Pressure on Japan, U.S. to join Asian bank

[Hindustani78]

Updated: March 23, 2015 03:07 IST
Pressure on Japan, U.S. to join Asian bank - The Hindu

With most allies already backing the Asian Infrastructure Investment Bank, sections in Western media are advocating U.S. participation
Japan now appears divided, and the United States is being strongly advised to join the China-led Asian Infrastructure Investment Bank (AIIB), whose formation is beginning to be viewed as the dawning of a multi-polar world.

Opposed to participation so far, the Japanese were emitting mixed signals about prospects for joining the bank. Japanese Finance Minister Taro Aso said Tokyo could consider participation in AIIB, provided a credible mechanism for providing loans could be guaranteed.

However, Reuters quoted a senior official in the ruling coalition that Japan’s participation “is not going to happen under the [Shinzo] Abe administration”.

The Australians appear close to dropping their earlier opposition, and are likely to formally announce their decision to join the bank, following a Cabinet meeting slated for Monday.

Major European powers — Britain, Germany, France, Italy, Luxembourg and Switzerland — have already broken the shackles imposed by Washington against participation in the Beijing-led lender, which earlier had emerging countries like India, as well as Singapore, Kuwait and Qatar in the list of founding members.

“The story of the Asian Infrastructure Investment Bank is turning into a diplomatic debacle for the U.S. By setting up and then losing a power struggle with China, Washington has sent an unintended signal about the drift of power and influence in the 21st century,” wrote the Financial Times.

In an editorial, the Hong Kong based South China Morning Post (SCMP) opined that the acceptance, however reluctant, of a Beijing-led bank meant that the uni-polar world had entered its sunset years. With most allies already backing, or in the process of doing so, influential sections of the Western media are arguing that instead of choosing confrontation, Washington too should join the AIIB. Another article in the Financial Times slammed the U.S. for being obstructionist.

Hoping to minimise resistance in Washington Chinese Finance Minister Lou Jiwei has said that AIIB will complement and not compete with established international lenders, including the World Bank and the Asian Development Bank (ADB).

Mr. Lou said although the deadline of founder application is March 31, other countries can still join the bank as common members after this date.

 

[opruh]

They can only join if they will be allowed by China.

 

[Hindustani78]

ADB president says China-led AIIB potential partner, not rival - The Hindu
Updated: March 24, 2015 09:37 IST

The president of the Asian Development Bank (ADB), Takehiko Nakao, said the proposed China-led Asian Infrastructure Investment Bank (AIIB) is a potential partner instead of a rival and the ADB is talking with Beijing to share its experience.

The ADB is ready to collaborate with the AIIB if it meets environmental, social and other standards for lending, Mr. Nakao said in an interview.

“I think we can complement each other,” Mr. Nakao said.

China proposed the bank in 2013 to finance construction of roads, ports and other infrastructure. It has pledged to put up most of its initial $50 billion in capital.

Britain broke with Washington last week to announce it wanted to join the Chinese—led bank. France, Germany and Switzerland followed.

The ADB has talked with Chinese officials to share its “knowledge and experience” based on its 50-year history and staff of some 3,000 throughout the region, said Mr. Nakao.

 

[Tshering22]

What's the point of AIIB when they are already big in BRICS?

Consolidating one organization is actually much better than multiple smaller organizations. BRICS as a group can become more powerful if all the 5 members actually back it with full enthusiasm.

 

[Schutz]

What's the point of AIIB when they are already big in BRICS?

Consolidating one organization is actually much better than multiple smaller organizations. BRICS as a group can become more powerful if all the 5 members actually back it with full enthusiasm.

Because BRICS is a joke.

 

[Tshering22]

Because BRICS is a joke.

Not so much a joke since it has become a competitor group isn't it?

I was talking about China's existing membership.

 

[Hindustani78]

Russia to join China-led development bank: official

Moscow, Mar 28, 2015 (AFP)

Russia is to sign up to the Chinese-led development bank AIIB, first deputy prime minister Igor Shuvalov said today at an international forum in China.

"I'd like to inform you that Russian President Vladimir Putin has taken the decision that Russia will participate in the capital of the Asian Infrastructure Investment Bank (AIIB)," Shuvalov said at China's Boao Forum, quoted by RIA Novosti state news agency.

The Beijing-backed AIIB, unveiled in October, is a multinational lender that the United States perceives as a threat to the Washington-led World Bank.

