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Posts tagged as “investment”

Our renminbi. Your problem.

The U.S. is not on board the train of AIIB. Source:

“If an alien landed on earth they would be puzzled by its international financial institutions as China is grossly underrepresented” (BBC). In fact, it’s not just China; the vast majority of Asian countries are severely underrepresented in international financial institutions such as the International Monetary Fund (IMF), though Asia is home to the world’s fastest growing economies. Apparently frustrated at the failure of the existing world order to accommodate its rapid rise, and aiming to export China’s production capabilities, the Chinese government introduced plans for the Asian Infrastructure Investment Bank (AIIB), China’s first multilateral development bank. The U.S. has been a key opponent of China’s efforts to expand global influence, turning China’s financial initiatives into a diplomatic contest by urging its allies not to join. However, the international society has ever since rejected the U.S. endeavor by supporting China’s initiatives with overwhelming zeal. Now that the pros and cons of accommodating these initiatives have become abundantly clear, the U.S. should forgo its frantic political race and realign itself with China in maintaining the rising tide of the global economy.