AIIB (Asian Infrastructure Investment Bank) news

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Vietnam joins AIIB to seek new funding source - Vietnam joins AIIB to seek new funding source - SaiGon Times Daily

The Saigon Times Daily
Tuesday, Jun 30,2015,19:51 (GMT+7)

HCMC - State Bank of Vietnam (SBV) governor Nguyen Van Binh said Vietnam had joined the Asian Infrastructure Investment Bank (AIIB) as a founding member so as to seek an extra funding source for infrastructure projects.

The governor was quoted by Vietnam News Agency as saying in Beijing on June 29 that Vietnam will use the funding source for effective projects to ensure sustainable economic development.

Binh and representatives of other founding countries of the AIIB signed the articles of agreement for the Chinese-led development bank in Beijing on June 29.

AIIB, a multilateral financial institution based in Beijing, will have total authorized capital of US$100 billion. The bank’s main objectives are to boost sustainable economic growth through investment in regional infrastructure, with a focus on transport, energy, telecommunications, agriculture, environment and urban development.

The bank currently has 57 founding members and is expected to make its debut at the end of this year.

Speaking to the media in Beijing, Binh said becoming one of the bank’s founders is in line with Vietnam’s policy for active and responsible international economic integration.

Vietnam and other ASEAN countries were among the first to support the idea of the AIIB, presented by Chinese President Xi Jinping at the October 2013 APEC summit, and join negotiations for the bank’s establishment, he said.

The move showed Vietnam’s willingness to build, maintain and reinforce a favorable environment for the comprehensive partnership with China in the economic, trade and investment sectors.

Binh said Vietnam needs huge investment capital for infrastructure through 2020 but domestic sources will not be enough. As concessional loans from international institutions such as the World Bank and the Asian Development Bank will be gradually phased out as the country has become a middle-income country, it is vital to find capital from other sources.

Binh said as a founding member, Vietnam has certain rights, including having a voice in the policy making process or holding some executive position.

 

[TaiShang]

China’s AIIB hopes chime with Seoul’s plans
By Jaeho Hwang Published: 2015-9-14 19:38:01

Illustration: Liu Rui/GT

Jin Liqun, president-designate of the Asian Infrastructure Investment Bank (AIIB), met with South Korea's President Park Geun-hye, ministers and vice ministers, and entrepreneurs during his visit to South Korea on September 8-9. He talked about the significance of the foundation of the multilateral development bank, plans for the bank's operation and development schedules. The president-designate also discussed ways to enhance cooperation between AIIB member states, and praised South Korea for its active collaboration in the initial stage of the bank's establishment.

The AIIB chief's choice of Seoul as his first destination not only has great significance in its timing, but also has strategic implications for Sino-South Korean bilateral ties, China's foreign policy and the regional economy.

The Chinese economy has transformed from the stage of torrid double-digit economic growth to that of steady, medium-to-rapid growth focused on quality above quantity. The AIIB will enable China to dump excessive capacity within its economy and to expand its trade markets. The development bank also helps Beijing to maintain its foreign exchange reserves at a reasonable level and to internationalize the yuan.

The China-led bank is also expected to ensure sustained growth of the Asian economies and to strengthen economic cooperation between China and other Asian countries. The investment in infrastructure, including roads, seaports, railways, and power plants, in underdeveloped parts of Asia, will contribute to economic development of the continent.

China's foreign policy under President Xi Jinping's new leadership comes down to the "One Belt, One Road" (OBOR) initiative. The OBOR deepens friendly ties with partner nations while bringing economic benefits to China at the same time.

The AIIB and the initiative complement each other. Membership of 57 countries in the China-led bank, despite opposition from the US, was a diplomatic and economic victory over Washington. The development institution seeks to level the playing field where the US-led World Bank and the Japan-dominated Asian Development Bank are currently most prominent, enabling friendly competition between the banks.

This will keep the US-led global financial order in check and elevate China's status on the international stage. The presence of the China-led development bank will also influence the future improvement in the governance of other multilateral financial institutions.

South Korea has a 3.81 percent stake in the AIIB - the fifth largest among the bank's founding members. Korean firms, equipped with know-how they have accumulated in Middle East construction projects, will actively seek to join massive infrastructure-building projects in Asia, which will lead to remarkable growth.

