Vietnam Warned to be Wary of AIIB Loans
Although loans from the AIIB seem attractive, economists warn Vietnamese officials to be cautious accepting these relatively un-monitored loans. The cost of capital for AIIB loans is currently low, but with the yen unstable, repayment of long-term loans may become a burden on Vietnam in the future.
ADB Praises and Partners with the AIIB
The AIIB's infrastructure investment in India will help offset the hit to GDP growth caused by demonetization in the country, according to the ADB.
The AIIB will soon surpass the ADB in number of members and is seen as a potential rival. However, the two development banks have signed an MOU to facilitate the co-financing of projects, including a road construction project in Pakistan and a gas transmission project in Bangladesh.
Defense Minister of Singapore Calls for Benevolent China-U.S. Relations, Praises the Asian Infrastructure Investment Bank.
Speaking at the Munich Security Conference, the Defence Minister of Singapore called for greater cooperation between China and the U.S. in the Asia-Pacific. Defence Minister Ng Eng Hen called on China to continue an inclusive vision of growth for Asia, praising the efforts of the Asian Infrastructure Bank and welcoming the One Belt One Road Initiative. The future stability and prosperity of the Asia-Pacific hinges much on the relationship between China and the U.S. and its cooperation on matters of security and regional development.
AIIB and IFC Sign Agreement
The Asian Infrastructure Investment Bank and the International Finance Corporation have signed an International Swaps and Derivatives Association (ISDA) master agreement. Their first formal and bilateral agreement, the agreement will increase their risk-bearing capacity and decrease currency risks associated with emerging market investments, expanding their overall lending capacity. The AIIB has been a lot more open to collaboration than many anticipated since its opening in early 2016, having co-financed projects with the World Bank and the ADB, who originally worried the AIIB would be competition for them.
Nepal Investment Summit 2017
Jin Liqun, president of the Asian Infrastructure Investment Bank, will attend the 2017 Nepal Investment Summit March 2-3. The AIIB President will observe infrastructure projects with over 100 other foreign delegates. The summit aims to uncover the benefits of foreign investment and hopes to build relationships between domestic and foreign investors.
As for the Asian Development Bank this past week....
Mongolia’s Economic Bailout
In conjunction with the World Bank, IMF, and other bilateral partners, the Asian Development Bank is providing Mongolia aid as apart of a $5.5 billion economic stabilization package. The bailout's terms require Mongolia to pursue more disciplined economic policies and stronger regulations for banking and finance.
ADB supports Philippine’s proposed tax reforms
The Asian Development Bank supports excise tax reforms proposed by the Philippine’s Department of Finance. The proposed tax reform program is apart of President Duterte’s socioeconomic plan to increase spending on infrastructure, further reform taxes, and decrease red tape limitations.
Work on ADB-Financed Bridge to Begin in March
The bridge over the Ganges, which the Asian Development Bank and the Indian government have partnered up to build, is to begin constriction early next month. A much-needed piece of infrastructure in Bihar, the bridge will connect the northeastern states of India and Nepal, and will allow for better traffic distribution and international and regional trade.
ADP to Fund Urban Development in Vanuatu
The Asian Development Bank will fund an additional 2.87 million USD to support the Port Vila Urban Development Project which will improve sanitation, urban drainage and roads in Vanuatu’s capital. According to the ADB’s Senior Country Coordination Officer, Nancy Wells, the sanitation improvements will help the tourism industry in Port Vila, and will help the city better prepare for disasters and strengthen resilience to climate change.
Chinese Banks on Shaky Ground
Although the One Belt One Road Initiative will be largely funded by the AIIB, other Chinese banks are expected to contribute a significant amount of the financing. The initiative is expected to create new markets for China, but there is major uncertainty about what the payout will actually be. Further, Chinese banks have already been doling out risky loans with non-financial sector debt up by 75% in the past six years. This combination of factors may be signs of an impending financial crisis in the country.
