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France, Germany and Italy to join China-backed bank - FT

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Look like the domino is falling.....??
You can't keep a good thing down, not even the US.:yahoo::victory::china:

France, Germany and Italy to join China-backed bank - FT | Daily Mail Online
By Reuters
Published: 19:07 EST, 16 March 2015 | Updated: 19:07 EST, 16 March 2015


(Reuters) - France, Germany and Italy have agreed to follow Britain's lead and join a China-led international development bank, dealing another blow to U.S. efforts to keep Western nations out of the new institution, the Financial Times said on Tuesday

The newspaper, quoting European officials, said the decision by the four countries to become members of the Asian Infrastructure Investment Bank (AIIB) was a major setback for Washington, which has questioned if the new bank will have high standards of governance and environmental and social safeguards.

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.

China said earlier this year a total of 26 countries were founder members, mostly from Asia and the Middle East.

Japan, Australia and South Korea remain notable absentees in the region, though Australian Prime Minister Tony Abbott said at the weekend he would make a final decision on AIIB 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 along with the United States. (Writing by Mark Bendeich; Editing by Dean Yates)
 
Here come another one, expect S.Korea to be next.

Roundup: Australia changes mind on China-proposed Asian infrastructure bank

English.news.cn 2015-03-17 07:56:49
by Xu Haijing


CANBERRA, March 17 (Xinhua) -- Australian leaders have been lining up in the past few days to voice support on Australia's joining of the Asian Infrastructure Investment Bank (AIIB), a conspicuous U-turn from the cabinet's previous stance.

The latest wave of support came after the United Kingdom announced to join the discussion with China on the 50-billion-U.S. dollar development bank.

Treasurer Joe Hockey was the first to say last Friday that Australia will consider joining the AIIB.

"This is something that will obviously be taken into account by the government over the next few weeks as we continue our dialogue with those people behind the bank," Hockey said.

"Quite obviously China has improved the governance structure it is proposing for the Asian Infrastructure Investment Bank," he added.

Prime Minister Tony Abbott then made the same remarks during an interview with Sky News on Sunday.

"Our position all along has been that we are happy to be part of some thing which is a genuine multilateral institution such as the World Bank, such as the Asia Development Bank," Abbott said.

On Monday, Foreign Minister Julie Bishop became the latest to join the choir, saying Australia has "considerable interest" in joining the bank.

"It has always been our intention to discuss this matter with China, to negotiate with China, we've put forward a number of concerns that we had, they have taken them on board and we've been working through those issues with China," Bishop told reporters.

Her words are of more significance as it was Bishop who at a cabinet National Security Committee meeting last year argued against Australia's involvement in the bank, quoting the bank's governance, transparency and accountability as concerns.

The United States, Australia, Japan and South Korea have initially declined to support the bank last year, citing concerns about its governance.

The bank is being promoted by China as a way of financing regional development. However, the United States sees it as an instrument of China to exert influence in the region.

Twenty-one countries including China, India and Singapore signed a Memorandum of Understanding in Beijing in October last year to build the bank.

China's Finance Minister Lou Jiwei said on March 6 that 27 countries had applied to join the bank as founding members.

Australia's refusal to join the AIIB as one of the founding members had got thumbs down across business sector and by many political figures.

Former Australian Prime Minister Paul Keating told Australian Financial Review in November last year that China's effort should be respected.

"The West and the United States said they wish China would conduct in a multilateral structure. But when China proposed one like the AIIB, they rejected," Keating said, "China's effort in working in a multilateral system should be supported not resisted. "

Ian MaCubbin, then National President of the Australia China Business Council (ACBC), told Xinhua in November last year that the bank is a significant proposal, and is one which should be given serious consideration.

"From ACBC's viewpoint, it's important to be part of the organization from the beginning so that if there are opportunities, Australia would try to shape the organization to address the concern, to fulfil its best possible role as a multilateral bank and provide much-needed infrastructure capital in Asia," he said.

Australian Industry Group chief Innes Willox commented on Monday that the government is right to rethink its opposition to joining the AIIB.

