Obama Accepts Xi's Assertion of High Standards for the AIIB's Governance
The AIIB's Standards for Self-Governance are at last accepted by the US. As Western allies have ignored Washington's calls to reject AIIB membership, this ends an embarrassing political period for the US. In the meeting with Washington last week, Xi committed to increase funding to the IMF and the World Bank's International Development Association.
Is the AIIB China's Attempt to Reorder the International System?
The establishment of the AIIB is a signal China wants to be a leader in the international system. The question is: is this revisionist or simply an attempt to shoulder its load of the humanitarian burden? Experts discuss this question and how the US and Japan should respond.
China's Influence Expands with a Railway Project in Indonesia
China's investment in Southeast Asia continues to challenge Japanese influence. With the AIIB and the win for the bid to build a high speed railway in Indonesia, Japan will need to increase its commitment to development in order to keep up.
China Aims to Increase Connectivity by Investing in Underdeveloped Countries
China will likely use the One Belt, One Road Initiative as well as the AIIB to invest in countries lacking sufficient infrastructure. Chinese officials deny that this investment is a political game and assert its efforts are largely to simply increase connectivity.
Thailand signs AIIB agreement
The Kingdom of Thailand is the 52nd of 57 countries to officially sign the AIIB's articles of agreement. The remaining five countries await domestic approval, the deadline to sign being December 21, 2015. The bank hopes to officially open in early 2016.
Diplomatic rivals China, Taiwan to discuss relations this month
Leaders of Taiwan and China are expected to meet in mid October to discuss the name under which Taiwan might join the AIIB. A province broken-off from China, Taiwan wishes to retain its name as a member of the bank. Among other issues, the two leaders will discuss how they might work together to diffuse economic crime between the respective countries.
Five Overlooked Developments from the Obama-Xi visit
Author Graham Webster includes US-China stances on development as one of five key topics discussed this week by respective presidents Obama and Xi-Jinping. Following their meetings this week, both presidents issued statements in support of joint-cooperation on the AIIB. The US recognizes China's economic capacity as a means to instill development in the Asia-Pacific region, and also commits to consider inclusion of the Chinese currency in the International Monetary Fund's 'special drawing rights' basket of currencies. Webster regards this as 'modest progress' between the two nations.
Asian opportunities there for the taking
Expected to be the sixth largest shareholder in the AIIB, Australia hopes to benefit from capital investments in the Asia Pacific region. In comparison to other Asia-Pacific countries, Australia's GDP is slated to significantly decrease by 2050; the country is therefore expecting to receive much more intra-country investment. Australia seems to be latching on to the promise that the AIIB, as well as the NDB, offer advancement to the region.
Spotlight on US-China Relations
This Xinhua News article states that trade relations between the U.S. and China are nothing but beneficial, especially given the interdependence of these two growing economies. Though not specifically addressing the development of the AIIB, there is emphasis placed on the fact that both countries can utilize their relative free trade agreements in correspondence with one another. While the U.S. is developing its Trans-Pacific Partnership, China is creating its Regional Comprehensive Economic Partnership. The two organizations share the goal of trade liberalization as separate entities.
Singapore Plans Ahead
Singapore can benefit from China's expansionist Silk Road policy. To ensure mutual gains, Singapore must take a pragmatic approach and exploit opportunities that arise while insisting on certain safeguards. This way, Singapore can leverage the skillsets and geography it possesses to benefit from China's Silk Road Asian economic policy.
Additional Articles this week….
Proposed cooperation agreement between ASEAN, Australia, China, India, Japan, New Zealand and South Korea.
Philippine Vice President Jejomar Binay wants the Philippines to join the AIIB, despite conflicts in the South China Sea over territorial waters.
How does the AIIB differ from typical development banks?
Can the UK, as a premier military ally to the U.S, also develop its relationship with China?
The UK develops a new stance in its foreign policy initiatives; greatly geared towards China.
Due to the lack of regional frameworks, rival institutions have emerged throughout Asia; exemplified by US-led development of the Trans-Pacific Partnership and China-led creations of the AIIB and "Silk Road" initiative.
The AIIB as a means through which some new policies will be implemented between China and the U.S.
Chinese President Xi Jinping affirms the country's commitment to the UN's goals; pledges an initial $2 billion.
That wraps up another week in the news for the AIIB. Check back with our blog next Saturday for another weekly update.
Check out the IPD BLOG.
The IPD-AIIB team is tracking global news and opinions regarding the AIIB as it rolls out in the coming months. Check in on our blog for regular updates and policy briefs.