, as The Economist pointed out not long ago, everything from environmental protection to gender equality; whereas the AIIB is concentrating its firepower on infrastructure. Financial support that Asia needs for building roads, rails, air and sea ports, power plants, dams, canals and other infrastructure facilities is Herculean. A recent HSBC study has put it at $2.1 trillion in six Asean countries alone.

This is why the world’s two leading economies, the US and Japan, that have decided deliberately to stay away from AIIB need to think again.

viswa.nathan@manilatimes.net

The writer, a noted Hong Kong-based journalist is now consultant and roving editor at The Manila Times.

Reactions: Like Like:
2


----------



## Mangus Ortus Novem

ahojunk said:


> _A view from a Manila Times roving editor...
> Pride will prevent the US and Japan from joining. Doesn't matter, they are not missed._
> 
> --------
> ANALYSIS
> *US and Japan need to rethink their stand against AIIB*
> August 3, 2016 10:48 pm
> by P. VISWA NATHAN, ROVING EDITOR
> 
> Six months after its inauguration in Beijing on January 16, the Asia Infrastructure Investment Bank (AIIB), the China-led inter-governmental development institution focused on Asia, has granted its first four loans.
> 
> There is one thing particularly noteworthy about these loans. Three of them have, in effect, called the bluff of those who have claimed AIIB was part of a Chinese ploy designed to undermine the Asian Development Bank, the World Bank, and similar institutions.
> 
> Action speaks louder than words; and these loans now stand as proofs that AIIB is supporting infrastructure projects in Asia that the ADB, the World Bank, and others cannot fully finance.
> 
> A $216.5 million AIIB package is for a slum-upgrading project in Indonesia, which the World Bank and the Islamic Development Bank (IsDB), among others, are also financing.
> 
> Similarly, $100 million goes to build the Shorkot-Khanewal section of Pakistan’s M4 national motorway that will also receive $100 million from the ADB and $34 million from Britain’s Department for International Development (DFID).
> 
> Also, a $27.5 million AIIB funding is allocated to co-financing with the European Bank for Reconstruction and Development (EBRD) a $105.9 million program for improving Tajikistan’s Dushanbe-Uzbekistan Border road.
> 
> In other words, complementing rather than competing is AIIB’s underlying spirit.
> 
> The idea for AIIB had taken a long time to materialize. China’s president, Xi Jinping mooted it first in 2013 and discussed it with various world leaders. The following year, Chinese Premier Li Keqiang proposed it at the Boao Forum for Asia, the equivalent of the World Economic Forum. It was initiated in 1998 by three Asia-Pacific leaders—the former Philippine president Fidel Ramos, the former prime minister of Australia Bob Hawke, and the former prime minister of Japan Morihiro Hosokawa. Since then a global conversation on the matter has ensued, which seems to have made the United States nervous.
> 
> Washington had once ruled the waves of the Asian waters with its Seventh Fleet and exercised much influence over many Asian countries through the Southeast Asia Treaty Organization as well as economic and military aid in the days it considered China an arch enemy. But that influence has started to wane following the humiliating defeat in the Vietnam War and subsequent dismantling of the air and naval bases in the Philippines.
> 
> Nonetheless, it wants to prevent anyone else playing any key role on that turf—which some smart minds in Washington had concluded the AIIB would realize for China. So, Washington has tried to convince its allies as well as others not to support it.
> 
> Many have ignored the US plea. Fifty-five countries signed up within six months after the agreement to establish AIIB came into effect. They included 12 of the 18 countries that supported ADB at the start—Australia, Cambodia, India, Indonesia, South Korea, Laos, Nepal, New Zealand, Pakistan, Singapore, Thailand and Vietnam. Since then, the Philippines, Malaysia, Poland, Kuwait, and South Africa have signed on. From the West, almost half of Washington’s NATO allies—Denmark, France, Germany, Iceland, Italy, Luxembourg, Netherlands, Norway, Poland, Portugal, Spain, Turkey, United Kingdom—have also joined.
> 
> Apparently, while AIIB is China’s brainchild and China is its largest shareholder, the fact that India, the world’s largest democracy and a fast emerging economic power, is the second largest AIIB shareholder might have made many that Washington pleaded with to think. It might well have been seen in the context of the Asia-Pacific Century that China’s paramount leader Deng Xiaoping talked with the Indian leader Rajiv Gandhi when they met in Beijing in 1988.
> 
> Those who became suspicious of AIIB have, meanwhile, overlooked an important factor. That is, what in fact provided the opportunity for this idea to germinate and find space for taking root?
> 
> Opinions differ on the question that how well the multilateral organizations like the World Bank, IMF, etc., have helped poor countries in Asia—the region on which the new-born AIIB is focusing—pull out of poverty. In 1966, inaugurating the ADB in Manila over two decades after the founding of the World Bank, the then president of the Philippines Ferdinand Marcos touched on the question. In per capita terms, World Bank loans, he said, translated as $2.80 to Asia and $4.20 to Europe.
> 
> Whether or not the ADB in its half-a-century of existence has done any better than World Bank, both these institutions finance, as The Economist pointed out not long ago, everything from environmental protection to gender equality; whereas the AIIB is concentrating its firepower on infrastructure. Financial support that Asia needs for building roads, rails, air and sea ports, power plants, dams, canals and other infrastructure facilities is Herculean. A recent HSBC study has put it at $2.1 trillion in six Asean countries alone.
> 
> This is why the world’s two leading economies, the US and Japan, that have decided deliberately to stay away from AIIB need to think again.
> 
> viswa.nathan@manilatimes.net
> 
> The writer, a noted Hong Kong-based journalist is now consultant and roving editor at The Manila Times.



Japan shot itself in the foot by opposing AIIB. Everyone else saw the writing on the wall. This could have been a very positive step for JP to join as the membership was/is open to everyone in most transparent manner.

With or without JP the infrastructure needs of asia need to be met..combined with the architecture of OBOR real economic transformation is bound to happen. One hopes to see JP become constructive once again.

Reactions: Like Like:
3


----------



## TaiShang

*AIIB to increase to 90 member states*
(People's Daily Online) August 26, 2016







_ Jin Liqun, file photo. _

The Asian Infrastructure Investment Bank (AIIB) will review more than 30 new membership applications beginning in September, and the bank may have as many as 90 members by early 2017, *outstripping the membership numbers of U.S. and Japan-led Asian Development Bank (ADB)*, said Jin Liqun, the bank's president, at the China Entrepreneurs Forum on Aug, 25.

“As the first multilateral financial institution initiated *by a developing Asian country,* the China-initiated AIIB is going to absorb the experience of current multilateral banks. *However, we don’t want to clone them, but rather innovate and expand on them,*” Jin said.

According to Jin, AIIB is initiating cooperation with private capital on pension and commercial insurance projects, aiming to foster the role of private capital in public affairs. The bank is also working on developing new financial instruments to build a more flexible and efficient investment system.

“AIIB upholds its universal procurement procedures and gives players from all countries a fair appraisal when bidding for contracts,“ Jin said.

The institution won’t be limited to any one sphere, but plans to embrace projects in all fields, including transport, energy, electricity, communications and logistics.* It will also consider both new projects and intelligent upgrades*, according to Jin.

*In June, AIIB approved $165 million in loans for a project in Bangladesh--the first batch of loans for the country from the China-led development bank.*

AIIB, which launched formally in December 2015, particularly aims to support the construction of infrastructure in the Asia-Pacific region. Its 57 founding members include not only the BRICS countries (China, Russia, India, Brazil and South Africa) and four Group of Seven countries (Britain, France, Germany and Italy), but also Egypt, Australia and New Zealand. So far, the U.S. and Japan have not joined.

The AIIB expects to lend $10 to $15 billion per year to members for at least the next five years. 

**

So much for US opposition. 

Come on, China! Make America smell dust again!

Reactions: Like Like:
3


----------



## bobsm

*Canada snubs U.S. in seeking to join China-led AIIB*

AUG 31, 2016

BEIJING, AFP-JIJI – Canada will apply to join the China-backed Asian Infrastructure Investment Bank, Ottawa’s finance department said Wednesday, in a coup for Beijing after Washington tried to dissuade its allies from signing up.

“Canada is always looking for ways to create hope and opportunity for our middle class as well as for people around the world,” Finance Minister Bill Morneau said in a statement issued in Beijing. “Membership in the AIIB is an opportunity to do just that.”

The Beijing-based lender has been viewed by some as a rival to the World Bank and the Philippines-based Asian Development Bank, which was founded in 1966.

Critics worried that it would set much lower standards for projects and undermine principles of social, environmental and economic sustainability adhered to by the World Bank and other multilateral development finance institutions.

AIIB president Jin Liqun welcomed Canada’s decision, which he said “shows its confidence in the strong foundations the bank has built in our first few months.”

The United States, and Japan — the world’s largest and third-largest economies, respectively — have notably declined to join the bank.

The announcement came during Prime Minister Justin Trudeau’s visit to China, where he met Prime Minister Li Keqiang to try to strengthen ties before the Group of 20 summit this weekend in the Chinese city of Hangzhou.


http://www.japantimes.co.jp/news/20...u-s-seeking-join-china-led-aiib/#.V8aTt9xc9K4

Reactions: Like Like:
3


----------



## TaiShang

bobsm said:


> *Canada snubs U.S. in seeking to join China-led AIIB*
> 
> AUG 31, 2016
> 
> BEIJING, AFP-JIJI – Canada will apply to join the China-backed Asian Infrastructure Investment Bank, Ottawa’s finance department said Wednesday, in a coup for Beijing after Washington tried to dissuade its allies from signing up.
> 
> “Canada is always looking for ways to create hope and opportunity for our middle class as well as for people around the world,” Finance Minister Bill Morneau said in a statement issued in Beijing. “Membership in the AIIB is an opportunity to do just that.”
> 
> The Beijing-based lender has been viewed by some as a rival to the World Bank and the Philippines-based Asian Development Bank, which was founded in 1966.
> 
> Critics worried that it would set much lower standards for projects and undermine principles of social, environmental and economic sustainability adhered to by the World Bank and other multilateral development finance institutions.
> 
> AIIB president Jin Liqun welcomed Canada’s decision, which he said “shows its confidence in the strong foundations the bank has built in our first few months.”
> 
> The United States, and Japan — the world’s largest and third-largest economies, respectively — have notably declined to join the bank.
> 
> The announcement came during Prime Minister Justin Trudeau’s visit to China, where he met Prime Minister Li Keqiang to try to strengthen ties before the Group of 20 summit this weekend in the Chinese city of Hangzhou.
> 
> 
> http://www.japantimes.co.jp/news/20...u-s-seeking-join-china-led-aiib/#.V8aTt9xc9K4



Yet another dent in the wall of isolation the US tries to build around China.

Looks like, in its effort to isolate and encircle China, the US is building a wall (ideational as well as actual) around itself.

Maybe, Trump's proposed wall will be the insignia of such self-closure.

http://china.org.cn/business/2016-08/31/content_39202855.htm

Reactions: Like Like:
1


----------



## ahojunk

AIIB, Silk Road Fund crucial for developing countries in Asia: Cambodian transport minister
(Xinhua) Updated: 2016-08-29 14:27

PHNOM PENH - The China-initiated Asian Infrastructure Investment Bank (AIIB) and Silk Road Fund are crucial for Asia's developing countries that need capital for connectivity and infrastructure development, Cambodian Transport Minister Sun Chanthol said Monday.

"Efficient connectivity is vital to the growth of the economy and trade," he said during the opening ceremony of the 37th ASEAN Ports Association Working Committee meeting held here.

The minister said that according to the Asian Development Bank estimate, ASEAN needs about $70 billion a year in the next 5 to 10 years to carry out the Master Plan on ASEAN Connectivity, and Asia needs between $8 trillion and $10 trillion over the next 5 to 10 years to invest in the infrastructure projects to improve connectivity.

"The newly-established Asian Infrastructure Investment Bank (AIIB) with its capital of $100 billion, China's $40 billion One Belt One Road strategy, and the Asian Development Bank fund provide much needed capital to fund energy, power, transport and telecommunications infrastructure in Asia," he said.

The AIIB was formally established in Beijing, capital of China, in Dec 2015, and the Silk Road Fund with China's contribution of $40 billion was announced in November 2014 in Beijing.

The two sources of funding are aimed to provide financial support to regional infrastructure development projects in the framework of the Silk Road Economic Belt and the 21st Century Maritime Silk Road, known as Belt and Road Initiative.

Reactions: Like Like:
5


----------



## ahojunk

*Top Singapore civil servant to join AIIB*
By Medha Basu
31 AUG 2016
DIGITAL GOV 





_*Thia Jang Ping, transformation director in finance ministry, will set up the economics unit.*_


A senior official from Singapore’s Ministry of Finance will join the Asian Infrastructure Investment Bank (AIIB) in September.

Dr Thia Jang Ping, who is director of the ministry’s transformation office, will help set up the China-led financial institution’s economics unit.

“It’s an exciting opportunity to work in an international organisation, being the first one to be set up by China with a good objective of developing infrastructure in Asia,” he told the Straits Times.

Thia is concurrently director of security and resilience programmes in the ministry, and a director at the Institute of Governance and Policy at the Civil Service College.

Two other Singaporeans have already taken up senior positions at AIIB – Tony Wan is senior advisor on human resources to AIIB President Jin Liqun; and Pang Yee Ean is director-general of investment operations.

Wan is the former HR director at the Asian Development Bank and administration director at the World Bank. Pang was previously chief executive for government-linked building consultancy Surbana International Consultants.

The AIIB expects to have up to 90 member states by early 2017, with 30 countries currently in line to join the institution. This will make it larger in membership than the US and Japan-led Asian Development Bank.

Reactions: Like Like:
5


----------



## ahojunk

AIIB gets another vote of confidence as Canada applies to join
(Xinhua) 20:09, August 31, 2016





_*Canadian Finance Minister Bill Morneau attends a press conference in Beijing, capital of China, Aug. 31, 2016. (Xinhua/Shen Bohan)*_


BEIJING, Aug. 31 -- Canada announced Wednesday that it had decided to apply for membership of the Asian Infrastructure Investment Bank (AIIB), a sign of growing international confidence in the China-initiated multilateral bank.

If Canada joins the AIIB, it will be the first North American member of the bank, which already has 57 founding members including Australia and the United Kingdom.

Participation in the AIIB is "clearly Canada's best choice," Canadian Finance Minister Bill Morneau told a press conference in Beijing, saying that the bank represents the renewed approach of multilateralism, for which Canada "couldn't be more supportive."

"Canada is always looking for ways to create hope and opportunity for our middle class as well as for people around the world, and membership in the AIIB is an opportunity to do just that," Morneau said.

AIIB president Jin Liqun said Canada's membership will contribute significantly to the bank's development, noting that all countries interested in the AIIB were welcome to apply for membership.

"The decision of Canada to apply to join AIIB is very welcome and shows its confidence in the strong foundations the bank has built in our first few months," Jin told reporters.

There are now more than 20 countries waiting to join the AIIB and the door is wide open, he said.

The AIIB said that formal expressions of interest from potential new members would be welcomed before Sept. 30, 2016, and it looked forward to to welcoming the first of these new members early in 2017.

The AIIB, a not-for-profit bank initiated by China, was officially established last December and started operating in January.

With authorized capital of 100 billion U.S. dollars, it prioritizes investment in energy, power, transport, rural infrastructure, environmental protection and logistics.

In June, the bank approved its first four loans, totalling 509 million dollars, to fund power, housing and transport projects in Bangladesh, Indonesia, Pakistan and Tajikistan.

Canada's move shows the international community's deepening understanding of and strengthening confidence in the AIIB, said Huang Wei, a researcher at the Chinese Academy of Social Sciences.

"More and more countries are optimistic about the bank's future," she said.

With a healthy financial market, Canada can bring its rich experience in financial management and governance to the AIIB, while membership in the bank will benefit the country's own infrastructure and help it expand international influence, according to Huang.

For Canada, helping fund high-quality infrastructure in Asia will contribute to global economic growth and help Canadian companies explore new commercial opportunities, Morneau said.

China is now Canada's second largest trading partner. Trade between the two countries was over 67 billion U.S. dollars in 2015, a 10.1 percent increase year on year, according to Canadian statistics.

At Friday's press conference, Jin said the AIIB will operate in line with international standards, have zero tolerance over corruption and be vigilant about possible redundant positions.

Reactions: Like Like:
5


----------



## ahojunk

_Canada wants to be a member. China says, "Welcome to the AIIB party."_

--------
*China welcomes Canada's decision to apply for AIIB membership: Xi*
2016-09-01 08:10 | Xinhua _Editor: Mo Hong'e_





_*Chinese President Xi Jinping (R) meets with Canadian Prime Minister Justin Trudeau in Beijing, capital of China, Aug. 31, 2016. (Photo: Xinhua/Rao Aimin)*_

President Xi Jinping said on Wednesday that China welcomed Canada's decision to apply to be a member of the Asian Infrastructure Investment Bank (AIIB).

While meeting with visiting Canadian Prime Minister Justin Trudeau, Xi said that China was willing to improve communication and coordination with Canada, protect an open and inclusive multilateral trade system with the country and deepen cooperation in areas such as climate change, peacekeeping and marine protection.

Canadian Finance Minister Bill Morneau announced Canada's decision to apply to be a member of the AIIB, at a press conference in Beijing Wednesday.

Xi also called for more high-level visits between China and Canada. Leaders of both countries should pursue communication and coordination in a variety of ways on issues of mutual concern, Xi said. He added that both sides should enhance dialogue and cooperation in various fields with existing bilateral mechanisms.

This is the first official visit by Trudeau since taking office in November 2015. His father, former Canadian prime minister Pierre Trudeau, was the first Canadian prime minister to visit China after the establishment of diplomatic relations.

After his stay in Beijing, Trudeau will fly to Hangzhou to attend the G20 summit.

Reactions: Like Like:
4


----------



## ahojunk

Argentine economist says joining the AIIB would be greatly beneficial
Source: Xinhua | 2016-09-03 22:49:25 | Editor: huaxia

BUENOS AIRES, Sept. 2 (Xinhua) -- Argentina would greatly benefit from joining the Asian Infrastructure Investment Bank (AIIB), a new institution promoted by China, said an Argentinean economist.

In an interview with Xinhua, Gustavo Girado, director of the Asia & Argentina (A&A) consultancy, said that the AIIB is a privileged platform for economic cooperation to help make the infrastructure along the Belt and Road a reality.

The expert anticipated that *Argentina will benefit from future expansions of the AIIB*.

"If the AIIB grows internationally as an entity capable of making investments and financing projects among its members on all continents, this could be very beneficial for Argentina, given the extraordinary institutional structure the AIIB is revealing," he added.

He also said that the "idea of an economic belt along the Silk Road has brought a new image to relations with China."

"This Belt will connect -- by land and sea -- Central Asia with Southern Asia and Southeast Asia with Western Asia, allowing these sub-regions to exchange products, complement each other, establish and consolidate Asia's supply chain and value chain and take Asia-Pacific regional cooperation to the next level," Girado said.





_Photo taken on Jan. 17, 2016 shows the stone monument in front of the headquarters building of the Asian Infrastructure Investment Bank (AIIB) in downtown Beijing, capital of China. (Xinhua/Li Xin)_

The AIIB was created in 2015 to finance infrastructure projects in Asia and to act as a complementary to other institutions such as the World Bank or the Asian Development Bank.

Of the 57 founding members, around 20 are Western countries, including Britain, Germany and France. Canada has just applied to join in the institution in August.

In December, the AIIB President Jin Liqun announced that the bank planned to extend loans of between 10 billion to 15 billion U.S. dollars annually in its first years.

Reactions: Like Like:
6


----------



## TaiShang

*China is Building a New Financial System To Replace US Leadership*
Thierry Meyssan
Sun, Sep 11, 2016

Originally appeared at *Votaire Network*

_During the first Annual Summit organized by the Asian Infrastructure Investment Bank (AIIB) in Beijing, China has shown her intention to take over the global leadership in infrastructure investment. _

_By the end of this year, AIIB would have more than 100 members, making it the first lending institution in multilateral loans in history, under the control of the most important emerging countries. _

_It is expected that China will eventually drop the dollar, as it is the only way to break away from US hegemony in international finance._


China is already ahead of the US in the race of financing infrastructure at the global level. International Finance is going through transformation, in spite of the strong resistance by the powerful American controlling power. Last year, high officials from Washington had tried to sabotage the launch of the Asian Infrastructure Investment Bank – AIIB, but failed to do so.

In fact, countries that had formerly declared their allegiance to the US government, namely Germany, France, Italy, UK, had, at the end of the day, taken the decision to join the new multilateral lending institution promoted by Beijing. President Barack Obama could not imagine that the AIIB would have got the support of more than fifty countries within a few months.

*Without a doubt, China is accelerating US decline across the globe*. In April 2015, Larry Summers, former Secretary of Treasury under Bill Clinton, declared that the successful call made by the AIIB represented the most dreadful blow to the US hegemony. _« Last month will be remembered as the time where US have lost their role as gatekeeper of the World Economic System »,_ he said [1].

*Beijing is delaying its major attack against the dollar*

However, until now, China has been proceeding with the uttermost caution. As a result, the majority of G-7 countries – Germany, Canada, USA, France, Japan, Italy and UK – have hailed the launch of AIIB. *Nonetheless, in spite of the extraordinary power of attraction of Beijing’s offer which reduced the influence of Washington over the Global Infrastructure Investment Finance* [2], AIIB is holding itself back from rejecting the Dollar. And while many had speculated [3] that AIIB loans would be issued in Yuan, or possibly in local currencies, to this date, all loans have been issued in USD currency.

Furthermore, we should also take note that three out of the four loans which have been approved by AIIB this year, amounting to USD 509 million, are investments which are linked to the traditional World financial institutions , built after World War II Washington’s model. In my view, Chinese investors want to make use of shares that have been invested in World Bank and Asian Development Bank, as well as of the excellent relations already established with Europe.

*At present, AIIB is co-financing, together with World Bank, a Housing Project in Indonesia, through a loan of USD 216,5 million; she also co-finances a Road Construction Project in Pakistan of USD 100 million, together with the Asian Development Bank (ADB) and UK’s International Development Department ; Another loan amounting to USD 27,5 millions, financed by the European for Reconstruction and Development, is supporting the Road Upgrading Project in Tadjikistan; The only project which AIIB finances itself is a loan of USD 165 million to support the Power Plant Project in rural Bangladesh.*

*The Asian Bank’s mission as Global Investor in Infrastructure*

Above all, AIIB’s launch marks a significant threshold in the history of multilateral credit institutions as the first bank – in addition to the new BRICS Development Bank – to be owned mainly by emerging economies [4].

The financial contribution of the super economies of the BRICS Eastern countries are important: Chinese shares occupy 29,78%, followed by Indian shares with 8,36%, and Russian shares come third with 6,53%. The twenty (20) remaining shareholders come from other regions represent only ¼ (25%) of the authorized registered capital amounting to USD 100 billion [5].

