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Bosonic

(3,746 posts) Tue Mar 17, 2015, 06:21 AM Mar 2015

Major U.S. allies to join China-backed bank: reports

Source: Reuters

A senior U.S. diplomat said it was up to individual countries whether to join a new China-led international development bank as media reports said a growing number of close U.S. allies were ignoring Washington's pressure to stay out of the institution.

France, Germany and Italy have agreed to follow Britain's lead and join the Asian Infrastructure Investment Bank (AIIB), the Financial Times reported, quoting European officials.

The newspaper said the decision by the four countries to become members of the AIIB was a major diplomatic setback for Washington, which has questioned if the new bank will have high standards of governance and environmental and social safeguards.

The bank is also seen as contributing to the spread of China's "soft power" in the region, possibly at the expense of the United States.

Read more: http://www.reuters.com/article/2015/03/17/us-europe-asia-bank-idUSKBN0MD0B320150317

6 replies

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Major U.S. allies to join China-backed bank: reports (Original Post) Bosonic Mar 2015 OP

Oh, I thought the TPP was supposed to fix all that! Evidently not. djean111 Mar 2015 #1

"Washington...questioned if the new bank will have high standards of governance and jtuck004 Mar 2015 #2

lol NT ctsnowman Mar 2015 #3

"Europeans had agreed to work to ensure the new institution "follows the best standards and practice pampango Mar 2015 #4

Me too. I trust Europe more on this than I do my own government. JDPriestly Mar 2015 #6

Really Big News 1norcal Mar 2015 #5

djean111

(14,255 posts)

1. Oh, I thought the TPP was supposed to fix all that! Evidently not.

Reply to Bosonic (Original post)

Tue Mar 17, 2015, 06:44 AM

Mar 2015

In any event, yes, I can see where this is not so good for the US, but really, the phrase "which has questioned if the new bank will have high standards of governance and environmental and social safeguards." is a wee bit hypocritical. I think that the people-owned (?) banks may be the ultimate answer to this sort of thing. I hope.

But it looks like we will have to share world power with the rest of the world, and I hope that Washington planned for that, and the answer from Washington is not more wars and sanctions.

jtuck004

(15,882 posts)

2. "Washington...questioned if the new bank will have high standards of governance and

Reply to Bosonic (Original post)

Tue Mar 17, 2015, 06:53 AM

Mar 2015

...environmental and social safeguards". Fucking ***snort***

There goes another damn keyboard.

ctsnowman

(1,903 posts)

3. lol NT

Reply to jtuck004 (Reply #2)

Tue Mar 17, 2015, 10:04 AM

Mar 2015

pampango

(24,692 posts)

4. "Europeans had agreed to work to ensure the new institution "follows the best standards and practice

Reply to jtuck004 (Reply #2)

Tue Mar 17, 2015, 10:26 AM

Mar 2015

in terms of governance, safeguards, debt and procurement policies"."

The AIIB was launched in Beijing last year to spur investment in Asia in transportation, energy, telecommunications and other infrastructure. It was seen as a rival to the Western-dominated World Bank and the Asian Development Bank.

It is seen as a key vector to spread Chinese "soft power" in the region, possibly at the expense of the United States. The World Bank is traditionally run by a U.S. nominee and Washington also has the most influence at the IMF.

It comes amid prickly trade negotiations between Brussels and Washington, and at a time when EU and Asian governments are frustrated that the U.S. Congress has held up a reform of voting rights in the International Monetary Fund due to give China and other emerging economies more say in global economic governance.

I think European nations know more about "high standards of governance and ... environmental and social safeguards" than the US knows.

JDPriestly

(57,936 posts)

6. Me too. I trust Europe more on this than I do my own government.

Reply to pampango (Reply #4)

Tue Mar 17, 2015, 02:25 PM

Mar 2015

Sad to have to say that, but it is true.

On edit, when speaking of Europe, I do not include the UK. Its banking regulation is apparently as bad as ours.

1norcal

(55 posts)

5. Really Big News

Reply to Bosonic (Original post)

Tue Mar 17, 2015, 12:24 PM

Mar 2015

American Banking deserves this. This will be interesting to follow and watch. It may well be the most important development since Breton Woods...

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