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Posts Tagged ‘Asian Development Bank’

The Tussle over AIIB – So Much ado about Influence?

March 20th, 2015 3 comments

The news about China the last few days is about how it is scoring a diplomatic coup d’état against the U.S. vis-a-vis Europe.  On March 12, Chancellor of the Exchequer George Osborne announced that the U.K. had applied to join the Asian Infrastructure Investment Bank (AIIB) as a founding member. If accepted, Britain would have been the first major Western country to become a member.

A few days later, Germany, France and Italy also announced that they too would join.  South Korea and Australia soon also switched their stance and are now on the verge of joining.

Japan appears to be the odd-power out in Asia now.  Given its history of deference to the U.S. (e.g. Plaza Accord) and its current diplomatic row with China, my money is on Japan not joining at this stage.  But even nationalistic and deferential Japan has not has not ruled out the possibility of joining at the founding stage.

The editorial board of the NYT today penned an editorial titled “U.S. Allies, Lured by China’s Bank.” The notion that China is “luring” U.S. allies seems to me … err … funny – even laughable.  Read more…