WASHINGTON — After several European allies applied to join the Asian Infrastructure Investment Bank this week, U.S. officials have begun to soften their critical view on the China-backed initiative.
“We do not ask any country to choose ties with the U.S. to the exclusion of anyone else,” Deputy Secretary of the State Tony Blinken said Tuesday in a speech at the Brookings Institution, the centrist think tank.
Tony Blinken talks about China’s role in Central Asia development
Blinken restated the White House’s earlier concerns about the standards the China-backed will use for making decisions. Treasury Secretary Jack Lew also remarked at a congressional hearing last week that anyone joining the AIIB need to ask those questions.
The AIIB’s operation plan won’t be revealed until later this year. But it is said the bank will model itself after existing development banks, giving founding members the most voting power. China will also reportedly give up veto power, which eased concerns from many countries.
Blinken worries the AIIB could “dilute the standard” of existing institutions
On one front, the environment, the AIIB is not a copy of World Bank
In the “Environmental and Social Framework” released last June, the World Bank sets specific requirements on labor and working conditions, resource efficiency and pollution protection, community health and safety, and three other categories of environmental and social standards. All are mandatory in order to reduce poverty and increase prosperity in a sustainable manner worldwide, the World Bank asserts.
Chen Bin, a commentator in the outspoken Chinese newspaper, Southern Weekly, however, said it’s “inconsiderate” to ask AIIB to stick to and carry out these criteria.
China’s Finance Minister Lou Jiwei said at a recent Asian-Pacific Economic Cooperation meeting that the bank is aimed at promoting connectivity among Asian countries, through commercial infrastructure investment instead of poverty reduction.
Largely commercial, AIIB sets itself apart from the World Bank and the Asian Development Bank, led by Japan, both committed to public welfare. This leaves more space as well as questions in how the bank will select the programs and infrastructures in which to invest.
“The World Bank and other existing multilateral development assistance organizations have strong rules to promote sustainable and inclusive growth,” said Scott Kennedy, director of Project on Chinese Business & Political Economy at the Center for Strategic and International Studies. “China’s bilateral foreign assistance to date is filled with examples where there has been insufficient attention to protecting the environment and ensuring safe and fair treatment of workers. And a substantial portion of this aid has benefitted Chinese companies. Hence, there is good reason to have some concerns about how the AIIB will operate,” he said.
AIIB currently has 30 prospective founding members, including Great Britain, France, Germany and Italy. Seventeen other countries and regions, including Australia and Taiwan, have yet to be approved. The final list will be confirmed on April 15.