Joint projects by the AIIB and Korean firms are already underway. Under the AIIB structure, aid recipients must first make a proposal to the AIIB about development projects. Therefore, it is a good idea to make preemptive suggestions that can influence investor states. All the better if South Korean and Chinese firms jointly identify and join projects with good prospects.

South Korea's membership of the AIIB will expand the scope of Sino-South Korean relations from the economy to politics and diplomacy. South Korea is one of the most successful examples of China's regional diplomatic policy of "amity, sincerity, mutual benefit and inclusiveness."

Seoul's friendly ties with Beijing will deliver a positive message to the international community, as well as improving Beijing's image globally.

Seoul should be always ready for the reunification of the Korean Peninsula. Park, in her meeting with her Chinese counterpart Xi, described South Korea's plan to establish a Northeast Asian Development Bank when the condition is right, or, for example, when North Korea is denuclearized. The prospective development bank specializes in Northeast Asian regions including North Korea, the three provinces of Heilongjiang, Jilin, and Liaoning in Northeast China, and the maritime territory in the Russian Far East. I hope the bank can evolve into an institution that complements the AIIB, and in a broader perspective, harmonizes with Park's Eurasia Initiative and the OBOR.

Seoul, despite unstable inter-Korean ties, expects the China-led development bank to play a constructive role in North Korea.

The AIIB represents a successful diplomatic move by China that has made it one of the most prominent players on the international stage. The bank's president-designate Jin stressed in his visit to Seoul that the AIIB will generate a pipeline for capital, technology, and manpower aimed at investing in Asian infrastructure, and the bank will be managed on the basis of transparency, openness, independence and responsibility. The foundation and development of the AIIB marks China's evolution into a global economic leader.

The author is a professor at the Division of International Studies, Hankuk University of Foreign Studies in Seoul, South Korea. opinion@globaltimes.com.cn

 

[Keel]

Japan didn't join the AIIB (under pressure from US) but still want a piece of the infrastructure cake in Asia.
What a joke! Oh! it hurts to see India and Russia have more say in AIIB than Japan.
If Japan had joined, it would be number two instead of just being a spectator from outside.
Come on Japan, get out from under the US skirt.

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Japan unveils $110 billion plan to fund Asia infrastructure, eye on AIIB
Thu May 21, 2015 6:50am EDT
TOKYO | By Leika Kihara and Linda Sieg

Japan unveiled a plan on Thursday to provide $110 billion in aid for Asian infrastructure projects, as China prepares to launch a new institutional lender that is seen as encroaching on the regional financial clout of Tokyo and its ally Washington.

The amount of Japanese funds, to be invested over 5 years, tops the expected $100 billion capitalisation of the Asian Infrastructure Investment Bank (AIIB), the Beijing-sponsored lender scheduled to begin operations next year.

Japanese officials said the plan, announced by Prime Minister Shinzo Abe at a symposium of Asian officials and experts, represents a 30 percent increase over Tokyo's past infrastructure funding.

Japan said it wants to focus on "high quality" aid, for example, by helping recipients tap its expertise in reducing pollution while building roads and railways. That's an implicit contrast with the AIIB, whose projects Washington has said may not adequately safeguard the environment.

"We intend to actively make use of such funds in order to spread high-quality and innovative infrastructure throughout Asia, taking a long-term view," Abe said in a speech announcing the plan.

About half the funds will be extended by state affiliated agencies in charge of aid and loans and the rest in collaboration with the Asian Development Bank (ADB).

Japan hopes the aid will help draw private funds to help meet the vast demand for infrastructure in Asia.

The United States and Japan were caught off guard when a total of 57 countries, including Group of Seven members Britain, Germany and France jumped on board the AIIB bandwagon by March.

The two allies have stayed out of the China-led institution, seen as a rival to the U.S.-dominated World Bank and Japan-led Asian Development Bank, citing concerns about transparency and governance - although Tokyo for one is keeping its options open.

Finance officials said Japan's aid plan had long been in the works as part of a Group of 20 pledge to meet global needs.

But worried that Japan may look less pro-active than Beijing, Tokyo also wants to showcase its support for the region.

