Page 62 - 2017 White Paper
P. 62
7 White Paper on the Business Environment in China
1.4 Rising Soft Power: Asian Infrastructure
and Investment Bank (AIIB) and “One Belt,
One Road”(OBOR) Initiative
Progress Report Presumably paying close attention to this deve-
lopment was the undersecretary of the Treasury for
From all accounts, it would appear that International Affairs of the U.S. Treasury Department,
member countries are queuing up to Nathan Sheets, who, according to Xinhua, declared in
join the Asian Infrastructure Investment Bank (AIIB). October 2016 that the AIIB pursuing “sound policies”
and “principles and practices that are consistent
Ahead of the bank’s first annual board meeting in with international best practices in other multilateral
June 2016, its president Jin Liqun said that the bank’s development banks” means that the AIIB would “play a
membership will grow to reach nearly 100 countries constructive role in the global economy” (Xinhua 2016b).
by year’s end, the Asia Times reports. He said up to 30
countries were waiting for their membership to be In an editorial, The Economist cited several reasons to
confirmed, with about 20 of them having expressed “firm be enthused about the AIIB. It pointed out that the AIIB
commitment” (Asia Times 2016). will keep a “tighter focus” on infrastructure compared to
the World Bank. The publication noted the swift project
A few weeks later, Xinhua reported Mr. Jin announcing approval turn-around with four projects given the go-
that the bank’s Board of Directors had approved its first ahead within the first six months of the bank’s launch,
four loans totaling US$ 509 million to projects in four a process which would have taken other MDBs a year
countries: Indonesia, Pakistan, Bangladesh and Tajikstan or even more to approve. But of its first four projects,
(Xinhua 2016a) three are joint ventures with existing MDBs which means
processes would have to be subject to and compliant
The BBC pointed out that all these countries are an with their protocols. In inviting outside participation on
integral part of China’s ambitious New Silk Road project these projects, the AIIB would only stand to benefit from
and speculated that the bank’s first move appears the respectability that these partnerships confer (The
to confirm the concerns that the AIIB will disperse Economist 2016).
money only on projects close to Beijing’s economic
interests, making it the investment arm behind the new In an opinion piece in the South China Morning Post
silk road. Yet, the BBC notes, three out of these four in November 2016, President-elect Trump’s national
projects are done in cooperation with other MDBs: The security adviser James Woolsey said “it is widely accepted
Asian Development Band (ADB), the European Bank in Washington today that the Obama administration’s
of Reconstruction and Development (EBRD) and the opposition to the formation of the AIIB was a strategic
World Bank. So this collaboration with counterparts mistake and I hope the next administration’s response
would seem to counter the claims that the AIIB has set to the [‘One Belt, One Road’ initiative] will be much
out to compete directly with other MDBs or that the warmer”. AIIB president Jin Liqun expressed his optimism
AIIB’s projects would be less compliant on international of a possible about-face on AIIB by the incoming new
standards for the environment and human rights (Illmer administration in the U.S., especially after Canada’s
2016). participation as a member country for the bank: “We
62
1.4 Rising Soft Power: Asian Infrastructure
and Investment Bank (AIIB) and “One Belt,
One Road”(OBOR) Initiative
Progress Report Presumably paying close attention to this deve-
lopment was the undersecretary of the Treasury for
From all accounts, it would appear that International Affairs of the U.S. Treasury Department,
member countries are queuing up to Nathan Sheets, who, according to Xinhua, declared in
join the Asian Infrastructure Investment Bank (AIIB). October 2016 that the AIIB pursuing “sound policies”
and “principles and practices that are consistent
Ahead of the bank’s first annual board meeting in with international best practices in other multilateral
June 2016, its president Jin Liqun said that the bank’s development banks” means that the AIIB would “play a
membership will grow to reach nearly 100 countries constructive role in the global economy” (Xinhua 2016b).
by year’s end, the Asia Times reports. He said up to 30
countries were waiting for their membership to be In an editorial, The Economist cited several reasons to
confirmed, with about 20 of them having expressed “firm be enthused about the AIIB. It pointed out that the AIIB
commitment” (Asia Times 2016). will keep a “tighter focus” on infrastructure compared to
the World Bank. The publication noted the swift project
A few weeks later, Xinhua reported Mr. Jin announcing approval turn-around with four projects given the go-
that the bank’s Board of Directors had approved its first ahead within the first six months of the bank’s launch,
four loans totaling US$ 509 million to projects in four a process which would have taken other MDBs a year
countries: Indonesia, Pakistan, Bangladesh and Tajikstan or even more to approve. But of its first four projects,
(Xinhua 2016a) three are joint ventures with existing MDBs which means
processes would have to be subject to and compliant
The BBC pointed out that all these countries are an with their protocols. In inviting outside participation on
integral part of China’s ambitious New Silk Road project these projects, the AIIB would only stand to benefit from
and speculated that the bank’s first move appears the respectability that these partnerships confer (The
to confirm the concerns that the AIIB will disperse Economist 2016).
money only on projects close to Beijing’s economic
interests, making it the investment arm behind the new In an opinion piece in the South China Morning Post
silk road. Yet, the BBC notes, three out of these four in November 2016, President-elect Trump’s national
projects are done in cooperation with other MDBs: The security adviser James Woolsey said “it is widely accepted
Asian Development Band (ADB), the European Bank in Washington today that the Obama administration’s
of Reconstruction and Development (EBRD) and the opposition to the formation of the AIIB was a strategic
World Bank. So this collaboration with counterparts mistake and I hope the next administration’s response
would seem to counter the claims that the AIIB has set to the [‘One Belt, One Road’ initiative] will be much
out to compete directly with other MDBs or that the warmer”. AIIB president Jin Liqun expressed his optimism
AIIB’s projects would be less compliant on international of a possible about-face on AIIB by the incoming new
standards for the environment and human rights (Illmer administration in the U.S., especially after Canada’s
2016). participation as a member country for the bank: “We
62
