US Should Join AIIB and Foster Trade Relations with China
The U.S. should cooperate with China rather than excluding them, which seems to be the current policy, as evidenced by Washington's refusal to join the AIIB and exclusion of China from the TPP. The U.S. and China should initiate negotiations over the FTAPP which is larger and more inclusive trade deal than the TPP, which is being called the "everyone but China club" and the "economic NATO".
ADB and World Bank Staff Speak Off the Record on the AIIB
The new banks - the Asian Infrastructure Investment Bank and New Development Bank - according to an the ADB employee, do not know how to do development and are focused on financing rather than development as a whole.
The AIIB needs to be successful at development and financing in order to be effective at being a political institution. The former director general for private sector finance at the ADB expressed doubt that the AIIB was the best way for China to gain footing in the political arena.
An ADB staffer stated that the ADB is not keeping pace with the growing Asia economy. Due to the different organizational structure and policies of the AIIB, many ADB staff have considered changing banks and some already have - most notably the president-designate of AIIB was the vice president of ADB.
UK Officials Increase Ties with China, Despite Opposition from British Citizens
The U.K's increasingly close ties with China have influenced Germany and France to also increase their ties with China, despite the U.S's concerns. This has created British citizens who oppose UK-China relations to speak out against these relations due to China's human rights abuses.
Investment Bank legislation passes third reading
In a statement released by the New Zealand government, the country’s finance minister welcomed the passage of the “International Finance Agreements Amendments Bill,” which will allow New Zealand to join the AIIB as a founding member. New Zealand was the first western, developed nation to join in negotiations on the bank. Finance Minister Bill English reiterated his hopes that membership will consolidate New Zealand’s political relationships in Asia.
Moody’s: Institutional Debt to enhance funding diversity for Asian infrastructure
Moody’s Investors Service is forecasting that participation in the AIIB by international investors will diversify the the funding sources available for Asian infrastructure. Moody issued a report, which articulates that institutional debt investors are increasingly investing in institutions like multilateral development banks, since long-term investments coincide with long-dated liabilities in their terms of agreement. This type of investment offers firms a diverse portfolio in their investments, and provides more favorable, risk-adjusted returns. Additionally, Moody asserts that institutional debt investors may promote a virtuous cycle in development lending, as other Asian asset-classes will be motivated to invest in the region, thus continuing the accumulation of private capital in multilateral institutions. Banks benefit, as they gain investment funding; in turn, nontraditional development lenders diversify their portfolios.
EBRD sends China membership plan to governments for approval
The European Bank for Reconstruction and Development (EBRD) has send its board of approval and members-states China’s bid for membership in the bank. If accepted, as is expected by many, China will possess a .1% stake in the EBRD. Though small, the stake will allow China to extend its global influence between Asia and Europe. As a member-country, China will pay into the EBRD, rather than receive funds from it. In recent years, EBRD has expanded its efforts throughout the middle east, North Asia, and the mediterranean. Work in certain areas, such as Kazakhstan, will overlap with Chinese initiatives, such as the “One Belt, One Road” project.
A Border Boomtown in the Making
China is devoting massive resources to the development of its border with Kazakhstan and Central Asia. Specifically in the Khorgos region, where Chinese and Kazakh borders meet, governments of both countries aim to convert this desert area to a metropolis comparable to China’s eastern hub of Shenzen. Khorgos will be a crucial station along the New Silk Road route, which will connect Europe with much of Central Asia. The installation of rail routes, high rise housing developments, and expressways have fostered growth in the region. Reeling from low oil prices, the depressed Kazakh economy welcomes Asian investment. Additional funding is expected to be provided by the China-led Asian Infrastructure Investment Bank, and regional New Development, or BRICS, Bank.
Taiwan Will Use 'Chinese Taipei' in Another AIIB Bid, Official from Island Says
Taiwan will again apply for membership in the China-led AIIB. In April, the bank had rejected Taiwan’s bid for membership under the name “Chinese Taipai.” Taiwan wishes to use that name to indicate its historical dissociation from mainland China. Used in organizations such as the Asian Development Bank, Asia-Pacific Economic Cooperation forum, and the Olympics, Taiwan wishes to utilize “Chinese Taipai” as a baseline for recognition by Chinese authorities. Chinese President Xi Jianping has stipulated that Taiwan is welcome in the bank, so long as they apply under an “appropriate way”, such as using the name, “Taipai, China.” Xi has also been quoted as saying that so long as the two parties do not support the notion of “two China’s,” China and Taiwan will be able to devise a compromised solution under which Taiwan will seek AIIB membership. It’s noted that a majority of Taiwanese support membership in AIIB as a means to spur economic growth.
