China-led Asian Infrastructure Investment Bank reflects mainland's rising power
Member of the Obama administration says that foot-dragging by the US Congress on IMF reform 'created chance for China to assert itself'
The China-led Asian Infrastructure Investment Bank (AIIB) will serve the mainland's ambitions of setting an international economic agenda that matches its growing prowess, rather than simply complementing existing financial organisations.
Britain, France, Germany and Italy, in addition to 27 Asian countries, have announced they will become members of the AIIB, while other US allies, Australia, South Korea and Japan, may also come on board.
Both Christine Lagarde, managing director of the IMF, and Takehiko Nakao, president of the Asian Development Bank (ADB), widely seen as a rival to the AIIB, have welcomed the new bank.
"The US$78 trillion world economy can easily accommodate another institution with only US$50 billion capital," said Stephen Roach, a Yale University professor and former chairman of Morgan Stanley Asia. "The US should get over it."
Officially, the United States said it was worried whether the bank would uphold human rights, environment and labour standards and be open and transparent in its governance.
