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France, Germany and Italy have joined Britain in signing up to the China-backed Asian Infrastructure Investment Bank (AIIB), dealing a further blow to the US government.
Australia is also believed to be rethinking its position to stay allied with the US and reject joining the $50bn bank, which is seen as a rival to the World Bank.
Last week the UK said it believed its decision to become a founding member of the AIIB was in the national interest, shrugging off US concerns about the move.
"There will be times when we take a different approach (to the United States)," a spokesman for Prime Minister David Cameron told reporters, referring to the decision to join the bank. "We think that it's in the UK's national interest."
The AIIB has been feted by Beijing as a way of financing regional development.
Britain's move drew a cautious response from Washington, but Mr Cameron's spokesman said the Prime Minister did not think the episode would damage London's ties with the US, and that Chancellor George Osborne had discussed the matter with his American counterpart beforehand.
The AIIB would play "a complementary role" to other funding institutions, he said, and would help fill a genuine niche to provide additional investment to lower income countries in the Asia-Pacific region.
Britain would help ensure it upheld high standards of governance, he added, denying that the Government's decision to join the bank was part of a pattern of cosying up to Beijing too much.
Mr Osborne said on Thursday that Britain would join discussions with other founding members of the AIIB 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 last week.
“Joining the AIIB at the founding stage will create an unrivalled opportunity for the UK and Asia to invest and grow together.”
However, US National Security Council spokesman Patrick Ventrell voiced concerns over the decision.
“We believe any new multilateral institution should incorporate the high standards of the World Bank and the regional development banks,” he said.
“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.”
China and 20 other countries signed a memorandum of understanding to establish the Beijing-headquartered bank in October.
The bank has support from countries including India, Singapore, Malaysia, Cambodia, Pakistan, the Philippines, Uzbekistan and Vietnam.
European giants side with UK in Chinese World Bank row with US - Telegraph
Australia is also believed to be rethinking its position to stay allied with the US and reject joining the $50bn bank, which is seen as a rival to the World Bank.
Last week the UK said it believed its decision to become a founding member of the AIIB was in the national interest, shrugging off US concerns about the move.
"There will be times when we take a different approach (to the United States)," a spokesman for Prime Minister David Cameron told reporters, referring to the decision to join the bank. "We think that it's in the UK's national interest."
The AIIB has been feted by Beijing as a way of financing regional development.
Britain's move drew a cautious response from Washington, but Mr Cameron's spokesman said the Prime Minister did not think the episode would damage London's ties with the US, and that Chancellor George Osborne had discussed the matter with his American counterpart beforehand.
The AIIB would play "a complementary role" to other funding institutions, he said, and would help fill a genuine niche to provide additional investment to lower income countries in the Asia-Pacific region.
Britain would help ensure it upheld high standards of governance, he added, denying that the Government's decision to join the bank was part of a pattern of cosying up to Beijing too much.
Mr Osborne said on Thursday that Britain would join discussions with other founding members of the AIIB 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 last week.
“Joining the AIIB at the founding stage will create an unrivalled opportunity for the UK and Asia to invest and grow together.”
However, US National Security Council spokesman Patrick Ventrell voiced concerns over the decision.
“We believe any new multilateral institution should incorporate the high standards of the World Bank and the regional development banks,” he said.
“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.”
China and 20 other countries signed a memorandum of understanding to establish the Beijing-headquartered bank in October.
The bank has support from countries including India, Singapore, Malaysia, Cambodia, Pakistan, the Philippines, Uzbekistan and Vietnam.
European giants side with UK in Chinese World Bank row with US - Telegraph
