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WEEKLY DIGEST: November 7-13, 2016

11/7/2016

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AIIB Representatives in Indonesia This Week 

The AIIB bureaucratic structure is likely to be more flexible that that of the Japanese led Asian Development Bank and the World Bank. Indonesia leaders worked to understand the AIIB structure in a meeting this week. Indonesian leaders met with the Chinese led bank this week. Indonesia is the eighth largest shareholder in the AIIB and is expected to reap massive benefits from their membership in the form of million dollar infrastructure development projects in the country.  


Trump Should Join the AIIB

According to one Japanese journalist, US President-Elect, Donald Trump, should consider joining the AIIB. Analysts think it is unlikely that he will plug the trigger on it, but more collaboration with China is expected in order to reign in North Korea. 


​Economic Complementarities
 


Chinese ambassador to Russia Li Hui offered four proposals to help with the alignment of the Belt and Road Initiative and Russia-led Eurasian Economic Union (EEU). 
  1. "Chinese side willing to carry out bilateral and regional cooperation with EEU member states by taking trade and investment liberalization and facilitation as a linking bridge, inter-connectivity, production capacity cooperation and cultural exchanges as pillars, and mutually beneficial cooperation as a guarantee.
  2. China is willing to work with Russia to promote the mutually beneficial cooperation among EEU governments, enterprises, social organizations and civil groups in various forms, and jointly build a win-win platform accessible to multiple participants that covers various fields.
  3. China and Russia should jointly push forward the construction of the China-Mongolia-Russia economic corridor, the New Eurasian Land Bridge, and use cooperation programs such as the "Northeast China- Russian Far East Mechanism" and "The Yangtze-Volga River Mechanism."
  4. China and Russia should make full use of financial organizations such as the Silk Road Fund, the Asian Infrastructure Investment Bank, and the Shanghai Cooperation Interbank Cosortium, to broaden currency operations and increase mutual investment."            
(Source: XinHua)


"China replaces finance minister Lou Jiwei: Xinhua"

Lou Jiwei, finance minister of the People's Republic of China since 2013, was replaced this past week. His replacement is the deputy secretary-general of the State Council, Xiao Jie.

The replacement is expected to have little effect on China's "fiscal policy."  In fact, many believe that the replacement of Lou (65) for the younger Xiao (59) is a "routine" replacement that happens quite often in the Chinese government due to the age of the  individual.

Despite his release from duties in the government, Lou still remains on the board of governors of the AIIB. Lou Jiwet is best known one of the "best-known names representing China’s economic views" and is expected to remain active in his role in the AIIB.


​
Check back with our blog next Monday for another weekly update.

Interested in other IPD updates? Check out our all-team IPD BLOG 
as well!
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