The AIIB: Why is it important?
- March 30th, 2015
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The proposed Chinese-led Asian Infrastructure Investment Bank (AIIB) is now challenging the US-led World Bank and IMF’s position in regional and global economics. Traditional US allies against the threat of a rising China and trading partners have joined, including South Korea who is to be named a founding member, and European countries including Russia, Germany, and France have also expressed interest in joining. Strangely enough, China barred its North Korean ally from joining due to its current economic status, shocking the region. Washington’s position on the matter is met with concern over growing Chinese influence, however the IMF has expressed an interest in working with the AIIB. This adds pressure on the US to make a decision.
Currently, its options include joining the AIIB and creating a balancing force against China within, pressure EU countries and other allies including Japan (who is currently on the fence about joining) so that China , or to ignore the AIIB, which is unlikely as rising Chinese hegemony in East Asia is not in US national interests. Otherwise, the US also risks Taiwan, who has expressed interest in joining, becoming closer to China, a current concern of the US as well.