Opinion: 45 years in the making - Building the Canada-China relationship
This opinion editorial asserts that China and Canada can stand to increase partnerships between the two nations. They possess a number of foreign policy accomplishments already, namely, the ratification of the Canada-China Foreign Promotion and Protection Agreement, a renminbi trading hub in Canada, and a developing nuclear energy cooperation. However, given the expansive scope of Asian economic investments, Beck asserts that Canada will increase its interaction with the Chinese. He suggests that the governments begin discussions on a Canada-China free trade agreement. Beck also promoted Canadian membership in the China-led Asian Infrastructure Investment Bank, as Canada might be able to finance part of the Asian infrastructure gap, and contribute to the development of sound-infrastructure practices in the institution. Beck emphasized that Canada might offer its espousal of democratic and transparent financial practices.
Asserting Itself
Furukawa reports that Russia is attempting to boost its political capital throughout Central Asia by offering military supports. Previously, Russia created the Eurasian Economic Union as an attempt to maintain hold over countries such as Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. However, the country’s fledging economic status has decreased its ability to provide economic supports in the region. As a consequence, Furukawa asserts that Russia is trying to maintain its diplomatic stance by providing a military presence in the region. Furukawa emphasizes that political stability in the face of growing powers, such as the Islamic State, will allow for the success of initiatives of China’s Silk Road project.
China, Mongolia to Deepen All-round Cooperation
China and Mongolia released a joint statement, which outlined their intentions to augment strategic partnerships. The two sides will actively cooperate on China’s “One Belt, One Road” initiative and Mongolia’s Steppe Road plan. The statement also iterates that financing will be made available by the Asian Infrastructure Investment Bank, that China supports Mongolia’s bids for membership in the Asia Pacific Economic Cooperation, East Asia Cooperation, and East Asia Summit, and that the two will draft a program for a China-Mongolia-Russia east corridor.
China Set to make its mark on the G-20
China is slated to begin its presidency of the G-20 at the conclusion of the upcoming Antalya summit in Turkey. This leaves the Chinese in a position to maximize their role in the international arena. In addition to the issues inherited from the 2013 G-20 in Russia, Tiberghien forecasts that China will present five distinct goals throughout their assumption to the G-20 presidency. Aside from its efforts to reform tax avoidance of large multinational companies, China is also set to continue with existing goals of fostering global growth, instituting regulatory reforms on banking and financial safety nets, elevating trade, implementing U.N. Sustainable Development Goals, and advancing commitments to infrastructure investment. Overall, Tiberghien also assesses that this presents China the opportunity to advance its AIIB launching and Silk Road initiative.
The U.S. should cooperate with China rather than excluding them, which seems to be the current policy, as evidenced by Washington's refusal to join the AIIB and exclusion of China from the TPP. The U.S. and China should initiate negotiations over the FTAPP which is larger and more inclusive trade deal than the TPP, which is being called the "everyone but China club" and the "economic NATO".
ADB and World Bank Staff Speak Off the Record on the AIIB
The new banks - the Asian Infrastructure Investment Bank and New Development Bank - according to an the ADB employee, do not know how to do development and are focused on financing rather than development as a whole.
The AIIB needs to be successful at development and financing in order to be effective at being a political institution. The former director general for private sector finance at the ADB expressed doubt that the AIIB was the best way for China to gain footing in the political arena.
An ADB staffer stated that the ADB is not keeping pace with the growing Asia economy. Due to the different organizational structure and policies of the AIIB, many ADB staff have considered changing banks and some already have - most notably the president-designate of AIIB was the vice president of ADB.
UK Officials Increase Ties with China, Despite Opposition from British Citizens
The U.K's increasingly close ties with China have influenced Germany and France to also increase their ties with China, despite the U.S's concerns. This has created British citizens who oppose UK-China relations to speak out against these relations due to China's human rights abuses.
Investment Bank legislation passes third reading
In a statement released by the New Zealand government, the country’s finance minister welcomed the passage of the “International Finance Agreements Amendments Bill,” which will allow New Zealand to join the AIIB as a founding member. New Zealand was the first western, developed nation to join in negotiations on the bank. Finance Minister Bill English reiterated his hopes that membership will consolidate New Zealand’s political relationships in Asia.
Moody’s: Institutional Debt to enhance funding diversity for Asian infrastructure
Moody’s Investors Service is forecasting that participation in the AIIB by international investors will diversify the the funding sources available for Asian infrastructure. Moody issued a report, which articulates that institutional debt investors are increasingly investing in institutions like multilateral development banks, since long-term investments coincide with long-dated liabilities in their terms of agreement. This type of investment offers firms a diverse portfolio in their investments, and provides more favorable, risk-adjusted returns. Additionally, Moody asserts that institutional debt investors may promote a virtuous cycle in development lending, as other Asian asset-classes will be motivated to invest in the region, thus continuing the accumulation of private capital in multilateral institutions. Banks benefit, as they gain investment funding; in turn, nontraditional development lenders diversify their portfolios.
