The world invests in China’s new bank

aiib-graphic

Fifty-seven governments, including all the major powers except the USA, Canada and Japan, have signed up to participate in China’s new Asian Infrastructure Investment Bank.

The AIIB may or may not be an important force in building infrastructure in Asia.  But the eagerness of the world’s governments to participate shows a willingness to follow the leadership of China even against the advice of the USA.

The red countries on the map are governments that participate in the Asian Development Bank, which is supported by Japan and headquartered in Manila, who also participate in the Asian Infrastructure Investment banks.  The blue countries on the map are other countries who have joined the AIIB.

The yellow countries are Asian Development Bank participants who held back from joining the AIIB.

I know, from reading of history, that China is following a pattern of drawing other countries in to itself rather than engage in overseas conquest.

During the Age of Discovery, for example, Europeans had a trade deficit with China and also India.  All the exploits of Vasco da Gama and Christopher Columbus were intended to find a route by which the European nations could trade directly for the porcelain, silk and spices of Asia rather than through Muslim middlemen.  All the gold and silver that Cortez and Pizarro found in the New World and brought back to Spain eventually went to China and India.

China went into temporary eclipse during the 19th and early 20th century, but the current Chinese government has restored China to its historic position—the nation that the rest of the world comes to, and tries to connect with.

I do not claim to know whether how much Asian infrastructure will in fact be built through the AIIB, nor what the future holds for China.  As stockbrokers say, past performance is no guarantee of future results.  But for now, the Chinese policy of offering things to people is more successful than the U.S. policy of forcing things on people.

LINKS

57 nations approved as founding members of China-led AIIB by Gary Huang for the South China Morning Post.

The infrastructure gap: Development finance helps China win friends and influence American allies by The Economist.

The power of the new Chinese investment bank by Richard Javed Heydarian for Al Jazeera.

 

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