business

China, 21 other countries initiate new Asian bank

19 Comments
By CHRISTOPHER BODEEN

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19 Comments
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Will it be as loaded with bad debt as your average Chinese bank?

-1 ( +2 / -3 )

“We hope that through our joint efforts we can build the AIIB into a professional and efficient financing platform for infrastructure,” Lou said. He described the future bank as a “multi-national financial institution which is fair, just, open ... with a good governance structure.”

LOL, this is China we are talking about. They don't know the definition of " fair, just, open ... with a good governance structure.” Hope the other countries know what they are getting themselves into. Nothing China does on the International stage comes without a price/strings attached.

2 ( +4 / -2 )

This is excellent for the world needs to get away from being forced to use a currency that is based on 'NOTHING' to back it with.

-3 ( +2 / -5 )

Well the renminbi is backed by the dollar so this is like going with two levels away from nothing.

2 ( +3 / -1 )

So now they want to lend money to built infrastructure to consume all other countries natural resources? Hope these 21 countries know what they're getting themselves into.......

2 ( +3 / -1 )

The long term plan is to leave the US Dollar on the other side of the world with Europe. Isolating America's financial influence will allow China to own most of Asia. This and the dwindling political influence crafted by China insures America will not be a problem in the future. This is a clever plan as it allows China to accomplish what Japan started almost a century ago but without large expensive military conquest. Remember Confucianism allows for this. "everyone has a place and is in that place". An easy philosophy to live by when you have the financial clout along with the military (currently under construction) to back it.

0 ( +1 / -1 )

@Robert Chase Meh, I'm not too worried about the paper dragon. They have no friends in the world, a second-rate military and no real political philosophy anyone wants a part of.

2 ( +3 / -1 )

It seems they can't trust China-backed International Bank for Asia because just can't trust anything as China's economy is going down every year, neither stable nor better.

2 ( +2 / -0 )

Monopoly money part 2

0 ( +0 / -0 )

Good luck to that. Ya can't trust China's methods of economic measurements, very far from transparent with hardly any paper trail for publicly-released figures, no experience with leadership based on democratic consultations, fixed own currency while others float, arbitrarily change things just on a whim (like cutting off the supply of rare earth metals suddenly) without regard to business contracts, willing to bully smaller neighbors when there's no negotiations, what non-kangaroo court of law can one use as recourse of action.......... yeah, gonna base my banking on that............ Already worse than the banks we already have, why add something even worse?!

4 ( +4 / -0 )

So it begins, financial war of west vs east.

0 ( +0 / -0 )

Enter at your own risk. Terms and conditions apply.

2 ( +2 / -0 )

Those taking part include regional economic power such as India along with smaller but economically vibrant nations such as Singapore, Vietnam, the Philippines and Mongolia. Absent are U.S. allies Japan, South Korea and Australia, whose membership was sought by China.

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So, not Japan Not S Korea, Not Australia. China wanted these three to be together. There are many small countries that has been helped by China, Workers in coconut fiber factories in some countries are glad that China invested that they have $20 a month income now that they eat food and that is enough to live.

I think Japan and S Korea forgot these poor countries that there are 21 more desperate Asian countries seeking China as their savor now.

Singapore, Mongolia understandable but Philippines?

0 ( +0 / -0 )

This is great news, especially for all of us in ASEAN. Singapore is a founding member and we are truly proud and support our government 100%. The U.S. government cannot coerce us, unlike some countries. Finally, something for Asian development and countries need not bow to western pressures. If the terms from this bank are not suitable, the borrowers can turn western dominated banks!

-1 ( +1 / -2 )

It's clear that Chinese regime intends to compete the greenback and American influence in Asia. that said, fow much can it achieve it reminds to be seen.

However, the new Asian bank could go both ways, on positive side, it may stoke a possible regional growth that otherwise never gets a chance in some Asian countires. Right now, EU's economy seems heading back to a possible economic recession so any growth in any parts of the world may help world economy as whole, not to mention to satblize the downward spiral commodity prices.

-3 ( +1 / -4 )

The Asian Infrastructure Investment Bank is established because the US, etc. fail to change the quota and voting shares of the World Bank, International Monetary Fund and Asian Development Bank. The changes sought by US Pres. Obama have not been approved by the US Congress, especially the Republican politicians. ......................................................................................................................................................................................... This change will give countries like China, India, etc. more voting shares to reflect their larger economies. The Asian Infrastructure Investment Bank is established as the result of the failure of the above changes, and will compete with the Asian Development Bank. The statement "Absent are U.S. allies Japan, South Korea and Australia, whose membership was sought by China." has factual errors. ........................................................................................................................................................ The membership of US and Japan are NOT sought by China and the A.I.D. Bank. They are excluded and are NOT invited.

-2 ( +0 / -2 )

Instead of giving her blessings, the US worked extremely hard to discredit the bank, no matter what good it can bring to developing Asian countries. Why? Because it challenges US domination of the World Bank and IMF. Maybe this bank will prove to be a dud. But why try to destroy it before it's inception? We in ASEAN are proud of this bank and hope that it will ultimately challenge the ADB and bring greater equality to Asia!

0 ( +1 / -1 )

In Asia, many nations are still backward and lacking the fund for building modernized infrastructure. India has many injury and death due to people travelling on the roof of the trains. Thanks to that initiative, poor and backward nations will get the loan for modernization.

U.S. objections dwell mainly on worries the new infrastructure bank could lower international lending standards and work against existing multination lenders by offering laxer environmental, labor and other safeguards for loans that are intended to prevent abuses and protect vulnerable populations.

International lending standard was the lowest in USA. USA has never honored the protocol of international banking regulation. Before 2008, US banks lent the unrecoverable loans to NINJA people. NINJA means No income, No Job and No access. The consequence was the Leighman brother bank collapsed the many banks from US got the domino effect. Since then world wide economic growth has slowed.

economically vibrant nations such as Singapore, Vietnam, the Philippines and Mongolia

Singapore is not only vibrant economically but also it is so good in infrastructure . Changi airport won the gold medal of world wide aiports Olympic. Their buses, transit trains are rock stars of Asia. Unlike US and Australia which is still in the colonial era for public transport. In Singapore, public transport is very convenient. Vietnam, Phillppines and Mongolia desperately need the modern and effective infrastructure

If PRC link the longest tunnel of rail line across the Asia, it will become like railway extension of wild west era of 19th century. The difference is these trains are super fast, clean and comfortable. It will reduce the air traffic congestion.

U.S. allies Japan, South Korea and Australia, whose membership was sought by China.

Japan and South Korea are modernized nations with better infrastructure. However Australia is still backward which has no high speed rail network. Within 20 years, it will become like granny flat of Asia.

1 ( +1 / -0 )

@Zenpun Well congratulations to China on their rail network. Maybe someday they will have economic activity worth its construction.

-1 ( +0 / -1 )

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