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AIIB a means for China to achieve 'One Belt, One Road'

AIIB a means for China to achieve 'One Belt, One Road'

China's Asian Infrastructure Investment Bank (AIIB) initiative is a means to achieve its goal of bolstering regional integration and connectivity through its "One Belt, One Road" strategy, Lu Chung-ta, director of investments and marketing at Shin Kong Investment Trust Co..
The establishment of the AIIB is widely regarded as an effort by China to create an international financial institution that rivals the World Bank, the International Monetary Fund, and the Asia Development Bank and curb the U.S.'s leading position in global financial decision-making bodies in the post-World War II era.
According to Lu, China's "One Belt, One Road" strategy spans Asia-Pacific and European economies that encompass 3.81 billion people and US$16.42 trillion in economic output.
The term "One Belt, One Road" refers to the Silk Road Economic Belt and 21st-Century Maritime Silk Road initiatives raised by Chinese President Xi Jinping during his state visit to Indonesia in 2013.
Lu contended that China's AIIB and "One Belt, One Road" plans represent a more proactive stance by Beijing in participating in regional economic integration efforts and in creating new development and cooperation agendas such as the New Development Bank established by BRICS nations--Brazil, Russia, India, China and South Africa.
The initiative is also aimed at encouraging Chinese companies, in particular state-run enterprises, to invest more abroad and use the country's leverage and foreign reserves to create more financing options for the private sector, Lu said.
Moreover, the AIIB is another measure designed to match the U.S.-led Trans-Pacific Partnership (TPP) and Transatlantic Trade and Investment Partnership (TTIP) trade agreements, Lu said.
He said the AIIB will serve as the centerpiece for China's charm offensive by funneling direct investments to its neighbors in Asia.
Lu felt that companies in the transportation and freight sector would be the biggest beneficiaries of the initiatives, with the agriculture, textile, chemical engineering, telecommunications, financial and high-tech sectors also profiting.
As of March 27 this year, the AIIB has garnered support from 35 nations including Great Britain, Germany, France, and Italy, and Taiwan has lobbied for for membership.
In October of last year, a signing ceremony held in Beijing formally recognized the establishment of the bank, with China promising to furnish more than half of the US$100 billion worth of authorized capital. (By Han Ting-ting and Ted Chen)


Updated : 2021-09-22 19:35 GMT+08:00