May Invited to China's Most Important Annual Diplomatic Event
China's Silk Road Initiative was the primary motivation for the creation of the Asian Infrastructure Investment Bank. The upcoming international meeting regarding the Silk Road Fund is the most important diplomatic event of the year for the Chinese Government and British Prime Minister May has received an invitation, along with other leaders the Chinese Government sees as crucial to the initiative.
AIIB Membership - Great Opportunities for Iran
Alireza Khatounzadeh Abyaneh, Iran’s head of Economy MInistry’s Department of Banking and Insurance Affairs, said that Iran’s membership in the AIIB has “strengthened the country’s economic clout in the region”, “revived international relations” and “great potential for resources and development.” The AIIB also facilitates foreign investment in Iran, which lets Iran use its resources for its own infrastructure projects as well as similar projects in other member countries. Iran currently holds 15,808 (1.61%) shares. Its main goal in joining the bank on June 29 was to strengthen relations with Asian powers.
AIIB defies skeptics
The AIIB has been accelerating its lending since its creation a year ago. Funds are already available to eight countries and the bank’s reach has extended as far as Oman, a surprise for many who believed projects would only be in the South East Asian region. The AIIB is expected to look more toward the Middle East for projects. Skeptics believed that the AIIB would be used by China as an “economic and political lever to serve its own purposes.” AIIB President still extends his offer for the US to join, despite the Obama administration being against it, and predicts that the Trump administration would join.
Quick hits from this past week....
Asia Times author, Pepe Escobar, argues that the U.S. under trump is advocating a "China Containment" foreign policy. Escobar contrasts this to China's Silk Road and AIIB policies and plans to open new economic corridors in the Asia-Pacific. Escobar considers this, as well as enhanced China-Russia geostrategic partnership a strong policy for China. Escobar is highly critical of Trump's positions on China during the campaign, and argues that China will continue to advance across Central Asia through the Silk Road and AIIB. Full article available HERE.
IFC, a member of the World Bank Group, and the Asian Infrastructure Investment Bank (AIIB), have signed a major agreement to invest in Asian infrastructure. Emerging market projects in Asia's infrastructure sector will see continued investment and support from AIIB and also a World Bank member, the IFC. The agreement adds legitimacy to the AIIB from the World Bank Group, of which the IFC is a member. Full article available HERE.
On a similar note, the Asian Development Bank has also had quite a busy week...
ADB Continues Investing in Clean Energy
President of the Asian Development Bank, Takehiko Nakao, said that in response to the Paris Climate Agreements, the bank will be increasing climate financing in developing member countries, with promises to invest $6 billion by 2020, of which $4 billion will target mitigation and $2 billion adaptation. Among the climate adaptation project, the ADB is supporting the Bihar New Ganga Bridge Project, which plans to build a bank-to-bank bridge over the Ganges River, a design which is more resistant to flooding. However, the ADB is open only to renewable energy investments, such as the Distributed Commercial Solar Power Project in Thailand, and not nuclear or coal power plants, as vice-president Wencai Zhang stated after a meeting in Bangladesh this week.
Hundreds of delegates from Asian governments attended a major conference titled the “Asia-Pacific Business Forum: Regional Integration to Achieve Sustainable Development”. Leaders of Bangladesh, Sri Lanka, Nepal, and others discussed the economic potential of the Asia-Pacific: its natural resources, ocean, and diverse markets. A high-level Asian Development Bank official laid out plans for the ADB to play a larger role in investing in Asia-Pacific infrastructure going forward. Full article available HERE.
The Asian Development Bank sells a $3.75 billion five-year global benchmark bond on the US dollar bond market. The bond issue went to various types of investors and banks in a wide geographic primary market distribution. Full article available HERE.
The Asian Development Bank (ADB) will fund a 100 MegaWatt wind farm in Mannar through Sri Lanka's state-run Ceylon Electricity Board (CEB). Full article available HERE.
