With Plan To Join China-Led Bank, Britain Opens Door For Others Particularly Australia, South Korea
Jane Perlez | Beijing
March 14, 2015
A surprise decision this week by Britain to join China's new development bank for Asia, despite opposition from the Obama administration, will almost certainly encourage other American allies to become members, particularly Australia and South Korea, analysts said Friday.
Britain's announcement on Thursday that it intends to join the Asian Infrastructure Investment Bank (AIIB), which China is largely funding in hopes of becoming the dominant influence in Asian affairs, has bolstered the fledgling bank's reputation even before it begins operations, the analysts said.
Britain said it wanted the new bank - which would provide financing for transportation, telecommunications and energy projects in developing countries across Asia - to address concerns about environmental standards and other lending safeguards before signing the final membership documents.
But the chancellor of the Exchequer, George Osborne, made it clear on Thursday that Britain was intent on joining, calling it "an unrivaled opportunity for the UK and Asia to invest and grow together."
Membership by Britain, America's closest ally and the first would-be member from the Group of 7 leading economies, would be a major step toward China's goal of making the bank, which President Xi Jinping inaugurated last October, a global financial institution rivalling the World Bank.
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