Senior Chinese Official Urges U.S. to Join AIIB

Mar 25, 2015 08:52 AM EDT

A senior Chinese official has urged the United State to join the Asian Infrastructure Investment Bank (AIIB). In photo, China's President Xi Jinping (front C) poses for photos with guests at the AIIB launch ceremony at the Great Hall of the People in Beijing October 24, 2014. REUTERS/Takaki Yajima/Pool

Instead of keeping on questioning the transparency and governance of the China-backed Asian Infrastructure Investment Bank (AIIB), the United States better join about 30 other countries as founding members of the bank.

This was the statement of Zhang Jun, a senior Chinese official who is in charge of China's International economic portfolio, on the heels of statements by the US officials that the proposed AIIB will weaken the status of existing global institutions such as the World Bank and the International Monetary Fund (IMF).

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"I believe both China and the AIIB welcome the United States in joining the AIIB. But if the United States still needs time to wait and see, I think it's OK. The AIIB will be able to move forward according to its schedule and plan," Zhang told journalists.

A number of US allies, including European countries such as the UK, Italy, Germany and France, have already declared their interest to join the AIIB, with plans to invest money into the bank.

Australia's cabinet has also approved the country's plan to join the AIIB and sign the memorandum of understanding with China before the Chinese-set deadline of 31 March. The deadline is for those who want to be founding members of the bank.

While some US officials have declared that the AIIB will challenge the standing of the IMF and the World Bank, the world's top financial institutions said they will support the USD$50-billion investment bank.

Asian Development Bank President Takehiko Nakao, IMF Managing Director Christine Lagarde and WB Managing Director Sri Mulyani Indrawati said their institutions are ready to cooperate with the AIIB, which was earlier described by the US as an attempt to stomp on existing financial institutions.

Most of AIIB's regional members joined last year and China earlier announced a 31 March deadline for those who want to join as founding members. The AIIB, which is expected to begin operations by the end of 2015, is formed to provide infrastructure project loans to developing countries.

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