“The Asian Infrastructure Investment Bank and the Silk Road Fund initiated by China are also very important, and they will follow internationally accepted rules in their operations”
“These initiatives will provide capital and strong support to developments of major projects, such as infrastructure and connectivity in Asia.”
“As you know, many countries have expressed their willingness to participate in the Asian Infrastructure Investment Bank, which fully shows how attractive this market is. We welcome investors from all countries.”
– Chinese Vice Premier Zhang Gaoli who ranks seventh in China’s ruling Communist Party hierarchy
The end of March is the deadline set by China for interested parties to become members of the bank that many experts see as a counterbalance to the Asian Development Bank and the World Bank (Image credit: Kobiz Media)
BEIJING, March 22 (Korea Bizwire) – Chinese Vice Premier Zhang Gaoli on Sunday dismissed concerns about the governance structure and decision-making process of a new Chinese-led Asian infrastructure bank, saying it will follow “internationally accepted rules.”
In his keynote speech at an annual economic forum at the Diaoyutai State Guesthouse in Beijing, Zhang admitted that the Chinese economy is facing downward pressure this year but suggested that the world’s second-largest economy can achieve its 2015 growth target of around 7 percent.
Chinese Vice Premier Zhang Gaoli (Image courtesy of Wikimedia Commons)
The Chinese-initiated Asian Infrastructure Investment Bank (AIIB) has recently gained traction as major Western economies, including Britain, Germany and France, decided to join it. Close U.S. allies in Asia — South Korea, Australia and Japan — have yet to make their decisions.
The end of March is the deadline set by China for interested parties to become members of the bank that many experts see as a counterbalance to the Asian Development Bank and the World Bank, which have been dominated by the United States and other Western economies.
“The Asian Infrastructure Investment Bank and the Silk Road Fund initiated by China are also very important, and they will follow internationally accepted rules in their operations,” said Zhang, who ranks seventh in China’s ruling Communist Party hierarchy.
“These initiatives will provide capital and strong support to developments of major projects, such as infrastructure and connectivity in Asia,” Zhang said through an English interpreter.
“As you know, many countries have expressed their willingness to participate in the Asian Infrastructure Investment Bank, which fully shows how attractive this market is,” Zhang said. “We welcome investors from all countries.”
The U.S. has been negative about the Chinese push, interpreted as an attempt to bolster its economic clout in Asia. The U.S. has called for transparency and high standards of governance as key requirements for such an institution.
China has offered US$50 billion and seeks a reported stake of up to 50 percent in the AIIB, which South Korea views negatively because China could make unilateral decisions in the bank’s operations.
The Chinese-initiated Asian Infrastructure Investment Bank (AIIB) has recently gained traction as major Western economies, including Britain, Germany and France, decided to join it. Close U.S. allies in Asia — South Korea, Australia and Japan — have yet to make their decisions. (Image credit: Kobiz Media/Korea Bizwire)
Beset by a lackluster property market at home and falling global demand, the Chinese economy is rapidly cooling down. Earlier this month, China set this year’s economic growth target at around 7 percent. Last year, China’s economy grew 7.4 percent.
The International Monetary Fund has predicted China’s economy will grow 6.8 percent this year.
“Currently, the recovery of the global economy lacks momentum,” Zhang said.
“Last year, the performance of our economy was stable on the whole,” he said. “Starting from this year, the downward pressure has been somewhat increased and the growth speed in terms of industry and investment continues to slow down.”
(Yonhap)
