Federal cabinet has approved Australia signing a “memorandum of understanding” on joining the China-led $US100 billion Asia Infrastructure Investment Bank.
Two cabinet sources have confirmed the matter was discussed on Monday night, as foreshadowed by Fairfax Media last Friday, just days after the national security committee of cabinet cleared the way.
Government sources have suggested Australia could tip up to $3 billion into the bank.
The next step will be for the federal government to notify key regional allies such as the United States and Japan – as well as China, which is driving the creation of the bank.
In recent weeks, the Obama administration was reportedly angered and embarrassed when the United Kingdom broke ranks to join the bank, with minimal consultation, prompting other European nations including Germany, France and Italy to follow suit.
Full article: Cabinet approves Australia signing on to China-led Asia Infrastructure Investment Bank (Sydney Morning Herald)