It has proved highly successful with countries that are US allies, however, with Britain, Germany, France, Italy and this week South Korea all saying they intend to join the USD 50 billion (46 billion euro) bank.

Russia has sought to align itself more closely with China in recent years and these efforts have intensified amid a freeze in relations with the Western powers, which have imposed harsh economic sanctions over Moscow's role in the Ukraine conflict.

"We are glad to have the opportunity to build up cooperation in the format of China and the Eurasian Economic Union," Shuvalov said, referring to a free trade union championed by Putin made up of Russia, Kazakhstan, Armenia and Belarus, which came into force in January.

"We in Russia are sure that joint work in developing Eurasian partnership and the Silk Route economic belt will create further opportunities for the development of the countries of the Eurasian Union and China," he said.

Chinese Foreign Minister Wang Yi said this month that "practical cooperation between China and Russia is based on mutual need" and has "enormous internal impetus and room for expansion."
China is hungry for Russia's vast hydrocarbon resources, while Western sanctions have made seeking stable markets an urgent need for Putin, whose economy has been hit hard by the fall in prices for oil, a major source of revenue.

Both countries are permanent members of the UN Security Council, where they have in the past jointly used their veto power against Western-backed moves such as in the civil war in Syria.

 

[Sanchez]

Japan has no pressure because it's not invited to join the bank...

 

[Hindustani78]

Russia asks China to allow its companies to borrow in yuan : UNIAN news

Russian state bank VTB has asked China’s Ministry of Finance to allow Russian companies to borrow in the Chinese currency the yuan, VTB Chairman Andrey Kostin said, Russian information agency RIA Novosti has reported.

 

[Hindustani78]

US backs China-led AIIB ahead of joining deadline - The Economic Times
By PTI | 30 Mar, 2015, 08.23PM IST

BEIJING: The US today hinted at joining the China-sponsored Asian Infrastructure Investment Bank (AIIB) before the deadline tomorrow saying it is looking forward to cooperating with the new bank which most US allies have joined disregarding its objections.

US can cooperate with the bank as it welcomes and supports proposals that are helpful to infrastructure construction, US Treasury Secretary Jacob Lew said.

Lew is here for talks with Chinese officials. The cooperation can be carried out through the China-US Strategic and Economic Dialogue (SED), the World Bank and the AIIB, and any other mechanisms accepted by the two countries, Lew said in his talks with Chinese Premier Li Keqiang earlier on, Chinese Vice Minister of Finance Zhu Guangyao quoted him as saying.

Lew's "surprise" visit here ahead of the last date for joining the bank has sparked speculation that the US is negotiating with China to join the bank which it opposed earlier stating that it lacked transparency.

Already India, along with 30 countries including staunch US allies UK, Germany and France have joined the bank making the Barack Obama administration rethink its concerns that it could become a competitor to the US-led World Bank, IMF and ADB, as it is set to start with USD 50 billion investment.


Zhu told state-run Xinhua news agency after the hour-long talks that Lew also welcomes China playing a bigger role in international economic affairs.

 

[Hindustani78]

Egypt seeks to join China-based AIIB - The Economic Times

By AFP | 30 Mar, 2015, 11.14PM IST

CAIRO: Egypt is interested in joining the Beijing-backed Asian Infrastructure Investment Bank, the foreign ministry spokesman said today.

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

China and 20 other countries signed a memorandum of understanding last October to establish the Beijing-headquartered USD 50 billion AIIB.

"Egypt has applied to join the Asian Infrastructure Investment Bank," foreign ministry spokesman Badr Abdel Atti told.

The new multinational lender is seen as a threat to the World Bank and the Asian Development Bank, two institutions under strong US influence.

The United States has voiced concern about whether it would meet international governance, environmental and social standards, with President Barack Obama's administration waging an intense but low-profile lobbying campaign against it.

China is expected to foot the bulk of the initial money needed to get the AIIB started, with donations from other members set to increase the size of the overall fund to more than USD 100 billion.

 

[Kylin]

US backs China-led AIIB ahead of joining deadline - The Economic Times

BEIJING: The US today hinted at joining the China-sponsored Asian Infrastructure Investment Bank (AIIB) before the deadline tomorrow saying it is looking forward to cooperating with the new bank which most US allies have joined disregarding its objections.

 

[Hindustani78]

Japan could join China-led Asian bank by June - The Hindu

Bowing to pressure from its powerful business groups, Japan could join the China-led Asian Infrastructure Investment Bank (AIIB) in the next few months, deserting the United States — Tokyo’s foremost post-war ally, says a media report.