Initially, AIIB was conceived to support mainly Asian economies, yet, China seems to consider upgrading it into an institution with global reach, capable of assembling aspirations of the rest of the emerging economies [6]. In this perspective, during the launch of the first Annual Summit in Beijing last June, AIIB president, Jin Liqun, a Chinese national, announced that he was considering adding 24 more countries to the existing list [7].

In Latin America, Chile, Columbia, Venezuela are now applying. In Africa, Algeria, Libya, Nigeria, Senegal, Sudan already signed up. It is useful to note the application of Canada, who is member to the North American Trade Agreement (NAFTA), just as Mexico and USA are. In Europe, Cyprus, Greece, and Ireland are highly interested to join in. If all goes well as it does until now, it is possible that by the end of this year, AIIB will have gathered more than 100 member countries [8], i.e. at least 34 more members than the Asian Development Bank itself, although it still has a long way to go to reach the level of World Bank whose membership reaches 183.

*Opting for a multipolar world*

AIIB has still a lot to do on its agenda. Indeed, although the Asian region has registered a high level of GDP growth during the last two decades, she has not managed to set up a first class infrastructure yet. Sultan Ahmed Al Jaber, Minister of the United Arab Emirates, stated that in the Asia Pacific region, around 1,500 million people are still lacking basic sanitary installations, 260 million still have no access to drinking water, and at least 500,000 have no current electricity in their home [9].

In conclusion, AIIB first Annual Summit showed China’s determination to be part of International Finance “Premier League”. Through its commitment in the construction of the “Silk Road” [10], AIIB is a power counterbalance to the geo-economic influence of the US and Japan in Asia. Nonetheless, in order to speed up the construction of a multipolar world order, it is imperative that AIIB Executives make the decision to drop the Dollar, and, more importantly, to keep up their promises on improving standards of living of the people.

@Economic superpower

Reactions: Like Like:
4


----------



## ahojunk

_Good news for this small country._

--------
Timor-Leste launches process of joining AIIB
SEPTEMBER 13TH, 2016

A meeting of the Timor-Leste (East Timor) cabinet Ministers authorized the Ministry of Finance to start the process of joining the Asian Investment and Infrastructure Bank (AIIB), according to a press release published on the official government website.

The AIIB, based in Beijing, was established in December 2015 following a proposal from China, which is the largest shareholder of the bank. The financial institution started operating in January this year.

The AIIB has an authorised capital of US$100 billion and gives priority to investment in energy, transport, rural infrastructure, environmental protection and logistics.

Brazil and Portugal are among the 57 founding members of the financial institution led by China. (macauhub/CN/TL)

*****************
Brazil, Portugal, Macao and Timor-Leste all have Portuguese legacy.

Reactions: Like Like:
2


----------



## ahojunk

_The title is slightly misleading, it gives the impression that both banks are competitors. Canada's Morneau is explaining the difference in focus of AIIB and World Bank._

--------
*Canada’s Morneau Says China’s AIIB Isn’t a World Bank Rival*
by Theophilos Argitis, Bloomberg
September 12, 2016 — 2:01 PM AEST





_*
Bill Morneau. Photographer: Chris Goodney/Bloomberg*_​
Canada’s finance minister said he doesn’t believe the China-led Asian Infrastructure Investment Bank is a rival to the Washington-based World Bank.

Bill Morneau, speaking in an interview last week in Hong Kong, said *the $100 billion Asian investment bank has proven it is a well-governed institution that will be a positive contributor to growth*. The *World Bank, meanwhile, is making a real difference on refugee and global health issues*, Morneau said, adding he supports a second term for President Jim Yong Kim.

Canada’s decision to become a member of the Asian bank was a diplomatic victory for President Xi Jinping. It will become the first North American country to join, leaving *the U.S. and Japan as the only Group of Seven holdouts*.

“The goal of having more access to capital for infrastructure investment in Asia is a very positive goal in terms of actually dealing with some of the challenges faced in some Asian countries around infrastructure development,” Morneau said, adding the U.S. “can understand” Canada’s decision to join.

Canada will support the U.S.’s decision to nominate Kim for a second term at the World Bank, Morneau added. “We think Kim has done a good job. We think he’s been focused on issues that are going to have a real impact.”

Reactions: Like Like:
1


----------



## AZADPAKISTAN2009

Nothing like a good good Opportunistic , Young man , that is why young people are appreciated. They are bold and make ambitious choices


----------



## ahojunk

_What the Dutch advisor said makes lots of sense._

--------
AIIB has swift start, solid governance, good cooperation: Dutch policy advisor
(Xinhua) | Updated: 2016-09-14 08:58

After a swift start, the Asian Infrastructure Investment Bank (AIIB) has solid governance, good policies and good cooperation among members to take the challenge of building up more projects, a Dutch policy advisor said on Tuesday.

The policy advisor at the Dutch Ministry of Finance made the remarks at a workshop at Groningen University in the north of the Netherlands.

"What remains now the main challenge is to build up more standalone projects and do it more in the private sector. Also is important the implementation of the policies in practice," Alex Niatsetski told dozens of researchers attending the workshop on the impact, opportunities and difficulties of the Belt and Road Initiative for the China-EU relations.

Niatsetski, who is also advisor to a Dutch alternate member of the board of directors at the AIIB, emphasized that the Beijing-based lender is not a Chinese bank but an international financial institution with its own governance to serve two basic goals -- to foster sustainable economic development in the region by amongst others investing in infrastructure and to promote regional cooperation.

"It has been a really swift process since the announcement of the initiative by Chinese President Xi Jinping in October 2013," he said.

"In March 2015 the Netherlands decided to join as prospective founding member. After intensive negotiations about the policies and strategies of the bank, the final agreement has been satisfactory for all the prospective founding members. The Netherlands ratified the treaty in December. Then in January, the official inauguration of the AIIB took place in Beijing and the bank officially became operational. And half a year after that inauguration, the first four projects have been approved by the board of directors in Beijing," he explained.

In his analysis, the Netherlands has clear arguments to be a member of the AIIB.

"We really recognize the great financial gap in infrastructure sectors in the region, and that by complementing to that gap, by offering capital through the bank, we would foster economic growth and by doing that as an open economy with a big export sector, we could benefit from it ourselves," he said.

"The second argument is the direct influence on policies. As a prospective founding member, you are sitting at the table and negotiating on policies, you can really have influence. The third argument is a geopolitical one: it is important to cooperate within the region, with China but also with other members," he added.

As to the management of the bank, the Dutch expert noted that the consensus rule works really well in practice.

"The board comes together four times a year, and decides on more operational questions like policies and projects, but in practice they decide by consensus. Our experience so far is that the president of the bank, who is Chinese, really manages these dynamics really well," said the Dutch policy advisor.

Niatsetski believed that the AIIB has solid environmental and social policies comparable to that of the World Bank and the Asian Development Bank, saying "We made analyses about the differences and those are really minor, so it is really solid."

"Also, the procurement policy which looks at how the contracts are awarded to companies who build the infrastructure is also along the international standards. Dutch companies can also apply for projects if they have the best price-quality deal," he added.

Niatsetski considered it important to underline that for the AIIB, there is no competition with other IFIs (international financial institutions).

"The first thing that the AIIB did was making co-financing agreements with other MDBs," said the policy advisor.

"That means that the AIIB in the starting phase can trust the knowledge and guideline and capacity of other Multilateral Development Banks, and they can build their own experience from that. I think that is a very good signal," he said.

In June, AIIB approved its first four loans totalling $509 million to fund infrastructure projects in Bangladesh, Pakistan, Tajikistan and Indonesia. These projects span the energy, urban development and transport sectors.

The AIIB, which supports infrastructure development and regional connectivity in Asia, is targeting at lending of about $1.2 billion in 2016.

The AIIB will begin reviewing membership applications in September as it calls on more countries and regions to join its infrastructure funding efforts. Canada has decided to apply for membership. If Canada joins the AIIB, it will be the first North American member of the multilateral bank.

Reactions: Like Like:
2


----------



## ahojunk

*China-led AIIB appoints new French vice-president *
Janne Suokas
2016/09/19

The Asian Infrastructure Investment Bank (AIIB) has appointed Thierry de Longuemar as the bank’s new vice-president in charge of finances, replacing Korea’s Hong Kyttack who recently left the bank due to a scandal related to his previous post at home.

The appointment of Thierry de Longuemar, a French national, means that three out of five vice-president’s positions in the newly-established Chinese-led development bank are now held by Europeans.

“I am delighted to announce Mr. Thierry de Longuemar’s appointment to this important leadership position. He brings with him decades of highly relevant experience that will serve the Bank well in the years ahead. I look forward to working with him when he takes up his position later this month,” AIIB President Jin Liqun said in a statement released on Monday.

De Longuemar first joined the Beijing-based AIIB in June as chief financial officer after announcing his retirement from the vice-president’s position at the Asian Development Bank (ADB).

He replaces South Korea’s Hong Kyttack who resigned from the AIIB’s vice-president’s position due to scandal related to his previous job at the Korean Development Bank.

France is one of the founding members in the AIIB which was established by China last year to fund infrastructure projects in Asia.

Initially seen as rival to the Japanese-led ADB and the Washington-based World Bank, the bank officially started operations in January with 57 member countries and US$100bn in capital.

Following de Longuemar’s appointment, the AIIB’s five vice-president now come from Great Britain, France, Germany, India, and Indonesia.

China is the largest stakeholder in the bank, followed by India, Russia, Germany and South Korea.

The appointment of de Longuemar, who has earlier served in the African Development Bank too, can be seen as another step taken by the AIIB to assure that it is a true multilateral lending institution rather than merely a foreign policy tool for Beijing.

The AIIB is also cooperating with other development banks. Three of its first four projects announced in June are being co-financed with the ADB, the World Bank and the European Bank of Reconstruction and Development.

With Canada announcing its decision to apply for AIIB membership during Prime Minister Justin Trudeau’s recent visit to China, the bank expects more than 30 new countries to join at the beginning of next year.

The United States and Japan have not joined the AIIB, but both are indirectly cooperating with it through the ADB and the World Bank.


----------



## TaiShang

A nice map to sum things up (Europe is the largest participant region as founding members):

Reactions: Like Like:
3


----------



## ahojunk

Permanent headquarters of AIIB to be built in Beijing
2016-09-23 18:36:08 CRIENGLISH.com Web Editor: Huang Shan
*




The ground-breaking ceremony for AIIB has been held in Beijing on September 23, 2016.
[Photo: 163.com]*​
A ground-breaking ceremony for Asian Infrastructure Investment Bank's permanent headquarters was held in Beijing on Friday.

Officials from the Ministry of Finance and Beijing municipal government attended the ceremony, hoping AIIB will promote the regional integration of Asia in the future.

The headquarters will be located in the north of Beijing, between the Olympic Forest Park and the iconic Bird's Nest Stadium, a stadium built for the 2008 Olympics.

Jin Liqun, the president of AIIB, expects the new building to become a landmark.

Construction is expected to be completed by the end of 2019.

The AIIB, which supports infrastructure development and regional connectivity in Asia, targets lending about 1.2 billion U.S. dollars in 2016.

Reactions: Like Like:
1


----------



## ahojunk

_More news on the ground breaking ceremony..._

========
*AIIB breaks ground for headquarters in Beijing*
2016-09-24 08:17 | Xinhua _Editor: Huang Mingrui_ 

A groundbreaking ceremony for the permanent headquarters of the Asian Infrastructure Investment Bank (AIIB) was held on Friday in Beijing.

The headquarters will be *located in the north of Beijing, between the Olympic Forest Park and the iconic Bird's Nest Stadium*, with construction expected to be completed by the end of 2019, the bank said in an online statement.

Speaking at the ceremony, AIIB President Jin Liqun said,"*This Bank sets out to be lean, clean and green*, and there is no better site in Beijing to highlight our green commitment than alongside the beautiful Olympic Forest Park."

The AIIB has been using temporary offices on downtown Beijing's Financial Street since beginning operations in January.

Jin expects the headquarters to serve as a new city landmark and provide a solid foundation for the bank's development.

The first chairman of the AIIB board of governors and Chinese Finance Minister Lou Jiwei and Mayor of Beijing Wang Anshun attended the ceremony.

The AIIB is a not-for-profit bank initiated by China and supported by a wide range of countries and regions. With authorized capital of 100 billion U.S. dollars, it aims to provide financing for infrastructure improvement in Asia.

In June, the bank approved its first four loans, totaling 509 million dollars, to fund power, housing and transportation projects in Bangladesh, Indonesia, Pakistan and Tajikistan.

Reactions: Like Like:
1


----------



## ahojunk

Thu Sep 29, 2016 | 5:40am EDT | Reuters
*China-led AIIB approves $320 mln in loans to Pakistan, Myanmar power projects*

The China-led Asian Infrastructure Investment Bank (AIIB) approved loans totalling $320 million to energy projects aiming to ease severe power shortages in Myanmar and Pakistan, the bank said on Thursday.

A $300-million loan will fund expansion of a hydropower project in Pakistan, co-financed with the World Bank, and a loan of $20 million went to a power plant in Myanmar co-financed with other lenders, the bank said in a statement.

"With the approval of two new projects, we are well on our way to meeting our target to extend financing of $1.2 billion in 2016," said President Jin Liqun, adding that the move met a core mandate of backing green and cost-effective infrastructure.

The bank has previously co-financed projects such as a slum renovation in Indonesia and highway construction in Pakistan and Tajikistan.

Crisis-hit Mongolia plans to pitch a number of railway projects to the AIIB as it steps up efforts to attract investment and boost trade, Reuters reported this month.

The bank, proposed by Chinese President Xi Jinping two years ago, began operations in January, with 57 founding member countries and $100 billion in committed capital. (Reporting by Sue-Lin Wong; Editing by Clarence Fernandez)

========
For more info on the loan to Myanmar, see this link 
https://defence.pk/threads/myanmar-military-economy-news-and-updates.347379/page-55#post-8761294

Reactions: Like Like:
1


----------



## ahojunk

*AIIB opens Myanmar book amid falling FDI*
ASIA / 05-10-16 / BY FINBARR BERMINGHAM






The Asian Infrastructure Investment Bank (AIIB) has issued its first loan in Myanmar.

The AIIB will lend US$20mn to the Myingyan gas-fired power plant, which will also receive US$58mn from the International Finance Corporation (IFC) and potentially US$42.2mn from the Asian Development Bank (ADB).

The 230MW plant will be constructed by Singapore’s Sembcorp Industries, who won what is considered to be the first wholly international tendering process in the country’s sector.

This will add to a gas-powered network which has seen a total capacity of 270MW in 2011, produced entirely by state-run plants, augmented by almost 1,000MW of private plants since.

Development banks are circling Myanmar, hoping to bolster their investments in a country which has lost much of its sheen to commercial investors over the past 12 months.

A long electoral period which eventually saw the National League for Democracy (NLD) sweep to power earlier this year, coincided with a sharp drop in foreign direct investment (FDI) into Myanmar in 2015.

FDI fell from a peak of US$8bn in 2014 to US$3.9bn last year. The NLD, led by Aung San Suu Kyi, is expected to announce a comprehensive economic policy in the coming months, which could serve to assuage investors’ fears, particularly given the US’ surprise decision to lift economic and trade sanctions on Myanmar in September.

The sanctions had been in place since 1989 over human rights abuses. While some 100 companies and individuals remain on a blacklist, many will be fully lifted, although a final deadline has not been set for their removal.

While things are uncertain, then, it could well be down to caution rather than long-term reluctance to trade in or with Myanmar, one of Asia’s frontier markets.

“I’m still quite positive about Myanmar,” Khaing Zar Aung, head of insurer Willis’ representative office in Yangon tells GTR down a crackly phone line.

She explains: “I know FDI is down by 85% and that affects our business obviously. With the new government, we thought investment would be rushing in and everyone would be keen to do business in Myanmar. But in reality, because of a lot of changes in regulation, a lot of investors have held back, a lot of projects have been pushed back until industrial policy has been refocused.”

Aung adds that many companies appear to be awaiting a codification of economic policy before moving. Insurance premiums are down, she says, but that has meant more people are taking them out. For Willis, volume is up, even if the average premium value is down.

Much planned investment in the construction has been put on ice after the government suspended all planned projects in Yangon, the largest city and former capital, with more than nine storeys, including those that are in construction.

In an explanatory note, the government cited issues such as lack of fire-safety systems, lack of parking space, violations of road-to-building rules and breaches of planning permission approval on height.

Meanwhile, the IFC recently said that it would more than double its lending to Myanmar by the end of 2018. The commercial arm of the World Bank plans to have a portfolio of US$600mn by the end of this year, rising to US$800mn by mid-2017 – a huge increase on September’s US$386mn portfolio.

In addition to the Myingyan plant, the IFC has recently announced a US$10mn loan to chemicals company Myanma Awba Group for the construction of a plant north of Yangon. It also lent US$6.5mn to a greenfield poultry breeding farm, Bel Ga Myanmar, in Yangon.

Reactions: Like Like:
3


----------



## ahojunk

Philippines to meet requirement status as founding member of AIIB
October 20, 2016
By Barbara Mae Dacanay, Correspondent

Manila: The Philippine government will finalise all the paperwork required to perfect its initial status as a founding member of the China-led Asian Infrastructure Investment Bank (AIIB) so it could source funds for its major infrastructure projects, sources said. “The AIIB is, for us, the number one priority [of President Rodrigo Duterte in his state visit in China],” said Finance Secretary Carlos Dominguez in Beijing, transcript of which reached Malacanang, the presidential palace in Manila. “We will discuss with them (AIIB and other bank executives) our whole plan and we will match it with theirs. We have to go to them and see what their priorities are so we can match our priorities with them,” said Dominguez, adding that *AIIB’s assistance will be crucial to the Philippine government’s railway and power projects*.

“Joining the AIIB will help us not to be as reliable [as we have been] on the World Bank, International Monetary Fund, and the European Union. Joining the AIIB will help fund more infrastructure projects for the country in the future, which is an important agenda for the new government,” said Tony Katigbak, columnist of _Philippine Star_.

Duterte’s ambitious infrastructure development plan was estimated at 7 trillion pesos (Dh534 billion, $152.17 billion or Dh583.3 billion) in six years.

*Prospective founding member*

By December 2016, the Philippine government must submit its instrument of ratification to perfect its status as one of AIIB’s 22 founding members in 2014, bank officials said.

On October 24, 2014, the Philippines became an AIIB prospective founding member. It submitted signed articles of membership on December 31, 2015 but its instrument of ratification remained pending since then. It has 9.781 per cent shares and 1.1 per cent voting right.

The Philippines was one of 10-member countries of the Association of Southeast Asian Nations (Asean) which became AIIB founding members in 2014. Asean is composed of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam.

The 12 other AIIB founding members in 2014 were China, Bangladesh, India, Kazakhstan, Kuwait, Mongolia, Nepal, Oman, Pakistan, Qatar, Sri Lanka, and Uzbekistan.

Allies of the United States such as Australia, Britain, Germany, and South Korea became AIIB members in 2015. Right now AIIB has 57 members. Both the US and Japan refused to become members.

*Financial input*

AIIB started operating in 2015, after 10 member states that hold 50 per cent of its $100 billion initial subscription finalised their respective instruments of ratification. AIIB’s capitalisation is 2/3 of the capital of the Manila-based Asian Development Bank (ADB) and 50 per cent of the World Banks, sources said.

When Chinese President Xi Jinping officially announced the launching of AIIB during a state visit in Indonesia in October 2013, he said China wanted greater financial input (with fewer strings attached) to infrastructure development of developing countries — through an established banking institution similar to the Asian Development Bank, International Monetary Fund, and the World Bank which, he added, were dominated by European, Japanese, and US interests.

The Asian region needs $8 trillion for infrastructure projects to fuel economic development from 2010 to 2020, the ADB said in 2010.

Reactions: Like Like:
4


----------



## ahojunk

AIIB is 'good investment for US'
Updated: 2016-10-20 11:47
By Chen Weihua in Washington(China Daily USA)

Joining the Asian Infrastructure Investment Bank (AIIB) would be a good investment for the United States, a prominent economist said.

David Dollar, a senior fellow at the John L. Thornton China Center of the Brookings Institution, made the remarks on Tuesday evening during the annual China Town Hall held by the National Committee on US-China Relations.

Dollar, a former World Bank official and US Treasury official, was the local speaker at the Confucius Institute US Center, just across the street from the Brookings, before former Secretary of State Henry Kissinger made a live-webcast keynote speech to the town hall.






Dollar was in favor of the US joining the AIIB right from the beginning. He said that there was a large number of serious and well-known people who think positively about the AIIB, naming former Fed Chairman Ben Bernanke, former Treasury Secretary Hank Paulson and former World Bank President Bob Zoellick.

He admitted that it would be *tough to get the Congress to appropriate the money for the US to join the China-led AIIB*. "It would take a pretty big educational effort on the part of any administration," Dollar said, triggering laughter among the audience.

"I think that would be a good investment," he added.

Aside from the anti-China sentiment among some US lawmakers, the Republican-controlled Congress has a generally uncooperative relationship with the Obama administration.

US officials, including Undersecretary of Treasury Nathan Sheets on Tuesday, now speak more positively about the AIIB in contrast to their rhetoric earlier this year, when the US was seen as trying to dissuade its close allies - Australia, South Korea and the UK in particular - from joining the AIIB.

Dollar said the AIIB has the potential to quickly grow to the size of the World Bank.

"It's off to a good start," he said, referring to the $509 million in investments approved by AIIB board in late June for four projects.

Three of the four projects are co-financed with the World Bank, the Asian Development Bank, the United Kingdom Department for International Development and the European Bank for Reconstruction and Development. They include a power grid in Bangladesh, slum renovation in Indonesia and highway construction in Tajikistan and Pakistan.

Amy He in New York contributed to this story.

chenweihua@chinadailyusa.com


********

_IMHO, US is not likely to join AIIB. Too much pride.
If they do, Japan is left holding the empty can.
._

Reactions: Like Like:
1


----------



## TaiShang

*Belgium hopes to join AIIB: Deputy PM *
(CRI Online) October 23, 2016






China's ambassador to Belgium, Qu Xing, says Belgium is strategically located in Europe for the 'belt and road' plan while addressing a Belt and Road forum organized by the Chinese embassy in Brussels, the capital city of Belgium on October 21, 2016. [Photo: CRIENGLISH.COM]

A leading Belgian politician has revealed his country is hoping to become a new member of the Asia Infrastructure Investment Bank.

The move is believed to be part of a broader initiative to by the Belgian government to attach itself more closely with the Chinese government's 'belt and road' initiative.

Deputy Belgian Prime Minister Kris Peeters has told a Belt and Road forum organized by the Chinese embassy in Brussels that Belgium hopes to become a member of the Asian Infrastructure Investment Bank sometime this coming year.

He suggests this is part a bigger plan to become more closely linked to the movement of goods through the Chinese government's 'belt and road' initiative.

"We have much to gain with this initiative. Belgium hopes to become a member the Asian Infrastructure Investment Bank next year. Moreover the Belgian ports of Antwerp and Zeebrugge are ready to contribute to the success of the Belt and Road Initiative."

China's ambassador to Belgium, Qu Xing, says Belgium is strategically located in Europe for the 'belt and road' plan.

