The Asian Infrastructure Investment Bank
President Designate of the AIIB, Jin Liqun, addresses the public at Brookings in order to introduce the bank's early projects and road blocks. More the 60 countries have joined the AIIB, demonstrating a view of the bank as a complement to the World Bank and IMF, rather than a threat. The AIIB will work with the ADB to fill the infrastructure gap, according to Liqun. The former also assured the group that the AIIB is taking a new approach that will avoid the issues that other organizations have run into.
Polar Opposites: U.S.-China Relations vs. U.K.-China Relations.
British officials have made it clear that Britain wants to be China's greatest asset in Europe in order to secure jobs and economic growth. As for the United States, the story could not be more different. The upcoming U.S. elections have sparked an increase in negative dialogue concerning China.
U.S.-British Relations Diminishing as Britain Allies with China.
Cooperation between UK and China has expanded from being mainly economic to involving issues included the controversial South China Sea. Furthermore, the U.S.'s consideration of becoming a presence in the South China Sea is viewed by the U.K. as a unilateral power move to establish rights of passage. U.K. officials have made it clear they will not continue to support Washington if they start to "go in the wrong direction".
Kazakhstan’s Love Affair with China Reaches New Heights.
China and Kazakhstan have entered negotiations to integrate the Chinese Silk Road Economic Belt and Kazakhstan’s “Bright Road” economic policy. Through such developments, the two countries plan to establish cross-border transportation infrastructure, which will create favorable conditions for Chinese cargo through Kazakh rails. There is also a $600 million partnership to establish a dry port between the two countries. This will allow Kazakhstan, China, and other countries of the Eurasian region to access world markets more easily. As of today, Chinese foreign direct investment in Kazakhstan is valued at over $17 billion dollars. By utilizing the AIIB and Silk Road funding, Kazakhstan will be able to fund infrastructure developments far beyond any fiscal support it might glean from the Eurasian Economic Union member, Russia, or the World Bank or International Monetary Fund.
China’s AIIB ‘still open to U.S.’ despite TPP snub.
In a statement issued by the AIIB’s president-designate, Jin Liqun, the Chinese have asserted that they still welcome the US to join as a founding member within AIIB, despite the US’ reticence to include China in TPP. Though Jin Liqun has asserted that the Chinese would potentially join TPP, the US has not made any moves to include China in the agreements.
Chinese Legislature to ratify AIIB Agreement.
The Chinese legislature will vote on the AIIB Articles of Agreement throughout Oct 30 - Nov 4.
Britain becomes first Western Country joining China-led AIIB.
China is expanding its relationship with the UK, encouraging Chinese investment in northern England. Chinese President Xi asserts that China seeks British support in joining the European Bank for Reconstruction and Development, and also anticipates extending the two nations’ cooperation on finance, energy, and visa policy. British Prime Minister Cameron has issued a statement supporting China in their goals to establish a free trade agreement with Europe, report Daily Times.
AIIB Chief says it will be “mean, clean, green.”
AIIB President designate, Jin Liqun, declared that the new bank would be “mean, clean, and green.” In a statement issued at the Brookings Institute in Washington, Jin emphasized that the AIIB would seek governance to the highest possible degree, develop a green economy, and fight internal corruption. The statement also stressed that the AIIB might help fight issues around systemic poverty in the Asian region by targeting problems of inefficiency and connectivity. Jin stresses that the AIIB can support infrastructure construction while also connecting transportation and trade in the region. Commenting on Western skepticism of the AIIB, Jin asserted that the AIIB does not stand in competition to other western-led institutions, like the IMF and World Bank. Rather, Jin underscored that the banks act as “siblings.”
Full text of interview with future AIIB chief, Jin Liqun.
AIIB President-designate, Jin Liqun, met with reporters from Mainichi Shimbun in this full-text interview. Jin stressed that the AIIB already possesses working relationships with lending institutions like the World Bank or IMF, and that the AIIB officials have met regularly with other banks and think tanks while consolidating the AIIB. Jin told reporters that the AIIB hopes to have nearly seventy member-countries, and that the bank is open to adding members after the bank if officially established; the AIIB will therefore dilute voting and member shares as new members are added. Jin asserts that the AIIB is open to co-financing projects with the World Bank, ADB, EBRD, EIB, and other institutions who possess high standards for environmental protection and regulatory checks. Overall, Jin seems to emphasize that the AIIB will aspire to high standards of quality when it comes to identifying, selecting, and screening projects. He hopes to see AIIB expand its financial capital by issuing AIIB bonds in the market.
Chinese investment important drive for Peru’s economy.
Peru is hopeful of gaining increased supports from China’s AIIB. Roberto Urrunaga, Dean of Economics at the University of the Pacific, is quoted in the article when he reports on China’s bid to help fund the trans-oceanic railway linking Brazil’s Atlantic coast with Peru on the Pacific. Urrunaga also asserts that there is increasing competition amongst the World Bank and Chinese-led banks throughout Latin America, as Western-led institutions have historically dominated the region. The article asserts that presently, China is Peru’s largest trading partner, export market, and source of imports. Peru-Chinese relations are expected to continually increase with the advent of AIIB.
AIIB president talks about initial project financing for 2016.
The Chinese Asian Infrastructure Investment Bank president-designate, Jin Liqun, informed media outlets that the bank will dispense around 2 Billion in loans by April 2016. During the interview, Jin stressed that the AIIB will cooperate with the World Bank and the Asian Development Bank (ADB), yet Mr. Jin counters this statement by stating that the AIIB can and will meet infrastructure demand in Asia with or without US and Japanese support.
That's a wrap for the AIIB this week. Check back with our blog next Monday for another weekly update.
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