No Leader at AIIB

Translated by Julia Zhu

China may be the dragonhead of the AIIB because it has invested the largest share in the funding period. However, as the original founder, China has stated that this situation is not fixed and it is willing to rebalance shares to other countries.

At this year’s China Development Forum, temporary secretary of AIIB, Jin Liqun, said during the press conference that AIIB would not replace the crucial roles of existing international organisations like The World Bank or The Asian Development Bank, it will only play a supplementary role to better build the financial rules and environment in Asian pacific area.

China plans to leave an open attitude towards cooperation with founding members, and decisions should be made by coordination within the bank.

Many countries have responded proactively to the AIIB. Since last October, altogether 35 states have expressed their interests in becoming founding members. The US had shown disagreement earlier, but has softened its attitude and are expected to cooperate with AIIB in many aspects.

There are basically three reasons for China to not become a dominant player in the new organisation.

First, AIIB aims at providing financial support and cooperation not only in Asian areas, but globally. It is a win-win cooperation that they are chasing , not unreasonable competition in the region.

Secondly, AIIB is not the only source of funds for Asian countries to develop infrastructure, the bank will function as a supplementary option in cooperation with other international organisations such as The World Bank and The Asian Development Bank. As an investment bank, one of its major goals is to attract more non-governmental capital to boost its development. The influence of politics would be largely weaken its position in the market.

Finally, under the temporary financial system, US has played the dominant role in the World Bank and Japan created a preference voting system in Asian Development Bank. Many member countries are not satisfied with the unfair system and therefore China would not make the same mistake again. Only in a free and cooperative environment could we achieve prosperity with joint effort.

 

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