The fate of China-backed Asian Infrastructure Investment Bank (AIIB) is connected to the Chinese economy and its capability to face the problems posed by adverse attitude of the US, a state-run Chinese daily said Monday.
Beijing: The fate of China-backed Asian Infrastructure Investment Bank (AIIB) is connected to the Chinese economy and its capability to face the problems posed by adverse attitude of the US, a state-run Chinese daily said Monday.
In the past two years or so, the bank has been a subject of heated discussion as a symbol of change in the world order.
However, its significance hinges on a number of factors in the future, rather than the founding itself, state-run Global Times said in an editorial titled 'AIIB?s fate connects to Chinese economy'.
With 57 countries, including India, as founding members, the starting point of the bank is high.
Besides, China as the initiator has abundant capabilities of infrastructure construction, and its experience is applicable to developing countries, it said.
"Nonetheless, disadvantages also exist, among which the biggest is the adverse attitude of the US over the bank. It will be more costly for the AIIB to overcome problems than for the World Bank and the Asian Development Bank at critical moments. Therefore, the AIIB must be operated with superb management, leaving no room for any opponents," it said.
US and Japan have not joined as founding members the bank.
"The reason why the AIIB could be founded, despite obstructions from the US and Japan, is that the growth of the Chinese economy has shored up the confidence of the participants," it said.
"The AIIB touches a nerve of major global powers of the US and Japan. Its inclusive nature enables its smooth start.
China has its own interests, but it cannot put its interests above those of the other countries. We should avoid a zero-sum situation, but integrate Chinese interests with others' and make achieving a win-win result a goal rather than a slogan," it said.
"With the changing times, China can't expand its power through coercion. It must integrate into the world system and develop in a way that is acceptable to the majority of the world's states," it said.
"The AIIB represents China's taking of global responsibilities as a big power. The US, as the world No 1, can capriciously vandalise the rules it makes at some critical moments. But China cannot do so. It has to be well-disciplined in serving the world so as to be recognised and accepted as a
rising power in the world," it said.
With authorised capital of USD 100 billion and subscribed capital of USD 50 billion, AIIB, will invest in sectors including energy, transportation, urban construction and logistics as well as education and healthcare.
China is the largest shareholder with 26.06 percent voting shares. India is the second largest shareholder with 7.5 percent followed by Russia 5.93 percent and Germany with 4.5 percent.