"Regarding the facilities connectivity, in September this year, one month ago, a bloc train of the China railway express arrived for the first time in Antwerp from Xining, in Qinghai province to Antwerp. A Chinese logistics company based in Chengdu is planning to invest for the construction of a Euro-Africa-China trans-shipment center in Antwerp. Once the center comes into operation, Antwerp will become a frequent destination of the China railway express. "

Frank Geerkens with the Antwerp Port Authority says trade with China has allowed his port to become the fastest growing in Europe.

"I'm very happy here to say again the port of Antwerp is a privileged partner for one-belt and one road. One major reason is that it's also a port that exports goods. You see the trade flows between China and Europe, there is imbalance. More goods coming in that means more containers are loaded that being unloaded and empty when going back. We have a balance between incoming and outgoing container loads. That is one belt and one road again. It is two-way trade cooperation and interconnectivity."

The "Belt and Road" program already involves already more than 60 countries which represent over half of global GDP.





Experts and officials talk at a Belt and Road forum organized by the Chinese embassy in Brussels, the capital city of Belgium on October 21, 2016. [Photo: CRIENGLISH.COM]

Reactions: Like Like:
5


----------



## Nan Yang

*US opposition to AIIB ‘strategic mistake’, says senior Trump adviser*
In Op-ed letter to the Post, James Woolsey says he hopes new administration would give ‘much warmer’ response to China’s ‘One Road’ initiative

ZHUANG PINGHUI AND WENDY WU
PUBLISHED : Thursday, 10 November, 2016, 5:29pm

A top adviser of US president-elect Donald Trump has lashed out at the Obama administration for failing to embrace the China-led Asian Infrastructure Investment Bank, suggesting a possible policy shift come January.

In a letter to the Op-ed pages of the _South China Morning Post_, James Woolsey, a senior adviser to Trump on national security, defence and intelligence, called the current administration’s opposition to the formation of the AIIB “a strategic mistake”. He hoped the Trump response to the “One Road, One Belt” initiative would be “much warmer”.

More....
http://m.scmp.com/news/china/diplom...tion-aiib-strategic-mistake-says-senior-trump

Reactions: Like Like:
8


----------



## AndrewJin

What an interesting time!

Reactions: Like Like:
5


----------



## Steve781

AndrewJin said:


> What an interesting time!


Don't you use that as a curse?

Reactions: Like Like:
1


----------



## AndrewJin

Steve781 said:


> Don't you use that as a curse?


?

Reactions: Like Like:
2


----------



## TaiShang

Nan Yang said:


> A top adviser of US president-elect Donald Trump has lashed out at the Obama administration for failing to embrace the China-led Asian Infrastructure Investment Bank, suggesting a possible policy shift come January.



Interesting indeed.

No wonder Japanese media is in panic mode. Eventually, they might be left in broad cold.

Many countries have rushed to China for a dragon hug.

Maybe it is the US now wishing for a dragon hug.

Reactions: Like Like:
4


----------



## Abacin

http://www.scmp.com/news/china/dipl...tion-aiib-strategic-mistake-says-senior-trump
Trump is clearly becoming another Nixon for China. When United States needed strategic contraction, Nixon chose China as a partner. This strategic shift brought United States the cold war victory; This time Trump will lead United States to get closer to China at the cost of Japan.

In 20th Century, each time United States partnered with China, both became winner ( WWII and Cold War); Each time United states pitted against China (Korean War and Vietnam War), United States suffered a lot. If the world order is back to what designed by President Rooservelt through partnership with Russia and China as current UNSC design, peace will really come to this planet, religious fundamentalists, terrorists, extreme nationalists such as Japan and colonists will become the losers. China, Russia and United States can save a lot to maintain the world order and have more money for internal developments. Clowns such as Japan and Singapore living on the cracks of big powers will suffers.

Reactions: Like Like:
2


----------



## Chinese-Dragon

It's always the Republicans for some reason.

Reactions: Like Like:
2


----------



## Abacin

Economically I believe that Trump will target more on Japan, Korea, India with heavy protection and weak external penetration. Trump may loose more technology bans on China to improve trade imbalance since this kind of bans usually only help China establish independent industries with the leaking from so called US alliance and don't benefit United States. Better Sino-USA relations ahead as long as Sino-US work to establish mutual beneficial and stable economic partnership. That's why Chinese Americans with mainland origin are the extremely mobilized to support Trump.

Reactions: Like Like:
2


----------



## AndrewJin

Abacin said:


> Economically I believe that Trump will target more on Japan, Korea, India with heavy protection and weak external penetration. Trump may loose more technology bans on China to improve trade imbalance since this kind of bans usually only help China establish independent industries with the leaking from so called US alliance and don't benefit United States. Better Sino-USA relations ahead as long as Sino-US work to establish mutual beneficial and stable economic partnership. That's why Chinese Americans with mainland origin are the extremely mobilized to support Trump.


Rumours, Chinese businessmen who are working and living in the Trump Tower have already met the president-elect in the same building.

Reactions: Like Like:
3


----------



## Abacin

Chinese-Dragon said:


> It's always the Republicans for some reason.


Republicans are always business-oriented while Democrats focus on Ideology. 20th Century history clearly tells that partnership with China is always beneficial to United States. United States are desperate in better infrastructure while China is the only one to provide low cost and high quality infrastructure.

Reactions: Like Like:
3


----------



## 艹艹艹

*Trump is a smart businessman president




*

Reactions: Like Like:
2


----------



## beijingwalker

*U.S. should have joined China-led infrastructure bank: Trump adviser*
BUSINESS NEWS | Thu Nov 10, 2016 | 8:33am EST





A top adviser of U.S. President-elect Donald Trump lashed out at the Obama administration for failing to embrace the China-led Asian Infrastructure Investment Bank (AIIB), suggesting a possible policy shift when Trump takes office in January.

Hong Kong's South China Morning Post said that Trump's national security adviser, James Woolsey, called the Obama's administration’s opposition to the formation of the AIIB “a strategic mistake” in a letter to the newspaper.

Woolsey wrote that he hoped the Trump response to the “One Road, One Belt” initiative would be “much warmer”.

China launched the infrastructure bank three years ago to promote economic co-operation among a corridor of countries stretching from Southeast Asia to Europe.

The AIIB was officially launched with 57 countries, including several U.S. allies, such as Britain, Australia and South Korea.

China unveiled its ‘One Road’ blueprint and the establishment of the AIIB after China was excluded from the Trans-Pacific Partnership, a Pacific Rim trade deal led by the United States but which excluded China.
http://www.reuters.com/article/us-usa-election-china-infrastructure-idUSKBN13519P

Reactions: Like Like:
6


----------



## Abacin

To Japan, forget about political and military ambitions. Japan is just a buffer zone among China, Russia and United States. If it forgets its role, you may see China+Russia+United States vs Japan again as in WWII.

Reactions: Like Like:
2


----------



## oprih

TaiShang said:


> Interesting indeed.
> 
> No wonder Japanese media is in panic mode. Eventually, they might be left in broad cold.
> 
> Many countries have rushed to China for a dragon hug.
> 
> Maybe it is the US now wishing for a dragon hug.


That's a cute drawing! 

Anyway, interesting times indeed.

Reactions: Like Like:
1


----------



## war&peace

Apparently, Trump would do whatever is in USA's interest.

Reactions: Like Like:
4


----------



## XenoEnsi-14




----------



## AndrewJin

war&peace said:


> Apparently, Trump would do whatever is in USA's interest.


There are huge differences among interests of US, interests of non-elite americans, interests of elites, interests of big bosses, interests of the ultimate boss....Even for Trump, his own enterprises have different interests with those people who voted him.

Reactions: Like Like:
4


----------



## TaiShang

AndrewJin said:


> There are huge differences among interests of US, interests of non-elite americans, interests of elites, interests of big bosses, interests of the ultimate boss....Even for Trump, his own enterprises have different interests with those people who voted him.



Still not too late for the US and little Japan.

They can join although they missed the chance to become one of the founding members.

The US got to get used to becoming regular member because they missed out on a lot of institutional frameworks, recently, while the frameworks they have offered have collapsed one after another.

Just check what happened to the US-proposed New Silk Road Initiative. Prematurely dead because the US did not have any financial muscle to support it.

Reactions: Like Like:
2


----------



## ahojunk

*A Top Trump Adviser Is Rebuking Obama For Giving Asia's 'World Bank' the Cold Shoulder*
by TIME
NOVEMBER 10, 2016, 11:58 PM EST






The logo of The Asian Infrastructure Investment Bank (AIIB) on March 9, 2016 in Beijing, China.

*James Woolsey calls the rejection of the China-led AIIB a ‘strategic mistake.’*

Donald Trump can be expected to give a “much warmer” response to China’s “One belt, One Road” trade initiative than President Obama, according to a top adviser to the U.S. president-elect.

James Woolsey, a senior adviser to Trump on national security and intelligence, also referred to the Obama administration’s rejection of the China-led Asian Infrastructure Investment Bank (AIIB) as a ‘strategic mistake,’ in an opinion piece published in Hong Kong’s South China Morning Post Thursday.

“It is widely accepted in Washington today that the Obama administration’s opposition to the formation of the Asian Infrastructure Investment Bank was a strategic mistake and I hope that the next administration’s response to the Belt and Road initiative will be much warmer,” he wrote.

Woolsey also said, “We will not become isolationist.”

On the campaign trail, Trump lambasted China and threatened to declare the country a currency manipulator, but analysts said that an American about-turn on the AIIB would be viewed as a sign of goodwill in Beijing, the Post reports.

Former Chinese vice-commerce minister Wei Jianguo told the Post that despite Trump’s rhetoric, he might be open to China-backed investment programs, and that if he embraced the AIIB more deals could follow. “There is huge potential for cooperation between China and the U.S,” he said.

Washington’s attempt to squash the AIIB was considered a sign of mistrust in Beijing and an attempt to stymie China’s regional economic power. The floundering Trans-Pacific-Partnership (TPP), which froze China out of a deal that would have included the U.S., Japan, Australia, and Vietnam, was regarded similarly.

Reactions: Like Like:
4


----------



## tranquilium

Abacin said:


> Economically I believe that Trump will target more on Japan, Korea, India with heavy protection and weak external penetration. Trump may loose more technology bans on China to improve trade imbalance since this kind of bans usually only help China establish independent industries with the leaking from so called US alliance and don't benefit United States. Better Sino-USA relations ahead as long as Sino-US work to establish mutual beneficial and stable economic partnership. That's why Chinese Americans with mainland origin are the extremely mobilized to support Trump.



Well, from I have heard, the biggest reason a lot of mainland-origined chinese population supported Trump is because Hillary is proposing AA style for university admission slots by ethnicity. Since mainland Chinese has a lot better education on average, equalizing the available admission slot by ethnicity just means less slots for Chinese parents and their children. That is pretty much the very last thing you want to mess with.

Reactions: Like Like:
5


----------



## AndrewJin

tranquilium said:


> Well, from I have heard, the biggest reason a lot of mainland-origined chinese population supported Trump is because Hillary is purposed AA style for university admission slots by ethnicity. Since mainland Chinese has a lot better education on average, equalizing the available admission slot by ethnicity just means less slots for Chinese parents and their children. That is pretty much the very last thing you want to mess with.


Child education is the last thing Chinese will give up.

Reactions: Like Like:
3


----------



## GeraltofRivia

*If you can't beat them, let's join them*


----------



## ahojunk

*AIIB head Jin Liqun says HK to become member in coming months*
Nov 8, 19:24







Hong Kong is expected to become a member of the Asian Infrastructure Investment Bank in the coming months, the head of the China-backed development bank, Jin Liqun, said today.

He was speaking at a seminar, organized by the Infrastructure Financing Facilitation Office of the Hong Kong Monetary Authority. 

Jin said Hong Kong's application to become a member of AIIB was progressing well. 

"We welcome Hong Kong's application for AIIB membership. Hong Kong, among other applicants, is expected to become a member of AIIB in the coming months. We look forward to new members playing an active role in the bank."

Jin added that AIIB has plans to issue bonds to support infrastructure financing at an appropriate time. "As a world-class financial center with a robust business architecture, deep and active capital markets, AIIB will certainly consider Hong Kong’s strengths when it issues bonds," he said.

HKMA Chief Executive, Norman Chan, said, Hong Kong welcomed the opportunity to collaborate with AIIB in its bond issue.-The Standard

Reactions: Like Like:
2


----------



## Jlaw

Steve781 said:


> Don't you use that as a curse?


That's misinterpretation by white people. They need to fully grasp the Chinese language before translating .


----------



## TaiShang

*AIIB president says US under Trump may join bank*
By Ikenna Emewu (People's Daily Online) November 14, 2016






_AIIB President Jin Liqun, file photo. _

The president of the young Asian Infrastructure Investment Bank (AIIB), Mr. Liqun Jin, is an exciting personality with sure words and mastery of the details of his office and firm.

The former top chief of the World Bank exudes firmness in his grasp of what the bank is and targets. It was a delight interviewing him at the AIIB headquarters in Beijing last week weekend. The bank was created last year mainly at the behest of China on Christmas Day and commenced operation on January 17 this year. Apart from the founding member states, new members have joined including Canada that came in September after China hosted the G20 Summit. Egypt and South Africa are the only two African countries currently in the AIIB.

*"The letter ‘A’ in AIIB can stand for Asia, Africa or America"*

He hinted that irrespective of the phobia for the AIIB by the US at its inception, the possibility of the country joining the bank when the president-elect, Donald Trump, is in power cannot be ruled out.

He said: “I have heard a certain senior official of the President Barack Obama speak good of the AIIB and after Donald Trump won, I was told that many in his team have an opinion that Obama was not right not to join the AIIB, especially after Canada joined, which was a very loud endorsement of the bank. So we can’t rule out the new government in US endorsing the AIIB or indicating interest to join as member.”

Canada’s membership became the 22nd non-Asian state member among the present 57 members. However, the test of the bank’s popularity that started with a capital base of $100b, some 50% of that of the World Bank, is the line-up of close to 20 new countries intending to be part of the bank and most of them from outside Asia. At least, five of the new applicants are African countries. The Bank in October appointed Nigerian renowned economist, Dr. Ngozi Okonjo-Iweala an adviser among nine others from all over the world.

The president restated the bank’s willing to welcome new members as the old members with higher shareholding would drop more of their stakes to allow the new members have some shares, but after the next batch of members are admitted, Jin said there would hardly be any shares left for more countries to join. Very soon, the curtain would be drawn on the shortlist of the new members whose membership will take effect from January next year.

But the bank chief wants more African countries to join as he assured that the objectives of the AIIB includes assisting in the development of the smaller economies of the world no matter where located. To underscore the openness and overrule the phobia for it by US, Jin joked that “the letter ‘A’ in AIIB can stand for Asia, Africa or America. They all start with and that means the bank is for all of them.”

“Our major consideration in extending facilities to governments or state members is whether such projects the fund would be used for will in any benefit of Asia and assist in bettering Asian economy and also that of the borrowing country. But we have a duty and obligation to ensure that we don’t give impossible conditions to enable them utilize the funding and incentives of the bank. Every member state borrowing right is based not on the GDP but on shareholding and China has highest shareholding with 30% of the total volume. Right now, China is like a non-borrowing state member because if it does, it might crowd out other members that somehow need the fund more. But for the qualified borrower, the major plank for consent is on need and importance and not on shareholding capacity only. That implies that if a state needs to borrow and the AIIB is convinced that the need is compelling and there is prospect for profit in the targeted project the funding will be used for, the request would be granted as long as there is the collateral especially that of the economic potential of the project.”

AIIB funding of project is predicated on factors like the sustainability, the environmental friendliness which implies how the project would not cause a serious imbalance in environmental protection. But in situations where the importance would impact and encourage development and fight poverty, the environmental impact factor might be played down provided it is not so weighty to create another big problem. The last factor is the social acceptability - implying that the people of the community the project is to be sited must be ok with it and it must target to improve on their livelihood.

“AIIB structure, projects and funding must be lean, clean and green. By these I mean that the membership must be manageable and not too bogus, and we believe that the more the better. The project funding must be clean and that means there must be no form of corruption in the process leading to the funding and in the execution. It has to be clean to the extent of encouraging a clean and non-polluted environment. As I said earlier, on this we also consider the benefits when the environmental impact is bearable. For instance, in the USA today, most of the states, or almost all the so-called ‘Red States’ still rely on coal power station for electricity and it is not foreseeable in the next 30 years that fossil fuel would be done away with because of the carbon emission. What is steadily done is ensuring its effect is minimized. So in a place we find that coal power plant for instance is needed as the only way the people would be assured of power supply enough to encourage economic growth, we will find a way of minimizing the emission effect and go ahead with the project to strike a balance.”

*US initial fear*

Jin admitted that: “At the formation of the AIIB, the US, the base of the Bretton Wood Institutes that manage the world economy including the World Bank and the IMF, saw the new body as a threat to its dominance and importance in the world economic order. They raised issues on whether the bank’s functions would be consistent with fundamental human and environmental rights of the borrowers or state members. We did our best to convince them that we were no threat or rivals or either naive as not to know the basic rules of operations. And moreover, we believe there is enough space in the global economic theatre for several bodies to operate, and many regional development banks operate side by side the World Bank and there is no reason the AIIB would be the violator. We rather need to work with and benefit each other to create a better world.

“For instance, Asia alone needs as much as $1tr infrastructure funding every year and the World Bank hasn’t such pool of money to pick the bills therefore the need for an alternative. Moreover, if the AIIB exists just like the World Bank, there is no time the new body would embark on a project of building a power plant, airports, roads or seaport to boost the economy of any country that the World Bank will still vote funds for the same project. So if the AIIB handles one project and the World Bank takes another that is a lot better for the world towards defeating poverty and hardship.”

On the management of the bank, the president stated that right now, the AIIB operates a lean workforce of about 90 workers and operates solely from the head office in Beijing as a strategy to save cost and may continue that way for a long time. He however hinted that with time as the need arises, the bank may operate little outlet offices just to handle needs as it would stick to the rule of cost effective management.

To make its operations adapt to global best practice standards, he said the AIIB adopts universal procurement approach to get the best manpower and equipment and also recruits experts from everywhere in the world based on their competence irrespective of whether the country of origin of such expert is a member of the AIIB or not. That way, it is sure to harness the best hands to run its operations. 

***

_So perhaps out goes Obama's fearmongering "If we do not write trade rules, China will" rhetoric. _

Reactions: Like Like:
3


----------



## TaiShang

*Chile wants to join AIIB as soon as possible 

11.23.2016, China.org.cn
*
Chilean President Michelle Bachelet on Tuesday said her country wants to join the China-initiated Asian Infrastructure Investment Bank (AIIB) at the earliest date possible.

Bachelet made the remarks when meeting with visiting Chinese President Xi Jinping who arrived in Santiago on Tuesday afternoon for a state visit.

In a joint statement issued after the meeting, the two countries agreed to lift bilateral ties to a comprehensive strategic partnership and to start talks on an upgrade of their free trade agreement (FTA) as soon as possible.

"An upgrade of the FTA between Chile and China will give economic and trade cooperation between the two countries a strong boost," Bachelet said.

Chile welcomes Chinese enterprises to increase their investments in the Latin American country, she said, adding that her country is willing to join the AIIB as soon as possible.

Chile is the last leg of Xi's three-nation Latin America tour, which has already taken the Chinese president to Ecuador and Peru. He also attended the 24th Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting in Lima, capital of Peru.

Reactions: Like Like:
3


----------



## ahojunk

_Good news for Africa._

========
*AIIB expects to support African industrialization in cooperation with UNIDO*
2016-11-22 10:33 | Xinhua | _Editor: Mo Hong'e_

The Asian Infrastructure Investment Bank (AIIB) expects to cooperate with UN Industrial Development Organization (UNIDO) in boosting industrialization development in Africa in the future, Jin Liqun, President of AIIB on Monday told Xinhua.

Attending 50-year anniversary of UNIDO in Vienna, Jin said AIIB shares the inclusive and sustainable industrial development mandate with UNIDO, and could cooperate with the organization in the future to support the industrial development in African states.

"We expect that in near future we could carry out our business in Africa, and could cooperate with the world bank, the African Development Bank and UNIDO," Jin told Xinhua.

Although AIIB mainly focuses on the development of Asia, but African seems to be an attractive continent for its investment.

The AIIB president said compared to the other region like Latin America, Africa needs more help, many of the African countries still depend on exporting resources, therefore the industrialization is quite important for African countries.

Reactions: Like Like:
1


----------



## ahojunk

*China-backed AIIB to fund projects in Africa in ‘near future’*
JANNE SUOKAS
2016/11/22





_AIIB chief Jin Liqun has said the bank expects to fund projects in Africa in the near future. (Photo: Feng Yongbin, China Daily)_


The Asian Infrastructure Investment Bank (AIIB) is reportedly expecting to fund projects in Africa in the near future, a move that would mark the first time for the Beijing-based bank to extend its business beyond Asia.

AIIB President Jin Liqun, who was attending the 50th anniversary of the United Nations Industrial Development Organisation (UNIDO) in Vienna on Monday, said that the bank could co-operate with other lenders to help African countries to meet their development needs.

"We expect that in near future we could carry out our business in Africa, and could cooperate with the World Bank, the African Development Bank and UNIDO," Jin told Xinhua.

The AIIB chief said that his bank shares the same inclusive and sustainable development mandate with UNIDO and could cooperate with it to support the industrial development in Africa in the future.

The AIIB was founded on Chinese initiative last year with 57 member countries and US$100 billion in capital to finance infrastructure projects across Asia.

The bank has so far approved six loans worth US$829 million to road and energy projects in Asian countries such as Bangladesh, Indonesia and Tajikistan, with five of them being co-financed with other lenders including the World Bank, Asian Development Bank (ADB) and the European Bank for Reconstruction and Development.

But underlining the openness of the AIIB – which was initially regarded by some as China’s alternative to the Washington-based World Bank and the Japanese-led ADB – Jin said in an interview last week that the bank would consider borrowing requests from all member states.

“The letter ‘A’ in AIIB can stand for Asia, Africa or America. They all start with 'A' and that means the bank is for all of them,” Jin told People’s Daily, adding that the bank would consider the economic potential, sustainability and environmental impact of each funding request.

Egypt and South Africa are so far the only African members in the AIIB, but Algeria, Libya, Nigeria, Senegal, and Sudan could reportedly also join at the start of the next year when the bank is expecting to take in up to 30 new members.

Renowned Nigerian economist Ngozi Okonjo-Iweala was appointed in October to the bank’s international advisory panel, which includes several top politicians and government officials from countries in Asia, Europe, North America, and Africa.

China is the largest stakeholder in the bank, followed by India, Russia, Germany and South Korea.

Reactions: Like Like:
1


----------



## TaiShang

This news is a few months old, but still important. Deserves to be published.

***





Yukio Hatoyama | YOSHIAKI MIURA

*Former Japanese leader Hatoyama to buck precedent, join advisory panel of China-Led AIIB*

The Japan Times, Jun 26, 2016
BEIJING – Former Prime Minister Yukio Hatoyama will sit on an international advisory committee of the China-led Asian Infrastructure Investment Bank, it was learned Saturday.

