Kiss_of_the_Dragon
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Free trade agreements do little since they only involve countries the US has influence. What the US fears about AIIB is that countries not under US influence will be able to use that infrastructure to build an economy. The fact is the more money people have, the more independent a country can be. That's why the US tries to brainwash people into believing that no one can do anything without the US. China is busting that myth and the US has been stymied by how to handle a China being more independent than they wish. The US doesn't want more Chinas out there. You better believe that it's China's to why more countries even US allies are defying the US where before they wouldn't have.
Japan can still apply as regular member with observation status instead been a founding member which can enjoy the right to participate and engage on rule setting to the bank...better be late than never...it's not a total lost...歓迎日本 (Kangei Nihon)
I always feel it laughable when some Vietnamese or Turkish members claim that due to the absence of low cost labor of China, western capital is now switching to better places such as Southeast Asia. The truth is, China used to boost her economy by "low cost labor", now it's through the "capital". Think about it, which one is more profitable or sounds better? To make money by directly selling your physical strength or by your brain and capital? China has passed the primary stage of capital accumulation, now it's our turn to invest in the world, because China hold large amount of foreign reserve, it's an important topic about how to increase our ROA by investment, or it will depreciate. This is all the developed countries have been doing. AIIB and "One belt One road" is the best initiate to increase the ROA or our global investments. Till the end of 2014, China has 6.4 trillion USD foreign assets, 4.6 trillion liabilities. The net asset is 1.8 trillion, looking good, but the deficit of foreign investment return is like more than 30 billion dollars. Because China mainly invests in some low return sovereign debt, but the liability part is direct investment of high return. Hope China can make some changes.
I always feel it laughable when some Vietnamese or Turkish members claim that due to the absence of low cost labor of China, western capital is now switching to better places such as Southeast Asia. The truth is, China used to boost her economy by "low cost labor", now it's through the "capital". Think about it, which one is more profitable or sounds better? To make money by directly selling your physical strength or by your brain and capital? China has passed the primary stage of capital accumulation, now it's our turn to invest in the world, because China hold large amount of foreign reserve, it's an important topic about how to increase our ROA by investment, or it will depreciate. This is all the developed countries have been doing. AIIB and "One belt One road" is the best initiate to increase the ROA or our global investments. Till the end of 2014, China has 6.4 trillion USD foreign assets, 4.6 trillion liabilities. The net asset is 1.8 trillion, looking good, but the deficit of foreign investment return is like more than 30 billion dollars. Because China mainly invests in some low return sovereign debt, but the liability part is direct investment of high return. Hope China can make some changes.