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WEEKLY DIGEST: April 25- May 1, 2016

5/3/2016

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Picture
  Photo:   Rural Road in Pailin Province, Cambodia

​
"China’s Rise is Good News for Cambodia"  [
Khmer Times]


The formation of the China-led AIIB offers the opportunity for emerging economies to have a greater say in the global financial landscape. This paves the way for the development of greater connectivity in the Asian regional economy and more inclusion of developing economies in Asia.


"Hong Kong is too closely tied to mainland China for serious talk on independence"
                                                                                                                                          [South China Morning Post]
​

Hong Kong’s soon to be sub-sovereign status with the AIIB is revealing of how intertwined it is with mainland China. This is one of the many argued benefits for maintaining the status quo and pursuing independence.


One Belt One Road Expected to Boost Low Income Asian Economies

The One Belt One Road initiative, including the AIIB, will boost low income economies in Asia and create low cost production centers in these countries. These "Asian frontier economies" may take some of the market share from China as a result. 


The Politics of AIIB Membership 

Switzerland's new membership with the AIIB is expected to boost the development bank's capacity and legitimacy. Many more countries have prepared applications and are hoping to become AIIB members. However, although Taiwan had previously applied, their new government has refused to play by China's rules for membership in the bank. The Chinese Government has requested Taiwan follow the "Hong Kong" model in order to become an AIIB member, which would undermine the sovereignty of Taiwan.  


US Treasury Approves of AIIB, Without Committing Involvement

The AIIB has been called a "constructive addition" by a top official at the U.S. Treasury. However, according to the Treasury undersecretary for international affairs, U.S. investment in the AIIB is still not on the table.



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