The United Nations Executive Secretary of Economic and Social Comission for Asia and the Pacific (ESCAP) emphasized the importance of private-sector initiatives, especially in accordance with the Sustainable Development Goals. In this scenario, there is a special role for the Asian Development Bank (ADB) in developing deeper regional integration and infrastructure building in South Asian countries. In 2016, the ADB contributed with around $17.5 billion, destined to the implementation of regional projects in Bangladesh, Bhutan, India and Nepal. Full article available HERE.
The International Finance Corporation - an organization of the World Bank group - and the AIIB worked together on an agreement to facilitate their lending capacities to emergent countries' infrastructure programs. With a high risk-bearing capacity, both organizations seek to increase financing programs and facilitate the development of public and private sector activities in Asia. Their International Swaps and Derivatives Association (ISDA), an unprecedented agreement, will allow them to jointly hedge the interest rates and the currency risks of eventual operations. Full article available HERE.
The Asian Development Bank has approved a loan destined to Sri Lanka's state-owned energy enterprise, in order for it to build a 100MW potential generation wind farm. Nevertheless, critics point to the existence of groups favoured by lobbies and political negotiations linked to the sector of renewable energy, making it a possible ground for corruption. Full article available HERE.
The Asian Development Bank is showing its commitment to disburse its supply of capital towards the nations of the BBIN Initiative as meas to guarantee their development of infrastructure. This is conditioned by a commitment of these countries - especially Bangladesh, which is expected to receive around US$ 18 billion in the next five years - with good governance practices. Also, it is expected that all of them can follow up with the strengthening of private sector initiatives, and can cooperate to build energy transmission lines in the region to supply low-receivement zones. Full article available HERE. [End Summary]
And in news related to the Export-Import Bank of China....
A joint infrastructure project of an intercontinental road linkin Europe to Asia, with an approximate length of 8,445 km, was approved. China, Russia, Kazakhstan and Belarus agreed in negotiations, resulting in a project with an estimate cost of US$ 6 billion - of which US$ 4 billion will probably be covered by the Chinese Government and the Export-Import Bank of China. Russian officials stated that the infrastructure is likely to start being built in 2017 and to be finished in 2019, and will provide all parts with an accessible and fast path for transporting goods across continents. Full article available HERE. [End Summary]
Photo: Kosi River, Nepal (wikicomons)
Potential Projects in Nepal
The AIIB is interested in investing in two of five infrastructure projects proposed by Nepal. Under the Urban Infrastructure Investment Project, Nepal hopes to develop infrastructure in 18 municipalities. The AIIB could also help fund the Nepal Distribution System Upgrading and Extension Project which aims to improve electricity distribution in areas with high demand. Due to lack of preparedness by Nepal, project areas and loan amounts are still yet to be determined. The other three projects proposed by Nepal include a hydropower, storage, and road upgradation and extension.
Natural Gas - Bangladesh
The AIIB is expected to lend $60 million towards a project in Bangladesh aimed towards boosting natural gas production and expanding transmission infrastructure. This loan will be managed by the Asian Development Bank who is providing a $167 million loan to the project which is valued at $453 million in total. This project will be the second to be cofinanced by the AIIB and ADB.
AIIB's VP Claims Consistency with the SDG's
AIIB's VP, Danny Alexander, reaffirmed that the AIIB has a solid governance structure and is not being influenced by world politics. The AIIB has recently been questioned about whether they will be influenced by the larger countries that are members, such as India. India has requested that the AIIB invest in coal fueled energy projects in the country. Alexander responded that the AIIB's projects would maintain a high standard of environmental regulation and would be consistent with the Sustainable Development Goals.
Collaboration with World Bank
Michael Kerf, the head of the Pacific division of the World Bank said he would welcome working with the AIIB in the Pacific region. However, he does not believe that the AIIB would have a focus on the region in the near future since it is focusing on large scale infrastructure projects. Kerf also said that the AIIB has previously expressed interest in cofinancing projects and anticipates a strong partnership between the two.