"We had thought it was better not to speak up much, but that doesn't get through," Koichi Hagiuda, a special aide to Abe in his Liberal Democratic Party, told Reuters.

"So some demonstration seems to be needed."

Japanese and Chinese finance officials will meet in Beijing on June 6 and may discuss the AIIB, but Tokyo looks unlikely to make a decision on joining any time soon.

LDP lawmakers looking into the matter will put together a report later this month or in early June, but will only state the pros and cons of joining or staying out, said Masahiko Shimayama, a member of the party panel.

"I think it's unlikely that the government would make a decision on when to join based on our report," he told Reuters.

Tokyo, which given the size of its economy could become the No. 2 donor if it decides to join the AIIB, may well keep its powder dry for some time to come.

"If it (AIIB) becomes a proper financial institution for the sake of Asia, there is no reason to be embarrassed about joining later," Hagiuda said.

The United States and Japan agreed last month that the World Bank and ADB should team up with the AIIB in syndicated loans as a way to help the new lender establish strong standards.

The AIIB is holding a meeting of founder members in Singapore this week to decide on the articles of association and operational details. A delegate to the conference, speaking on condition of anonymity, said it was unlikely the new bank could start lending at the start of 2016 as predicted, given the need for member countries to get approvals from their legislatures.

"China hopes that members get such approvals by year-end and the operations start from the next year, said the Asian delegate. "But I wonder if it is possible, given domestic political situations in each country."

(Additional reporting by Jongwoo Cheon in Singapore; Editing by Raju Gopalakrishnan)

Jpn wont join AIIB esp when Abe's in charge.

 

[JSCh]

Over 20 countries on 'waiting list' to join AIIB: China
POSTED: 19 Sep 2015 19:10

More than 20 countries are waiting to join the China-initiated Asian Infrastructure Investment Bank (AIIB), its designated president said on Saturday (Sep 19) as he allayed concerns it was aimed to challenge US and Japanese influence in the region.

SINGAPORE: More than 20 countries are waiting to join the China-initiated Asian Infrastructure Investment Bank (AIIB), its designated president said on Saturday (Sep 19) as he allayed concerns it was aimed to challenge US and Japanese influence in the region.

The number could bring the AIIB on a par with or even surpass membership in the Japan-led Asian Development Bank (ADB), which currently has 67 members, 19 of them outside of the Asia Pacific, according to its website.

"We have 57 countries (which are potential founding members) and to my knowledge ... more than 20 countries are on the waiting list," AIIB president-designate Jin Liqun told delegates of the Singapore Summit conference, without naming them.

"That makes it more than 70. I'm sure there will be more countries which will be interested," added Jin, a former Chinese vice finance minister who was put forward by Beijing to head the bank and was elected in August by the prospective founding members.

The AIIB has been viewed by some as a rival to the Washington-based World Bank and the Manila-based ADB, which has been headed by Japan, its biggest donor, since it was founded in 1966.

The US and Japan -- the world's largest and third-largest economies, respectively -- have notably declined to join the AIIB although they are members of the ADB, but Jin said the door is open to both.

"It takes longer for some countries to reach their internal consensus in making their decision," he said.

"We've been very much patient. As you know, the door is open to all of the countries and if they make a decision just pick up the phone, make a call and we can handle the rest of the business," he said, referring to the US and Japan.

Of the 57 AIIB potential founding members, 50 have already signed, including Australia, while the seven others have until the end of the year to affix their signatures.

The bank will be based in Beijing and will have a capital of US$100 billion, with US$20 billion paid initially. It is expected to start operations next year.

China will be the biggest shareholder with 30 per cent. Among non-Asian participants, Germany is the largest shareholder with 4.5 per cent, followed by France with 3.4 per cent and Brazil on 3.2 per cent.

Jin said the AIIB is not aimed at challenging the ADB and the World Bank for influence in Asia as the region's funding requirements are so massive.

He cited ADB estimates that Asia's infrastructure demand could reach US$730 billion per year by 2020, vastly exceeding available resources from existing multilateral lenders.

"Creating AIIB has never been about challenging existing institutions. The world stage is spacious enough to allow many actors to perform," Jin said.

