Australia confirms it will join China’s Asian Infrastructure Investment Bank

Abbott government’s statement raises existing concerns about governance and transparency, reflecting divergent views within cabinet on the merits of joining

The Abbott government has elected to begin the process of joining the China-led Asian Infrastructure Investment Bank – but is still telegraphing concerns about the structure of the organisation.

China launched the $100bn proposal last year and more than 20 countries have announced their intention to be founding members.

There have been different views within the cabinet about whether Australia should join the institution. The United States has been distinctly cool on the proposal which, given its resources and membership, could ultimately rival other global financial institutions, like the World Bank.

When Britain joined the AIIB in mid March, the White House issued a rare public rebuke, declaring its hope and expectation that the UK would use its influence to ensure that high standards of governance are upheld. The US sees the AIIB as a vehicle for China to exert influence in the region.

Full article: Australia confirms it will join China’s Asian Infrastructure Investment Bank (The Guardian)

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