Joining AIIB (Asia Infrastructure Investment Bank)—
The story continues…
The story continues…
“ … And if all goes well, the AIIB could be a way to further deepen ties between China and Europe and increase Europe's overall involvement in Asia." ”
(Why Europe defies...--DW.de)
Let me humbly remind you, gentlemen, policy makers of economic decision in the European Union and others of a few things:
1. There are political implications, purposes, and of course, consequences in this.
2. Beware of the problems of transparency, looser standards, and of implementing, safeguarding environmental, social standards and requirements.
3. Monetary and economic gains, may not, in the longer run outweigh political consequences, and deem worthy of the troubles in international relations, caused by this.
4. I believe England has made a mistake, leading the pack to a wrong road. Trying to bid for and acquire a strong role, for example, gaining a better position in the would-be management of AIIB ‘s transactions is an attempt which will bring about other dire political consequences. First, and foreseeable already, England "has delivered a rather serious blow” to its long, long time friend and ally, the USA.
5. “... And if all goes well…” . Let me just repeat a French saying for you : With an “IF”, people can put Paris in a bottle. (Avec des « si » on mettrait Paris en bouteille.)
With our Vietnamese history concerning China, I would forewarn you greatly to be very cautious, very careful, in the ways you deal while joining this pact. There will be a lot of surprises, and possible heart attacks. In regard to the problems of transparency, honest reports and documentation: do you know how many fake Omega, Longines, Rolex watches, which have origins from China, are flowing in New York city right now? How about shoes, handbags, jeans and dresses, among thousands of other things ?
“But there is also a political element to the initiative, as many analysts view the bank - set to open by the end of this year - as a further means of spreading Beijing's "soft power." Rapid growth has transformed China into the world's second largest economy, but its ability to play a proportionate role in development finance through the World Bank has been constrained by the low voting rights currently allocated to the East Asian nation.
On Tuesday, March 17, France, Germany and Italy stated they would follow Great Britain's lead and join the proposed institution despite skepticism from Washington, which has voiced concerns over looser lending standards as well as environmental and social safeguards. South Korea, Switzerland and Luxembourg were also considering joining, according to China's official Xinhua news agency.
Moreover, the decision can be viewed as a sign of European goodwill or a vote of confidence in China's contributions to global development and order. Some countries, however, will no doubt hope that the favor will be returned by Beijing, perhaps through trade deals or by receiving preferential access to some of China's sectors that are difficult for foreign firms to operate in, as Fredrik Erixon, director of the European Centre for International Political Economy (ECIPE), told DW.
China not only has more than US$4 trillion of foreign reserves - the world's largest - but its currency, the Renminbi - or Yuan, has become the world's second most used trade finance currency and the seventh-ranked global payments currency. And most of Europe's major central banks have added – or are considering adding - the Chinese currency to their portfolio - often at the expense of the dollar.
…In the case of the UK, for instance, the desire to ensure that London remains a global center of finance seems to have been a motivating factor, as being in the bank will strengthen the City's bid to manage AIIB transactions, Hugh Jorgensen, a Netherlands-based expert on global economic governance, told DW.
And if the UK is prepared to accommodate China in this way, despite objections from its "special ally" the United Sates, then the other major European powers presumably don't want to be left behind, he added.
…And if all goes well, the AIIB could be a way to further deepen ties between China and Europe and increase Europe's overall involvement in Asia." ”
Despite US pressure to stay out, Europe's four-largest economies, Germany, France, Britain and Italy, are set to join a China-led regional bank, seen as a...
DW.DE|BY DEUTSCHE WELLE (WWW.DW.DE)