Over 40 countries applied to become founding members of the China-backed Asian Infrastructure Investment Bank (AIIB) before the March 31 deadline, doubling the size of the bank from Beijing’s initial conception.
The applications showed that the planned bank, which has been seen as posing a challenge to the Asian Development Bank (ADB) and a possible threat to the International Monetary Fund and the World Bank, is supported by both developed and emerging economies.
The United States has objected to the AIIB project from the beginning, however, and asked its allies not to take part in the bank. With the exception of Japan, most have chosen to do so, however.
The creation of the AIIB is driven by China’s effort to challenge the US dominance in the economic and financial world, to make the renminbi an international currency, to address its excess production capacity built up over the past two decades and to respond to slower economic growth at home.
Such a possibility of confrontation between the top two economic powers in the world was enhanced by the US opposition to the AIIB, but the opposition has been undermined by the applications to join the bank from Australia and several European countries, including the United Kingdom, France and Italy.
Several US allies in Asia, including Taiwan, also followed and applied for membership.
Full article: US unable to stop AIIB’s goal of breaking monopoly (Want China Times)