- AFP/ec

Over 20 countries on 'waiting list' to join AIIB: China - Channel NewsAsia

 

[ahojunk]

Up to 20 Countries Waiting to Join China-Led AIIB, President-Designate Says
Jin Liqun says bank won’t favor Chinese companies and will invest in projects like railroads and power

Jin Liqun, who was named president-elect of the Asian Infrastructure Investment Bank in August, said as many as 20 countries are looking to join the bank.

By JAKE MAXWELL WATTS
Sept. 19, 2015 8:42 a.m. ET

SINGAPORE—A China-led infrastructure bank that is expected to rival the likes of the World Bank and Asian Development Bank in Asia has been approached by as many as 20 additional prospective members and is looking to begin funding its first projects as soon as six months from now, its new leader said.

Jin Liqun, president-designate of the Asian Infrastructure Investment Bank, also told a conference here Saturday that the new bank wouldn’t select projects to favor Chinese companies and wouldn’t act as “China’s bank”.

Mr. Jin said the AIIB will invest in core infrastructure projects such as railroads and power, but retain the option to broaden its portfolio into associated investments such as environmental investments.

“Some projects are quite ready,” Mr. Jin said.

The AIIB was launched in June with representatives of 57 countries present, 50 of whom formerly signed up on the day. The Beijing-based bank is one of several projects that President Xi Jinping has unveiled recently in a bid to expand China’s influence and financial clout in Southeast and Central Asia.

The bank came together in less than two years amid strong global interest. It was seen as a propaganda victory for China when U.S. allies such as the U.K. and Germany joined. Though the bank hasn't yet begun lending, it faces the mammoth task of negotiating a complicated political and economic landscape, and not just in Asia. Critics including Washington have already raised concerns that the bank would have lower environmental and ethical standards than other multilateral banks.

Mr. Jin, who was named as interim leader of the AIIB last month and is a Chinese national and former vice finance minister of that country, shrugged off such concerns on Saturday.

“AIIB will be a good global citizen,” he said, adding that the bank will operate with a focus on “transparency, openness, independence and accountability.”

Asked at the conference whether the bank might have an institutional bias toward Chinese companies, or against companies and individuals from countries that haven't joined such as Japan and the U.S., Mr. Jin said such rumors were unfounded.

“China is the major shareholder. But this does not mean that this is China’s bank. The bank is not owned, managed or operated by China,” he said. “The bank practices universal procurement and universal recruitment,” and wouldn't favor Chinese companies over those from, say, the U.S., he added.

The bank’s voting structure means that China will retain the upper hand as the largest shareholder, according to its articles of incorporation and people close to the bank. China has offered to forgo outright veto power in day-to-day operations, which has helped win over some key founding members.

The AIIB’s approach to infrastructure investment would streamline decision-making and aim to be more effective than the World Bank or ADB, said Mr. Jin. Instead of its board having direct decision-making authority over individual projects, he said he would like to see the bank’s management make decisions and its board hold them to account.

Existing multilateral institutions are “hugely important” with “a strong track record,” said Mr. Jin. “However, they were designed to meet different needs at different times against different historical backgrounds.”

If it is to be successful, the AIIB will have to negotiate a tricky regulatory and political environment across Asia, particularly in the less developed markets that Mr. Jin said would be an investment priority.

The Asian Development Bank estimates that some $8 trillion of infrastructure investment is needed in Asia between 2010 and 2020, a sum that existing institutions may struggle to fill. Mr. Jin said that while red tape and regulation can be difficult to negotiate, many projects in Asia are waiting to begin because of the limited resources of existing investment banks.

It is reasonable for the AIIB to expect a rate of return of as much as 6% to 10%, he said, without elaborating or providing a time frame for investment returns. “Overall, the bank has to be profitable,” he said. “We should not have too much of a risk appetite,” he added. “However, without risks you cannot get returns.”

—Mark Magnier in Beijing contributed to this article

 

[TaiShang]

China to Rearrange World Financial System – German Media

17:22 23.09.2015

With the establishment of the Asian Infrastructure Investment Bank (AIIB), China has started to reorganize the world’s financial system. Asian countries are no longer solely dependent on the IMF and the World Bank and able to have a major influence on world’s financial markets, DWN reported.

The establishment of the bank is one of the biggest geopolitical successes of China in recent years, the newspaper wrote. It would help the country to counterbalance the IMF and the World Bank, which are dominated by the US.