EBRD sends China membership plan to governments for approval
The European Bank for Reconstruction and Development (EBRD) has send its board of approval and members-states China’s bid for membership in the bank. If accepted, as is expected by many, China will possess a .1% stake in the EBRD. Though small, the stake will allow China to extend its global influence between Asia and Europe. As a member-country, China will pay into the EBRD, rather than receive funds from it. In recent years, EBRD has expanded its efforts throughout the middle east, North Asia, and the mediterranean. Work in certain areas, such as Kazakhstan, will overlap with Chinese initiatives, such as the “One Belt, One Road” project.
A Border Boomtown in the Making
China is devoting massive resources to the development of its border with Kazakhstan and Central Asia. Specifically in the Khorgos region, where Chinese and Kazakh borders meet, governments of both countries aim to convert this desert area to a metropolis comparable to China’s eastern hub of Shenzen. Khorgos will be a crucial station along the New Silk Road route, which will connect Europe with much of Central Asia. The installation of rail routes, high rise housing developments, and expressways have fostered growth in the region. Reeling from low oil prices, the depressed Kazakh economy welcomes Asian investment. Additional funding is expected to be provided by the China-led Asian Infrastructure Investment Bank, and regional New Development, or BRICS, Bank.
Taiwan Will Use 'Chinese Taipei' in Another AIIB Bid, Official from Island Says
Taiwan will again apply for membership in the China-led AIIB. In April, the bank had rejected Taiwan’s bid for membership under the name “Chinese Taipai.” Taiwan wishes to use that name to indicate its historical dissociation from mainland China. Used in organizations such as the Asian Development Bank, Asia-Pacific Economic Cooperation forum, and the Olympics, Taiwan wishes to utilize “Chinese Taipai” as a baseline for recognition by Chinese authorities. Chinese President Xi Jianping has stipulated that Taiwan is welcome in the bank, so long as they apply under an “appropriate way”, such as using the name, “Taipai, China.” Xi has also been quoted as saying that so long as the two parties do not support the notion of “two China’s,” China and Taiwan will be able to devise a compromised solution under which Taiwan will seek AIIB membership. It’s noted that a majority of Taiwanese support membership in AIIB as a means to spur economic growth.
Opinion: 45 years in the making - Building the Canada-China relationship
This opinion editorial asserts that China and Canada can stand to increase partnerships between the two nations. They possess a number of foreign policy accomplishments already, namely, the ratification of the Canada-China Foreign Promotion and Protection Agreement, a renminbi trading hub in Canada, and a developing nuclear energy cooperation. However, given the expansive scope of Asian economic investments, Beck asserts that Canada will increase its interaction with the Chinese. He suggests that the governments begin discussions on a Canada-China free trade agreement. Beck also promoted Canadian membership in the China-led Asian Infrastructure Investment Bank, as Canada might be able to finance part of the Asian infrastructure gap, and contribute to the development of sound-infrastructure practices in the institution. Beck emphasized that Canada might offer its espousal of democratic and transparent financial practices.
Asserting Itself
Furukawa reports that Russia is attempting to boost its political capital throughout Central Asia by offering military supports. Previously, Russia created the Eurasian Economic Union as an attempt to maintain hold over countries such as Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. However, the country’s fledging economic status has decreased its ability to provide economic supports in the region. As a consequence, Furukawa asserts that Russia is trying to maintain its diplomatic stance by providing a military presence in the region. Furukawa emphasizes that political stability in the face of growing powers, such as the Islamic State, will allow for the success of initiatives of China’s Silk Road project.
China, Mongolia to Deepen All-round Cooperation
China and Mongolia released a joint statement, which outlined their intentions to augment strategic partnerships. The two sides will actively cooperate on China’s “One Belt, One Road” initiative and Mongolia’s Steppe Road plan. The statement also iterates that financing will be made available by the Asian Infrastructure Investment Bank, that China supports Mongolia’s bids for membership in the Asia Pacific Economic Cooperation, East Asia Cooperation, and East Asia Summit, and that the two will draft a program for a China-Mongolia-Russia east corridor.
China Set to make its mark on the G-20
China is slated to begin its presidency of the G-20 at the conclusion of the upcoming Antalya summit in Turkey. This leaves the Chinese in a position to maximize their role in the international arena. In addition to the issues inherited from the 2013 G-20 in Russia, Tiberghien forecasts that China will present five distinct goals throughout their assumption to the G-20 presidency. Aside from its efforts to reform tax avoidance of large multinational companies, China is also set to continue with existing goals of fostering global growth, instituting regulatory reforms on banking and financial safety nets, elevating trade, implementing U.N. Sustainable Development Goals, and advancing commitments to infrastructure investment. Overall, Tiberghien also assesses that this presents China the opportunity to advance its AIIB launching and Silk Road initiative.
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