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UK snubs US to join China-led Asian bank
March 13, 2015, 5:25 am

File photo of Chinese President Xi Jinping (R) meets with British Prime Minister David Cameron in The Hague, the Netherlands, March 25, 2014 [Xinhua]

File photo of Chinese President Xi Jinping (R) meeting with British Prime Minister David Cameron in The Hague, the Netherlands, March 25, 2014 [Xinhua]

Overlooking US censure, the UK has announced its decision to join China’s Asian Infrastructure Investment Bank, becoming the first “major western country” to apply for membership.

“I am delighted to announce today that the UK will be the first major Western country to become a prospective founder member of the Asian Infrastructure Investment Bank, which has already received significant support in the region,” said UK Finance Minister George Osborne on Thursday.

“Joining the AIIB at the founding stage will create an unrivalled opportunity for the UK and Asia to invest and grow together,” he added.

In a landmark achievement, 21 Asian nations including China and India in October last year signed on the creation of a new infrastructure investment bank which would rival the World Bank. The new Bank has a capital target of more than $100 billion.

The governments of Bangladesh, Brunei Darussalam, Cambodia, China, India, Kazakhstan, Kuwait, Lao PDR, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, Philippines, Uzbekistan, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan, Vietnam signed on as founding members of the new Asia Infrastructure Investment Bank (AIIB) in Beijing.

“The UK will join discussions later this month with other founding members,” said a UK government statement on Thursday.

Washington reacted to UK’s announcement by saying it is circumspect about whether the AIIB would have sufficiently high standards on governance and environmental and social safeguards.

“We hope and expect that the U.K. will use its voice to push for adoption of high standards,” said Patrick Ventrell, spokesman for President Barack Obama’s National Security Council

The authorized capital of AIIB is $100 billion and the initial subscribed capital is expected to be around $50 billion. The paid-in ratio will be 20 per cent.

AIIB will be an inter-governmental regional development institution in Asia and Beijing will be the host city for AIIB’s headquarters.

The AIIB will extend China’s financial reach and compete not only with the World Bank, but also with the Asian Development Bank, which is heavily dominated by Japan.

China and other emerging economies, including BRICS, have long protested against their limited voice at other multilateral development banks, including the World Bank, International Monetary Fund and Asian Development Bank (ADB).

China is grouped in the ‘Category II’ voting bloc at the World Bank while at the Asian Development Bank, China with a 5.5 per cent share is far outdone by America’s 15.7 per cent and Japan’s 15.6 per cent share.

The ADB has estimated that in the next decade Asian countries will need $8 trillion in infrastructure investments to maintain the current economic growth rate.

China scholar Asit Biswas at the Lee Kuan Yew School of Public Policy, Singapore, says Washington’s criticism towards the China-led Bank is “childish”.

“Some critics argue that the AIIB will reduce the environmental, social and procurement standards in a race to the bottom. This is a childish criticism, especially because China has invited other governments to help with funding and governance,” he says.

“Reports indicate that the US is pressuring Australia and South Korea not to join the AIIB. But as Hedley Bull, eminent late Oxford professor, once said, “people have friends but countries have only interests”, he adds.

 

TBP

18 Responses to UK snubs US to join China-led Asian bank

  1. sonia avino Reply

    March 13, 2015 at 5:47 am

    poor que a materia não cita o Brasil?o B dos BRICS é Brasil!

  2. Squodgy Reply

    March 13, 2015 at 1:14 pm

    Smoke & mirrors charade.

    Evelyn de Rothschild is already a major player there.

    • Padraigin Eagle Reply

      March 14, 2015 at 9:29 pm

      Red Shields in the sunset

      Yes, they’re all in it together, the east west divide a convenient ruse to hypnotise the queues of sheeplike voters that make up the quotas, new world dis-order within the borders of all the lands, game set amd match constitute their plans.

