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2016-05-08
On March 20, Lou Jiwei, Minister of Finance, received interview on questions concerning the building of the Asian Infrastructure Investment Bank (AIIB).
Q: What is the current progress of the building of the AIIB?
A: In October, 2013, President Xi Jinping and Premier Li Keqiang put forward the initiative of building the AIIB when visiting Southeast Asia. It is a constructive act indicating that China will shoulder more International responsibilities and complement the existent international economic order. It is also a beneficial supplement to the existent multilateral development banks, which will bring mutual benefit to various countries in Asia and the world.
Since the initiative was put forward, China has been promoting the building process with the principle of openness and transparency and met with positive response from many countries. Until now, the number of the prospective founding members has reached 27. Recently, several countries including the U.K., Germany, France, Italy and Luxemburg have officially put forward the application to join the AIIB. If the current prospective founding members agree to the application, the above countries will officially become prospective founding members at the end of March.
According to the timetable set by the current prospective founding members, various parties will complete negotiations and singing process of the AIIB regulations in the middle of the year, finish the effective procedure of the regulations before the end of the year and officially set up the AIIB.
Q: Please introduce the procedures and deadline of receiving new prospective founding members of the AIIB.
A: The AIIB is an open and inclusive multilateral development organization and welcomes all kinds of interested countries. In order to guarantee that the regulation negotiations and signing process can be completed before the end of June, various parties decide to make March 31, 2015 as the deadline of receiving new prospective founding members. Countries with the aim of becoming prospective founding members must put forward the application before March 31, 2015. If all the current founding members agree to the application, the countries can become prospective founding members and participate in the AIIB regulation negotiation and building process. Countries that cannot become founding members can join the AIIB as ordinary members.
Q: What is the relation between the AIIB and existent multilateral banks? When the AIIB is set up, will China weaken the support for the World Band and the Asia Development Bank?
A: The AIIB is a new member and partner in the International development field. Against the background of Asia’s vast infrastructure financing demand, the AIIB has a complementary and not competitive relation with existent multilateral development banks due to different positioning and business emphasis. The AIIB focuses on infrastructure construction, and the current multilateral banks including the World Bank and the Asia Development Bank aim at poverty reduction. Historical experience shows that the building of regional multilateral development banks including the Asia Development Bank and the European Bank for Reconstruction and Development didn’t only weaken the influence of existent multilateral development banks including the World Bank, but also strengthened the overall power of multilateral development financial organizations and vigorously promoted the development of the global economy.
During the building process and future functioning of the AIIB, China will actively help the AIIB conduct cooperation with existent multilateral development banks including the World Bank, the Asia Development Bank in knowledge sharing, capacity construction, personnel exchange and project financing, jointly improve the regional infrastructure financing level and promote regional economic and social development. As an important shareholder of the World Bank and the Asia Development Bank, China will consistently support existent multilateral development banks’ positive contribution in promoting global poverty reduction and career development.
Q: Some countries express the idea that any new multilateral organization must stick to the high standard of the World Bank and the regional development banks and show concerns about the AIIB’s standard in governance structure, environment and social security. What is China’s response?
A: As a new multilateral development bank, the AIIB will fully learn from the general experience and sound practice of existent multilateral development banks in governance structure, environment and social security. At the same time, we will avoid the setbacks encountered by the existent multilateral development banks in order to reduce the cost, improve the operation efficiency and provide better service for the member states.
The governance structure is the most important part of the AIIB regulations and various parties are currently exchanging views. The AIIB will set up a three-level management structure including the council, the board of directors and the management team. Meanwhile, an effective supervision system will be set up to guarantee the decision’s high efficiency, openness and transparency. Currently, different parties are carefully researching on the governance model and experience of existent multilateral development banks, learning from the opinions of non-member states and other multilateral development banks and conducting discussions on how to design AIIB’s governance model.
Q: What influence will the western countries’ entry into the AIIB have on the AIIB (including the U.K., Germany, France and Italy)?
A: The AIIB is an open and inclusive multilateral development organization and China welcomes the fact that interested countries join the AIIB as founding members as soon as possible. The active participation of the countries inside and outside the region is conducive to exhibiting the broad representation of the AIIB. China is willing to work with various parties to build the AIIB into a mutually beneficial, professional and highly effective infrastructure financing platform and make a contribution to the regional infrastructure construction and economic development.
Q: Currently, the U.S. and Japan haven’t joined the AIIB. What is China’s response?
A: Since the AIIB put forward the initiative, China has upheld the principle of open regionalism with an open and inclusive gesture and conducted wide contact and exchange with countries inside and outside the region. During the process, we have kept communication with related departments in the U.S. and Japan. China welcomes the fact the countries inside and outside the region take an active part in building the AIIB, and respects their decision about whether and when to join the AIIB. I want to emphasize that no matter whether the countries join the AIIB or not, China is willing to continue to strengthen communication and cooperation with various parties under the framework of the World Bank, the Asia Development Bank and the multilateral economic dialogue and work together to promote the infrastructure construction and economic development in Asia.
Q: What is the relation between the AIIB and the strategy of “One Belt and One Road”?
A: The AIIB will be committed to promoting the infrastructure construction and connectivity in Asia including the related infrastructure construction projects of the AIIB member countries along the “One Belt and One Road” region. The two have common grounds as well as differences. China welcomes that organizations including the World Bank and the Asia Development Bank take an active part in the related projects of “One Belt and One Road”.
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