It is fair to say that global opinion was somewhat divided when China announced it was creating a brand new regional development bank in Asia.
For the gloom-mongers, many of whom reside in the US administration and Congress, the creation of the new Asian Infrastructure Investment Bank represents a power-grab by Beijing. It is, US officials mutter, the economic counterpart to the Chinese navy throwing its weight around in the South China Sea, and they are baffled that other western governments, led by the UK, have decided to bolster Beijing’s influence by joining it.
For optimistic souls, the AIIB represents a move towards transparency by China, which has long lent out its vast foreign exchange reserves for development projects unilaterally and without transparency. With a wide membership, including 57 founding governments, the institution may also provide a welcome alternative to the sclerotic and US-dominated World Bank.