  3. Eraldo Marcelo Kopp Reply

    March 13, 2015 at 5:55 pm

    Great and ideal move of GB at this point! Since its first glimpses of economical recovery, GB has been an example of hard work and leadership! US is not far behind and the US economy is recovering however slowly! The economic situation of the this time period is critical because the high concerns of the Islamic State joining up with Boko Haram of Nigeria. The threat level is obviously much higher than before. The economic situation of Brazil is the worst in decades and the GDP for 2015 is only 0.13%. The Brazilian economy is ruined!!! Chances of recovery are slim and, not only the politicians do not care but the main leadership is out of weck and dangerously incompetente! The Petrobras company is involved in a great scandal and the credit of Brazil in the pits! The younger people have no knowledge of the real state of the country outside in the world and most of them are not versed in English and therefore either they are uncaring or demonstrate limited know how. Truly a despicable condition of such country with earlier 7.5% GDP and, at this moment, nearly zero! The country has the worst gains of the brics Family and Brazil must come up with 50 bln USD for the international development bank and this should be printed somehow … The younger people are not fit to tackle the country´s problem; the students receive grades without studying and the teachers simply give high scores for the asking!!! I kid you not!!! Unfortunately the cultural background of this nation does not provide the minimum standards… The credit of Brazil is categorized junk! Let´s hope China can start up the new system and the infra-structuring will help this nation realize the economy won´t recover for many years! Idle talks and lazyness is the name of the game!!! Tatoos and cell phones are used as scape for such an ignorant low standards society! Only 11 countries in the world speak English, the rest is either English or ignorancy…

    • Carlos Alves Borges Reply

      March 14, 2015 at 11:10 pm

      The comments has no reliability.

  4. wtbaker Reply

    March 13, 2015 at 9:09 pm

    Has China considered the history of
    Britains financial aspirations? Is China taking into consideration how tainted any deposit by Britain would be such as drug money and profits from speculation. I hope China remembers Britains Opium Wars against the Chinese people. I understand Chinas committment to artnering with other soveriegn nations for scientific and technological development,but Britain,I wuold demand to know what their intentions are.

    • Vivian Reply

      March 15, 2015 at 4:35 am

      Thank you for your comment!

  5. smug_alec Reply

    March 14, 2015 at 9:49 am

    So this “Bank” will not be one based on fiat currency and interest?

    • john barbieri Reply

      March 29, 2015 at 1:36 am

      Yes. That’s the idea. A world bank not creating (loaning) money out of thin air but backed by hard assets. Never thought I would see this in my lifetime. There is hope. So refreshing.

  6. dave Reply

    March 14, 2015 at 9:52 am

    its about time at least this will slow down the world bank I hope, and maybe make the USA think about doing away with the FED..NAH NEVER HAPPEN…these boobs will ride this FED into the ground…wait it’s here already, China wins again, much like Putin wins again…this administration is so weak and childish it’s sad….we reap what we sow…time top head for the hills…back to a smaller USA presence and more to making our own country back into the greatest place to live…we don’t need to be overseas…lets buy AMERICAN made in the USA, by proud citizens…let the rest go to China and they can keep their stuff there…..

  7. hp Reply

    March 14, 2015 at 3:47 pm

    Isn’t it obvious? It’s deja vu’ all over again..

    The “usual suspects” deserting the sinking (US) ship and running, flowers and candy in hand, to embrace neo-China.

  8. Michael Reply

    March 14, 2015 at 3:49 pm

    During the Vietnam War the Chinese press used to call Australia a running-dog of the imperialists.
    I don’t think much has changed.
    Particularly evidenced as Assange pointed out by GG Kerr coup
    d’etat against PM Whitlam. However Frazer did win the subsequent election replacing Whitlam.
    It’s a great pity I think that Philippines didn’t keep English as their national language after the USA occupation, particularly as labor is their main export This may be one factor holding them back.

  9. manofsteel194275 Reply

    March 14, 2015 at 4:20 pm

    England, the UK, Britain, whatever you want to call it, has an owner and that owner is Lord Rothschild. Rothschild couldn’t care less about the economy in China, the Rothschilds just want in on it. Like America has learned, but, not all of us have learned yet; letting England, the UK, Britain, into your banking is actually letting the Rothschild dynasty in on your banking. This means, in the future the Chinese will undoubtedly find themselves as Americans and most of the rest of the world find themselves, some how, in hock to the Rothschilds. China’s big deal is small potatoes to the Rothschilds, and, why should America save the Chinese from the Rothschilds, afterall, our jobs are there, in China, our jobs are what has made China able to have a bank.

  10. Shlomo Perkins Reply

    March 14, 2015 at 10:03 pm

    China needs to keep a very close eye on the Brits. Brits are known thieves, antisemitic and infiltrators. The British have recognized Palestinian statehood!!

    • Chris Reply

      March 25, 2015 at 12:35 am

      I agree. Mossad should do a Hebdo on them and make them realize who’s boss.

  11. John Reply

    March 14, 2015 at 10:41 pm

    I hope China realizes they are only playing for a controlling hand in it. If their smart they”l treat it as seperate poison money.

  12. clem alford Reply

    March 18, 2015 at 7:12 am

    Global power games. Where does the common man fit in?

  13. Brock Cheshier Reply

    October 16, 2015 at 5:52 pm

    People being so broke that they have to borrow money and buy on credit is NOT evidence of a recovering economy. I’m not even a math whiz and I know that.

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