President Rodrigo Duterte’s administration has reaffirmed interest in the Philippines joining the AIIB. Budget Secretary Benjamin Diokno has said that they are “ready to subscribe” this year and next year. Philippine participation in the AIIB has also been approved by the previous administration. “The indicative paid-in capital of the Philippines is 196 million US dollars, payable in five years or 39 million US dollars per annum.”(XinHua)
Canada Applies to Join
Canada has applied to join the AIIB, which is seen as a potential rival to the Western oriented World Bank. AIIB President Jin Liqun believes that Canada’s involvement will “greatly strengthen the management of this institution.” Joining the AIIB will strengthen Canada’s relations with China, who is already Canada’s second largest trading partner and major investor. President Jin Liqun also mentioned that “We can see that the US’s attitude towards AIIB is showing signs of changing, as it’s encouraging the World Bank to cooperate more with the AIIB.”
IN OTHER NEWS....
The AIIB recently released an updated chart of members states, total contributions, and bank capital. Follow the link HERE to access the webpage.
Expansion of Ties
Abbas Akhoundi, Iran's Minister of Road and Urban Development is currently on a four-day visit to China. In this time, he will meet with senior officials of the AIIB along with the Chinese deputy prime minister, Minister of Housing and Urban-Rural Development, and senior official officials of the China Exim bank.
US May Join the AIIB
AIIB president Jin Liqun said Monday that the US is likely to join the AIIB under the Trump presidency. During the formation of the AIIB, the United States saw it as a threat. Jin believes that there is enough space for several financial bodies to operate simultaneously.
Jin Liqun said to the People Daily newspaper, “I have heard that 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 … So we can’t rule out that the new government in US endorsing the AIIB or indicating interest to join as member.”
New Approach to China
James Woolsey, former director of the Central Intelligence Agency during the Clinton administration, is now a senior adviser to President-elect Trump. Mr Woolsey foreshadowed a major shift in America's position on China's economic strategy. He was quoted in a letter saying "It is 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.”"
Membership in AIIB will Benefit the US
With Trump moving into the White House, the US may seek to join the AIIB. US membership in the AIIB would give Americans the chance to ensure a high level of transparency and influence, rather than the complete lack of influence it currently has.
The AIIB board of directors are considering an $600 million loan towards the Trans Anatolian Natural Gas Pipeline in March 2017. The TANAP project will cost $8.6 billion total and will be financed by the AIIB, World Bank, European Investment Bank, European Bank for Reconstruction and Development, and others. "TANAP project envisages transportation of gas of Azerbaijan's Shah Deniz field from the Georgian-Turkish border to the western borders of Turkey. Turkey will get gas in 2018 and after completing the construction of Trans Adriatic Pipeline (TAP), gas will be delivered to Europe in early 2020.(Trend)"
Ratification - Spain
Spain has until December 31st to ratify the statutes of the AIIB in order to be represented as a founding member and subscribe to shares. It is already one of the twenty potential non-regional founders when it signed the by-laws in June 2015., The ratification was postponed due to a "long political impasse" with the country.
Check back with our blog next Monday for another weekly update.
Interested in other IPD updates? Check out our all-team IPD BLOG as well!
AIIB Representatives in Indonesia This Week
The AIIB bureaucratic structure is likely to be more flexible that that of the Japanese led Asian Development Bank and the World Bank. Indonesia leaders worked to understand the AIIB structure in a meeting this week. Indonesian leaders met with the Chinese led bank this week. Indonesia is the eighth largest shareholder in the AIIB and is expected to reap massive benefits from their membership in the form of million dollar infrastructure development projects in the country.
Trump Should Join the AIIB
According to one Japanese journalist, US President-Elect, Donald Trump, should consider joining the AIIB. Analysts think it is unlikely that he will plug the trigger on it, but more collaboration with China is expected in order to reign in North Korea.
Chinese ambassador to Russia Li Hui offered four proposals to help with the alignment of the Belt and Road Initiative and Russia-led Eurasian Economic Union (EEU).
