AIIB (Asian Infrastructure Investment Bank) news

[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.

 

[Jlaw]

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

 

[StarCraft_ZT]

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

 

[Huaren]

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.

 

[Beast]

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.

 

[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.

 

[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

 

[supermeson]

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

 

[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.

 

[帅的一匹]

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。

 

[Shotgunner51]

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

 

[Huaren]

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

Shanghai > all of them

 

[Shotgunner51]

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.

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.

 

[帅的一匹]

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.