Due to its rapidly growing economy, China considers itself not sufficiently represented in the world financial system and constantly vows for its reform. The United States in turn sees major risks arising from the creation of the financial institution as it fears losing control over financial markets and has therefore tried to prevent the foundation of the AIIB.

AIIB President Describes Launch by End of 2015 as Priority

An interesting fact is that the establishment of the bank almost failed due to the doubts of the Chinese political elite who were skeptical about China’s ability to lead a multilateral bank and pointed to the lack of experience of Beijing. Some politicians also had doubts concerning the financing and the feasibility of the project.

The internal government debates started in spring 2013 and lasted about six months. Only after the inauguration of the new President Xi Jinping did the plan received a new impetus. Xi Jinping viewed the AIIB as an ideal institution to finance China's new infrastructure and export strategy as well as to strengthen the Eurasian states along the former Silk Road.

Nobody could imagine the AIIB would be so successful, or that so many people would be interested in it, a Chinese source told Reuters.

The idea of the bank’s establishment has been met with a great interest worldwide. The Gulf States as well as major European countries announced their support for the project — to Beijing's surprise and contrary to the demands of the United States, DWN wrote.


Read more: China to Rearrange World Financial System – German Media

 

[TaiShang]

Closer Look: How AIIB, BRICS Bank Are Facing Up to Early Challenges

The two new development banks are nearing their launch dates and their first hurdles, but already appear to have strategies in place for clearing them

By staff reporter Wang Liwei

(Beijing) – With a China-led multilateral bank three months from its official launch and a new bank opened by five emerging economies also set to open, experts say the institutions must live up to international standards by learning lessons both good and bad from established multilateral institutions.

Jin Liqun, president-elect of the Asian Infrastructure Investment Bank (AIIB), said at a news conference at the end of August that an interim secretariat under his leadership has been focusing its efforts on hammering out lending and oversight policies to pave the way for the bank's opening before the end of the year.

The five countries behind the New Development Bank – the BRICS comprising Brazil, Russia, India, China and South Africa – have begun a recruitment drive and are looking for potential projects, the bank's vice president, Leslie W. Massdorp, said in a recent interview with Caixin.

The two banks were created because existing international financial institutions, such as World Bank and Asian Development Bank, are under intense scrutiny over perceived inefficiency amid soaring demand for infrastructure investment around the world.

Yukon Huang, a senior associate at the Carnegie Endowment for International Peace, a non-government think-tank, said that a major challenge facing the AIIB is whether it can build an effective system of governance that balances the interests of stakeholders and the needs of recipient countries.

Unlike a private company, where members of a board of directors are usually led by a chairman and CEO, Huang said that each of the 20-plus directors at the World Bank wield significant influence over decision-making and daily operations, meaning project approvals involve lengthy negotiations.

Huang, former head of the World Bank's China division, said the AIIB will try to be more innovative by introducing non-executive directors into its board in an attempt to speed up consensus-building. However, allowing the more than 50 stakeholders in the bank to have their say without compromising efficiency will be a challenge, he said.

The two financial institutions will also face hurdles regarding compliance with international standards for environmental protection and labor rights, all while juggling a diverse range of national interests, experts said.

David Dollar, head of the World Bank's China division, said the AIIB is likely to adopt standards similar to those at World Bank, Asian Development Bank and other multilateral institutions, "but the key is if and how these standards will be enforced."

The existing standards for environmental and labor safeguards are reasonable, but also high, Dollar said. He said the AIIB should not be as concerned about risk as the World Bank is. That institution sometimes took environmental and labor safeguards so seriously that potential clients were reluctant to come forward with project proposals because they were fearful of lengthy approval procedures.

Maasdorp said a good place for the BRICS bank to start is borrowing from policies the Asian Development Bank and World Bank have put in place. However, he said the New Development Bank will also take into account the diverse social and political systems used in the five member countries when nailing down governance policies. To that end, the BRICS bank will set up a branch in South Africa, in accordance with its charter.

The AIIB may not rush into opening offices outside of its headquarters in Beijing due to cost-effectiveness worries, Dollar said. Beijing is close enough to most member states and a regional branch may not add much to efficiency, he said.