"China replaces finance minister Lou Jiwei: Xinhua"
Lou Jiwei, finance minister of the People's Republic of China since 2013, was replaced this past week. His replacement is the deputy secretary-general of the State Council, Xiao Jie.
The replacement is expected to have little effect on China's "fiscal policy." In fact, many believe that the replacement of Lou (65) for the younger Xiao (59) is a "routine" replacement that happens quite often in the Chinese government due to the age of the individual.
Despite his release from duties in the government, Lou still remains on the board of governors of the AIIB. Lou Jiwet is best known one of the "best-known names representing China’s economic views" and is expected to remain active in his role in the AIIB.
Check back with our blog next Monday for another weekly update.
Interested in other IPD updates? Check out our all-team IPD BLOG as well!
India Resentfully Needs China's Investment
Despite distrust of China and Chinese made products in India, the country avoids boycotts or bans due to the need for the kind of infrastructure investment the AIIB could provide. India also has a major trade deficit with China, and has tried to diminish it through the "Make in India" campaign, which was aimed at increasing domestic production. However, the trade deficit with China has risen to over $51 billion.
Warming Relations between China and Smaller Neighbors
In Beijing this week, Malaysian prime minister, Najib Razak, is echoing the stance of the Philippines President, Rodrigo Duterte, by publicly praising China and enhancing their military partnership. Tuesday, the two countries signed a 34.4 billion dollar deal that includes Malaysia's purchase of littoral mission ships from China, and China's commitment to build a railway and other infrastructure in Malaysia.
More projects from Indonesia
AIIB vice president and chief administration officer, Luky Eko Wuryanto , talks about goals, criteria a project must fulfill before possible financing, and current projects. The AIIB wants to become a efficient organization by only hiring only the most competent staff. It currently has four projects: a power plant in Bangladesh, a road in Tajikistan, an urban project in Indonesia, and a toll road in Pakistan, with total financing of around $500 million. The AIIB's ability to finance is limited and well prepared projects have a higher chance of approval. Eko Wuryanto "specifically wish[s] that Indonesia could recommend projects that are both ready to be executed and fulfill the standards set by the AIIB."
Cooperation with Belgium
On an official visit to China to celebrate the 45th anniversary of their diplomatic ties, Belgian Prime Minister Charles Michel and Chinese President Xi Jinping agreed to expand cooperation in investment, energy, and the Silk road. President Xi Jinping also welcomed Belgium to join the AIIB as a member country and to take advantage of the resources provided by the Belt and Road Initiative to boost development of Asia-Europe logistics and e-commerce.
Transparency Vital to Success
China will have to balance its goal of rapid growth and transparency, politics, public consultation, and accountability in order to achieve its development goals in Asia. An example of this would be the conflicting goals between the AIIB and the One Belt One Road. The AIIB is making a set of internal operational policies similar to that of other development banks, one of which includes a policy that can address potential issues regarding with politically sensitive projects. The AIIB has been criticized for lack of transparency and willingness to consult like its international peers.
AIIB president Jin Liqun says that the AIIB is on track to meet its first-year targets. One of these targets is to lend $1.2 billion by the end of 2016. So far, the bank has lent $829 million to six projects in Pakistan, Tajikistan, Indonesia, and Bangladesh. Since June, it has started two batches of funding projects in energy and transport.
On October 20, the Malaysian parliament approved participation in the AIIB. Malaysia has shown a tilt towards China in recent developments. Ever since China announced the One Belt One Road, which is partially funded by the AIIB, Malaysia has been enthusiastic about it. Through the economic prominence gained by the AIIB and OBOR, China's image in ASEAN countries as a player in boosting Southeast Asian economies could improve.
Can the AIIB Meet it's Transparency Claims?
