Healthy competition with AIIB will benefit region: analysts
The Japanese government is planning to invest $100 billion in infrastructure development in Asian countries over the next five years, a move that Chinese analysts think will compete with the China-led Asian Infrastructure Investment Bank (AIIB).
The Jiji Press, a Japanese wire service, reported on Tuesday that around $100 billion will be made available in public-private assistance to boost infrastructure investments and loans for Asian countries.
The amount is similar to the AIIB's planned capital, which Japan has declined to become a founding member.
Chinese analysts said the move will turn the Japan-led Asian Development Bank (ADB) and the AIIB into rivals in the Asian infrastructure market but the competition would in the end benefit the entire region.
"The envisioned assistance is aimed at demonstrating Japan's position to contribute to building high-quality infrastructure in Asia through human resource development and technology transfers and to differentiate it from the AIIB, so that Japan can keep a high profile in the region," Jiji reported.
Japanese Prime Minister Shinzo Abe is expected to unveil the plan on Thursday.
Chen Fengying, director of the Institute of Global Economics at China's Academy of Social Sciences, told the Global Times Tuesday that Japan is doing it for its economic interests despite its political motivation.
"After seeing China's plan to invest in Asian infrastructure development, Japan may have realized that it is indeed a giant market that it has not been paying enough attention to," she said.
"Apart from being rivals, the ADB and AIIB will also be partners," she added.
"The region requires much more capital for infrastructure development. Investment from the Japanese government will supplement the market and reduce AIIB's pressure as Asia needs $800 billion in infrastructure investments each year," she said.
Huang Wei, an expert at the Institute of World Economics and Politics at the Chinese Academy of Social Sciences, told the Global Times that with investment from both ADB and AIIB, the competition will become a healthy one and benefits the Asian region as only the best services will win the projects.
Japan and the U.S. have decided to stay out of China's initiative as both countries are concerned that the AIIB may pose a challenge to the ADB and the US-dominated World Bank.
However, China has said that the AIIB will take an open and inclusive attitude and be complementary to existing development banks and will strengthen the region's communication, social and economic development.
Meanwhile, the Fifth Chief Negotiators' Meeting on establishing the AIIB will be held from May 20 to 22 in Singapore. The meeting will discuss the draft articles of agreement and operational policies of the AIIB. Representatives from the 57 prospective founding members will attend the meeting.
