Australia and Denmark, despite previous American objections to the move, say they will join a new Beijing-backed investment bank that some in Washington say could supplant the US-dominated International Monetary Fund.
In a testament to China’s growing economic clout on the global stage, western countries are lining up to join the Asian Infrastructure Investment Bank, or AIIB.
Australian Prime Minister Tony Abbott and Treasurer Joe Hockey expressed their country’s willingness to join AIIB as a founding member, but have attached tough conditions to their membership. “The government has discussed the AIIB extensively with China and other key partners inside and outside the region,” Abbott and Hockey said in a joint statement.
“Key matters to be resolved before Australia considers joining the AIIB include the Bank’s Board of Directors having authority over key investment decisions, and that no one country control the bank,” they said.
At the same time, they were at pains to emphasize that their membership in AIIB did not preclude their continued cooperation with the leading western financial institutions.
“Working with other key multilateral institutions such as the World Bank and the Asian Development Bank, the AIIB has the potential to play a valuable role in addressing infrastructure needs and boosting economic growth in the region with potential benefits for Australia,” the statement said.
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