IMF Chief Christine Lagarde expressed hope that the AIIB and BRICS bank are willing to cooperate to better mobilize resources that will address the large demand for infrastructure investment in the region.
China's Regional Commitments Un-phased by Slowdown at Home
Despite the economic slowdown at home, China continues to invest in regional development through the One Belt One Road initiative. Additionally, China's first multilateral financial institution, the AIIB, will begin project implementation this year. The success of these projects will serve as proof of China's increasing global leadership in financial investment.
US Should Share Burden of Global Security with Rising Powers
As the U.S. declines in power, it is important that Washington begins to recognize the legitimacy of rising powers, such as Russia and China. China's Silk Road Fund and the AIIB have the potential to increase Eurasia's economic standing. More cooperation is needed between the US and these rising powers to reduce conflict and terrorism in Eurasia and increase economic stability.
China to create maritime judicial center
China has made a move to establish its own maritime judicial with the purpose of handling its longstanding maritime disputes with other countries. This comes as a result of China’s dissatisfaction with the international status quo, which China has also recently challenged in the realm of international finance with the founding of the Asian Infrastructure Investment Bank (AIIB).
Risks to China’s grand strategy in Southeast Asia
China’s recent ramping up of efforts in developing extensive and valuable trade corridors could be met with some resistance and complications. Political uncertainties in Southeast Asia could create barriers to investment due to disputes over sovereignty in maritime affairs, lack of continuity of government or policy in Southeast Asian countries, and security concerns regarding terrorism.
Check back with our blog next week for another weekly update.
Interested in other IPD updates? Check out our all-team IPD BLOG!