SHANGHAI: Representatives from 57 countries have attended a signing ceremony in Beijing for the founding of the China led Asian Infrastructure Investment Bank.
Australia became the first country to sign the document in the Great Hall of the People in Beijing. The AIIB, which will have billions of dollars to lend, is expected to go into operation later this year.
Australian Treasurer @JoeHockey was the first to sign the articles of association of #AIIB in Beijing today. pic.twitter.com/bLuCU4Jg5r
— David Olsson (@dolsson88) June 29, 2015
It has been viewed by some as a rival to the World Bank and Asian Development Bank, and the United States and Japan — the world’s largest and third-largest economies, respectively — notably have declined to join.
Washington sought to dissuade its allies from taking part but European countries including Britain, France and Germany have rushed to sign up as they seek to bolster ties with the world’s second-largest economy.
There are some concerns over transparency of the lender, which will fund infrastructure in Asia, as well as worries that Beijing will use it to push its own geopolitical and economic interests as a rising power.
The bank’s voting structure will give China the “upper hand” as the largest shareholder, effectively granting it veto power, according to a report this month in the Wall Street Journal, which did not identify its sources.
Australia becomes the first nation to sign the Articles of Agreement of the #AIIB in Beijing’s Great Hall of People pic.twitter.com/Ilwd7LADtC
— Joe Hockey (@JoeHockey) June 29, 2015
