A strategic rivalry has been ignited between the United States and China involving the AIIB (Asian Infrastructure Investment Bank). Traditional US allies have backed China in creating this new bank that will help develop infrastructure in Asia. Britain, France, and Germany have all shown desires to be founding members of the bank, while some US allies have stayed true to the US. Some believe China is trying to side step the United States as the IMF is going through reform in the United States Congress. The United States also has control over the World Bank, so for China to be in control of it's own development bank would be huge. China is having difficulties securing funding for it's infrastructure projects, a problem that resulted from it's huge economic rise over the past few years.
This could show the fall of the United States power over other nations.
http://www.economist.com/news/asia/21646629-development-finance-helps-china-win-friends-and-influence-american-allies-following-money
1 comment:
Cool article! It is interesting how in the end money determines all. I wonder how much power or influence will be gained/lost through this new bank. I am not entirely clear on what could happen, but it looks like China will have a hard time abusing power through this bank, with countries such as Britain, France and Germany taking part in it.
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