The Financial Times, quoting Japan’s ambassador to China, Masato Kitera is reporting that Tokyo would sign up to the AIIB by June, missing the March 31 deadline for applying as a founder member of the lender. “The business community woke up late, but now they have mounted a big campaign for the AIIB which appears to be very effective,” Mr. Kitera was quoted as saying.

But in Tokyo, the FT report evoked an ambivalent response. Japan’s Chief Cabinet Secretary Yoshihide Suga said on Tuesday that ambassador had not made any such comment and Japan's position on the AIIB was unchanged. “I have been informed that it is not true that Ambassador Kitera made such remarks forecasting (Japan's) participation,” Mr. Suga told a news conference. But he added that, “I think it's impossible for Japan to take part today,” not ruling out a reversal of position later.

Reuters quoted an unnamed Japanese government source as saying, “We have not ruled out the possibility of either joining or staying out.” In Beijing, Chinese Foreign Ministry spokesperson, Hua Chunying said

on Tuesday that Japan was welcome to join the bank, but Tokyo would have to take the call. “As for whether or not Japan is willing to participate, we have previously said that we welcome all countries to proactively participate,” she observed. She added China would respect the wishes of any country “whether or not they join or when they decide to join.”

According to FT, a group of Mitsubishi Group executives based in China have offered support during their meeting this month with Jin Liqun, who has been designated to run the infrastructure bank. The Japanese

find Mr. Jin, a familiar face, because of his position as a senior official at the U.S. and Japan backed Asian Development Bank (ADB). The Japanese industrial houses see participation as beneficial, as the AIIB will be at the heart of building infrastructure in the region, offering substantial business opportunities. Besides, collaboration with the Chinese could help mend frayed ties between Beijing and Tokyo, highlighted by a dispute on a group of islands in the East China Sea.

Analysts say that over time, the U.S. could change its position towards the new bank. However, on Monday, visiting U.S. Treasury Secretary, Jack Lew said in Beijing that Washington still had its concerns about the standards that the AIIB would maintain. “We very much welcome China’s increased participation in infrastructure investment, and the concerns we've raised about the needs for standards continue,” Mr. Lew said. He added: “The initial decisions of what kinds of projects are invested in will obviously be a very important signal as to how they’ll proceed.”

 

[Hindustani78]

Japan denies plan to join China-led development bank ‹ Japan Today: Japan News and Discussion

Mar. 31, 2015 - 06:17PM JST ( 48 )
TOKYO —

Japan on Tuesday ruled out any immediate plan to join the Beijing-backed Asian Infrastructure Investment Bank (AIIB), categorically denying a news report that its ambassador to China said Tokyo is likely to take part.

The Financial Times reported that Masato Kitera, Tokyo’s envoy in Beijing, said in an interview Japan is likely to join the AIIB within a few months, a move that would leave Washington as the only big holdout.

But Chief Cabinet Secretary Yoshihide Suga said Tuesday the ambassador had not made any such comment and Japan’s position on the AIIB had not changed.

“I have been informed that it is not true that Ambassador Kitera made such remarks forecasting (Japan’s) participation,” Suga told a news conference.

The report comes just before the end-March deadline China has set for participation in the bank as a founding member.

Australia, Britain, France, Germany, Italy and Russia have all said they intend to join the Beijing-headquartered $50 billion institution, despite skepticism in Washington and Tokyo. China’s neighbor and long-time foe Taiwan said Monday it would also make a formal application to join.

“Japan is dubious about whether (the AIIB) would be properly governed or whether it would damage other creditors,” Suga said. Japan is a key player in the Asian Development Bank (ADB), which would be a rival.

“Anyway, I think it’s impossible for Japan to take part today,” the government’s top spokesman said, adding that Tokyo would work together with Washington, its top ally, and other countries to ask Beijing for clarification.

The new multinational lender is seen as a threat to the World Bank and the ADB, two institutions that are heavily influenced by the US and Japan.

Washington has been left increasingly isolated in its opposition to the AIIB, which opponents claim could end up as a Chinese vehicle that has low standards on governance, the environment and social issues.

President Barack Obama’s administration has waged an intense but low-profile lobbying campaign against it, but has watched with frustration as allies around the world pile in, with some hoping to curry favor in Beijing and others not wanting to miss out on a lucrative part of the world.

China is expected to foot the bulk of the initial money needed to get the AIIB started, with donations from other members set to increase the size of the overall fund to more than $100 billion.

© 2015 AFP