The article sheds light on several aspects concerning the first four approved projects from the AIIB:
First of all, there is the observation that Pakistan, Tajikistan and Uzbekistan (all of which will be commencing infrastructure projects funded by the AIIB) are members of the Shanghai Cooperation Organization, a China-led initiative. Furthermore, there is Pakistan, another recipient of AIIB funding. Being a recipient of funding doesn't pose a foreseeable threat despite Pakistan's tensions with neighboring India. What's more, 3 of the 4 projects will be joint financed with other multilateral financial institutions. This is a good sign of cooperation on the AIIB's part with other players in the game.
In the realm of transparency, the AIIB is drafting its Operational Policy on International Relations. This document will outline the bank's guidelines when it comes to addressing certain "potentially complex issues arising in connection with politically sensitive projects, including those based in a disputed land area or an international waterway.”
Several documents to keep an eye out for in the article include the following: Good signs: The Energy Strategy Issue Note The not-so-great：The AIIB's Public Information Interim Policy It is mentioned that there isn't any reason for concern at the present concerning the AIIB's actions. The author echoes the sentiments of other analysts when she states that the bank has a good opportunity to "provide additional forums where China can engage with regional neighbors and forge international infrastructure linkages."
Check back with our blog next Monday for another weekly update.
Interested in other IPD updates? Check out our all-team IPD BLOG as well!
Myanmar's Cooperation with AIIB, ASEAN will Boost its Economy
AIIB President Sees Myanmar's membership in the AIIB as the country's ticket to a developed economy. The AIIB is promoting China's One Belt One Road Initiative in Myanmar and AIIB President, Jin Liquin, believes this will benefit not only Myanmar, but also the neighboring countries. Myanmar's Mingyan project is a part of a 300 million USD budget that the AIIB approved in September.
Development Banks in Asia need to Cooperate and Coordinate
Last Friday, a seminar under the title of “Deepening Asian Economic and Financial Cooperation, Promoting Regional Integrated Development” was hosted by China's Ministry of Finance. Very salient questions concerning the future of Asia's future development were posed, however, the most important discussions were brought up concerning the cooperation and coordination of banks in order to address Asia's infrastructure gap. The Asian region is very vibrant with a lot of potential, however, the infrastructure is several behind. Therefore, more coordination between multilateral development banks and lending institutions in the private sector was encouraged in order to effectively address narrowing this infrastructure gap. The AIIB was brought up ini this seminar and it was announced that the new bank intends on financing additional projects by the end of 2016.
Over 300 officials, scholars, and business leaders met at Wenzhou City for the 2016 Charhar Forum on Public Diplomacy and Wenzhou Public Diplomacy Forum. This forum is in part organized by the Charhar Institute, a think tank on China's international relations and foreign policy. The forum focused on brainstorming ideas on how China's wisdom can help contribute to global governance. Former vice foreign minister He Yafei believes that China should provide new initiatives similar to the AIIB and the BRICS to "advocate democracy in international relations and explore new models for common development and win-win situations,"
Politics of Investment
China's recent venture into the Philippines represents a success in connecting transport lines from China and supporting Chinese infrastructure firms. The Silk Road / One Belt One Road shows that China is remaking itself the center of world trade. The central theme of China's economic strategy is loans for infrastructure development and that Chinese firms be contracted for projects. The ADB believes that the AIIB can help meet the shortfall in loans available internationally, $8 trillion in investment between 2012 and 2020.
Global economic governance needs the nutrition of Chinese traditional culture: an example of establishing AIIB
The Chinese economy has become very energetic after the implementation of the Reform and Opening-up Policy 30 years ago, and Chinese traditional culture has contributed a lot to its prosperity. Furthermore, global economic governance will benefit greatly from its intangible wisdom in several of the following ways:
1) Chinese culture condemns pursuing self-profit by hurting others’ interests:
During the Asian Financial Crisis, the whole of East Asia was under the risk of currency devaluation. When faced with the pressure of decreasing imports and raising the unemployment rate, China still claimed a stable exchange rate of the Chinese currency (RMB), and delivered help to other countries such as Thailand, Indonesia, etc. China will continue contributing to global economic order and stabilization.
