Anticipate war powers by creating the AIIb – The Economist

The ADB Investment and Infrastructure is the Chinese government’s response to a new global economic, political and financial.

The Asian bank aims to finance the infrastructure of developing countries in that area . File Photo: Reuters

Since China announced the creation of ADB Investment and Infrastructure (AIIb, for its acronym in English) economic analysts and politicians have warned could be the start of an economic war between the two powers. China and the US, not to mention that this new bank could be used for political purposes

The truth is that in recent years China You searched more prominence in the global economic scene and has now taken an important step in the creation of AIIb.

“China is openly proposing a group of global institutions own different characteristics to existing (the Bank World and International Monetary Fund), “said Enrique Dussel, director of the Center for China-Mexico Studies, Faculty of Economics of the National Autonomous University of Mexico.

For Ambía Oliver, director of the Department of Finance Tecnológico de Monterrey, Campus Santa Fe, the new international institution is the Chinese government’s response to a new global economic, political and financial.

In addition, the new international bank already has the support important both European governments (Germany, UK, France, Italy) and some Asian countries, most notably Japan and others already analyzed your income.

With 100,000 million dollars in the bag

First of all, this bank has an authorized 100,000 million capital, of which 50,000 million will be provided by the Chinese government.

On the risk of creating this bank involves a war between powers, Ambía replied: “It will be an additional option, the IMF and the WB, but do not know exactly if it will be an opponent or an opponent. The importance is that it would give those to be investors or bidders maybe a little more attractive yields that might already exist for those who will place their resources with this bank and who will apply for a loan; requirements may be able to sue the new bank can be more lax and that could be a major advantage or attribute value “.

The specialist emphasized that this is an attractive and interesting alternative option that will New to finance renewable energy projects and major infrastructure for different countries, not only in Asia.

In this regard, Dussel agreed stating that “institutions are not competing, but focus on parallel and different “markets.

Ambía added that countries have no choice to compare with the traditional, but eventually ruled that if the government of China, as already demonstrated many shares, begins to prioritize visions of a political nature on economic court decisions within the bank is politicized.

Threat to the United States

So far, the US has said it will not join the project and, according to experts, will doubt any data to show the Chinese government on the new financial institution, this country has faced several cases makeup of numbers.

The United States “what interests strengthen the institutions that have under their charge, which is the case of the World Bank and IMF, and go to AIIb as a threat, as a new competitor who would taking away market share or subtracting some predominance who He had in recent decades “‘he said.

On the questions surrounding the creation of the new bank, Ambía stated that the main point of criticism has to do with many of the data that the Chinese control Statistical court are disrupted or made-up by the Chinese Communist Party.

He reprized the case of the Internet portal Alibaba, which caused a furore last year with its IPO, which looked attractive, but when reports growth it showed “fizzled because they realized that several of the metrics that had the Chinese in the end were not credible or real data but were makeup,” he said.

Japan would add in June: FT

The ADB Investment and Infrastructure might have to Japan as a member since June, said Masato Kitera, ambassador from Japan in China, the Financial Times (FT) <. / p>

Kitera said that has the same confidence that Japanese business leaders, who despite “reacted late” now advocate the development bank, which they see great potential to support infrastructure development plans in the region.

The diplomat warned that this move would leave the United States as the only power that would be outside the AIIb. It would also be a “reversal of rhetoric” about the troubled relationship between Japan and China.

However, the strong presence that the Japanese country remains at Asian Development Bank, which has questioned the need for a new bank, has created tensions.

A couple of weeks ago, Taro Aso, Minister of Finance, was cautious about joining the AIIb, since Japan would have to weigh tensions with the United States.