As of Tuesday, the deadline for countries to join the China-led Asian Infrastructure Investment Bank (AIIB), 46 nations have enlisted. The high number of founding members is an indicator of the growing influence of Beijing in the international arena.

Part of the reason behind the high number of interested nations is the very large amount of money needed to build infrastructure in developing Asian nations that are cash-strapped. By 2020, these countries would need more than $700 billion annually, reports Xinhua.

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The attractiveness of the AIIB comes from the fact that international banks are now wary of funding those projects because of the new Basel rules that made risk-management more expensive. Sovereign wealth funds and pension funds are also not effective as sources of fund.

The entry of AIIB is seen as timely since the traditional sources of fund are deemed as more out of reach by developing nations.

But Xinhua warns that the AIIB is expected to have birth pains as well in the areas of setting standards, making regulations and managing risks, which will be a good test for stakeholders' will and wisdom in balancing power.

One example is that Taiwan wants to join, but China's condition to accept Taiwan is that the tiny nation must change its name.

However, one major Asian power is not taking part in AIIB, indicating the China-Japan rivalry continues to exist.

In turning down the invitation to join AIIB, Japanese officials brought out concerns over how the regional bank would be managed. Japanese Prime Minister Shinzo Abe was quoted as saying that it is important for Tokyo to remain allied with Washington even if other allied nations such as South Korea, Australia, Germany and Britain are going the other way and joining AIIB.

Kyodo News quotes Abe as telling members of the ruling Liberal Democratic Party, "The United States now knows that Japan is trustworthy," reports the New York Times.

Finance Minister Taro Aso echoed Abe's sentiment, adding that Tokyo would only consider joining if AIIB shows it has strict lending standards, to include environmental and social impact assessments of development projects.

Washington said it is willing to work with AIIB, but channeled Japan's stand that the regional bank must have high governance standards and must work alongside current international organizations.

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