The finance minister of China said that the new bank will complement with existing institutions and will not in any way compete. This is the statement of the finance minister after allegations and concerns raised in Washington that the new bank will compete with established international lenders like the World Bank. The Xinhua News Agency quoted the statement of Lou Jiwei, saying that the establishment of the Asian Infrastructure Investment Bank (AIIB) is expected to be finished by the end of the year and this will enable China to accomplish more responsibility in the global development.
The new bank will act like the regional investment vehicles like the European Bank for Development and Reconstruction and the Asian Development Bank. The AIIB will not weaken these establishments but will help reinforce them by being more vigorous to push the global economy forward. The comments of Lou appeared at the worries of the US after France, Italy, Germany and Britain announced that they have plans of joining the AIIB. After the support of these countries, Washington expressed concern that AIIB will not help the global economy forward but will pave way for looser lending standards in terms of transparency, labor and environment and undercut the International Monetary Fund and the World Bank. Even with the negative statement from the US, Lou said that other countries are welcome to become part even after the expiration of the deadline which is on March 31.
On the other hand, this news is similar even in small-scale establishments or new lenders coming out in the market like the guarantor loan UK. New faces in the finance industry will receive various comments and allegations but their main reason is to help the people access money in case of emergencies or big things happening in their lives which needs a big amount of funding.
In 2013, China proposed the bank in order to finance construction of ports, roads and other infrastructure. In fact, the initial capital pledge is $50 billion. After this, 21 other governments like India, Thailand, New Zealand would want to become part but the US and their close allies such as Australia, South Korea and Japan have not. The AIIB is part of the series of initiatives developed by Beijing so that their influence in global finance and expansion of trade links will be increased. For some, they think that this attempt will erode the influence of the US and Japan over the institutions like the Asian Development Bank and the World Bank.
Also, Switzerland announced plans of becoming a founding member, saying that this move will play a significant role to ensure that the AIIB will be able to comply with the standards set internationally in terms of development cooperation and operating activities.