As the global economy's centre of gravity shifts from the Atlantic to China, it was essential that Australia was part of the change, he said.

"By reversing its opposition ... the government would be positioning Australia to be an active participant in this changing landscape, not simply a bystander," Willox said in a statement.

Opposition Leader Bill Shorten, Shadow Minister for Foreign Affairs Tanya Plibersek and Shadow Treasurer Chris Bowen teamed up to show support to the joining of the bank, while taking the opportunity to attack Bishop who, as they accused, "totally mishandled" the issue and was now playing catch-up.

The government should have announced its support for the bank months ago, according to the Plibersek and Bowen.

Editor: Xiang Bo
 
Luxembourg confirms to become founding member of AIIB
Source:Xinhua Published: 2015-3-19 14:26:24

Luxembourg has already submitted its candidacy to become a prospective founding member of the Asian Investment Bank for Infrastructure (AIIB), the Finance Ministry of Luxembourg confirmed to Xinhua on Wednesday.

"With its adherence to the AIIB initiative, Luxembourg, as an important international financial center hosting an increasing number of Asian banks and a facilitator of investments between Europe and Asia, is ready to further develop its role as bridge-builder and gateway between the two continents," commented the minister Pierre Gramegna, in an interview by Xinhua.

According to the minister, Luxembourg will work hard with other founding members to ensure that the AIIB will meet the highest and most stringent standards in terms of good governance, transparent lending policies, social and environmental safeguards as well as state-of-the-art procurement guidelines.

Luxembourg is a reliable partner in international development cooperation and would like to further extend its commitment towards multilateral aid mechanisms, in particular in the Asia-Pacific region, he added.

According to a statement released on Tuesday, France, Germany and Italy intend "to become founding members of the Asian Infrastructure Investment Bank."
 
Luxembourg confirms to become founding member of AIIB
Source:Xinhua Published: 2015-3-19 14:26:24

Luxembourg has already submitted its candidacy to become a prospective founding member of the Asian Investment Bank for Infrastructure (AIIB), the Finance Ministry of Luxembourg confirmed to Xinhua on Wednesday.

"With its adherence to the AIIB initiative, Luxembourg, as an important international financial center hosting an increasing number of Asian banks and a facilitator of investments between Europe and Asia, is ready to further develop its role as bridge-builder and gateway between the two continents," commented the minister Pierre Gramegna, in an interview by Xinhua.

According to the minister, Luxembourg will work hard with other founding members to ensure that the AIIB will meet the highest and most stringent standards in terms of good governance, transparent lending policies, social and environmental safeguards as well as state-of-the-art procurement guidelines.

Luxembourg is a reliable partner in international development cooperation and would like to further extend its commitment towards multilateral aid mechanisms, in particular in the Asia-Pacific region, he added.

According to a statement released on Tuesday, France, Germany and Italy intend "to become founding members of the Asian Infrastructure Investment Bank."
more to come!
 
Australia to invest 3 bln AUD in Asia Infrastructure Investment Bank: media
(Xinhua) 09:43, March 20, 2015

SYDNEY, March 20 -- Australia will join the Asian Infrastructure Investment Bank and potentially invest 3 billion Australian dollars (2.3 billion U.S. dollars), local media reported on Friday.

The Australian cabinet's National Security Committee will approve joining the bank on Monday, according to leaked documents given to Fairfax Media.

The news follows Australia initially refusing to join the bank as a founding member citing concerns of governance.
 
Australia to invest 3 bln AUD in Asia Infrastructure Investment Bank: media
(Xinhua) 09:43, March 20, 2015

SYDNEY, March 20 -- Australia will join the Asian Infrastructure Investment Bank and potentially invest 3 billion Australian dollars (2.3 billion U.S. dollars), local media reported on Friday.

The Australian cabinet's National Security Committee will approve joining the bank on Monday, according to leaked documents given to Fairfax Media.

The news follows Australia initially refusing to join the bank as a founding member citing concerns of governance.
Another rebuttal to US
 
Sorry only Chinese, but i can't stop laugh ... LOL :rofl:

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AIIB embodies new major power relations
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.
 
Another domino....