AIIB President Jin Liqun confirmed Hatoyama’s appointment to the panel.

Japan, together with the United States, stopped short of joining the AIIB as founding members when the development bank was set up in December.

By appointing a former Japanese prime minister as an adviser to the AIIB, China may be attempting to weaken the collaboration between Japan and the United States, which are key players in the rival Asian Development Bank and World Bank.

The international advisory committee will hold its first meeting this autumn. Committee members will be tasked with advising the AIIB’s president and vice presidents on a broad range of issues.

The panel is expected to be made up of about 10 former heads of state or government, including from nonmember nations. Jin has been in charge of selecting the members other than Hatoyama, a source said.

Last year, there was debate in Japan over whether or not to follow other U.S. allies such as Britain, Germany, France and Italy and join the AIIB as a founding member. Hatoyama strongly supported Japan joining the body.

Jin, then head of the AIIB’s preparatory office, met Hatoyama in Beijing last autumn and asked him to be a member of the advisory committee, according to the source.

Since the AIIB’s December establishment, details of the panel have been discussed within the organization.

Currently, the AIIB consists of 57 member nations, including developing countries in Asia and advanced nations in Europe. At least 24 more countries have informed the AIIB of their willingness to join the institution.

The total of 81 member nations would surpass the 67 members of the Asian Development Bank, which is led by Japan and the United States.

Reactions: Like Like:
3


----------



## ahojunk

*PH Senate votes to ratify AIIB membership*
By Paolo Romero (The Philippine Star) | Updated December 1, 2016 - 12:00am

_



_​_The Senate on Tuesday approved on second reading the report of the Sub-Committee on Foreign Relations for the AIIB Treaty after Sen. Loren Legarda sponsored it on the floor.* File photo*_


MANILA, Philippines – The Senate is set to make a final vote next week on its concurrence to the Executive Branch’s ratification of the Articles of Agreement of the Asian Infrastructure Investment Bank (AIIB), from which the Philippines can tap billions of dollars in funding for projects.

The Senate on Tuesday approved on second reading the report of the Sub-Committee on Foreign Relations for the AIIB Treaty after Sen. Loren Legarda sponsored it on the floor.

Legarda, who chaired the hearings of the sub-committee, said membership to the AIIB would help achieve the country’s growth targets through accelerated infrastructure spending.

“Development of infrastructure is crucial for enhancing our trade competitiveness. Resilient and adequate infrastructure will reduce the costs of trade and strengthen our competitiveness. These would impact on our future growth,” the senator said.

“Let us take, however, this crucial step to be part of the AIIB to help address one of the most pressing issues facing our infrastructure sector,” she said in asking her colleagues to concur with the ratification.

The agreement was ratified by former president Benigno Aquino III last February. It was also ratified by President Duterte last Oct. 19.

The AIIB is a multilateral institution that consists of 57 member countries, 37 of which are in Asia. It was formally established in November 2014 when 22 Asian countries gathered in Beijing to sign a memorandum of understanding on the bank.

It aims to boost lending for infrastructure projects in the Asia-Pacific region, including energy, urban construction, transportation and logistics as well as education and healthcare.

It has an authorized capital stock of $100 billion.

The Duterte administration has set aside P4 billion in the proposed budget for 2017 as the Philippines’ initial contribution to the AIIB.

‘’In the end, we can see a 400 percent to 1,150 percent return on investment (ROI) of our required paid-in capital of $196 million (P9.8 billion) in five years,’’ Legarda said.

‘’AIIB aims to supplement and not crowd out private sector financing since it will focus on vital financing projects that are unable to avail of reasonable financing terms and conditions,’’ she said.

Legarda said the Philippines ranked 95th out of 138 economies in the 2016-2017 World Economic Forum’s global competitiveness index on infrastructure, highlighting how much the country has lagged behind other economies.

“The absence of good infrastructure – from road networks, transportation systems, airports and seaports, electrification, water supply, to telecommunications – has had dire consequences on our nation’s growth; above all, on our people’s well-being,” she said.

The World Bank estimates that a 10 percent increase in capital investment in infrastructure projects contributes to a one percent growth in GDP.

Citing a study by the ADB, the Department of Finance estimates the Philippines needs $127.12 billion from 2010 to 2020 for its infrastructure needs.

Reactions: Like Like:
3


----------



## ahojunk

*Senate approves PH membership in AIIB*
_posted_ December 05, 2016 at 10:01 pm _by_ PNA
Manila Standard

THE Senate on Monday approved on its final reading the ratification of Articles of Agreement of the China-led international financial institution, the Asian Infrastructure Investment Bank.

*Senate Resolution No. 241 was passed on third reading with 20 affirmative votes, one negative vote* from Senator Risa Hontiveros and zero abstention. 

The resolution was sponsored by Senator Alan Peter Cayetano, chairman of the Senate Committee on Foreign Relations and co-sponsored by Senator Loren Legarda, chairperson of the Senate Subcommittee on the AIIB ratification. 

“The Agreement considers the importance of regional cooperation to sustain growth and promote economic and social development of the economies in Asia and thereby contribute to regional resilience against potential financial crises and other external shocks in the context of globalization,” the resolution said.

It further stated that the Agreement “realizes that the considerable long-term need for financing infrastructure development in Asia will be met more adequately by a partnership among existing multilateral development banks and the Asian Infrastructure Investment Bank.”

The AIIB is formed by 57-founding member states like China, India, Russia, France, Germany and the United Kingdom. The Philippines signed the Articles of Agreement of the Asian Infrastructure Investment Bank last Dec. 31, 2015 in China. 

*President Rodrigo Duterte himself ratified the Agreement last October 19* and accordingly submitted it to the Senate for concurrence, in accordance with the 1987 Constitution.

Reactions: Like Like:
1


----------



## ahojunk

*AIIB approves loans for transport projects in Oman*
2016-12-11 10:05 | Xinhua | _Editor: Feng Shuang_

The Asian Infrastructure Investment Bank (AIIB) has approved *two loans totaling 301 million U.S. dollars for transport sector projects in Oman*, the bank's first in the Arabian Peninsula.

The financing comprises *265 million dollars to maritime infrastructure at Duqm Port* and *36 million dollars to the country's first railway system*, the AIIB said in a statement.

The projects are expected to enhance Oman's economic prospects and maritime trade links with other countries, the AIIB said.

"I am pleased the bank will be able to help the government of Oman diversify its economy through the approval of these two projects," AIIB President Jin Liqun said.

The two projects bring the total amount of loans approved so far by the bank to 1.13 billion dollars since it started operation in January.

"We have a strong pipeline of investments for next year, and we will continue working hard to help develop the sustainable infrastructure that Asia needs," Jin added.

The Beijing-based AIIB is a multilateral development bank initiated by China and supported by a wide range of countries and regions, which provides financing for infrastructure improvement in Asia.


----------



## ahojunk

*PH eyes $300M to $500 million from China-led AIIB in 2017*
By: Ben O. de Vera - @inquirerdotnet
Philippine Daily Inquirer / 05:13 PM December 12, 2016

_

_
_Finance Secretary Carlos Dominguez III 
(INQUIRER FILE PHOTO)_​
MANILA — The government is *planning to borrow $300 million to $500 million from the China-led Asian Infrastructure Investment Bank (AIIB) in 2017* to fund ready-to-implement projects, according to the Department of Finance.

In a statement, the DOF quoted National Treasurer Roberto B. Tan as saying that the government “may now request that AIIB send a mission to the country to discuss the proposed list of projects prepared by the National Economic and Development Authority (NEDA) for the bank’s financing.”

Last month, NEDA Director General Jonathan L. Uy said that as a whole, 31 projects have been in the pipeline for financing by the Chinese government, including the AIIB.

Tan also told the Senate in November that membership in the AIIB would allow co-financing with the Manila-based multilateral lender Asian Development Bank of the EDSA bus rapid transit (BRT) project, as well as with the World Bank for the Metro Manila flood control project.

“These are the projects that are the most prepared in terms of government approvals, feasibility studies and other requirements, and are already in the pipeline. So these projects can be processed most expeditiously for co-financing by AIIB,” Tan explained.

“Funds from AIIB will serve as an additional source of concessional financing to support our growing infrastructure requirements. Its terms and conditions are comparable to those of other multilateral development banks,” according to Tan.

The Duterte administration plans to spend P860.7 billion or 5.4 percent of the gross domestic product (GDP) on hard infrastructure next year, en route to bringing the infrastructure spending-to-GDP ratio to 7.2 percent by 2022.

Last Dec. 5, the Senate voted 20-1 to ratify the Philippines’ membership in the Beijing-headquartered AIIB, ahead of the Dec. 31 deadline for submission of prospective members’ instruments of ratification.

Tan, who attended an AIIB meeting last week, had said the government would *pay the initial tranche of paid-in capital worth $40 million or about P2 billion before yearend*, to be sourced from budgetary savings.

The Philippines was required to contribute to the AIIB a total of $200 million or about P9.3 billion in paid-in capital, payable in five tranches until 2019. The AIIB’s total capitalization was $100 billion.

The second and third installment payments worth P3.72 billion were already included in the proposed P3.35-trillion 2017 national budget.

The country will have a total voting power of 12,821 votes or 1.1 percent of the total voting power across all members, as well as join the proposed constituency comprised of Bangladesh, Malaysia, Maldives, Nepal and Thailand.

Since it was established in January, the AIIB already approved loans for seven projects worth $1.13 billion, of which four were co-financed with other multilateral lenders such as the ADB, the European Bank for Reconstruction and Development, and the World Bank.

The DOF noted that Finance Secretary Carlos G. Dominguez III had early on “strongly backed” the country’s AIIB membership, which he said “would provide the government another source of long-term funding at very reasonable interest rates for the Duterte administration’s unprecedented infrastructure buildup,” citing the need for about P8 trillion in investments needed to fill the infrastructure gap over the next six years.

“Achieving full membership in the AIIB is a significant milestone. Completing our domestic procedures for ratification puts us in solidarity with 56 other countries,” the finance chief said.

“AIIB serves as the only multilateral development bank that focuses on infrastructure. The operations and policies of the bank are designed to be lean, clean and green. It is committed to principles of transparency, independence, openness and accountability,” Dominguez added.

DOF documents earlier noted that the AIIB “can provide an annual financing window to the Philippines of about $200-500 million, *representing a 400-1,150 percent return on investment of our required paid-in capital of $200 million in five years.*”

The financing that could be provided by the AIIB would dwarf the $11.56 million in investments needed by the country yearly to narrow the infrastructure gap until 2020, as earlier projected by the ADB, the DOF earlier said. SFM

Reactions: Like Like:
3


----------



## ahojunk

*Australia wants AIIB to invest in coal power*
JANNE SUOKAS
2016/12/16






Australia hopes to secure its lucrative coal exports to countries in Asia. (Photo: OZinOH, Flickr)


Australia is reportedly lobbying hard for the China-led Asian Infrastructure Investment Bank (AIIB) to invest in coal power projects in Asian countries.

The newly-established development bank is currently drafting its energy strategy and the prospect that coal could be excluded from its priorities has alarmed both the Australian government and the country’s powerful coal lobbies, the Financial Times reported on Friday.

Australia accounts for around one-third of all coal trade in the world, with most of its coal exports going to China, Japan, South Korea and other countries in the region.

“The [Australian] government wants the AIIB energy strategy to acknowledge that fossil fuels will play a significant role in energy generation in the region for decades to come,” Kate Williams, spokeswoman for Australia’s Treasury Department, told Financial Times (paywall).

China launched the AIIB as “clean, lean and green” lender to finance infrastructure projects across Asia and the bank started operations in January with 57 member countries and US$100 billion in committed capital.


*Focus on energy efficiency*

The AIIB launched the first round of consultations in October for its energy strategy, which will be approved by the bank’s board in their annual meeting next June.

The bank’s first draft guidelines on the energy strategy published in October said Asia needs US$8,740 billion of energy investment by 2025 to implement already announced policies.

The paper said fossil fuel production has “severe negative impact” on densely populated cities in Asia and instead prioritised the upgrading of existing energy infrastructure to raise efficiency as well as investment in renewable energy.

But while it proposed that the AIIB would not consider financing nuclear plants at this stage, the paper did not completely close the door on coal and oil. 

“Coal- and oil-fired power plants would exceptionally be considered if cleaner technologies are not available for well-founded energy security or affordability reasons,” the paper said.

The proposal is in line with policy practices of other lenders such as the Japanese-led Asian Development Bank (ADB) and the European Bank for Reconstruction and Development which in some cases have funded coal power projects.

But according to the Financial Times, the AIIB paper still raised sharp criticism from the Minerals Council of Australia, an industry lobby, which said economic development should “not be subordinated to climate policy objectives”.


*Three approved power projects*

The AIIB has so far approved eight loans worth US$1.13 billion in total to six projects in Asian countries including Bangladesh, Pakistan and Tajikistan and two projects in Oman, the bank’s first in the Arabian Peninsula.

Three of the approved projects are in the energy sector, including a hydropower extension project in Pakistan, a gas-fired power plant in Myanmar and a power grid upgrade in Bangladesh.

But Indonesia has said it hopes the AIIB – in contrast to the ADB and the World Bank – will finance major coal-power projects in the country.

Australia is the sixth largest member country in the AIIB with a US$3.7 billion stake and 3.8 percent of votes.

China is the largest member country with a USA$29.8 billion stake and 28.7 percent of voting power, followed by India, Russia, Germany and South Korea.

Reactions: Like Like:
3


----------



## ahojunk

*AIIB to co-fund EDSA BRT, Manila flood control – DOF*

*Published *December 19, 2016 12:38pm

The EDSA Bus Rapid Transit system and the Metro Manila Flood Management Project are the first two projects the Asian Infrastructure Investment Bank (AIIB) will co-finance, the Department of Finance (DOF) said Monday.

"AIIB President Jin Liqun confirmed that the initial two projects that the AIIB will co-finance in the Philippines, with other multilateral lending institutions, are the Metro Manila Flood Management Project and the EDSA Bus Rapid Transit system," the DOF said in an emailed statement.

The department earlier said both projects are the most prepared in terms of government approvals and feasibility studies.

The P37.76-billion EDSA Bus Rapid Transit system is also co-financed by the Manila-based Asian Development Bank.

"We are all very eager to finalize the infrastructure projects in your country ... This time, we are very happy we can really talk about something to do in your country," Jin was quoted as saying in a recent meeting with Philippine officials.

The EDSA BRT of the Department of Transportation is a bus system along the 48.6-kilometer Epifanio delos Santos Avenue, from Monumento in Caloocan City to Diosdado Macapagal Avenue that straddles the cities of Pasay and Parañaque.

It entails integrated routes between the Ortigas Business District, Bonifacio Global City and Makati Business District.

A project of the Department of Public Works and Highways and Metro Manila Development Authority, the P23.5-billion Metro Manila Flood Management is envisioned to improve 36 pumping stations in Makati, Malabon, Manila, Pasay, and Taguig.

It entails the construction of 20 new pumping stations in Caloocan, Mandaluyong, Manila, Pasay, Pasig, Quezon, San Juan, and Valenzuela.

The projects have been approved by the National Economic and Development Authority Board.

During the meeting, the AIIB noted the speed with which the Senate ratified the Philippine membership in the bank, which was finalized on December 5.

"We'd like to thank you very much for speeding up the ratification so that we can start very soon. We believe there are so many that we can do in your country," Jin said.

The government plans to spend P8.2 trillion on infrastructure development in the six years to 2022, and dubbed the period as the "golden age of infrastructure."* — Jon Viktor Cabuenas/VS, GMA News*

- See more at: http://www.gmanetwork.com/news/stor...manila-flood-control-dof#sthash.FSi8UwfF.dpuf

Reactions: Like Like:
2


----------



## TaiShang

ahojunk said:


> The EDSA Bus Rapid Transit system and the Metro Manila Flood Management Project are the first two projects the Asian Infrastructure Investment Bank (AIIB) will co-finance, the Department of Finance (DOF) said Monday.
> 
> "AIIB President Jin Liqun confirmed that the initial two projects that the AIIB will co-finance in the Philippines, with other multilateral lending institutions, are the Metro Manila Flood Management Project and the EDSA Bus Rapid Transit system," the DOF said in an emailed statement.



This is the way for Mr. Duterte to fight poverty and crime; long term solution.

I am happy to see that AIIB is now quite focused on South East Asia, which needs the lion share of infrastructure investment according to the ADB.

AIIB and ADB can have a great synergy in working in SEA. ADB has a long history and experience in the region.

@Pinoy

Reactions: Like Like:
5


----------



## TaiShang

*AIIB approves 600 mln USD loan for Azerbaijan*
Xinhua, December 22, 2016

The Asian Infrastructure Investment Bank (AIIB) has approved a loan of 600 million U.S. dollars, its largest so far, to finance an energy project in Azerbaijan.

The decision was made by the AIIB's Board of Directors on Wednesday, the bank announced Thursday.

The bank approved its first four loans, totalling 509 million dollars, in June. Three of the four loans are co-financing projects with multilateral development bank partners.

The AIIB, a China-initiated multilateral bank, was founded on Dec. 25, 2015.

Reactions: Like Like:
7


----------



## ahojunk

*AIIB and World Bank lend big to TANAP project*
ASIA / 03-01-17 / BY FINBARR BERMINGHAM






The Asian Infrastructure Investment Bank (AIIB) and World Bank rounded off 2016 with huge loans to the Trans-Anatolian gas pipeline (TANAP) project, part of the gas corridor connecting Azerbaijan with Europe.

In the days before Christmas, the *AIIB gave its approval to a US$600mn loan to be used in the project’s construction, while the World Bank pledged US$800mn*.

The *1,850km pipeline will be operated by the Azerbaijan Southern Gas Corridor (SGC)*, the main borrower – although 50% of the World Bank’s portion will go to the Turkish state-owned energy company BOTAS, which holds a 30% stake in the project. This portion is guaranteed by the Turkish government.

The TANAP will travel through Turkey and eventually connect to the planned Trans-Adriatic Pipeline (TAP), bringing natural gas to Europe via Greece, Albania and Italy. It will have a total cost of US$11.7bn.

There will be substantial equity finance, but around US$4bn is expected to come in external debt. A big portion of the finance will likely come from multilateral lenders, with the European development banks expected to come into play soon.

The European Commission has billed TANAP as the “biggest infrastructure project of our times”, clearly looking to Azerbaijan’s Shaz Deniz II gas-field in the Caspian Sea as a means of replacing the energy supply lost to sanctions the EU placed on Russia.

The European Bank for Reconstruction and Development (EBRD) is expected to provide a syndicated loan of €1.5bn to TAP and another large loan to TANAP. The European Investment Bank (EIB) and the Multilateral Investment Guarantee Agency (Miga) are likely to be involved too.

The AIIB’s debt is guaranteed by the Azeri government, which through its State Oil Company of Azerbaijan (SOCAR) holds a 58% share in the project. The loans take the AIIB’s book to more than US$1.7bn in its first year of operation.

“The approval of TANAP, which involves a number of other multilateral and private sector players, demonstrates the bank’s capacity to assess and provide loans in even the most complex of cases.

“This crucial upgrade of energy infrastructure between Asia and Europe will further strengthen the economy of Azerbaijan while underpinning energy security in Turkey, as well as several countries in southern Europe,” says DJ Pandian, the AIIB’s chief investment officer.

The World Bank’s vice-president for Europe and Central Asia Cyril Muller adds: “TANAP will not only boost competitiveness and create economic opportunities for people in Azerbaijan and Turkey, it will also support regional trade, improve connectivity, and support energy security in Turkey and in Europe.”

Reactions: Like Like:
2


----------



## TaiShang

ahojunk said:


> The European Commission has billed TANAP as the “biggest infrastructure project of our times”, clearly looking to Azerbaijan’s Shaz Deniz II gas-field in the Caspian Sea as a means of replacing the energy supply lost to sanctions the EU placed on Russia.



Interesting that the AIIB has chosen to contribute to the project. Russia must not be too much worried about it otherwise the AIIB would certainly not participate.

Reactions: Like Like:
3


----------



## Daniel808

MONDAY, 02 JANUARY, 2017 | 07:40 WIB
*AIIB to Finance Three Indonesian Projects*






*Russia's delegate prepares to sign the articles of agreement of the Asian Infrastructure Investment Bank (AIIB) at the Great Hall of the People, in Beijing, June 29, 2015. China will hold a 30.34 percent stake in the Asian Infrastructure Investment Bank (AIIB), the Finance Ministry said on Monday, making Beijing the largest shareholder in a bank that is expected to project the country's growing influence. REUTERS/Jason Lee*



*TEMPO.CO*, *Jakarta* - The Asian Infrastructure Investment Bank (AIIB) will finance three potential projects in Indonesia, namely Sumatra toll road, power plants, and dam maintenance and operation. “It’s been planned,” AIIB vice president Luky Eko Wuryanto told _Tempo_ last week.

Lucky said that the AIIB has held talks with the government on the amount of financing. The funds to finance dam operations and Java 7 power plants are readily available this year. “[The fund for] Sumatra toll road [project] will be disbursed by 2018.”

The AIIB had earlier disbursed US$216 million (Rp2.8 trillion) to finance development of slum areas and US$100 million (Rp1.3 trillion) for regional infrastructure development.

Operation and maintenance of dams will cost US$300 (Rp4 trillion), whereas the projects of the toll road and power plant construction will cost US7.5 billion (Rp100 trillion) and US$1.8 billion (Rp23.4 trillion).

Luki said that the AIIB will open a representative office in Indonesia to finance potential government projects included in the Blue Book.

Basah Hernowo, Director for Financing System and Procedures, the National Development Planning Agency, said that foreign loans are the easiest solution to funding development projects. Indonesia can only generate Rp1,978.6 trillion from Rp4,796.2 trillion needed for development projects in the next five years.
ANDI IBNU
*
http://en.tempo.co/read/news/2017/01/02/056831789/AIIB-to-Finance-Three-Indonesian-Projects*

Thanks AIIB-Asian Infrastructure Investment Bank for your help to support Indonesia's Development

Reactions: Like Like:
5


----------



## Echo_419

TaiShang said:


> This is the way for Mr. Duterte to fight poverty and crime; long term solution.
> 
> I am happy to see that AIIB is now quite focused on South East Asia, which needs the lion share of infrastructure investment according to the ADB.
> 
> AIIB and ADB can have a great synergy in working in SEA. ADB has a long history and experience in the region.
> 
> @Pinoy



I think its South Asia which needs the lion share of Infra investment


----------



## TaiShang

Echo_419 said:


> I think its South Asia which needs the lion share of Infra investment



Interesting that both WB and ADB have been providing development assistance to the region for five decades or more. But, the result is less than extraordinary.

Either the region really needs much more than what the existing development schemes can provide.

Or the management and allocation of resources by the WB and ADB has been less than efficient.

I would like to assume the first to be the case because the AIIB is supposed to learn from the "standards" established by the WB and ADB.

