Photo:  Pamir Highway, Tajikistan

AIIB Partners with ADB and Others in Initial Projects


The AIIB plans to implement projects this year in Pakistan, Tajikistan, Uzbekistan, and Kazakhstan. Projects will be largely centered around transportation infrastructure. These projects demonstrate global cooperation, as the AIIB has partnered with other Western-Led Development Banks to finance these projects. Fears that the One Belt One Road initiative, which includes the AIIB, is a political effort to expand China's sphere of influence have been abated by this cooperation. 


AIIB Steps in as the World Bank "Struggles" 

The World Bank's role as the primary development financier is being increasingly taken over by China's bilateral lending and regional development banks, including the AIIB.


Japan's Commitment to Quality Development is Unmatched by China

Japan is making efforts to develop quality infrastructure, whereas China is promoting its reputation through large and numerous loans. Japanese Prime Minister, Shinzo Abe, has stated that quality infrastructure development will be a primary topic at the upcoming G-7 meeting. 



China, Israel vow further parliamentary exchanges

Israel and China’s parliamentary bodies have both expressed mutual interest in opening a dialogue about further cooperation between the two nations. Bilateral trade between the countries has increased by almost 5 percent. The nations have agreed to commence free trade talks soon.


Energy Evolution

In recent years developing countries in Asia have tried to balance cost of electricity with the cost of conservation. As a result, clean energy growth in the region has shown to be more competitive than elsewhere despite a lack of prioritization of environmental concerns within regional agendas. In response to growing regional interest in clean energy development, the Asian Infrastructure Investment Bank has stated that clean energy investment has become a top priority.

Taiwan Rejected from the AIIB

Taiwan's application to the AIIB was rejected as they applied as a stand-alone entity and China does not recognize them as such. China is requiring Taiwan first make their bid for membership though the PRC's Finance Ministry. Taiwanese officials have declined to do so. 


Call for China's Compliance to Global Monetary Standards

The Secretary of the US Council on Foreign Relations, Mr. Lew, has called for the AIIB and other "new players" to adhere to the same standards as  the World Bank and the IMF. Donald Trump has called for China's compliance to globally accepted standards since the beginning of his presidential campaign and its about time Obama caught up.


Hong Kong's Inclusion in AIIB

China is rumored to be trying to include Hong Kong in the AIIB. The AIIB stands to gain from the inclusion of Hong Kong, as the city has a strong and innovative financial industry. If Hong Kong becomes a member, it may become AIIB's international currency exchange center, where it would specialize in renminbi. Inclusion in the AIIB would have mutual benefits for Hong Kong residents and AIIB members. 


"China, Israel vow further parliamentary exchanges"-Xinhua News Agency

Israel and China’s parliamentary bodies have both expressed mutual interest in opening a dialogue about further cooperation between the two nations. Bilateral trade between the countries has increased by almost 5 percent. The nations have agreed to commence free trade talks soon.


"Energy Evolution"-Bangkok Post

In recent years developing countries in Asia have tried to balance cost of electricity with the cost of conservation. As a result, clean energy growth in the region has shown to be more competitive than elsewhere despite a lack of prioritization of environmental concerns within regional agendas. In response to growing regional interest in clean energy development, the Asian Infrastructure Investment Bank has stated that clean energy investment has become a top priority.

Hong Kong's AIIB Membership Improves City's Finance Status

Hong Kong is to become a member and take on a leadership role in the Asian Infrastructure Investment Bank. Membership in the AIIB will improve Hong Kong's international status as a center for finance. The One Belt Initiative and the AIIB will also benefit businesses, as these financial initiatives are about building business partnerships as well as infrastructure development. 


AIIB Hopes to Partner with Commercial Banks

The Asian Infrastructure Investment Bank has committed to $100 billion in loans for projects throughout Eurasia. More could be allocated should commercial banks become involved in financing AIIB projects.  Syndicated lending and underwriting are two methods of lending that could be offered by commercial banks to fund AIIB projects. 


CDB's Opaque Governance Casts Doubt on Promise of AIIB Transparency 

The Silk Road Fund, worth $40 billion, provides the largest Chinese investment in Asia. The Silk Road fund is partially funded by the Chinese Development Bank (CDB) and C-EXIM. CDB and C-EXIM have more assets than the combined assets of the Western-led multilateral development banks. CDB and C-EXIM hold more than $1.8 trillion in assets, while Western-led development banks have about $700 billion. These Chinese-run banks do not have a positive record of transparent, accountable governance, which raises concerns about the governance of China's newest development bank, the Asian Infrastructure Investment Bank. 


SunEdison seeking buyer for 1 GW of solar projects, ministry eyes $500m AIIB loan
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India’s National Solar Mission has set a goal of reaching 100 GW of solar PV by 2022, a goal that is heavily reliant on securing foreign investment from financing institutions and solar companies. In the past week the Ministry of New and Renewable Energy announced that it is expecting a $500 million loan from the AIIB, which help the ministry meet its installation goals.