Austria decides to join establishment of AIIB
Xinhua, March 25, 2015

Austria has decided to participate in the establishment of Asian Infrastructure Investment Bank (AIIB), a foreign minister spokesperson told Xinhua on Tuesday.

001aa0ba3c16167c56493d.jpg

Austrian Chancellor Werner Faymann attends a press conference in Vienna, Austria, on March 24, 2015. Austria has decided to participate in the establishment of Asian Infrastructure Investment Bank (AIIB), a foreign minister spokesperson told Xinhua on Tuesday. [Photo/Xinhua]

The decision was made after a cabinet meeting Tuesday, the spokesperson said.

Together with Britain, France, Germany, Luxembourg and Switzerland, Austria has become the 6th European state who intends to join the China-proposed AIIB.

The Finance Ministry earlier told Austrian media that Austria's participation in the AIIB would be in line with government goals of building strategic partnerships with Asian countries, saying from an economic perspective it is also important for Austrian companies to be represented in Asia, something without a membership of the AIIB could be problematic.
 
中国为了吸引成员国加入,也牺牲了不少,比如不设一票否决权,这点很重要,是西方国家选择加入的很重要原因,再比如允许自由竞争headquarter
 
If You Can’t Beat Them, Co-Finance: America’s About Face on AIIB

15:55 24.03.2015(updated 16:32 24.03.2015)

Today in an about face from earlier posturing, the United States proposed cooperation and partnership between the newly created Chinese Asian Infrastructure Investment Bank (AIIB) and US-led institutions such as the IMF and the World Bank.


Andre Alessandro — The move comes after the United States failed to pressure several of its key allies, most notably the United Kingdom, France, and Germany, to boycott the institution.

The significance of the event, however, lies in the fact that the Chinese now have attracted major G7 partners to the AIIB, boosting its prestige and hopefully its efficacy. Moreover, the AIIB will rival the World Bank, IMF, and the Asian Development Bank (ADB), giving China a stronger foothold in the region and allowing it to dictate its own policy measures like the preceding banks do already.

The AIIB is a threat to the US for several reasons.

First, it will allow the Chinese to find a better investment environment for almost $3 trillion in US Treasuries which are only yielding just over 0% to 2% a year. By reallocating them into Asian infrastructure projects, they will be able to increase the GDP and purchasing power of its nearest neighbors, creating a larger demand for Chinese export goods and Yuan.

The second reason why the AIIB poses a threat to the US is due to the fact that by enacting its own development bank instead of increasing participation in existing institutions, China is hoping to increase its influence in the region without the other G7 nations, such as Japan and the US, who make the final decision on what projects are funded.

Previously, China had been a member of the ADB and the IMF for many years, however, its influence and voting powers have been vastly underserved, leaving the rapidly growing nation at odds over how it could exert itself in the region. In the ADB, China has held the voting rights of Japan and its President has always been Japanese. While in the IMF, an increase in Chinese power has been delayed for years. Thus, China felt the time was right to manifest its own destiny in the region.

Third and most importantly, the AIIB will reduce dollar dependence in Asia and allow China to sidestep existing treaties and trade barriers set forth by the US and the institutions it dominates. The AIIB is a perfect representation of the decline of US power in the region and the slow emergence of China as a soon to be dominant power.

This is why from its initial announcement, the Obama administration called on its allies and partners to refuse to support the institution. While the White House publicly said they felt it would not meet a sufficient level of standards to prevent excessive debt buildup, human rights abuses and environmental destruction, the real reason was to try and stem the creation of a rival institution not under US control. By defecting from Obama's mandate, the major countries who signed on as founders of the institution greatly embarrassed the US. Now, the new approach taken by the Obama administration is a small measure to retain credibility.

“The U.S. would welcome new multilateral institutions that strengthen the international financial architecture,” said Nathan Sheets, US Treasury Under Secretary for International Affairs. “Co-financing projects with existing institutions like the World Bank or the Asian Development Bank will help ensure that high quality, time-tested standards are maintained.”