Reactions: Like Like:
4


----------



## Echo_419

TaiShang said:


> Interesting that both WB and ADB have been providing development assistance to the region for five decades or more. But, the result is less than extraordinary.
> 
> *Either the region really needs much more than what the existing development schemes can provide.
> 
> Or the management and allocation of resources by the WB and ADB has been less than efficient.*
> 
> I would like to assume the first to be the case because the AIIB is supposed to learn from the "standards" established by the WB and ADB.



I would say 50-50 of both

Reactions: Like Like:
1


----------



## AndrewJin

TaiShang said:


> Interesting that both WB and ADB have been providing development assistance to the region for five decades or more. But, the result is less than extraordinary.
> 
> Either the region really needs much more than what the existing development schemes can provide.
> 
> Or the management and allocation of resources by the WB and ADB has been less than efficient.
> 
> I would like to assume the first to be the case because the AIIB is supposed to learn from the "standards" established by the WB and ADB.


World Bank has invested in many HSRs in China, interesting.....
They have written numerous reports about how successful their investments were....
Happy passengers, closer regional integration, more efficient movement....

Reactions: Like Like:
5


----------



## TaiShang

*AIIB President: Door will remain open for U.S. to join*
China Daily, January 16, 2017

One year after opening with 57 charter members, the China-led Asian Infrastructure Investment Bank would still welcome the US to join its ranks, the bank's president Jin Liqun has said.

"The door will remain open," Jin said in a television interview, when asked whether he expected the US to reconsider becoming a member.

He said: "We maintain a consistent policy. The AIIB is a multilateral development institution."

Approximately 30 economies are waiting to join, Jin said at the bank's headquarters in Beijing. The lender, with $100 billion of pledged capital－part of China's push to expand the nation's economic benefits to others, backed nine projects in seven countries last year.

Before it opened in January 2016, US President Barack Obama rejected joining, only to see several of its closest allies sign up. Now Beijing is preparing for the incoming US administration of Donald Trump, who's already straining ties before taking office on Jan 20.

Jin, a former deputy finance minister who also has worked at the World Bank and the Asian Development Bank on China's behalf, is still optimistic despite recent tensions.

He said: "We can work very well together."

He added that senior officials in the US government, including both Democrats and Republicans, have shared with him their praise for the new institution.

He said: "I'm encouraged by the very positive comments on the AIIB."

The AIIB got a boost last year when the UK, Germany, France and Italy became members. Other US allies such as Australia, South Korea and Canada also joined, leaving the US and Japan as the only nations to hold off joining.

The AIIB's inaugural projects ranged from a slum upgrading project in Indonesia to a new pipeline linking gas fields in Azerbaijan to markets in southern Europe, via Turkey.

*The bank lent $1.73 billion in 2016, exceeding an earlier target of $1.2 billion. Jin said 75 percent of the bank's projects so far are proposed and co-financed with existing lenders, including the Washington-based World Bank, Manila-based ADB and London-based European Bank for Reconstruction and Development,* while AIIB staff selected the remainder.

The AIIB will continue to collaborate closely with those other multilateral lenders while beefing up its own capability and working to increase its disbursements, according to Jin.

"The pipeline is getting bigger," and the bank's priority is to "have a better balance across the regions, countries and sectors," he said.

Jin, one of the first postgraduate students to study English literature after China's cultural revolution (1966－76), is fluent in English and French and translated The House of Morgan, a book on the JP Morgan empire by US author Ron Chernow, into Chinese in 1996. He also served as supervisory chairman of the country's sovereign wealth fund.

Now, he said, he's confident the country's economy will fare well during its transition to new drivers of growth.

He said: "China is faced with a number of challenges, particularly restructuring the economy, moving from excessive dependence on external sectors to domestic consumption, and improving the efficiency of the Chinese economy, not aiming at simply the numbers of the growth."

Factories and services activities capped a year of strengthening across several indicators. But under the hood, risks remain: Increasing pressure on the yuan, rising capital outflows and concern Trump may make good on threats of punitive measures against China's exports.

Foreign reserves fell for a sixth month in December, bringing the 2016 drop to $320 billion. The government has recently announced new measures, including extra requirements for citizens converting yuan into foreign currencies.

Jin said: "Some measure to address this issue in my view probably is necessary. I hope things would stabilize very soon, and panicking on part of investors would disappear." He said the global economic outlook this year is more positive than last year.

"If you look at the short-term cyclical recovery, and long-term trend, these two factors seem to be doing pretty well," Jin said.

"That would in my view favor infrastructure investment both in emerging market economies and in developed countries, which in turn will help sustain growth. It is gratifying to learn that even in the US, they would like to spend more money on infrastructure."

Reactions: Like Like:
6


----------



## TaiShang

*AIIB’s first year shows efficiency*

(Global Times) 10:01, January 17, 2017

The first China-initiated multilateral bank* has approved funding for more projects than expected just one year after it was launched*, a *demonstration of China's capability to reshape existing international financial institutions*, experts said.

Since the launch of the Asian Infrastructure Investment Bank (AIIB) in Beijing on January 16, 2016, 57 countries have signed up as members, *including 37 in Asia and 20 non-regional countries.*

*So far the bank has approved nine projects totaling $1.73 billion*, according to an e-mail the bank sent to the Global Times late Sunday night. The projects are intended to promote green infrastructure and have also prioritized cross-border projects ranging from roads to energy pipelines across Asia.

*Usually an infrastructure project funded by the World Bank (WB) or the Asia Development Bank (ADB) takes three to five years from proposal to approval*, but the AIIB has signed off on more than expected, which reflects its efficiency, said Zhou Qiangwu, director general of the International Economics and Finance Institute, a think tank under the Ministry of Finance.

*Three of these projects were financed by the AIIB itself, while the other six are conducted along with other multilateral development banks (MDBs).* The AIIB has signed co-financing framework agreements with MDBs such as the WB, ADB and European Bank for Reconstruction and Development (EBRD), with the aim of looking for more financing channels for the projects.

"Broad cooperation with other international institutions gave the AIIB various financing channels and this helped it to become efficient," said Zhang Jianping, director general of center for regional cooperation of Chinese Academy of International Trade and Economic Cooperation.

The WB and the ADB had been working on some projects but lacked capital support, and the AIIB was able to join them.

"In addition, *without a permanent board of directors, there is less bureaucracy in decision-making procedures*," Zhang said, compared with other MDBs.

The AIIB will focus on scaling up support to clients, bolstering financial sustainability and continuing to pave the way for market access.

The bank is expected to improve the implementation of its policies, and continue to recruit more talented staff in 2017, Zhou noted. "Also, it will set out to solve issues faced by other MDBs including the disclosure of information and communication with the public in particular," he said, predicting that the financing scale this year will be surely larger than 2016.

*Zhang said the AIIB may consider more projects along the One Belt and One Road initiative in the new year.*

In terms of introducing new members, experts said the China-initiated bank always holds an open attitude toward potential US membership under the upcoming Trump presidency, "but the US' high debt ratio and anti-China sentiment in the cabinet make it unlikely," Zhang said.

The first year of operations shows that China, as one of the biggest shareholders, is playing the constructive role in the bank's governance structure, and is capable of working well with other shareholders and the management of the AIIB for a lean, clean and green institution, Zhou noted.

"The AIIB's high efficiency exerts pressure on existing international institutions like the ADB and the WB to institute further reforms," he said. 

***
_
This year we may witness the organic integration of the AIIB into the OBOR framework. _

Reactions: Like Like:
5


----------



## ahojunk

*AIIB unveils 2017 priorities*
2017-01-17 08:20 | Xinhua | _Editor: Gu Liping_

The Asian Infrastructure Investment Bank (AIIB) on Monday released its strategic priorities for the year ahead.

The multilateral development bank will *focus on three major areas this year -- sustainable infrastructure, cross-country connectivity and the mobilization of private capital*, according to a statement on its website.

In a bid to promote *sustainable infrastructure, AIIB will promote green infrastructure and support countries to meet their environmental and development goals*.

It will prioritize *cross-border infrastructure, including roads, rail, ports and energy and telecommunications facilities* across Asia and beyond to increase connectivity among countries, the statement said.

*AIIB will also devise innovative solutions that catalyze private capital together with other multilateral development banks, governments and private financiers*.

*AIIB's core mission is to promote Asia's social and economic development by investing in projects that will connect people, services and markets*, said AIIB president Jin Liqun.

"We have a strong pipeline of projects in 2017 that will prioritize green infrastructure investment, promote energy efficiency, renewables, clean transport and other projects that help address global warming," Jin said.

Since opening on Jan. 16, 2016, AIIB has welcomed 57 signatory countries and approved loans of 1.73 billion U.S. dollars to support nine infrastructure projects in seven countries.
.

Reactions: Like Like:
4


----------



## ahojunk

*AIIB to add 25 new member countries in 2017*
JANNE SUOKAS
2017/01/24





_The Chinese-led Asian Infrastructure Investment Bank expects to add about 25 new member countries this year. (Photo: China News Service)
_
*Ireland, Canada, Ethiopia and Sudan* are reportedly among around 25 countries from across the world that are expected to join the Asian Infrastructure Investment Bank (AIIB) this year.

China established the AIIB to finance energy, transport and other infrastructure projects in Asia, and the bank started operations a year ago with 57 member countries and US$100 billion in capital.

The Beijing-based bank is expected to add a wave of new members at its second annual meeting in June.

“We have applications from a number of Europeans who didn’t join in the first wave, some Asian countries, South Americans and Canada has applied to join,” Sir Danny Alexander, vice-president of the AIIB, told the Financial Times (paywall) on Tuesday. “So this year the membership will expand quite substantially.”

The United States and Japan are the only major countries yet to join the bank, which is regarded as an alternative source of financing to the Washington-based World Bank and the Japanese-led Asian Development Bank.

Several US allies, including the United Kingdom, Australia and South Korea, rushed to join the AIIB in the first wave despite Washington’s initial opposition.

*Hungary* and *Romania* are among European countries that have since sought membership in the bank, as well as Ethiopia and Sudan from Africa. Hong Kong, which is a special administrative region of China, is expected to join as the bank’s first “sub-sovereign” member.

The expansion will change the voting rights in the AIIB, possibly removing China’s veto power over key decisions that require three-fourths majority votes.

China is the largest member country with 28.69 percent of voting power, followed by India (8.28 percent), Russia (6.53 percent), Germany (4.57 percent), and South Korea (3.86 percent).

*Expanded membership to boost lending*

AIIB President Jin Liqun said in his interview with the Financial Times now that China had developed it was “our turn to contribute” to the world.

“China needs to do something that can help it be recognised as a responsible leader,” he said.

Jin’s statement comes after Chinese President Xi Jinping defended globalisation at the World Economic Forum meeting in Davos last week, just before the new US President Donald Trump took office after winning the White House on an overtly protectionist trade agenda.

The AIIB chief also said in the interview that adding a host of new members would help boost the bank’s lending capacity.

After approving nine loans worth US$1.73 billion for projects in countries including Azerbaijan, Indonesia and Tajikistan last year, the AIIB said last week it intends to finance 10-15 projects worth US$2.5 billion during its second year of operation.

The focus would be on promoting sustainable infrastructure and cross-border links, as well as mobilising private capital to fund development projects in Asia.

The cautious lending target however reflects the fact that the AIIB is still in the process of recruiting staff and drafting its policies, including the bank’s much-awaited energy strategy.

The Chinese-led lender also expects to be assessed by international credit rating agencies this year.

.

Reactions: Like Like:
4


----------



## ahojunk

*China-led AIIB plans to limit investment in coal power*
JANNE SUOKAS
2017/01/26






_Multilateral development banks have moved to limit their funding of cheap but highly-polluting coal-fired power plants. (Photo: stevepb, Pixabay)_


In a bid to live up to its environmentally friendly values, the Asian Infrastructure Investment Bank *(AIIB) is planning to adopt strict limits to investment in coal power*.

Launched by China as a “lean, clean and green” lender to invest in infrastructure projects in Asia, the AIIB opened for business a year ago with 57 member countries and US$100 billion in capital.

Its draft energy strategy, released on Tuesday, puts emphasis on renewable energy and raising energy efficiency, likely disappointing coal producers and countries that were hoping the Beijing-based bank would adopt a looser policy towards coal power investment than the World Bank.

The proposed strategy, which will be approved after a final consultation round in the bank’s annual meeting in June, said the AIIB would focus on “*supporting and accelerating its members’ respective transitions toward a low-carbon energy mix*”.

“*Carbon efficient oil and coal-fired power plants would be considered if they replace existing less efficient capacity or are essential to the reliability and integrity of the system, or if no viable or affordable alternative exists in specific cases, particularly in low income countries*,” read the paper (pdf) which also ruled out investment in nuclear power projects.

Following pressure from environmental groups and countries including the United States and United Kingdom, multilateral development banks have in recent years moved to limit their funding of cheap but highly-polluting coal-fired power plants.

The Washington-based World Bank announced in 2013 that it will stop financing coal plants except in rare cases where no feasible alternatives are available while the Japanese-led Asian Development Bank now says it only supports coal projects that use high-efficiency and low-emissions technologies.

Joachim von Amsberg, AIIB vice-president of strategy and policy, told The Times in an interview on Monday that the bank was determined to be seen as a modern, environmentally-friendly lender.

“There’s a strong consensus that AIIB has to be a green bank and the portfolio has to show that it’s a green bank and if the portfolio is full of coal projects you won’t look like a green bank,” he said but added that there was “live discussion among member countries” about the issue.

Australia, a major coal producer and an AIIB founding member, has reportedly been lobbying for the bank to acknowledge the importance of the fossil fuel in its energy strategy. India and Indonesia have previously said they hope the AIIB will finance coal projects in their countries.

*Asia’s daunting energy needs*

The AIIB’s energy strategy comes as China is increasingly taking the lead in the fight against global warming in the wake of Donald Trump’s election as the new US president. Trump has both called climate change a hoax invented by the Chinese and vowed to withdraw his country from the 2015 Paris climate change treaty.

Von Amsberg said in his interview with The Times that “we have to implement Paris [the climate change agreement] if we want to be relevant in the world. Yet there’s a tension with the tremendous need for expanding electricity supply in member countries.”

Estimating that Asia’s energy investment would amount to US$18 trillion by 2040, the AIIB’s draft strategy said countries in the region faced "daunting challenges" to meet their energy needs to sustain economic growth while moving towards a less carbon-intensive energy mix.

The Chinese-led development bank plans to invest US$2.5 billion this year, after lending US$1.73 billion last year to projects that included a gas-fired power plant in Myanmar, a power grid upgrade in Bangladesh, and a hydropower extension project in Pakistan.

The bank’s website currently lists several proposed projects related to energy, including two projects in India aimed at improving energy supply and efficiency, and a solar power plant project in Kazakhstan.

Reactions: Like Like:
4


----------



## ahojunk

_A win for Australia, our coal exports._

========
*China-backed bank swings behind coal-powered generators*

The Australian
12:00AM February 3, 2017
*DENNIS SHANAHAN*
Political Editor
Canberra




The Turnbull government has had a significant win for the future of investment in modern coal-fired power stations in Asia and Australian exports by getting the $100 billion Asian Infrastructure Investment Bank to drop its ban on financing coal-powered electricity generators.

As Malcolm Turnbull, Scott Morrison, Josh Frydenberg, Matt Canavan and Arthur Sinodinos spearhead a Coalition drive to secure reliable low-cost energy in Australia and protect coal and gas export earnings, the federal government *has convinced the China-sponsored AIIB to curtail its “socially acceptable” policy of not lending money to build gas- or coal-fired power stations in Asia*. The new guidelines open up the $100bn in infrastructure loans — of which Australia has pledged almost $5bn — to finance the latest clean coal-powered stations in developing Asian nations seeking to provide electricity to 500 million people.

Yesterday the Prime Minister and Treasurer said the Clean Energy Finance Corporation could also provide finance for coal-fired power generation if it reduced greenhouse gas emissions.

“A project that did involve coal that had the effect of reducing emissions would be or should be eligible for finance,” Mr Turnbull said. “Whether it had the appropriate private-sector backing is another matter.”

“Part of the problem we got into here is the way in which energy policy has been turned into an ideological battlefield.”

The government and the mining industry objected to the AIIB’s original guidelines that supported “socially acceptable” renewable power but shut out nuclear, coal and gas electricity generation, which are the backbone of Australia’s energy exports.

Treasury argued that in the interests of helping people throughout Asia without electricity, coal should have a significant role in power generation.

The new guidelines still state the AIIB, which describes itself as a “green bank”, wants to accelerate transition to low-carbon energy *but allows for the financing of gas-fired power generation and “carbon-efficient and coal-fired power plants” if they replace less efficient power stations or in “low- income countries” with no alternative*.

The Treasurer welcomed the change, which will provide options for poorer nations and *help sustain Australian coal exports*.

“*Australia’s national interest demands that coal continue to be part of our future energy equation, not just here in Australia, but around the world*,” Mr Morrison told _The Australian._

“That is why following our strong representations, I am pleased that the AIIB has now put fossil-fuel generation investments back into mix for their energy sector strategy, which is now under discussion.

“This is an important and practical recognition by the AIIB of the role that fossil fuels will continue to play in the energy mix of most of its member countries and that investments can support and accelerate the transition toward a low-carbon energy mix using lower-carbon emissions from fossil fuels.

“But it’s even more important that the Australian government continues to ensure that we explore all the options here in our energy market and that we keep all the opportunities we have to drive the transition to maintain and build a competitive energy advantage into the future.”

Mr Morrison extended the Coalition’s attack on Labor, backing the Prime Minister’s defence of the future of coal to ensure cheaper and reliable energy for businesses and households.

“The Turnbull government understands that high electricity costs are eroding household budgets and hurting business balance sheets as they seek to remain competitive and give their employees greater job security, more hours and better wages,” he said.

“These impacts are felt most keenly in regional communities across Australia already struggling with the transition from the mining boom. Cutbacks in energy-intensive and electricity-reliant industries flows on to the local business and supply chain, causing further economic and financial hardship in those communities_. _Bill Shorten and Labor’s ‘ideology first’ pursuit of reckless renewable energy targets is designed to shut down Australian industry, put people out of work and cheer on the closure of power stations like Hazelwood, despite the devastating impact for local communities.”

The objectives of the AIIB — set up to lend to countries such as Indonesia, Pakistan, Myanmar, Vietnam, India, Laos, Cambodia, Bangladesh and Thailand for ports, rail, roads and electricity generation — are aimed at boosting economic growth and providing power to 500 million people.

The fledgling bank says setting principles to decide finance for energy projects is not easy because “green” energy “may not be economically justified, considering the assumptions traditionally used”. It also says project selection should be “technology neutral”.

When then treasurer Joe Hockey committed Australia to becoming a founding member of the AIIB in 2015 — against the wishes of the US — he cited growing exports as a prime reason. Australia committed $932 million in paid capital, with a pledge for $3.7bn on call after Tony Abbott and Mr Hockey decided to risk “choosing China over the US”.

Mr Hockey told parliament: “Membership of the bank will provide valuable trade and economic opportunities for Australia. Australian firms will benefit from improved infrastructure throughout the region, which will also help our commodity exporters. The bank will help build new and improved infrastructure, which in turn will drive increased demand for our commodities and for Australian services.”

At the time Australia and Japan were concerned US and EU influence on global development banks was preventing lending to developing Asian nations, who wanted to build nuclear or “clean-coal” power stations because of climate change considerations.

Reactions: Like Like:
2


----------



## Daniel808

More countries seek to join China's Asian Infrastructure Investment Bank

By Elizabeth Shim



| Jan. 25, 2017 at 2:49 PM





_*Chinese President Xi Jinping (R) greets British Prime Minister Theresa May during the G20 Summit in Hangzhou, the capital of Zhejiang Province, on September 5, 2016. Britain is a member of the China-led Asian Infrastructure Investment Bank, an organization that is gaining more members as the United States is taking steps to withdraw from existing trade deals.*_



Jan. 25 (UPI) -- An increasing number of African, European and Latin American states are setting their sights on membership in the China-led Asian Infrastructure Investment Bank, as U.S. President Donald Trump is taking steps to repeal existing trade agreements with Mexico and the Asia-Pacific.

The Financial Times reported 25 more countries are seeking membership in the AIIB, a development that is encouraging Beijing to push forward as the front-runner on economic globalization.

In early January, Chinese President Xi Jinping had warned an audience at the World Economic Forum in Davos of the perils of economic protectionism.

Beijing has also been promoting its free trade agreement, the Regional Comprehensive Economic Partnership, or RCEP, as a competitor to the Trans-Pacific Partnership, a multilateral trade agreement from which Trump withdrew U.S. participation this week.

AIIB president Jin Liqun told FT the boost in membership could help the $100 billion bank and China's standing in the global economy.

"Now that China has developed, it is our turn to contribute," Jin said.

New potential members include Ireland, Canada, Ethiopia and Sudan, according to the report.

The AIIB also has not ruled out U.S. or Japanese participation.

"The door is open to others, and though we are not soliciting their membership, they can come to us," said AIIB vice president Sir Danny Alexander.

The increased interest in AIIB comes as Trump is following through on his pledges to restrict trade.

*According to a Goldman Sachs analysis released last week, Trump's policies may primarily target China, but other countries in the region, including South Korea and Taiwan, could be adversely affected by U.S. import cuts.

"China has the highest production multiplier [at three times], but Taiwan and South Korea would have the most negative economic impact due to their greater reliance on trade," the analysis read, according to CNBC.*

http://www.upi.com/Top_News/World-N...Infrastructure-Investment-Bank/7191485371428/

Asian Infrastructure Investment Bank (AIIB) getting Bigger day by day.

Reactions: Like Like:
3


----------



## ahojunk

_The previous post was from the Aussie perspective.
This is from the Chinese perspective._

========
*Australia welcomes AIIB’s proposed coal energy investment rules*
JANNE SUOKAS
2017/02/03





_A coal reclaimer in Australia's Kooragang Island. (Photo: KYM FARNIK, Flickr)_

The Australian government has reportedly welcomed the Asian Infrastructure Investment Bank’s (AIIB) latest energy strategy proposal, saying it is *important to allow investment in modern coal-fired power stations*.

The Beijing-based AIIB is currently soliciting comments for its energy strategy which will be approved in June to guide the US$100 billion bank’s investments in the sector.

The draft strategy (pdf), which was released last week for the final consultation round, seeks to strike a balance between responding to Asia’s daunting energy needs and cutting down emissions to combat pollution and climate change.

The paper said the *AIIB would focus on supporting the transition toward a low-carbon energy mix but would consider financing gas-fired power stations and “carbon efficient oil and coal-fired power plants” if they replace existing less efficient capacity, or if there are no viable alternatives*, especially in low income countries.

“Australia’s national interest demands that coal continues to be part of our future energy equation, not just here in Australia, but around the world,” Treasurer Scott Morrison told The Australian on Thursday.

“That is why, following our strong representations, I am pleased that the AIIB has now put fossil-fuel generation investments back into mix for their energy sector strategy, which is now under discussion.”

Australia is one the AIIB's 57 founding members and a major coal producer globally, with its exports of the fossil fuel going mostly to China, Japan, South Korea and other countries in the region.

The country’s government and coal industry had reportedly been alarmed by the AIIB’s first draft (pdf) released in October that put priority on renewable energy and raising energy efficiency.

