China is big in many ways. At 1.3 billion people, China has the largest population on the planet. Geographically, it is one of the three largest countries. Its economy today is second only to that of the United States. Most impressively, it is sitting on $3 trillion in foreign exchange reserves. Although China has long held some of the “big” numbers, it has become an economic success very recently, as the world turns. As such, China is establishing a world bank called Asia Infrastructure Investment Bank, AIIB.
Much to the chagrin of the United States, all of the most economically sound European countries have joined the new bank. South Korea and Australia, too, have joined AIIB. If current predications prove correct, by choice, only Japan and the United States will not be members.
Currently, the World Bank established after World War II is the great international banking institution with international membership, which lends money to countries requesting loans throughout the world. The AIIB for now will focus its funds on Asian/Pacific infrastructure. The AIIB is therefore seen by the United States as a vehicle through which China will gain ascendance in economic and political power, not only in Asia, but, because of its international membership, through-out the world.
There are other considerations which displease the United States. Will the most powerful European nations, which contribute to the World Bank, continue their support of that institution as well as AIIB? Will Chinese engineers, executives, etc. over-see infrastructure development throughout Asia?
I do not like the political system in China for many reasons. Nevertheless, I cannot fault China for setting up this banking institution. In the long run, it will bring long needed roads, bridges, dams, etc. to many parts of Asia/Pacific. Right now, the United States objection to the AIIB sounds like a lot of sour grapes.