Experts said both the AIIB and the BRICS bank may want to partner with existing multilateral institutions on their first projects. Suma Chakrabarti, the president of the European Bank for Reconstruction and Development, has already expressed a desire to cooperate with the AIIB, though officials from the China-led institution have not publicly responded.

Dollar suggested that the AIIB seek to join projects financed by the European bank, and use the experience to learn about feasibility studies and risk controls. Existing international banks would love to find a partner that helps shoulder a project's risks, he said.

Massdorp said the BRICS bank wants such a partnership because it may take the new institution some time to attract the talent and develop the oversight system necessary for handling a project on its own. The New Development Bank is waiting for authorities in member countries to come up with projects, and their first undertaking is likely to involve the promotion of clean energy.

 

[ahojunk]

Looks like the Philippines wanted to wait for US and Japan to give the nod. If that is the case, the Philippines might as well don't bother.

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PH membership in AIIB to depend on US, Japan
By: Ben O. de Vera
Philippine Daily Inquirer
01:22 AM September 18th, 2015

THE PHILIPPINES will likely fast-track its membership in China-led Asian Infrastructure Investment Bank (AIIB) if the United States and Japan will also take part in its establishment.

Asked if the reports that AIIB’s prospective members are seen expanding to over 70 countries will make it more appealing for the Philippines to join, a ranking finance official told reporters: “Definitely, of course.”

“The more members it has, the better, as there are more eyes to watch over the running of the bank,” said the government official, who is privy to ongoing talks for the Philippines to be a founding member of AIIB.

In June, the Philippines deferred signing the articles of agreement for the establishment of AIIB, even as Finance Secretary Cesar V. Purisima maintained that the country “remains a prospective founding member.”

“As the deadline to sign is in December 2015, the Philippines is taking the time given to prudently consider its membership,” Purisima had said.

Purisima earlier said that the Philippines had “concerns about the governance of AIIB.”

“We do hope that AIIB will function based on purely financial basis, and not political,” Purisima said at a Center for Strategic and International Studies conference in the US in June.

Under the articles of agreement, the Philippines must shell out $979.1 million or about P44.2 billion for capital subscription. AIIB will have an initial authorized capital stock of $100 billion.

Last year, the Philippines, through the Department of Finance, signed a non-binding agreement to join discussions aimed at threshing out issues ahead of the bank’s formal establishment.

Last June 29, 50 countries signed in Beijing AIIB’s articles of agreement, which will lead to the bank’s establishment by year-end.

To date, 51 countries already signed the articles of agreement, as Malaysia did so last month.

Besides the Philippines, the five other prospective members that have yet to sign the articles of agreement were Denmark, Kuwait, Poland, South Africa and Thailand. AIIB originally had 57 prospective member-countries.

“The articles [of agreement] remain open for signing… until the end of 2015,” according to AIIB’s website.

China will hold the biggest stake in the lender at 30.3 percent, equivalent to $29.8 billion in initial subscription. India will have to infuse $8.4 billion, while Russia’s contribution to the capital will be $6.5 billion. The 37 prospective founding-members in the Asia-Pacific region are expected to contribute three-fourths of the capitalization or $75 billion.

The largest initial subscription to AIIB by a non-Asian country will be that of Germany, at $4.48 billion. In all, the 20 prospective non-regional members will have to shell out the remaining $25 billion.

The Beijing-headquartered AIIB said its foundation “will be built on international best practices and the lessons and experiences of existing multilateral development banks and the private sector.”

 

[TaiShang]

In retrospect it can be seen that Xi Jinping walked all over Obama during his recent visit upstaging him on all fronts. By backtracking on opposition to China's AIIB and New Silk Road initiatives Obama managed to save some face.

***


White House declares truce with China over AIIB

Officials said that Washington secured a pledge from Beijing to increase its financial contributions to the World Bank, the FT reports.

 

[cirr]

Increasing our contributions to the existing financial institutions such as the World Bank is not a problem since it also increases our says in the said institutions。

 

[TaiShang]

Increasing our contributions to the existing financial institutions such as the World Bank is not a problem since it also increases our says in the said institutions。

Definitely. China is in no way aiming to altogether overhaul the established world order.