It said coal- and oil-fired power plants “*would exceptionally be considered if cleaner technologies are not available for well-founded energy security or affordability reasons*”.

Although the second draft continues to place limits on coal and oil energy investments, Australia’s Morrison said it was an “important and practical recognition by the AIIB” that fossil fuels continued to play a role in the energy mix of most of its member countries.

*Conflicting expectations*

China launched the AIIB in 2015 to finance the construction of power plants, railways, roads and other infrastructure across Asia.

With many regarding the bank as China’s alternative to existing Western-led development banks, countries such as India and Indonesia expressed hopes that it would adopt a looser approach than the World Bank which in 2013 stopped financing coal plants except in rare cases.

The AIIB has however said it would be a “lean, clean and green” lender.

“There’s a strong consensus that AIIB has to be a green bank and the portfolio has to show that it’s a green bank and if the portfolio is full of coal projects you won’t look like a green bank,” Joachim von Amsberg, AIIB vice-president of strategy and policy, told The Times last week.

Von Amsberg admitted there was “live discussion” among the member countries on the coal issue, as well as a tension between implementing the Paris climate deal and responding to the “tremendous need for expanding electricity supply in member countries”.

The AIIB said it had received 38 comments from NGOs, think tanks, business groups and private firms during the first round of consultation that ended in November.

It said comments on fossil fuels, and coal in particular, were mostly restrictive (pdf).

The second and final consultation round will end in early March with the AIIB’s board expected to approve the energy strategy in June.

Australia is the sixth largest member country in the AIIB with a US$3.7 billion stake and 3.8 percent of votes.

China is the largest member country with a US$29.8 billion stake and 28.7 percent of voting power, followed by India, Russia, Germany and South Korea.

The AIIB plans to invest US$2.5 billion this year, after lending US$1.73 billion last year to projects that included a gas-fired power plant in Myanmar, a power grid upgrade in Bangladesh, and a hydropower extension project in Pakistan.

.

Reactions: Like Like:
3


----------



## TaiShang

Daniel808 said:


> More countries seek to join China's Asian Infrastructure Investment Bank
> 
> By Elizabeth Shim
> 
> 
> 
> | Jan. 25, 2017 at 2:49 PM
> 
> 
> 
> 
> 
> _*Chinese President Xi Jinping (R) greets British Prime Minister Theresa May during the G20 Summit in Hangzhou, the capital of Zhejiang Province, on September 5, 2016. Britain is a member of the China-led Asian Infrastructure Investment Bank, an organization that is gaining more members as the United States is taking steps to withdraw from existing trade deals.*_
> 
> 
> 
> Jan. 25 (UPI) -- An increasing number of African, European and Latin American states are setting their sights on membership in the China-led Asian Infrastructure Investment Bank, as U.S. President Donald Trump is taking steps to repeal existing trade agreements with Mexico and the Asia-Pacific.
> 
> The Financial Times reported 25 more countries are seeking membership in the AIIB, a development that is encouraging Beijing to push forward as the front-runner on economic globalization.
> 
> In early January, Chinese President Xi Jinping had warned an audience at the World Economic Forum in Davos of the perils of economic protectionism.
> 
> Beijing has also been promoting its free trade agreement, the Regional Comprehensive Economic Partnership, or RCEP, as a competitor to the Trans-Pacific Partnership, a multilateral trade agreement from which Trump withdrew U.S. participation this week.
> 
> AIIB president Jin Liqun told FT the boost in membership could help the $100 billion bank and China's standing in the global economy.
> 
> "Now that China has developed, it is our turn to contribute," Jin said.
> 
> New potential members include Ireland, Canada, Ethiopia and Sudan, according to the report.
> 
> The AIIB also has not ruled out U.S. or Japanese participation.
> 
> "The door is open to others, and though we are not soliciting their membership, they can come to us," said AIIB vice president Sir Danny Alexander.
> 
> The increased interest in AIIB comes as Trump is following through on his pledges to restrict trade.
> 
> *According to a Goldman Sachs analysis released last week, Trump's policies may primarily target China, but other countries in the region, including South Korea and Taiwan, could be adversely affected by U.S. import cuts.
> 
> "China has the highest production multiplier [at three times], but Taiwan and South Korea would have the most negative economic impact due to their greater reliance on trade," the analysis read, according to CNBC.*
> 
> http://www.upi.com/Top_News/World-N...Infrastructure-Investment-Bank/7191485371428/
> 
> Asian Infrastructure Investment Bank (AIIB) getting Bigger day by day.



The ADB has 67 members. If the AIIB adds 25-27 new members, it will grow larger than the ADB.

Reactions: Like Like:
2


----------



## Daniel808

TaiShang said:


> The ADB has 67 members. If the AIIB adds 25-27 new members, it will grow larger than the ADB.



With just short time, what AIIB achieve until today is indeed very amazing @TaiShang
Love it 

World Bank, we are coming

Reactions: Like Like:
2


----------



## TaiShang

*AIIB: A Dream Provider*

New bank has a bright future, says adviser

NO. 5-6 FEBRUARY 2, 2017






AIIB President Jin Liqun speaks at the opening ceremony of the institution’s First Annual Meeting of the Board of Governors in Beijing on June 25, 2016 (XINHUA)

On January 16, the Asian Infrastructure Investment Bank (AIIB) celebrated its first anniversary. *As a budding multilateral financial institution, it has delivered a satisfying report: $1.73 billion worth of loans were issued to nine energy and infrastructure construction projects in seven countries, and among the G7, only the United States and Japan have not submitted an application to join the institution.*

What will the AIIB do in its second year? Yukio Hatoyama, former Japanese Prime Minister and an AIIB advisor, *published an op-ed in *_*People's China*_*, a Japanese-language monthly publication*, on these topics. An edited translation of the article follows:

In September, 2016, I attended the AIIB advisory committee meeting, where I expressed my opinion, based on my own understanding of the world, on what kind of role the AIIB should play in the current global climate and which path the institution should follow in the future.

The globalizing world we live in has seen a rise of anti-globalization and populism. Wars and terrorist attacks, which are mostly rooted in poverty, are still rampant. Eliminating poverty is crucial for world peace. Thus, the Belt and Road Initiative and AIIB-boosted infrastructure investment, proposed by Chinese President Xi Jinping, are of great significance.* Through these mechanisms, the Eurasian continent will gain faster and long-term development, which will help contain the spread of terrorism.* At the meeting, I stressed that economic growth and integration would ensure regional peace.

*The United States: in or out?*

Speaking of the global situation, Donald Trump's election victory really caught the Japanese Government off guard. Even though he announced the United States would withdraw from the Trans-Pacific Partnership Agreement (TPP) after he took office, Japan's congress still passed the TPP, urged on by Prime Minister Shinzo Abe, despite strong disagreement from opposition parties.

*I have always thought the TPP is not good for Japan, so I was very pleased with Trump's announcement on withdrawal.* The purpose of the agreement, in essence, is to safeguard and cultivate global companies, but the excessive spreading of such companies will give birth to many problems, including populist sentiment. It is surprising that the Japanese Government has stuck to its decision to keep the TPP despite Trump's announcement. This is especially confusing, given that Japan usually follows the United States on political decisions.

On November 10, 2016, James Woolsey, a national security advisor in Trump's campaign team, wrote that the Obama administration's opposition to the AIIB was a "strategic mistake" in an op-ed in the _South China Morning Post_.

This might signal the United States is going to join. One of the reasons why TPP is not attractive enough to Trump is that China is not a member. Discussing free trade in the Asia-Pacific region without China is actually self-conflicting. To Trump, it is unimaginable to talk about such a trade framework while excluding China.

*AIIB, on the contrary, is a bank with China at its core.* *Besides the infrastructure construction of the entire Eurasian continent, the AIIB has also ambitiously included African and American infrastructure construction in its agenda.* After serious consideration of the benefits from cooperation, Trump might agree to have a finger in the pie.

If the United States was to join, Japan would follow suit. Following U.S. footsteps in diplomacy is actually a great misfortune for Japan. Japan should make forecasts of the Trump administration's possible foreign policy changes and prepare its responses in advance. If there's a hint of the United States joining the AIIB, Japan should make it open and clear that the country is going to join before Washington's official statement.

*Building the East Asian Community*

Compared to the widespread globalization movement, "me being the priority" is treated as the criterion of diplomatic policy for some countries. This ideology might infect Japan. Now the country attaches too much importance to its U.S. alliance, and vigorously propagates the "China Threat" rhetoric. To some degree, it is a form of populism.

*In other words, Japan is flexing its power and alleged superiority to an imaginary enemy it has created.* The country has gradually lost itself amid two decades of economic downturn. In recent years, Tokyo has claimed the government is trying to build a powerful country and strong economy to unite its people. Abe is using this to secure high approval ratings and consolidate political power.

In the House of Representatives election in 2012, Abe pledged to "take back Japan." Which era of Japan does he want back? This is a question lingering in the heads of both the Japanese and the international community.

Populism and isolationism are catching on globally. In this context, I want to stress the importance of building the East Asian Community. Wealth transfers during the process of globalization. Some people might feel a sense of crisis. Therefore, they begin to advocate the idea of "safeguarding my own nation," which evolves into populism. This perception can lead to competition between countries. To avoid fierce confrontation, the world needs a framework with wider coverage and a mechanism under which parties can talk in times of unavoidable disputes. The important thing is resolving disputes through dialogue and then coming up with a solution agreed on by all.

This is where the value of the East Asian Community lies. Some may say, "look, the EU community is not working; the U.K. chose to leave the EU; doomsday is coming to Greece, where financial crisis is spreading." But in my opinion, those could be lessons we can learn from.* We can suspend monetary integration; free passage in the community is likely to induce populism; an increase in migration will pose a threat to local workforces, etc. We need necessary restrictions on the unconstrained migrant flows among members of the community. The EU can be viewed as a negative example in this respect, while it is worth learning from its successful practice as a war-free community.* We could also reach an agreement among East Asian Community members to not wage wars in the region.

The AIIB had a smooth start in its first year. I am hopeful for its future development. The institution should build on its existing experience and achievements and explore new fields in 2017.* For instance, a railway network traversing the Eurasian continent can be built through the Silk Road Economic Belt, increasing connectivity of the Asian and European continents. *A common future shared by all mankind will dispel wars among countries. The AIIB can help deliver this vision to the world. Learning from the past and accumulating fruitful results—it's a great start.

I expect the AIIB to grow rapidly, and I will do my part to facilitate its development.

***
_
Mr. Hatoyama is a true scholar and statesman. If he were in office today, Trump would not be able yo bully Japan. _

Reactions: Like Like:
2


----------



## ahojunk

*Iran AIIB Membership Unlocks Investment Potentials*
Monday, February 13, 2017

Iran's membership in Asian Infrastructure Investment Bank has strengthened the country's economic clout in the region, said the head of Economy Ministry's Department of Banking and Insurance Affairs.

"In addition to reviving our international relations, AIIB membership has presented us with a great opportunity to tap a great potential for resources and investment," Alireza Khatounzadeh Abyaneh also told Shada.ir, a news website affiliated with the Economy Ministry. 

Khatounzadeh noted that another significant impact of this cooperation at the global level is that it facilitates foreign investment in Iran.

"Due to our budget limitations and a shortage of funds, benefiting from these resources for our infrastructure projects is of great importance and based on AIIB's statutes, Iran is eligible to use its resources not only in its infrastructure projects but also to undertake similar projects in other member countries and move toward sustainable economic development," he said.

"Aside from investment, the collaboration and interaction spirit created by AIIB grants us the opportunity to experience and utilize the technical capabilities of other countries for the development and progress of our economy."

Asked about Iran's position in the Silk Road project after its membership in AIIB, the official said, "Since China is the founder of AIIB and also the force behind the New Silk Road and as Iran is located on the Silk Road, the northeastern provinces will be able to use the bank's resources for infrastructure [projects]."

One of the most popular terms for China’s diplomatic achievements in 2014 is arguably its strategy of “One Belt, One Road,” i.e., the New Silk Road Economic Belt, which links China with Europe through Central and Western Asia, and the 21st Century Maritime Silk Road, which connects China with Southeast Asian countries, Africa and Europe.

*Banking Effects* 

Khatounzadeh said AIIB membership can also improve the domestic banking sector and Iran can realize the vision of becoming the hub of banking industry in the region by 2025 following its AIIB membership.

An international financial institution, the AIIB aims to support infrastructure development in the Asia-Pacific region. It was proposed by the government of China and consists of 57 member states, or the “founding members”.

The bank is widely regarded as a strong and emerging rival to western lenders, namely the International Monetary Fund and the World Bank, both headquartered in Washington. 

AIIB operates with a capital of $100 billion, equivalent to two-thirds of the capital of the Asian Development Bank and about half of the World Bank. 

Along with 26 other initial founding member states, Iran signed the the bank's constitution on June 29 in Beijing and currently holds 15,808 shares, or 1.61% of all the shares, granting the country a 1.63% voting rights.

Iranian lawmakers approved the proposal of Iran’s membership in AIIB in late August and President Hassan Rouhani enacted the law in early October. 

Strengthening relations with Asian powers through infrastructure development is Iran’s main objective in joining the bank. 

Abbas Akhoundi, the minister of roads and urban development, requested the bank's Chinese executive to send a delegation from AIIB to Tehran to witness development projects at close range and discuss possible collaboration.

Reactions: Like Like:
2


----------



## ahojunk

*AIIB committed to investing in Nepal’s infra: Chief*
- Post Report, Kathmandu





_Prime Minister Pushpa Kamal Dahal (third right), Finance Minister Krishna Bahadur Mahara (second left) Industry Minister Nabindra Raj Joshi (centre), Nepali Congress President Sher Bahadur Deuba (third left), CPN-UML Chairman KP Oli (right), and Asian Infrastructure Investment Bank President Jin Liqun (second right) attend Nepal Investment Summit-2017 in Kathmandu on Thursday. Post Photo: KESHAV THAPA_


Mar 3, 2017- Asian Infrastructure Investment Bank (AIIB) has expressed its commitment to work with the Nepal government and Nepali private sector to make a meaningful difference in the country’s economic and social development through investment in infrastructure and other productive sectors. 

Addressing the inaugural session of Nepal Investment Summit 2017, AIIB President Jin Liqun said the bank has an important role to play in teaming up with the government and the private sector to address infrastructure challenges of Nepal.

“In Nepal, we *will invest in projects that are financially sustainable and environmentally friendly, and are accepted by the local people*,” said Liqun. “As a multilateral development bank, a part of our job is to help countries pick *projects which improve their social and economic outcomes*.”

Liqun assured AIIB’s help to tap natural resources for the benefit of the Nepali people. Currently, Nepal has submitted proposals for five infrastructure projects to AIIB for possible financing. The list includes two energy projects, two road projects and one urban infrastructure project. 

Sharada-Babai Hydropower Project, a storage type project planned to be built on the Babai and Sharada rivers, and Nepal Distribution System Upgrading and Extension Project which aims to modernise the electricity distribution system of Nepal Electricity Authority, are energy-related projects on the list. 

Pokhara-Beni Jomsom Road Upgradation and Samakhusi-Tokha-Chhahare Road Upgradation and Extension Project are two road projects for which Nepal has sought funds from the multilateral lender. 

The fifth scheme is Urban Infrastructure Improvement Project which aims to improve infrastructure in 18 districts in Tarai by upgrading facilities in 18 municipalities which serve as district headquarters.

India also reiterated its commitment to partner Nepal in its aspirations for economic growth by attracting foreign investment. Indian Finance Minister Arun Jaitley, speaking at the summit, suggested Nepal to make its environment favourable for international investors.

According to Jaitley, Investors from all over the world are looking at areas to invest, and countries that make their environment friendly assuring safety of and return on investment will be the recipient of investment.

“If an investment along with creating jobs generates profit, it will encourage others to make investment which will create more jobs,” Jaitley explained the virtuous cycle of how an investment attracts another investment. “Such investment and return on investment will increase the government revenue which can be used to build the infrastructure.”

Such infrastructure, according to the Indian finance minister will attract more investment creating more employment and prosperity. He urged the government to welcome any investment if it increases economic activity, creates job and develops infrastructure. “What should matter is construction of infrastructure and its contribution towards economy, not who builds its,” he said. 

Jaitley also expressed Indian interest in investing in sectors like hydropower, rail network, irrigation, health and education, transmission lines and road, among others.


_Published: 03-03-2017 11:21_

http://kathmandupost.ekantipur.com/...itted-to-investing-in-nepals-infra-chief.html

Reactions: Like Like:
4


----------



## JSCh

*AIIB approves 13 new applicants, expands membership to 70*
Xinhua | Updated: 2017-03-23 11:27

BEIJING - The Asian Infrastructure Investment Bank (AIIB) announced Thursday that its Board of Governors has adopted resolutions approving 13 applicants to join the bank, bringing the bank's total approved membership to 70.

A spokesperson of AIIB made the announcement at a press conference. This is the first time the multilateral development bank has welcomed new prospective members since its inception.

The approved applicants are five regional prospective members -- Afghanistan, Armenia, Fiji, China's Hong Kong and Timor Leste -- and eight non-regional prospective members, namely Belgium, Canada, Ethiopia, Hungary, Ireland, Peru, Sudan and Venezuela.

"The interest in joining AIIB from around the world affirms the rapid progress we have made to establish the bank as an international institution," said Jin Liqun, president of AIIB.

"I am very proud that AIIB now has members from almost every continent, and we anticipate further applications being considered by our Board of Governors later this year," he said.

The 13 prospective members will officially join AIIB once they complete the required domestic processes and deposit the first installment of capital with the bank.

The shares allocated to the new prospective members come from the bank's existing pool of unallocated shares, according to AIIB.

With 57 signatories at its establishment in 2015, AIIB aims to provide financing to address the daunting infrastructure needs across Asia.

Reactions: Like Like:
4


----------



## Kiss_of_the_Dragon

Reuters reports Thursday that the China-led Asia Infrastructure Investment bank has approved thirteen new members to join. The members include Canada, which was a previous holdout partly at the behest of the US.

The Obama administration looked weak when it tried to pressure allies against joining the AIIB, an attempt that looks even sillier in hindsight than it did at the time. Is it time for the US to swallow its pride and join now, lest they look even more foolish should they want to participate even further down the road?

The answer is probably yes, despite the fact that they won’t consider it. The win for China would be temporary, and the US influence in the Bank would only further dilute China’s pull within the institution. But, for now, the US is content to be the odd man out.

http://www.atimes.com/article/aiib-time-us-join/

--------------------------------------------

Glad that Canada is taking part of AIIB now, I'm pretty sure if US join, Japan will beg to be the member too.

Reactions: Like Like:
3


----------



## TaiShang

Kiss_of_the_Dragon said:


> Reuters reports Thursday that the China-led Asia Infrastructure Investment bank has approved thirteen new members to join. The members include Canada, which was a previous holdout partly at the behest of the US.
> 
> The Obama administration looked weak when it tried to pressure allies against joining the AIIB, an attempt that looks even sillier in hindsight than it did at the time. Is it time for the US to swallow its pride and join now, lest they look even more foolish should they want to participate even further down the road?
> 
> The answer is probably yes, despite the fact that they won’t consider it. The win for China would be temporary, and the US influence in the Bank would only further dilute China’s pull within the institution. But, for now, the US is content to be the odd man out.
> 
> http://www.atimes.com/article/aiib-time-us-join/
> 
> --------------------------------------------
> 
> Glad that Canada is taking part of AIIB now, I'm pretty sure if US join, Japan will beg to be the member too.



Now the AIIB is bigger the ADB in terms of membership (at 67).

The AIIB's worldwide regional penetration is now bigger than the ADB.

I am waiting for Taiwan to join under Taiwan, China title, enjoying the immense benefits from joining in infrastructure work. It would be a great boost for Taiwan's machinery industry.

Reactions: Like Like:
2


----------



## Kiss_of_the_Dragon

TaiShang said:


> Now the AIIB is bigger the ADB in terms of membership (at 67).
> 
> The AIIB's worldwide regional penetration is now bigger than the ADB.
> 
> I am waiting for Taiwan to join under Taiwan, China title, enjoying the immense benefits from joining in infrastructure work. It would be a great boost for Taiwan's machinery industry.



Remember the, on 8 May 2015 Obama gave a speech at the Nike factory in Oregon. There, he said:
“We have to make sure America writes the rules of the global economy and we should do it today while our economy is in a position of global strength. If we don’t write the rules for trade around the world, guess what, China will. And they’ll write those rules in a way that gives Chinese workers and Chinese businessmen the upper hand.”

American like to make a self fulfilling prophecy statement. When US join AIIB, they will not be the one to write the rule in AIIB and worst they will not be the foundation member to edit and take part of the rule.

Reactions: Like Like:
1


----------



## TaiShang

Kiss_of_the_Dragon said:


> American like to make a self fulfilling prophecy statement. When US join AIIB, they will not be the one to write the rule in AIIB and worst they will not be the foundator member to edit and take part of the rule w



They missed the train to become a founding member. The remaining option for them is to become a regular member, which is still something.

But they will never enjoy a dominating/hegemonic status that they enjoy (along with Japan) at the ADB.

Calling the ADB "ASIAN" and then giving an equally highest share to it is in fact a contradiction in terms.

@Daniel808 , our prediction of the AIIB growing larger than the ADB has come earlier than I anticipated.





Daniel808 said:


> With just short time, what AIIB achieve until today is indeed very amazing @TaiShang
> Love it
> 
> World Bank, we are coming.

Reactions: Like Like:
1


----------



## terranMarine

The map on wiki could use an update

Reactions: Like Like:
1


----------



## ahojunk

*China-led AIIB gives Brazil and South Africa extra year to join*
Two of multilateral lender’s biggest members missed deadline to ratify entry

MARCH 28, 2017 by: Emily Feng and Tom Mitchell in Beijing The China-led Asian Infrastructure Investment Bank has given two of its largest members an extra 12 months to complete the formal process for joining the institution after they missed a deadline at the end of last year.

Brazil and South Africa were among the highest-profile countries to join the multilateral lender, which was established by Beijing to make its mark in international finance and was opposed in its infancy by the US. Of the bank’s 57 inaugural members, Brazil was the only South American country while South Africa was one of only two African nations. 

Both countries are also members of the so-called Brics club alongside Russia, India and China, which recently joined forces to form the Shanghai-based New Development Bank. 

“AIIB matters are currently being processed,” a South African finance official told the Financial Times. “Our immediate focus has been on the New Development Bank.” 

Brazilian officials declined to comment on why they missed the December 31 2016 deadline, which was stipulated in the AIIB’s articles of association. Members can receive an extension if approved by a majority of the bank’s governors. 

Under former president Dilma Rousseff, Brazil fell behind on payments to dozens of international organisations, blaming a lack of funds. Ms Rousseff’s impeachment in August 2016 may have led to further delays. 

“We extended the deadline because some members needed more time based on the different domestic processes they had to ratify,” an AIIB spokesperson said, adding that “everything is on track” for them to join by the end of this year. 

