AIIB, a case for cooperation

The UK's decision of becoming a founding member of the Asia Infrastructure Investment Bank (AIIB) is a good sign to further consolidate the international cooperation in infrastructure investment.

George Osborne, chancellor of the Exchequer of Britain, said that the AIIB fills an important gap in providing finance for infrastructure in Asia, and joining the AIIB at the founding stage will create an unrivalled opportunity for the UK and Asia to invest and grow together.

The remarks reflected a tendency for a more constructive attitude towards China's effort in playing a bigger role in the world's economic restructuring.

China has confirmed Britain's decision and is seeking the opinions of other founding countries, the country's Finance Ministry said.

Despite a multinational presence within the AIIB, the United States somehow believes its efforts in pooling capital - in other words, contribution to job creation and economic growth - are worrying.

Viewing the initiative from its own perspective, Washington once again puts its own concern beyond the interests of others - including some of its allies.

In response to U.S. concern that the new institution should incorporate the high standards of the World Bank, expressed after Britain's announcement to join the AIIB, Foreign Ministry spokesman Hong Lei said the bank will strive to meet international criteria.

"The AIIB will complement existing multilateral development banks and support the infrastructure and economic development in Asia. Britain's move will further promote the common development of Asian countries, " Hong said at a daily news briefing on Friday.

He said AIIB's operation and governance will be open, transparent, inclusive and responsible.

The World Bank also welcomes Britain's application to be a founding member of the China-proposed AIIB and it has prepared to help such multilateral development banks.

"Simply for the need for more infrastructure spending, there is no doubt that we welcome the entry of the AIIB," said the World Bank Group President Jim Yong Kim in Tokyo on Friday.

As a major infrastructure equipment exporter, China has been pooling effort to provide badly-needed funds to infrastructure construction, a hindrance to many countries' development. BRICS countries alone have about 1 trillion U.S. dollars each year in infrastructure needs, according to World Bank's statistics. Such funding gaps also exist elsewhere.

Britain should be in at the start of the new bank, ensuring that it operates in a transparent way, Osborne said.

This kind of engagement with China, hopefully, will become more prevalent in the years to come, as the country is eyeing on more international cooperations including the AIIB and the Silk Road Economic Belt.