The US has decided not to become a founding member of the Asian Infrastructure Investment Bank (AIIB). AIIB will be a new multilateral financial institution that aims to provide long term resources to finance infrastructure development in Asia. Mr. Jack Lew, US Treasury Secretary says that the AIIB will not achieve a governance and lending practices that are of the highest global standards. It is quite obvious that the US has a fundamental belief which is only under her leadership that a multilateral institution (financial or others) could live up to the highest global standard of governance. Japanese government obediently shares similar belief with the US. However, the UK, one of the US closest allies, has decided to participate in establishing AIIB as a founding member. This decision has made the US unhappy. UK's decision indeed should be applauded for it has triggered other G7/OECD countries to sign up for AIIB. Presumably, many of them would had initially wanted to participate but they were afraid to be rebuffed by their big brother--the US.
Mr. Martin Wolf, the Chief Economics commentator at the Financial Times, in his regular column on 25 March, says that the US does not want the AIIB to be the first multilateral institution to challenge her dominant role in international economic landscape (Martin Wolf. "It is folly to rebuff China's bank"). Undoubtedly, this is the truth about the US refusal to join as a founding member of AIIB.
China is the second largest economy and she still has a relatively huge potential to achieve a higher growth rate than any country is indisputable. Thus, for a better or for a worse, the US and other advanced countries would have to accommodate that rise of China which is inevitable but it is beneficial for the international community with mutually constructive engagements.
Mr. Martin Wolf, the Chief Economics commentator at the Financial Times, in his regular column on 25 March, says that the US does not want the AIIB to be the first multilateral institution to challenge her dominant role in international economic landscape (Martin Wolf. "It is folly to rebuff China's bank"). Undoubtedly, this is the truth about the US refusal to join as a founding member of AIIB.
China is the second largest economy and she still has a relatively huge potential to achieve a higher growth rate than any country is indisputable. Thus, for a better or for a worse, the US and other advanced countries would have to accommodate that rise of China which is inevitable but it is beneficial for the international community with mutually constructive engagements.
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