Three other inaugural AIIB members — Malaysia, Kuwait and Spain — also missed last year’s deadline. Malaysian and Spanish officials said they would be formally admitted by the end of 2017. Kuwaiti officials could not be reached for comment. 

Last week the AIIB approved 13 new applicants including two additional countries from South America and two from Africa. A surge in applications from Africa and Latin and South America is expected to change the complexion of the bank, whose original members hailed largely from Asia and western Europe. 

The AIIB can only support projects in its member countries. On Tuesday it announced it would lend $285m to three new infrastructure projects in Indonesia and Bangladesh. 

The AIIB has earmarked $225m for municipal infrastructure and improvements to 63 dams and reservoirs in Indonesia, while the remaining $60m will fund gas pipelines in Bangladesh. Indonesian officials had previously requested environmentally controversial financing for coal-fired plants, which the AIIB is still deliberating. 

AIIB will co-finance the projects with the World Bank and the Asian Development Bank. In building up its portfolio, the bank has largely relied on partnerships. 

Since its formal establishment last year the AIIB has lent $2bn to 12 projects, mainly in the areas of energy and transport. 

_Additional reporting by David Pilling, Joe Leahy, Tobias Buck and Jeevan Vasagar_

Reactions: Like Like:
2


----------



## TaiShang

Very good infographics by the China Daily.





http://www.chinadaily.com.cn/business/chinadata/2017-04/13/content_28903424.htm

Reactions: Like Like:
5


----------



## LowPost

TaiShang said:


> Very good infographics by the China Daily.
> 
> 
> 
> 
> http://www.chinadaily.com.cn/business/chinadata/2017-04/13/content_28903424.htm



Good to see it contains a list of approved loans. I think I've missed something over the past few months.

Reactions: Like Like:
1


----------



## ahojunk

*AIIB to visit Egypt to study infrastructure investment opportunities: Nasr*

AIIB allocated $10-15bn for infrastructure projects in countries where it has operations, including Egypt

Hisham Salah April 24, 2017





_Egypt Minister of Investment and International Cooperation Sahar Nasr_

Minister of Investment and International Cooperation Sahar Nasr held a meeting with the vice president and chief investment officer of the Asian Infrastructure Investment Bank (AIIB), D. J. Pandian, during her visit to Washington to participate in the World Bank’s spring meeting.

Both sides discussed ways of increasing cooperation between Egypt and the AIIB, especially in the fields of sanitation, energy, and transportation. The AIIB is preparing a visit to Egypt soon to study the opportunities for investment.

Nasr stated that she looks forward to more cooperation with the AIIB, as infrastructure is one of the government’s priorities, according to its programme for development.

It is worth mentioning that the AIIB has allocated $10-15bn over the next 5-6 years for infrastructure projects in the countries where it has operations, including Egypt.

The projects are in fields of energy, transportation, urban and rural development, and logistical services.

.

Reactions: Like Like:
2


----------



## onebyone

* AIIB grants US$160 mln loan for Indian power project *
BUSINESS
By Deng Junfang 2017-05-03 18:53 GMT+8






The Asian Infrastructure Investment Bank (AIIB) has approved a loan of 160 million US dollars to finance a power project in India, the bank said on Wednesday. The project, co-financed with the World Bank, is part of the Indian government's 24x7 Power for All program, and will strengthen the power transmission and distribution system in the southeastern Indian state of Andhra Pradesh.

The AIIB said in a statement that the project is approved with the objective of strengthening the power transmission and distribution system in the state of Andhra Pradesh.





President of Asian Infrastructure Investment Bank (AIIB) Jin Liqun speaks at a news conference in Beijing, January 17, 2016. /VCG Photo

"AIIB supports its members in their transition toward a low-carbon energy mix by promoting the improvement of energy efficiency, such as upgrading the existing transmission and distribution networks," said AIIB President Jin Liqun.

The project "will be the starting point for AIIB to extend its assistance to other countries in Asia moving towards an 'Energy for all' initiative," said D.J. Pandian, vice president and chief investment officer of AIIB.





Customers get a shave in a barber shop in Kotla Mubarakpur, New Delhi, India, on Thursday, August 2, 2012. A series of failures and excessive demand on the national grid knocked out power for 640 million people in northern and central India on July 31, a day after a separate blackout left 360 million in seven states without lights. /VCG Photo

The AIIB was established in 2015 and started operation in January 2016 with 57 founding members and an authorized capital of 100 billion US dollars. Its aim is to provide financing for infrastructure improvements and projects in Asia. 

The bank’s membership has increased to 70 this year, with 13 new members approved in March. India is the second largest shareholder after China.

Related stories:
AIIB approves loans for transport projects in Oman
AIIB first year in review: more members, more investment
AIIB president pushes for further cooperation with US
Bank of Japan governor welcomes the expansion of AIIB

https://news.cgtn.com/news/3d6b444e79637a4d/share_p.html?from=singlemessage&isappinstalled=1

Reactions: Like Like:
2


----------



## onebyone

*Why the EU must engage with the AIIB*
*Both the European Union and its member states must not underestimate the economic and financial benefits that may come from closer relations with China*
On 12 March, 2017, the Board of Governors of the Asian Infrastructure Investment Bank (AIIB) decided to expand its membership from 57 to 70 members. These new additions include three “non-regional perspective members” (Belgium, Hungary and Ireland) from Europe. So far, 17 EU member states have joined or applied for membership in the AIIB.

According to its President Jin Liqun, this is a sign of the AIIB’s growing attractiveness as a leading international financial institution. The AIIB is making significant progress in its outreach efforts.

It signed a memorandum of understanding on April 1, 2017, with the New Development Bank on infrastructure and sustainable development. And the forthcoming second annual meeting of the Board of Governors in South Korea this June will host more than 1,500 delegates from the AIIB’s membership, partner institutions as well as civil society organisations.





Asian Infrastructure Investment Bank boss Jin Liqun. Photo: AFP/Imaginechina
In less than two years since its official establishment, the AIIB has promoted itself as a serious and consistent alternative to Western-led international financial institutions, most obviously the World Bank and the Asian Development Bank (ADB).

Its growing attractiveness derives in particular from China’s intention to present the AIIB as an institution able to reform and complement the post-World War II global economic governance domain promoted by the Bretton Woods institutions.

More clearly, the decision to launch the AIIB came as a direct result of China’s growing frustration together with that of other developing countries over only playing a marginal role within the existing international financial system.

Why then have some EU member states decided to join the AIIB if China’s initiative represents an effort to promote a distinctive but to some extent post-Western model of global financial governance?

Two main reasons stand out.

First, China is rapidly recasting itself as a leading player within multilateral institutions. China is still far from overtaking the United States in terms of global economic predominance.

But the AIIB is just one among many initiatives supported by China in the field of economic governance. The Belt and Road Initiative, formerly known as One Belt, One Road (Obor), the Silk Road Fund, the Regional Comprehensive Economic Partnership (RCEP) and the BRICS New Development Bank are all representative of a new, sophisticated, and to some extent, alternative approach supported by leaders in Beijing in order to implement China’s multilateral diplomacy and foreign economic policies at the global level.





Three silk roads stretching from China to Southeast Asia Europe and Africa, Jan 2017.
Second, and given this context, the EU and its member states are becoming aware of the need to pragmatically interact with China as a key strategic partner, particularly within the field of new multilateral economic initiatives such as the AIIB.

The AIIB may indeed overlap with other EU initiatives like the Juncker Plan. And the international community may not look all that favourably on China’s hegemonic role in the AIIB, with 29.8% of the voting share and 34.6% of the money invested in the bank held by China. Yet the AIIB has already declared its intention to collaborate with other leading multilateral development banks such as the World Bank, the ADB and the European Bank for Reconstruction and Development.

The majority of financed projects within the AIIB are expanding in parallel with the Obor development plan through Southeast Asia, Central Asia and the Middle East, making China’s investment plans and foreign economic polices stronger than ever before.

The EU should learn how to deal with China with a single voice, while strengthening its own role as a global player within Chinese-led global institutions and regional initiatives.

The EU needs to prioritise its interests at the global level, and contend with China’s foreign economic policy and strategy toward the European continent.

China and the EU must further cooperation in order to overcome discrepancies around their investment strategies in the field of global economic governance.

The AIIB represents a first attempt by China to provide alternative solutions in the global financial sector while promoting a more proactive foreign policy at the international level. Both the EU and its member states must not underestimate the economic and financial benefits that may come from closer engagement with China.

_Silvia Menegazzi is Postdoctoral Research Fellow at LUISS Guido Carli University in Rome._

This article was originally published in East Asia Form.

http://www.atimes.com/article/eu-must-engage-aiib/

Reactions: Like Like:
3


----------



## Shotgunner51

*China-led AIIB approves seven new members ahead of new Silk Road summit*
Sat May 13, 2017 | 11:35am BST 





The logo of Asian Infrastructure Investment Bank (AIIB) is seen at its headquarter building in Beijing January 17, 2016. REUTERS/Kim Kyung-Hoon 

*The China-backed Asian Infrastructure Investment Bank (AIIB) said on Saturday it had approved seven new members to join the bank*, a day before China's biggest diplomatic event of the year kicks off.

Leaders from 29 countries will attend China's new Silk Road forum in Beijing on Sunday and Monday, an event orchestrated to promote President Xi Jinping's vision of expanding links between Asia, Africa and Europe underpinned by billions of dollars in infrastructure investment.

Delegations from around the world will attend including the United States and North Korea.

*The new members are Bahrain, Bolivia, Chile, Cyprus, Greece, Romania and Samoa, bringing the bank's total membership to 77 countries. *

The bank's president Jin Liqun held a joint press conference with Chilean President Michelle Bachelet to announce the new members.

_"Better infrastructure across Asia will allow Chilean goods to access new markets, more investment in Chilean infrastructure in turn will further bind together the two great continents of Asia and Latin America,"_ said Jin.​
_"We think there are a lot of projects that can link Asia with or through Latin America,"_ said Bachelet, adding that she had spoken with Jin about the possibility of investing in a Trans-Pacific optic fibre cable to improve digital connectivity between Asia and Latin America.​
_"The cable could be considered a part of the 'One Belt, One Road Initiative' and transform the Pacific Ocean into a bridge between our regions,"_ she added, using another name for China's "Belt and Road Initiative" or new Silk Road plan.​
Other investments could include tunnels and highways across the Andes Mountains and ports to link Latin America and South America to Asia, Bachelet added.

Thirteen prospective new AIIB members from around the world, including Canada, were approved in March.

_"Expanded membership to Africa, Europe and South America, along with the addition of further members in Asia shows the level of global commitment towards the bank's mission and illustrates the momentum that has gathered since 20 countries signed initial memoranda on establishing the bank less than three years ago,"_ said Jin.​
(Reporting by Sue-Lin Wong; Editing by Eric Meijer)

http://uk.reuters.com/article/uk-china-silkroad-aiib-idUKKBN1890AY

Reactions: Like Like:
6


----------



## TaiShang

Shotgunner51 said:


> The new members are Bahrain, Bolivia, Chile, Cyprus, Greece, Romania and Samoa, bringing the bank's total membership to 77 countries.



77 and counting. 

Come on, Japan. Why would you be the last to jump onto the bandwagon? Sooner or later, you are in, after all.

Reactions: Like Like:
2


----------



## TaiShang

*Cyprus minister confirms membership in AIIB*
Xinhua | Updated: 2017-05-20 

NICOSIA - Cyprus* has become a full member of the Asian Infrastructure Investment Bank (AIIB),* the country's Finance Minister Haris Georgiades said Friday.

Joining the AIIB is an indication that Cyprus intends to strengthen its ties with the Asian economies, he said in a written statement.

"The participation of Cyprus in the AIIB widens the scope of economic diplomacy and also the prospects of access by Cyprus to investment funds," Georgiades said.

The China-proposed multilateral institution was launched in Beijing in January 2016, with the aim to fund infrastructure projects mainly in the Asia-Pacific region.

Cyprus is among the seven countries accepted recently by AIIB's Board of Governors. The others are Greece, Romania, Bahrain, Samoa, Bolivia and Chile. The recent expansion brings AIIB's membership to 77.

Reactions: Like Like:
2


----------



## TaiShang

*AIIB expects to sign 85 members by year's end*
chinadaily.com.cn | Updated: 2017-05-22 





Asian Infrastructure Investment Bank (AIIB) President Jin Liqun attends a news conference at the AIIB headquarters in Beijing, August 31, 2016. [Photo/Agencies]


The China-backed Asian Infrastructure Investment Bank expects to grow its membership to 85 by the end of this year, bank president Jin Liqun said on Saturday.

China won broad support for the establishment of AIIB, with 57 founding members, Jin said at the Jiangsu Development Summit in Nanjing, East China's Jiangsu province.

*"By the end of this year, a total of 85 countries and regions will become AIIB's members," Jin said.*

Jin said that the Belt and Road Initiative and the AIIB are both great initiatives.

Reflecting on the process of setting up the new bank and securing support from founding members, he said China had shown its willingness to serve the world using the experience of reform and opening up.

"Though the Belt and Road Initiative doesn't cover all AIIB members, we will put more efforts in the future and believe more and more countries will join the AIIB," Jin added.

With 57 signatories at its launch in January 2016 and the approval of 13 prospective members in March 2017, AIIB aims to provide financing to address the daunting infrastructure needs across Asia.

Reactions: Like Like:
1


----------



## cirr

*AIIB expands membership to 84*

2017-12-19 14:27 Xinhua _Editor: Li Yahui_

The Asian Infrastructure Investment Bank(AIIB) announced Tuesday that its board of governors had approved the Cook Islands, Vanuatu, Belarus and Ecuador to join the Bank.

The addition brings AIIB's total approved membership to 84.

"The steady expansion of our membership represents a vote of confidence in AIIB by the international community," said AIIB President Jin Liqun.

The four prospective members will officially join AIIB once they complete the required domestic processes and deposit the first installment of capital with the Bank. The shares allocated to the new prospective members come from AIIB's existing pool of unallocated shares.

Since its launch in January 2016, AIIB's approved membership has risen from 57 to 84, expanding reach within Asia and across the world.

"As we start our third year of operations, we look forward to further expanding our membership and strengthening our role in the international financial community," said Sir Danny Alexander, AIIB vice president and corporate secretary.

Headquartered in Beijing, the AIIB is a multilateral development bank focused on infrastructure investment, with a mission to improve social and economic outcomes in Asia and beyond.

Earlier this month, the AIIB approved a 250-million-U.S. dollar loan for a natural gas project in China and a 335-million-U.S. dollar loan for an electric metro project in Bangalore, India.

http://www.ecns.cn/business/2017/12-19/285063.shtml

Reactions: Like Like:
2


----------



## TaiShang

*AIIB, ADB to co-finance more projects this year: ADB president*

CGTN
2018-01-13






Asian Development Bank (ADB) President Takehiko Nakao said on Friday that *the ADB and the Asian Infrastructure Investment Bank (AIIB) are exploring co-financing several development projects this year.*

"We have been cooperating well," Nakao told Xinhua at the ADB headquarters in Manila.

Nakao said he met with AIIB officials and had "serious discussions about how to do things better in each bank and how we can support the development of (member) countries."

*Already, he said the ADB and the AIIB had four co-financing projects in India, Bangladesh, Pakistan and Georgia.*

Nakao said it's good with the AIIB around because "we can now cooperate in these projects for co-financing."

Nakao said ADB officials will make a trip to Beijing to meet with its AIIB counterparts. No date has been set yet for the meeting, he added.

https://news.cgtn.com/news/31676a4d78677a6333566d54/share_p.html

***
_
Unlike the Western pundits and China-alarmists suggested, the AIIB is not a rival to the ADB, but a partner. And now this is being proven in solid action. _

Reactions: Like Like:
1


----------



## TaiShang

*AIIB inks natural gas deal with Chinese firm to improve air quality*

CGTN
2018-03-20 17:24






The Asian Infrastructure Investment Bank (AIIB) signed a natural gas project with a Chinese company Monday to improve the air quality in Beijing.

*It marks the AIIB's first loan in China for a natural gas project. The 250-million-US dollar loan will fund a project to connect 216,750 households in approximately 510 villages to the natural gas distribution network.*

"It is the common responsibility of the international community, including multilateral development banks, to tackle climate change. With substantial support of the board of directors of the AIIB, this project hopes to contribute to meet this global agenda," AIIB President Jin Liqun said at the signing ceremony.

The project, undertaken by the Beijing Gas Group Company, will entail construction of natural gas distribution networks in villages and low-pressure gas pipelines and household connections.

Upon completion and after subtracting the emissions from burning natural gas, the project is expected to reduce annual carbon dioxide emissions by 595,700 tonnes, particulate matter by 3,700 tonnes, sulfur dioxide by 1,488 tonnes and nitrogen oxide by 4,442 tonnes, according to the statement.

Reactions: Like Like:
1


----------



## TaiShang

*AIIB approves two new applicants, expands membership to 86*

CGTN
2018-05-02







The Asian Infrastructure Investment Bank (AIIB) announced on Wednesday that its board of governors has adopted resolutions *approving applications from Papua New Guinea and Kenya to join the bank, bringing its total approved membership to 86.*

"We're very happy to welcome Papua New Guinea and Kenya as prospective members of AIIB," AIIB Vice President and Corporate Secretary Danny Alexander said.

*"AIIB now has 86 approved members from six continents. This shows a strong commitment to promoting infrastructure development through rules-based multilateral cooperation with high standards of governance,"* Alexander said.

The two prospective members will officially join AIIB once they complete the required domestic processes and deposit the first installment of capital in the bank.

The shares allocated to the new prospective members come from AIIB's existing pool of unallocated shares, according to the bank.

With 57 signatories at its launch in January 2016, the Beijing-headquartered AIIB aims to improve social and economic outcomes in Asia and beyond by investing in sustainable infrastructure and other productive sectors.

Reactions: Like Like:
1


----------



## TaiShang

*AIIB approves 400 mln USD loan for India's drinking water project*

Source: Xinhua Published: 2018/12/8

About 3.3 million people in Andhra Pradesh of India will have access to safe drinking water following the approval of a loan of 400 million US dollars by the Asian Infrastructure Investment Bank (AIIB). 

The project aims to provide safe drinking water through a piped water supply, which is expected to have a positive impact on women and girls in affected communities as hauling water from communal taps is mainly carried out by women and girls. 

The work requires a significant amount of time that could otherwise be spent on more productive activities, such as education. 

Since women and girls have more frequent contact with water that may be contaminated, this project will also reduce health risks and health expenditures for women in Andhra Pradesh. 

"Extending piped water supply is a major development priority of the government of India," said AIIB Vice President and Chief Investment Officer D. J. Pandian. 

"We are supplementing the ongoing and proposed programs locally in Andhra Pradesh and are directly contributing to India's achievements under Sustainable Development Goal 6 to ensure access to water and sanitation for all." 

The project is part of an integrated approach to water and sanitation improvement in India. Funding will come from AIIB as well as from programs by the Government of India and the Government of Andhra Pradesh. 

With more than 80 approved members, the AIIB is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, it began operations in January 2016.


----------



## TaiShang

Belt and Road continues to collapse.

***

*AIIB approves applications of six more countries*

Xinhua Published: 2018-12-19


The Asian Infrastructure Investment Bank (AIIB) announced on Wednesday that its Board of Governors has approved the membership applications of six more countries, *bringing AIIB's total approved members to 93.*

The new group of approved members is comprised of *Algeria, Ghana, Libya, Morocco, Serbia and Togo.*







Logo of the Asian Infrastructure Investment Bank (AIIB) [File photo: VCG]

"Within three years, AIIB's membership has increased from the 57 founders to 93 approved members from almost every continent. This shows our member's commitment to multilateral cooperation and strengthens AIIB's role in the international financial community," said AIIB Vice President and Corporate Secretary Sir Danny Alexander.

"The growing membership of the Bank in Europe and Africa also reflects the importance for growth and development of inter-regional connectivity, especially sustainable infrastructure that opens access to new markets in Asia and beyond."

The six prospective members will officially join AIIB once they complete the required domestic processes and deposit the first capital installment with the Bank. Shares allocated to the new prospective members come from AIIB's existing pool of unallocated shares.

AIIB said it expects to continue welcoming new members in the future.

http://chinaplus.cri.cn/news/business/12/20181219/225311.html

Reactions: Like Like:
3


----------



## JSCh

*Opinion: Unlike U.S., China sacrifices private gains for AIIB prosperity*
Bian Yongzu
2018-12-25 22:31 GMT+8




*Editor's Note*:_ Bian Yongzu is deputy director of the Department of Industry, Chongyang Institute for Financial Studies, Renmin University of China. The article reflects the author's opinion, and not necessarily the views of CGTN._

With the latest accession of six prospective members, the total number of AIIB members has expanded to 93. This is a remarkable result for a 3-year-old multilateral cooperation agency, which is the first to be set up under the leadership of developing countries.

*AIIB: High-standard multilateral development bank*

In 2018, AIIB approved about 3.3 billion US dollars. It finances projects in 13 countries of six regions, including East Asia, Southeast Asia, South Asia, Central Asia, West Asia and Africa, covering many fields such as transportation, energy, telecommunications and urban development.

More importantly, all kinds of public and private capital have been leveraged by loans from the AIIB. Up to now, more than 7.5 billion U.S. dollars have been invested in approved projects, leveraging a total investment of 35 billion dollars. This has filled the gap in infrastructure financing in developing countries.

*AIIB: An important complement to the current system*



An exterior look of the AIIB. /VCG Photo

For a long time, the excessive financial tools used by Western developed countries have exacerbated the imbalance in the world economy. Since the financial crisis, central banks around the world have released huge liquidity and even adopted negative interest rates.

As the Federal Reserve enters the cycle of raising interest rates and as the ECB and Bank of Japan begin to downsize or wean off quantitative easing, the direction of global capital flows has gone on the reversal.

As a result, commodity prices and some economies have experienced great turbulence, and the international financial order has fallen into serious dysfunction.

Accelerating the reform of the international economic order is an important part of the structural reform of the world economy. Different from the Bretton Woods era, the U.S. dollar is no longer the only international currency. However, it remains the dominant one in many ways.

More than half of international transactions are settled in U.S. dollars. The U.S. dollar accounts for around 63 percent of foreign exchange reserves and 87 percent of foreign exchange transactions. This pattern fails to reflect the latest development in the world economy or the interests of emerging economies.

The establishment of the AIIB has precisely addressed this dilemma. It provides financial support to more developing countries and aids their infrastructure. In this way, the AIIB helps to promote local economic growth, improve people's livelihood and reduce their reliance on the IMF.



AIIB President Jin Liqun talks with Neil Bush, former U.S. president George H.W. Bush, about Sino-U.S. relations. /VCG Photo 

This will also enhance the status of member countries in the current system and help to correct the ongoing imbalance.

*AIIB's mechanism innovation: A template for existing multilateral institutions*

Unlike what the U.S. did to the World Bank, China has not sought veto power in the AIIB. On the contrary, China has made greater concessions to other countries, especially small countries.

According to the design rules, the AIIB's equity is distributed based on GDP, with Asian members accounting for 75 percent of the equity and countries outside Asia sharing the remaining 25 percent. Since the AIIB mainly invests in the interconnectivity of Asian infrastructures, its practice ensures that things are in the best interests of Asian countries.

