What is the Asian Infrastructure Investment Bank? It is a way to finance infrastructure projects throughout Asia, such as roads, railways and ports. In fact, this is little more than a response by the Chinese to the Asian Development Bank (led by the Japanese) and the World Bank; Beijing has long been upset about its role in both institutions as it is has been granted roughly 5.5% in both banks which its global share of GDP is roughly 13%. As a result, China wants to lead its own bank. The AIIB will finance infrastructure projects throughout Asia, particularly along the silk road, connecting Central Asia and the Middle East with China. Trade will increase, dependency will grow. Most importantly, these will be new markets for China. Unsurprisingly, Japan and the United States did not join.
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