China’s new Asian International Investment Bank could upset the balance of power in Asia.
On January 16, China inaugurated its new international investment bank. In a lavish, ribbon-cutting ceremony at the renowned Diaoyutai State Guesthouse in Beijing, Chinese President Xi Jinping told the assembled dignitaries that they were part of “a historical moment.”
Yet most people totally missed the significance.
While Xi was inaugurating the Asian Infrastructure Investment Bank (aiib)—a project that former United States Treasury Secretary Larry Summers earlier called a “wake-up call” for America and the most important economic event since America led the world off the gold standard in 1971—the world was focused on collapsing stock indexes.
And for good reason.