The Lossy Mommy Riding on a Big Cock

Behind the AIIB

After the UK in 2015, Australia, Germany, French, Italy, Korean, one after the other world’s developed economies showed their interests in joining the AIIB (Asian Infrastructure Investment Bank). So why so many nations are joining the bank regardless of America’s opposition? And why does the U.S bother to oppose an investment bank of such small size?

The financial crisis in 2018 took a toll on the global economy, the international financial environment became complex and changeable, the bankruptcy of countries like Greece aggravated the internal disputes within the EU. WTO, World Bank, and the IMF, three world’s major economic organization that are led by the U.S have lost their influence and the confidence people had in them. Using measures such as adapting opaque internal operation, lowering the credits ratings, the U.S wants to continue to suppress other major economies, and to maintain their control of (All major credit rating organizations are in the hands on the U.S and few other western nations). The U.S didn’t pay much attention to the AIIB at the beginning, yet with members of the EU joining, the reputation of the bank would certainly be solidified, depriving the U.S with their means of suppressing the AIIB. Before this, China’s “China Exim Bank” distinguished itself in infrastructure financing for countries in Africa, South America, Asia and Europe. The U.S feel its status as the economics top dog is shaken and no longer shall it permit the growth of AIIB.

Listed below are some threats to America post by the AIIB

1、

Once the major players in the EU joined, the AIIB would surely start playing an important role in the field of international finance. This will pave the road for AIIB gaining great credit rating, and thus the high popularity of the bonds it issues. America’s financial dominance would start to diminish.

2、

It may jeopard the Asian Development Bank led by the U.S and Japan. This bank is an important lever the U.S uses to control Asia.

3、

The establishment of AIIB, made China more competitive in Asia economically especially, making Japan, Philippines, Vietnam and other Asian countries would feel considerably more pressured in their alliance with the U.S against China, its not unlikely that they may turn their back on the U.S. Other nations who are caught up in the conflict between the Sino-America conflicts may decide to take their stand with China.

4、

In the long term, led by some of their major players, the EU may approach China economically and politically, it would lead to some very unpredictable consequences.

We shall take the appearance of the AIIB as a very serious matter, some far-reaching significance is hidden within. Along with the internal division of the G7 and the decline in its influence, the AIIB is an important lever for China’s entrance into the world arena competing with the U.S, also, it brings the world our voices on economics and political issues. It marks the beginning of a world economy led by this eastern power.

Is China challenging the international order?

When discussing subjects bout the AIIB, foreign media tend to interpret the issue as if China is challenging the America-led international order. In my opinion, however, China was forced to establish the AIIB.

Why do I say so? Let us take a look at the current situation of the global economic governance. Today’s global economic governance system was primarily built after the WW2. Here are its key features: The U.S is the leading country, the superpower. Along with the U.K, France, Germany, Japan, Italy and Canada, they compose the “Group of Seven (G7)”, which is a coordination platform. Later, Russia joined the force and the organization turned into the “Group of Eight (G8)”, a group that meets to make important decisions for people around the world. The International Monetary Fund (IMF), the World Bank, and the World Trade Organization (WTO) are three pillars of the G7/G8 coordination platform, they are also its arms, responsible for implementing decisions made by the platform.

This governance structure hasn't changed since the WW2, other nations can’t do much other than playing along, else they would be punished. Impacted by the financial crisis in 2008, the “rich countries’ club”, as typified by the G7/G8 found that they need assistance from emerging economies such as China to help pay for the bill. So they called for the convening of the G20 meeting, hoped to work things out together. Yet practically, the global economic goverance system hasn’t been fundamentally changed, the U.S is still in charge, and refuse to make any adjustments and changes, even for things that have been agreed on, no implement was made.