AUSTRALIA JOINING CHINESE-ASIAN INFRASTRUCTURE INVESTMENT BANK (AIIB)
Australia To Join Negotiations On Chinese-Led Bank
CAPITALISM = COMPETITION IS GOOD
PLUTOCRACY = COMPETITION IS BAD
Australia announced joining negotiations to establish a new a Chinese-led Asian regional bank that has emerged as a potential challenge to United States influence in a part of the world where the Obama administration has tried to forge stronger ties.
U.S. = Concerned the new Asian Infrastructure Investment Bank, or AIIB, will allow looser lending standards for financial transparency, the environment and labor rights.
U.S. = Worries new bank will undercut World Bank — U.S. has most clout
Australia = Government will sign a memorandum of understanding that will allow Australia to participate as a prospective founding member in negotiations to set up the bank.
Beijing = Pledged to put up most of the initial $50 billion in capital for the bank, which is expected to be set up by year’s end. It is intended to help finance construction of roads and other infrastructure.
Working with institutions such as the World Bank and the Asia Development Bank, the AIIB has the potential to play a valuable role in addressing infrastructure needs and boosting economic growth in the region, with potential benefits for Australia, the joint statement said.
India and all 10 members of Southeast Asia’s regional bloc are among the more than 30 governments that have so far sought to join the bank before a March 31 deadline.
Japan = Tense relations with China = Still holding out
Obama = At odds with sentiment in the very region where it has tried to strengthen its relationships over the past five years.
Abbott = Expected United States and Japan would also join if China gave required assurances on transparency and board management.