OFF INTO THE WILD WET YONDER How does this...
Chinese Government to Open Asia Region Bank
Coming soon to a financial district near you… the Asian Infrastructure Investment Bank (AIIB).
China is in the process of setting up the AIIB to fund infrastructure projects in the Asia region as a complement to what the Asian Development Bank (ADB) is already doing. Initial paid-in capital is expected to be approximately US$50 billion, with that amount being contributed mostly by its members. An updated report though, places a new capital target of US$100 billion which would attract more than 30 different countries world wide. The new plan is to raise the additional money from financial institutions and from private sources.
China Finance Minister Lou Jiwei is quoted as saying, “The AIIB will mainly focus on infrastructure construction and other productive fields in Asia to promote regional connectivity and economic cooperation.” To this he added, “But if conditions are right, the AIIB will also explore business opportunities outside the region.”
This is an interesting one to watch. China’s Navy has recently been popping up all over the South China Sea, flexing its muscles. Now they will start doing so in a suit and tie and wearing an expensive watch. Let’s see which of these wins over the hearts and minds of the region.
On second thought, maybe this isn’t an either–or scenario… but rather one strategy greasing the wheels for the other.