By trying to join forces with the AIIB now, the Obama administration hopes to maintain some level of power and control. Whether China will choose to work with the US, the IMF, and the World Bank is yet undecided. Zhu Haiquan, spokesman at the Chinese embassy in Washington, said the bank “is built in the spirit of openness and inclusiveness and will follow high standards.” He also said, “It will effectively cooperate with and complement the existing multilateral development banks such as the World Bank and the Asian Development Bank to provide investment and financing for the infrastructure building in Asia.”

Demand for infrastructure in Asia in the next decades is expected to approach $8 trillion. New roads, train lines, ports, airports, electricity grids and other projects are necessary to keep the billions of people in Asia fed, provided with clean water and ensure they receive exported Chinese goods.

At its start, the AIIB will be funded with just $50 billion. A large sum, however the ADB is currently funded with $160 billion dollars and the World Bank has nearly a half billion. The number does represent a growing divide though between Western and Chinese interests, which will only grow with time as China expands and exerts more influence over the region.



Read more: If You Can’t Beat Them, Co-Finance: America’s About Face on AIIB / Sputnik International
 
Australia joins AIIB, Canada expresses interest
2015-03-25 09:20   By: GMW.cn

Australia's federal cabinet has approved the signing of a memorandum of understanding (MOU) on joining the $100 billion Asian Infrastructure Investment Bank (AIIB) led by China, the Sydney Morning Herald reported Tuesday.

A final decision on joining the AIIB will still be "subject to the structure of the bank and certain governance conditions being met," the report said.

By press time, Chinese authorities had not commented on the report.

Australia is the 34th major economy to announce its intention to join the AIIB as a founding member, with the others including the UK, Germany, France, Italy and Switzerland.

Thirty-five economies, and possibly more, are expected to become AIIB founding members ahead of the March 31 deadline, Jin Liqun, secretary-general of the Multilateral Interim Secretariat for Establishing the AIIB, told a forum in Beijing on Sunday.

"Australia's decision [to approve signing of the MOU] was expected, as the country has close economic ties with Asia and its future growth will largely rely on the Asian market," Huang Wei, an expert at the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, told the Global Times on Tuesday.

Experts said that Australia's intention to join the AIIB will have an effect on Japan and South Korea, which, as close allies of the US, have not yet made up their minds on whether to join the AIIB.

Japanese Finance Minister Taro Aso said Tuesday that Japan was not ready to make a decision on whether to join the China-led bank by the March 31 deadline, Reuters reported.

But other media reports on Tuesday said that South Korea's decision could come as early as this week.

Experts noted that it would be in their long-term interest to join the bank. "It is quite possible that the two countries [Japan and South Korea] will join in the end," Huang said.

Bloomberg reported Tuesday that Canada is also weighing the possibility of joining the AIIB.

China has offered to forgo veto power at the AIIB, which has been a critical factor in attracting major European countries to join the bank, the Wall Street Journal reported on Tuesday. Jin also told the forum on Sunday that the bank will seek to make decisions on the basis of unanimous agreement rather than voting share.

Chen Fengying, a research fellow at the China Institutes of Contemporary International Relations, said that China will not seek to control the AIIB in the same way that the US has sought to dominate the IMF. "Consultation will play an important role in decision-making at the AIIB," she said.

The AIIB, initiated by China in October 2014 to boost infrastructure investment in Asia, is expected to be established by the end of this year.

Though the bank has been seen by many as a move to shake up the international financial system, experts have noted that the bank will be complementary to existing financial institutions instead of a rival.

"Demand for infrastructure investment in Asia is huge and the AIIB will be a supplement to the Asian Development Bank in providing funds," Huang said, noting that it is not a "zero-sum" game.

The US, which used to have a negative attitude toward the AIIB, has softened its attitude recently.

"The US would welcome new multilateral institutions that strengthen the international financial architecture," Nathan Sheets, US Treasury undersecretary for international affairs, was quoted as saying by the Wall Street Journal on Sunday.

Chen said that huge investment opportunities in Asia are the main reason for major economies to join the AIIB.

"There is no way for the US to persuade its allies to back away from the bank now," she said.

From Cntv & Global Times
 
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