Queensland Government issues mine approvals for Adani Carmichael Coal Mine, questions remain over project finances

After receiving the mining leases required for the Carmichael Coal Mine, energy and infrastructure company Adani still faces some more hurdles in regards to financing. Australian banks have been less than enthusiastic about the prospect of financing domestic coal projects. However, Chinese institutions, such as the AIIB, have shown greater interest in providing financing for the development of coal projects.


BRICS bank’s first loan goes to Karnataka

The NDB’s approved its first loan in the amount of $250-300 million to a government led solar project in India. Additional infrastructure funding is also expected to be received from the AIIB.

India's Spice Route: Alternative to China's Silk Road? 

Sixty-four countries are members of the AIIB, including Nepal. Chinese officials indicated they may develop a free trade agreement that includes Nepal during a recent visit to China from Nepalese Prime Minister. Unlike Nepal, India has been less supportive of new Chinese initiatives. The Indian Government has proposed the Spice Route and the Mausam Project as alternative projects to China's Silk Road initiative, despite recommendations from Indian Think Tanks to become involved in the Silk Road Initiative instead. 


Chinese and American Financial War Escalates

The US and China are currently in a financial power struggle, known as a Thucydides Trap. This power struggle is escalating into a major financial war between the countries. Officials in Washington have recently claimed legal jurisdiction over one of China's largest banks, the Bank of China. Additionally, the US has forbade American businesses from working with one of the largest Chinese telecom companies, ZTE. In response to these types of economic threats from Washington, China has developed their competing development bank, the AIIB, and could dump more than trillions of dollars of US debt it owns, which would devastate the value of the US dollar. 


"Beijing turns on the charm for Mekong countries" - Nikkei, Shuhei Yamada

China and 5 other countries along the Mekong River are forming an alliance to develop the region. The countries agreed to use excess materials from Chinese industrial production to support infrastructure. Yamada reports that China hopes to ally with Mekong nations, as China’s artificial islands have created conflict with other South Asian countries. China leads the Mekong Alliance, having offered support from its AIIB, a $10 billion line of credit for Chinese imports, and export production facilities. The 6 Mekong countries include China, Laos, Thailand, Vietnam, Cambodia, and Myanmar. The Asian Development Bank traditionally facilitates meetings of the Mekong Alliance, however, China hosted this meeting in efforts to more closely ally with the other 5 Mekong nations.


"Asia’s impending anti-pivot" - Duke Chronicle, Sabriyya Pate

Pate discusses the “Asia Pivot,” which is the U.S. desire to address policies in the Asian region. Pate cites the Trans-Pacific Partnership (TPP) as an example of the Asia Pivot. The TPP is a trade deal, which has motivated American involvement with Pacific Rim nations. Pate noted that the TPP excludes China. Furthermore, Pate asserts that there is a current imbalance between China and the U.S. For instance, Pate remarked that just as the U.S. has increased involvement in Asia, China has established relationships with European Nations through its AIIB. As Pate concludes, the imbalance in global relations seems to create an Asian “anti-pivot” towards the U.S.


"China-led AIIB eyes first loans to India" - Reuters, Manoj Kumar
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Kumar reports that India will receive some $500 million from the Chinese AIIB. The loan would support India’s solar energy projects. Kumar notes that by issuing loans related to clean energy, the AIIB dismisses fears that it will not meet standards set by other multilateral development banks. India seeks roughly $100 billion over the next 6-7 years, in order to meets its ‘ambitious target of boosting solar capacity.’ The country pursues funding from the China-led AIIB, World Bank, Asian Development Bank, New Development Bank, and USAID. Kumar concludes that the AIIB intends to issue between $10 and $15 billion per year for its first five years in operation.


"Canada having more free-trade dialogue with China-minister" - Daily Mail

Reuters reported on negotiations between China and Canada. Xue Bing, China’s consul general in Toronto stated that the two countries will work on creating a bilateral free trade agreement. Officials have said that more discussions will take place in November 2016. Canadian officials anticipate signing on to the 12 members Trans-Pacific Partnership. Some have also expressed disappointment that Canada did not sign on to the China-led AIIB.


Russia Counts on Chinese Money to Improve Its Infrastructure

Russia is currently seeking investment from East-Asian funds for portfolio of infrastructure projects they have landed. The value of the portfolio is about $9 billion dollars, of which Moscow has put up $700 million and hopes that the rest of the investment needed can be realized in China. This shift in Russian focus to Asia could be attributed to the economic sanctions imposed by Western powers, which has caused strain on the Russian economy and made less capital available.


China Eager to Potentially Improve Trade Relations with Japan

The article portrays China as eager to establish better trade and working relationships with Japan. The Japanese are portrayed as being "China-averse", especially in light of anti-Japan protests, impending changes in the Chinese leadership, and signs of a slowdown in the Chinese economy. China would like Japan to join its One Belt, One Road initiative and support the AIIB's expansionary and infrastructure development efforts. Japan, however, remains wary.


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