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View Full Version : Great Britain's plan to join mainland China's 'World Bank' angers Washington



-:Undertaker:-
13-03-2015, 06:16 AM
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/11468997/Britains-plan-to-join-Chinas-World-Bank-angers-Washington.html

Britain's plan to join China's 'World Bank' angers Washington

The $50bn (£33.6bn) Asian Infrastructure Investment Bank is seen as a potential rival to US-based institutions such as the World Bank


http://i.telegraph.co.uk/multimedia/archive/02701/BritChinaFlag_2701900b.jpg
China and 20 other countries signed a memorandum of understanding to establish the Beijing-headquartered bank in October



Britain has announced plans to become the first major Western country to join a Chinese-led development bank, drawing a concerned response from the US.

The $50bn (£33.6bn) Asian Infrastructure Investment Bank (AIIB) has been feted by Beijing as a way of financing regional development, and is seen as a potential rival to US-based institutions such as the World Bank.

Chancellor George Osborne said Britain would join discussions with other founding members to set out the institution’s governance and accountability structures later this month, in a move to bolster relations with China.

“Forging links between the UK and Asian economies to give our companies the best opportunity to work and invest in the world’s fastest growing markets is a key part of our long-term economic plan,” Mr Osborne said in a statement.

“Joining the AIIB at the founding stage will create an unrivalled opportunity for the UK and Asia to invest and grow together.”

The move drew a cautious response from Washington, a rare note of discord in the special relationship that follows criticism from the US about Britain’s falling defence spending.

“We believe any new multilateral institution should incorporate the high standards of the World Bank and the regional development banks,” said US National Security Council spokesman Patrick Ventrell.

“Based on many discussions, we have concerns about whether the AIIB will meet these high standards, particularly related to governance, and environmental and social safeguards.”

China and 20 other countries signed a memorandum of understanding to establish the Beijing-headquartered bank in October.

The bank has support from countries including India, Singapore, Malaysia, Cambodia, Pakistan, the Philippines, Uzbekistan and Vietnam. However, several major economies allied to the US, including Japan, South Korea and Australia, have declined to become founding members.

Excellent news.

It is never sensible to put all your eggs in one basket and having a finger in every pie is best. Now, if only we were outside of the European Union we'd also be able to negotiate free trade deals (FTAs) with countries like China as well as our Commonwealth cousins (Canada, Australia, India, Pakistan, Singapore etc) who would sign deals with us at the drop of the hat just as they have with Switzerland: a country a lot less powerful and wealthy than us. Wouldn't it be nice to aim for a global future again as a Great Power rather than a province of Brussels meddling in the Ukraine of which Britain has no historic interest there what so ever. A Euro-centric view of the world that belongs in the 1950s.

Thoughts?

dbgtz
13-03-2015, 03:56 PM
Implying we're not already a great power... Not quite sure how linked joining a bank to free trade agreements either but yes, this is probably a good thing in the long run.

GommeInc
13-03-2015, 05:16 PM
Makes sense. The US cannot be fully trusted seeing as they started a huge recession which ruined itself and so many countries. Even though it isn't necessarily linked to this issue, it would be unwise to, as you said, put all yours eggs in one basket and instead diversify and spread investments - it's what logically investors do anyway. Not forgetting that China is a huge growing economy that should really become a super power soon - it's rivalling the US already as it is.

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