It in fact wishes to work inside the existing framework while subjecting it to reforms to better reflect the rising power, China.

When the existing framework proves to be reactionary like the IMF or the ADB, then China sets up alternative frameworks. Again, these frameworks are not to bring down the one established in large part by the US, but, to exist together and provide an alternative for other nations that wish to participate.

In all senses, China is a harmonious, peaceful rising nation.

 

[ahojunk]

US and China settle AIIB dispute
GBTIMES BEIJING
2015/09/28

Members of the AIIB and the signing ceremony for the bank's Articles of Agreement in June. (Photo: China News Service)

The United States and China have settled their differences over the Beijing-led Asian Infrastructure Investment Bank (AIIB) during President Xi Jinping’s first state visit to the country.

The US had previously initiated a campaign to persuade allies not to join the bank, widely seen as a rival to established lenders like the World Bank and the Asian Development Bank.

As part of the assurances sought by the US, Beijing has committed to “meaningfully increase” its contributions to existing financial institutions.

President Xi also pledged that the AIIB would operate in accordance with the highest international standards, addressing concerns of the US, as well as its allies, about the new bank.

The Financial Times reports that the truce is indicative of a change in the US' approach towards China, with the Obama administration eager to put past suspicions behind them and resume normal relations on international economics.

 

[TaiShang]

US and China settle AIIB dispute
GBTIMES BEIJING
2015/09/28

View attachment 261778
Members of the AIIB and the signing ceremony for the bank's Articles of Agreement in June. (Photo: China News Service)

The United States and China have settled their differences over the Beijing-led Asian Infrastructure Investment Bank (AIIB) during President Xi Jinping’s first state visit to the country.

The US had previously initiated a campaign to persuade allies not to join the bank, widely seen as a rival to established lenders like the World Bank and the Asian Development Bank.

As part of the assurances sought by the US, Beijing has committed to “meaningfully increase” its contributions to existing financial institutions.

President Xi also pledged that the AIIB would operate in accordance with the highest international standards, addressing concerns of the US, as well as its allies, about the new bank.

The Financial Times reports that the truce is indicative of a change in the US' approach towards China, with the Obama administration eager to put past suspicions behind them and resume normal relations on international economics.

I do not know what is there to settle...

AIIB already took hold and US did all it can to stop it and failed.

China does certainly not need US endorsement at the moment.

Xi must have given Obama some face-saving opportunity.

 

[ahojunk]

China, U.S. achieve breakthrough over AIIB: report
2015-09-28 09:00 | Global Times | Editor: Li Yan

Officials in the U.S. have declared "what amounts to a truce in their campaign over China's new Asian Infrastructure Investment Bank (AIIB)," claiming that they have secured commitments from the Chinese central government to ease Washington's concerns, the Financial Times reported Sunday, citing U.S. officials.

China will also "meaningfully increase" its financial contributions to the World Bank and other potential regional financial institutions, the Financial Times report said.

The AIIB, initiated by Chinese President Xi Jinping in 2013 to help finance infrastructure projects in Asia, is expected to be officially established by the end of this year.

A total of 50 prospective founding members of the AIIB signed in Beijing on June 29 the bank's articles of agreement that outlines the bank's governance structure.

The Obama administration, during last week's State visit by Chinese President Xi Jinping, also emphasized its pledge to back China's bid for the inclusion of the yuan in the basket of reserve currencies of the International Monetary Fund (IMF) as long as China is declared worthy by the IMF.

During President Xi's visit, Washington had secured a pledge from China to increase its financial contributions to the World Bank and regional development banks, the Financial Times reported, citing senior U.S. officials.

 

[ahojunk]

Another one in the bag.

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Thailand signs AIIB agreement

BEIJING, Sept. 30 (Xinhua) -- Thailand signed the Asian Infrastructure Investment Bank (AIIB) Agreement here Tuesday, the Chinese Ministry of Finance (MOF) announced Wednesday.

Thailand is the 52nd of 57 prospective founding members to sign the document. The others are still waiting for administrative approvals at home.

After signing the agreement, all of the 57 members must get the green light from their legislatures by Dec. 31, 2016, before becoming a founding members of the bank.

"All the prospective members are now pushing to quicken the legal procedures so that the AIIB can be established before the end of 2015," said the MOF.