2) Chinese culture advocates building good neighborliness:
The financial crisis of 2008 produced a lot of negative influence on the global economy: trade protectionism and self-benefit quantitative easing policy constantly affect the economy. The construction of the AIIB, however, accelerates the interaction of policy, establishment, trade, capital, and culture between countries and economic entities. China developed the AIIB with the responsibility to share resources, enhance corporation, and ensure global governance.
3) Chinese culture encourages harmony in diversity:
Some critics state that China is planning to start another international financial system and disturb current global relationships. In fact, the establishment of the AIIB is not intended to start everything all over again, but refine the global economic structure and amend some unreasonable rules. The AIIB is special in many distinct ways: evaluation of loans will not be subject to any political conditions; national conditions and other different conditions such as political system, culture and religion, will be treated equally with respect and protection. The AIIB allows a diversity of backgrounds to work together.
My Thoughts and Reflections…
By Siyu Luo
October 28, 2016
China is a country with an ancient civilization that has a long history of cultures, which indeed exerts influence on Chinese behavior style. Education is one of the most important elements shaping a person’s thoughts and values, and China continuously pays attention to education, especially strengthen traditional sculpturing from an early age of every child.
On the other hand, Chinese traditional culture inspires the country and has done so for many centuries. China has experienced ups and downs throughout its long history, and Chinese people are taught to bear hardships and work diligently to overcome difficult times. After the First Opium War, the Chinese government was forced to sign a series of unequal treaties, and until the Communist Party established the People's Republic of China in Beijing on October 1, 1949, China still had nothing to feed its people. However, the traditional culture endured and continues to motivate the Chinese people to struggle for the dream of one day becoming a big power. One of the most impressive examples: China spent only two years and eight months from success of the atomic bomb on 1964 to the success of hydrogen bomb, compare to the Soviet Union who spent four years, and the United States who spent seven years and four months, China made the miracle and thus becoming the fifth country in the world who owns nuclear weapon.
Nowadays, China is not merely focused on its domestic development, but also in taking a larger responsibility in global development. The Asian Infrastructure Investment Bank (AIIB) is one example of this commitment. As a developing country in Asia, China can (and should) stand out in sharing infrastructure construction resources, as well as representing the interests of other developing countries to benefit from the global economy. This sense of responsibility comes from the Chinese spirit, transmitted throughout the generations- the spirit of sharing resources, helping others out, and respecting differences.
What’s worth mentioning is that several current governing approaches implemented by Chinese government are far from perfect. Furthermore, China has a significant social responsibility to conserve energy and reduce emissions, narrow the gap between the rich and the poor, as well as close this same gap between cities and suburbs. More importantly, aside from Chinese traditional culture, China also needs to draw lessons from global development and other diversified cultures. By doing so, I believe that China can play an indispensable role in the worldwide innovations for peace and development.
The AIIB team has been fortunate over the past several semesters to have an abundance of talented research affiliates working together to produce this blog. We are even more fortunate this semester to be joined by a native Mandarin speaker, Siyu Luo, tasked with combing through various Mandarin media sources in addition to providing translations of the articles in our newest installment, AIIB-Direct.
Our first installment will be released later on this coming Friday and will be followed thereafter by biweekly updates. We look forward to being able to bring you more in-depth and up-to-date news directly from Mandarin news sources in order to provide a direct Chinese perspective concerning the functions of the AIIB.
Stay posted for our upcoming release of AIIB-Direct!
Thanks to all the members of the AIIB Digest and AIIB team, including:
James Smith— Project Manager of IPD AIIB
Ryan Williams, Laura Richards— IPD AIIB Graduate Research Affiliates
Siyu Luo, Jang-Hao Huang— IPD AIIB Undergraduate Research Affiliates
Caleb Rudow, Daniela Hernandez—Program Co-Managers of IPD
Mary Vo— Logo Design, Web Design and Layout Manager for IPD
Dr. Catherine (Kate) Weaver— Co-Director of IPD