In terms of the GDP-based equity distribution, China should have 30 percent of the shares. As 15 percent of the votes go to the founding members, China actually holds only 26.06 percent of the votes. Such a design allows countries with smaller GDPs to have relatively large voting power, thus taking care of the interests of more member states.



AIIB President Jin Liqun speaks at an international forum on the Belt and Road Initiative cooperation in Beijing, China, July 2, 2018. /VCG Photo

In order for all member states to have a say on AIIB's governance, three-quarters of the voting rights and two-thirds of the members' consent must be obtained in the choice of president. Although China currently has the veto power, with more members joining AIIB, China's voting power will continue to decline, probably to less than 25 percent.

The U.S. is acting the other way around. In order to guarantee its veto power at the IMF, the World Bank and other institutions, the United States does not hesitate to raise the bar for major issues to pass.

China, on the contrary, has made it clear that even if China's voting power drops, it will not raise the bar, clearly demonstrating AIIB's difference from the existing systems.

Therefore, the AIIB, as a multilateral financial institution, has made remarkable achievements in just three years. It meets the urgent needs of the world for development, pursues a fairer, more transparent and more inclusive system, and also rides on the global trend. All these factors are the fundamental reasons for its success.

_(If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com.)_

Reactions: Like Like:
4


----------



## TaiShang

*Opinion: The secrets lie in AIIB's success*

Liu Zhiqin
2019-01-17







_*Editor's note:* Liu Zhiqin is a senior fellow at Chongyang Institute for Financial Studies, Renmin University of China. The article reflects the author's opinions, and not necessarily the views of CGTN._


The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank proposed by China and jointly established by 57 countries on December 25, 2015. It began operations on January 16, 2016, and it has now grown to 93 approved members worldwide.

*The AIIB is a masterpiece in international banking history. Although it has only been established for three years, it has won international fame.*

A friend of mine who is a senior banker in Europe has spoken highly of the AIIB, saying that the institution is very international, very rational and very regional, due to its structure and philosophies of development.

*In retrospect, there were only about 50 countries announced joining the bank in 2016.* At the time, no one was confident that the bank would be so international after three years. The function of the bank is very clear and very simple: to support the infrastructure projects in Asian countries and other parts of the world.

The market demands for infrastructure items reached about 1 trillion U.S. dollars each year, but the international market, including the Asian Development Bank (ADB), the World Bank and European banks could not provide enough funds to the needy. The AIIB is designed to figure it out.





Jin Liqun, president of the AIIB, speaks during the Group of Thirty (G30) International Banking Seminar in Washington, DC, U.S., October 15, 2017. /VCG Photo 

*I still remember that a friend of mine who owned a big company in China had asked the ADB to lend money to build a water processing factory, and they had to wait three years till their application was approved.* The internal evaluation time at the bank is too long for urgent projects. But such a case would never happen with the AIIB, due to the bank having a management mechanism that is more effective and shortens the time a project needs.

*Until now, the AIIB has invested in Russia, India, Pakistan, and some other countries with a total of 200 billion U.S. dollars in local projects.* These projects will create millions of jobs for local markets and improve the standard of living in many rundown areas.

From this point of view, we can see that the AIIB is an international bank that supports projects related to countries along the Belt and Road Initiative (BRI). Serving the related countries, it is clear that the AIIB is as important as the ADB and the World Bank regarding global cooperation.

Time files, while the scale and the staff of the AIIB have rapidly increased. The top management had shown its determination to avoid any possible traps that may result in bureaucracy. The bank had attached great importance to increasing efficiency and transparency in operating and communicating within a number of countries.

The questions and inquiries from different parts of the world have been highly respected and given feedback in due time. That's why the AIIB could get rid of Parkinson's Law to keep itself dynamic, vivid and active in the market.

“Parkinson's Law" is the relation between the time needed and actions you have taken to complete a particular task. Sometimes it needs a lot of people to finish one thing in a limited time frame. *The AIIB has a special mechanism to make the best use of human resources by allocating people to positions they are specializing in.* Therefore, it is able to limit the effects of "Parkinson's Law."





AIIB's Vice President Thierry de Longuemar speaks during an interview in Beijing, June 2, 2017. /VCG Photo

Along with the development of the world economy, the demand for funds to support infrastructure projects will become more multinational. *Japan and the U.S. will see that the AIIB can develop well with support from all member countries.* Although the institution has the time and resources to wait out the U.S. and Japan joining the family, we hope that they will not wait too long due to the rapid development of the world economy.

New challenges are still ahead and reform and self-discipline will also become key elements to fulfilling all obligations and commitments of AIIB to the whole world. These new challenges will primarily include the spread of protectionism and nationalism around the world.

Major countries are trying to intensify trade tensions and make more policy barriers in order to slow down the speedy development of emerging markets. More importantly, a few of these nations have tried to shift their financial crises to poor countries, increasing conflicts in certain areas, such as Latin America and Eastern Europe.

Despite the challenges ahead, I firmly believe that AIIB is capable of performing even better in 2019.

https://news.cgtn.com/news/3d3d774d3359444d32457a6333566d54/share_p.html

Reactions: Like Like:
2


----------



## TaiShang

*AIIB signs rural roads project worth US$455M with India*

Xinhua, March 1, 2019





Photo taken on Jan. 17, 2016 shows the stone monument in front of the headquarters building of the Asian Infrastructure Investment Bank (AIIB) in downtown Beijing, capital of China. [Photo/Xinhua]

The Asian Infrastructure Investment Bank (AIIB) and the government of India on Thursday signed a 455-million-U.S.-dollar loan to finance a rural roads project in India's southern state of Andhra Pradesh.

The rural roads project will connect some 3,300 habitations in the Indian state with a population of more than 250, and benefit around 2 million people, said a statement released by India's Finance Ministry.

The AIIB, a multilateral development bank headquartered in Beijing, began operations in January 2016. India is the second largest shareholder in the AIIB and its largest borrower.

The objective of the rural roads project in Andhra Pradesh is to improve road transport connectivity in previously unserved communities by providing all weather rural roads in all 13 districts of the state.

The project plans to construct rural roads to provide first connectivity, construct cross drainage works and bridges to complete missing links and structures, provide approaches to educational institutions and health care centers, construct rural roads passing through tribal areas, and upgrade earthen and gravel roads to asphalt-based roads.

This was the third major project signed by the AIIB in Andhra Pradesh, the other two being in power sector and water sector.

The successful completion of the project will result in increased agricultural productivity and industrial development (agro-industries, in particular) through improved connections to markets with more favorable prices for agricultural inputs and outputs.

Also, it will reduce travel time and hence giving better access to schools and hospitals for the rural population, resulting in improved healthcare and increase in literacy levels. Better access roads to habitations also will result in setting up of more schools and healthcare centers around the habitations which are considered unviable by service providers without such roads, resulting in further improvement of healthcare, literacy levels and overall quality of life, said the statement. 

http://www.china.org.cn/business/2019-03/01/content_74518212.htm

Reactions: Like Like:
3


----------



## TaiShang

*AIIB boosts common development of Asia, world*

By Yuan Jirong, Zhao Yipu and Zhou Hanbo (People's Daily) 09:05, April 18, 2019

*The China-sponsored Asian Infrastructure Investment Bank (AIIB) has approved $7.5 billion in loans to support infrastructure projects in 13 countries of six regions*, including East Asia, Southeast Asia, South Asia, Central Asia, West Asia and Africa, driving almost $40 billion of capital into infrastructure projects over the past three years since its opening on Jan. 16, 2016.






_Photo taken on Dec. 21, 2015 shows the sign of the Asian Infrastructure Investment Bank (AIIB) in Beijing, capital of China. (Xinhua/Li Xin)_

To date, the new-type multilateral development bank, with a mission to promote infrastructure connectivity, *has expanded its membership from 57 founders to 93 approved members.*

In the past three years, the AIIB demonstrated internationalism, normative operation and high standards in its governance structure, policy standards and operation mode, winning wide recognition in the international society.

*It received the top-level rating by three major credit rating agencies in the world, and assigned a zero-risk weighting by the Basle Committee on Bank Supervision (BCBS)*, a body that serves as an influential arbiter for the best standards in financial regulation worldwide.

As an important platform that promotes the building of a community of shared future for mankind, the AIIB will continue to inject new vitality to regional and common development of the world.

In December 2018, the AIIB approved a loan of $400 million for a water supply program in Andhra Pradesh, India, aiming to provide safe drinking water through piped water supply to 3.3 million people in the region, where severe water pollution and poor water purifying equipment affected people’s health.

The AIIB has approved nine loan projects in India including the water supply program, totaling over $2 billion. Most of these loans were used to improve the transportation, electricity supply, water supply and other infrastructure-related areas, according to the AIIB.

India is the largest borrower of the AIIB, and the loans have improved the infrastructure in the country, said Jagannath Panda, a researcher from India’s Institute for Defence Studies and Analyses (IDSA).

He told People’s Daily that the Mumbai metro line 4, a project that received AIIB funding, will reduce 35-percent amount of traffic in downtown, thus greatly improving the city’s traffic.

Bangladesh is another country that suffers from outdated infrastructure, especially power shortages.

The first loan granted by the AIIB to Bangladesh was aimed to improve power supply for the country - a $60-million capital that went to a greenfield 220-megawatt combined cycle power plant in Bhola island in the Barisal district of Bangladesh. Upon completion, the project will increase power generation by around 1,300 megawatt hours annually.

The AIIB-funded power upgrade project will increase power supply and improve local industrial development and people’s livelihood in Bangladesh, where the severe power shortage is curbing the economic growth and the progress of poverty reduction, said Dr. Ahsan H. Mansur, Executive Director of the Policy Research Institute of Bangladesh (PRI).

Among the AIIB-financed projects in Indonesia, the National Slum Upgrading Project had the most remarkable achievements, improving the livelihood for tens of millions of impoverished residents.

The project was officially launched by the Indonesian government in April 2016, aiming to improve the living conditions in targeted slums via upgrading urban infrastructure such as water supply, power supply and roads.

Two months later, the AIIB, forming a team with the World Bank, announced $433 million of financing for the project. Half of the capital was contributed by the China-sponsored organization.

There are over 29 million Indonesians living in slums, according to the estimate of George Soraya from the World Bank who is in charge of the project.

More than 9.7 million impoverished people across the country will directly benefit from the slum upgrading project, and millions of other residents in Indonesia will also share the benefits.

AIIB’s first loan project to the Philippines aims to improve flood management in selected areas of Metro Manila. The aging drainage system in the Philippine capital was built in the 1970s, and there always are traffic paralysis and casualties during the typhoon season between June and October each year when floods hit the city frequently.

According to the plan of the AIIB, the project will upgrade 36 pumping stations and construct 20 new ones, rebuild urban waterways, and repair garbage treatment facilities and drainage pipelines. It will also house the relocated people.

AIIB documents show that the project will cover 2,900 hectares, benefiting about 970,000 people from 210,000 households.

With AIIB’s loans, Tajikistan in Central Asia has boosted key projects including a city roads and flyovers project in its capital Duschanbe, the Dushanbe-Uzbekistan Border Road Improvement Project and the Nurek Hydropower Rehabilitation Project.

“These projects have directly changed the lives of local people and facilitated national development,” said Sayfullo Safarov, first deputy director of the Center for Strategic Studies under the President of Tajikistan.

In recent years, Tajikistan has significantly improved its infrastructure by making use of AIIB’s loans.

The AIIB has played an important role in Asia’s development, Safarov said, adding that the AIIB's projects improving the poor infrastructure are conducive to stimulating the local development vitality.

Reactions: Like Like:
1


----------



## TaiShang

*AIIB approves first investment in Nepal*

Source:Xinhua Published: 2019/6/10 17:27:39

AIIB)'s Board of Directors has approved a loan of up to 90 million US dollars for a hydropower project in Nepal, its first project in the country. 

The Upper Trishuli-1 Hydropower Project will increase the country's power generation by almost 20 percent, helping to reduce acute power shortages in Nepal, according to a statement from the multilateral development bank. 

The Upper Trishuli-1 Hydropower Project is a 216-megawatt greenfield run-of-river hydropower plant to be developed on the Trishuli river under a build-own-operate-transfer model. 

The AIIB has also provided Nepal with 900,000 US dollars for the proposed Tamakoshi V Hydroelectric Project and one million dollars for the proposed Power Distribution System Upgrade and Expansion Project from its Project Preparation Special Fund which provides grants to support the preparation of projects in eligible AIIB members. 

"AIIB's investment will provide much-needed, long-term financing for a vital infrastructure project," said AIIB Director General Dong-ik Lee. 

"We are confident that our investment will demonstrate the viability of Nepal's sustainable energy sector to other potential private-sector investors," Lee said.

Reactions: Like Like:
1


----------



## oprih

Good, murican pussies and indians and their biowarfare armpits are still not invited.


----------



## Bussard Ramjet

TaiShang said:


> Belt and Road continues to collapse.
> 
> ***
> 
> *AIIB approves applications of six more countries*
> 
> Xinhua Published: 2018-12-19
> 
> 
> The Asian Infrastructure Investment Bank (AIIB) announced on Wednesday that its Board of Governors has approved the membership applications of six more countries, *bringing AIIB's total approved members to 93.*
> 
> The new group of approved members is comprised of *Algeria, Ghana, Libya, Morocco, Serbia and Togo.*
> 
> 
> 
> 
> 
> 
> Logo of the Asian Infrastructure Investment Bank (AIIB) [File photo: VCG]
> 
> "Within three years, AIIB's membership has increased from the 57 founders to 93 approved members from almost every continent. This shows our member's commitment to multilateral cooperation and strengthens AIIB's role in the international financial community," said AIIB Vice President and Corporate Secretary Sir Danny Alexander.
> 
> "The growing membership of the Bank in Europe and Africa also reflects the importance for growth and development of inter-regional connectivity, especially sustainable infrastructure that opens access to new markets in Asia and beyond."
> 
> The six prospective members will officially join AIIB once they complete the required domestic processes and deposit the first capital installment with the Bank. Shares allocated to the new prospective members come from AIIB's existing pool of unallocated shares.
> 
> AIIB said it expects to continue welcoming new members in the future.
> 
> http://chinaplus.cri.cn/news/business/12/20181219/225311.html




AIIB has nothing to do with Belt and Road. Many countries that totally reject Belt and Road, like India, are also a part of AIIB. AIIB's loans have also not been linked a lot with Belt and Road.



oprih said:


> Good, murican pussies and indians and their biowarfare armpits are still not invited.



You must be an idiot. India is a member of AIIB, and has been a big receiver of AIIB loans.


----------



## JSCh

*Luxembourg to host AIIB's 2019 annual meeting*
Source: Xinhua| 2019-06-12 15:41:03|Editor: xuxin

BEIJING, June 12 (Xinhua) -- The Asian Infrastructure Investment Bank (AIIB) said Tuesday that Luxembourg will host its 2019 annual meeting on July 12 and 13.

This will be the first time that AIIB's annual meeting has been hosted outside of Asia since its founding over three years ago.

Europe has provided much assistance to the AIIB and Luxembourg is a founding member of the bank, AIIB Vice President Danny Alexander said when explaining why Luxemburg will host the meeting.

We hope the meeting will promote connectivity between Asia and Europe, he said, adding that the second Asian Infrastructure Forum will also be held as part of the meeting.

The annual meeting will bring together AIIB's governors and directors to engage with delegations from members, partner institutions, business leaders, civil society and experts from a range of fields.

The AIIB is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, it began operations in January 2016 and has now grown to 97 members worldwide.

Reactions: Like Like:
3


----------



## JSCh

*AIIB approves membership of Benin, Djibouti and Rwanda*
Source: Xinhua| 2019-07-13 20:56:25|Editor: xuxin

LUXEMBOURG, July 13 (Xinhua) -- The China-initiated Asian Infrastructure Investment Bank (AIIB) on Saturday approved the membership of Benin, Djibouti and Rwanda, bringing AIIB's total approved membership to 100.

The decision was made unanimously by AIIB's Board of Governors at its fourth annual meeting held in Luxembourg.

The three prospective non-regional members will officially join AIIB once they complete the required domestic processes and deposit the first capital installment with the Bank.

"AIIB members collectively account for 78 percent of the world's population and 63 percent of global GDP. With the backing of all of our members, we are building a lean, clean, and green institution that can help to support their sustainable development," said AIIB President Jin Liqun.

Under the theme "Cooperation and Connectivity," the fourth annual meeting of AIIB kicked off in Luxembourg on Friday, for the first time outside Asia, drawing over 1,000 AIIB officials, representatives from members and partner institutions, business leaders and experts.

The AIIB, a multilateral development bank investing in sustainable infrastructure and other productive sectors in Asia and beyond, began operations in January 2016.

Reactions: Like Like:
3


----------



## Nilgiri

Bussard Ramjet said:


> You must be an idiot. India is a member of AIIB, and has been a big receiver of AIIB loans.



Two of his accounts literally thanked post #769....LOL.

A very bright bulb indeed.


----------



## Bussard Ramjet

Nilgiri said:


> Two of his accounts literally thanked post #769....LOL.
> 
> A very bright bulb indeed.



Good catch!

Reactions: Like Like:
1


----------



## Stranagor

*AIIB to Invest in China's Health Crisis Infrastructure to Check Virus*

XU WEI
DATE : FEB 10 2020/SOURCE : YICAI





AIIB to Invest in China's Health Crisis Infrastructure to Check Virus

(Yicai Global) Feb. 10 -- The Asian Infrastructure Investment Bank is in talks with the Chinese government to boost the country's emergency public health infrastructure, the lender said on its website today.

AIIB stands ready to back China through public health infrastructure loans to meet the country's direct and longer-term public health needs, the Beijing-based financial institution said, but without elaborating.

"Public health infrastructures contribute directly to final global public goods for health provision and indirectly," The World Health Organization said. "Further investment from multilateral partners, such as AIIB, can help strengthen China's public health infrastructure, which can have a lasting and global health impact."

"People from over 50 nations work at AIIB and we have all made China our home. With the full impacts of this epidemic still unknown, we want to do our part as residents of China to help stop its spread," said AIIB President Jin Liqun.

"In line with AIIB's mission, we will also work with the Government of China to identify effective public health infrastructure investments that will prevent the rapid spread of future outbreaks," Jin added.

To give back to the community where AIIB staff live and work, the bank is also matching staff donations to purchase medical equipment to help China control the spread of the epidemic.

"We look forward to working with other multilateral development banks, private partners and other funders who wish to join hands in bolstering China and other members' ability to respond to and deal with epidemics and other public health emergencies. These types of investments will not only improve the health of Chinese citizens but can have a global impact in terms of prevention and education," Jin noted.

https://yicaiglobal.com/news/aiib-to-invest-in-china-health-crisis-infrastructure-to-check-virus


----------



## TaiShang

AIIB eyes new infrastructure trends in post-COVID-19 era







news.cgtn.com





On the eve of celebrating its fifth anniversary in operation, the Asian Infrastructure Investment Bank (AIIB) is rethinking its strategy of financing traditional infrastructure.

The international development bank has identified several key emerging infrastructure trends that will drive the future of investment in previously overlooked infrastructure areas – *namely, infrastructure that is green and human-centered, with an eye on technology while enhancing connectivity.*

The shift takes place amid the COVID-19 pandemic, which has exposed weaknesses in the infrastructure of many economies, regardless of their development status. It requires the infrastructure sector to manage the short-term public health crisis, as well as mid- to long-term universal challenges like demographic issues, climate change and the ongoing digital transformation.

Jin Liqun, AIIB President and chair of the board, said fostering a health system and addressing climate change are inextricably linked. "*We need to promote the intricate emerging pattern of the relationship between climate and health care problems*," said Jin. "We will have to explore a new development paradigm that is environmentally smart and ecosystem smart.”

*Social infrastructure suffered from underinvestment*

Social infrastructure is on the bank's top priority list, as experts said it is one of the weakest links in the global production chain, having suffered from chronic underinvestment. Investment gaps in basic health and education facilities, in particular, have continued to widen in the last decade. 

*The 2020 Global Infrastructure Index shows that 48 percent of countries surveyed globally tend to favor greater investment in social infrastructure investment, *compared with 32 percent that favor traditional economic infrastructure.

*Digital infrastructure to become a hot commodity*

Besides social infrastructure, digital infrastructure is at the core of ramping up investment, especially in less-developed regions. Experts said COVID-19 has been rapidly heightening awareness of the varied uses of technology in revolutionizing production and life. They said the biggest damper on infra-tech investment fear of having a liquid asset that is likely to underperform.

Although supply chain infrastructure continues to face uncertainties and a slow recovery, experts claim that investing in connectivity for an all-electric future, such as smarter road infrastructure with greater digitalization, is still likely to pay off in the long run. The AIIB believes there should also be a focus on making supply chains more resilient, which implies more investments in warehouse or storage infrastructure.

"We should not separate digital infrastructure from the traditional infrastructure. Indeed, digital infrastructure works in close collaboration with the traditional infrastructure," said Jin, who sees opportunities for investments in connectivity and cross-border infrastructure and has forecast an overhaul of the existing infrastructure to meet the needs of the digital era. 

"New infrastructure development boosted by new technologies will bring more immediate benefits and pay off in the long term. Global trade will eventually open up, and those countries who invest smartly would be ready to capitalize on those opportunities," he said.

In its recently released 10-year corporate strategy, AIIB established clear priorities and ambitious targets in its overall share of financing, *with 50 percent for climate action by 2025, 25 to 30 percent for cross-border connectivity by 2030 and 50 percent for private sector operations by 2030. 

Multilateral development banks indispensable *

As global policymakers struggle with the current global health crisis and its immediate aftermath, experts say it is imperative for multilateral development banks, such as the AIIB, to work with the private sector to mobilize much-needed investment. They say a key challenge is to leverage more international capital from the private sector or commercial banks that eye returns.

Jin said it's usually not easy for the private sector to find common ground with multilateral investment banks (MDBs), which pay more attention to development impact. However, he explained that the private sector has been given a bigger role in the new era, with improved environmental and macro policies.

According to Jin, private sector investors may not necessarily look at the highest returns when working with MDBs because their resources are safe. 

Over the past five years, the Beijing-initiated organization has nearly doubled in membership since its 2016 launch, making it the second-largest of all multilateral banks around the world. *Data shows that it has approved investments in 106 projects totaling nearly $22 billion. *The president of AIIB said he's witnessed the development bank's progress in how it operates, including its policies, regulations, staffing and enterprise culture.

As challenges brought about by the pandemic have accelerated change in the overall development of multilateral development banks, the AIIB said it has gained critical experience, the opportunity to further evolve its business model and play a central role in the stability of global finance.

Jin said the bank, like other trend-savvy infrastructure financing investors, will need to remain flexible to navigate the turbulent times ahead to stay the course. 

"We will continue to hone our skills and sharpen our investments to deliver products and services that are not only tailored to the clients' immediate needs but also with a view of the long-term development impact," he said, adding that the ultimate goal is to contribute to inclusive and sustainable economic growth and social progress.


----------

