The Asian Infrastructure Investment Bank (AIIB), a China-initiated multilateral bank seen as a rival to the U.S.-led World Bank, started operations on January 16, 2016.
Representatives of the 57 founding countries gathered in Beijing for the AIIB opening ceremony at Diaoyutai State Guesthouse, according to a news report by Xinhua, the Chinese government-run news agency.
During the ceremony, Chinese Finance Minister Lou Jiwei was announced as the first elected chairman of the AIIB board of governors, and Jin Liqun was elected its first president.
Chinese President Xi Jinping in his speech said the development bank will promote infrastructure-related investment and financing to meet Asia’s enormous infrastructure development demand.
With joint efforts of all the members, the multilateral bank will become “a professional, efficient and clean development bank for the 21st century” and “a new platform to help foster a community of shared future for mankind, to make new contribution to prosperity of Asia and beyond and lend new strength to improvement of global economic governance,” Xi said.
In addition to subscribing capital according to plan, China vowed to contribute US$50 million to a special fund to be established soon, intended to support the preparation for infrastructure development projects in less developed member states.
Calling the initiative to establish the AIIB “a constructive move,” Xi said it will enable China “to undertake more international obligations, promote improvement of the current international economic system and provide more international public goods.”
Statistics from the Asian Development Bank show that between 2010 and 2020, around $8 trillion in investment will be needed in the Asia-Pacific region to improve infrastructure, said the news report.
Xi said he expects the institution and other existing multilateral development banks to complement each other for mutual strength and cooperate on joint financing, knowledge sharing, and capacity building.
Meanwhile, Chinese Premier Li Keqiang said the launch of the new bank is “of positive and constructive significance for the global economic governance reform.”
Hailing Asia “an engine” for the global economic growth, Li said the sustainable development of the Asian economy and regional economic integration rely on infrastructure construction and connectivity, as this will help facilitate the flow of trade, investment, personnel, and information.
The aim of the AIIB is to widen financing channels, expand general needs, and improve supply so as to bring along the common development in the region and promote world economic recovery with its own achievements, he said.
As its name suggests, the AIIB will finance construction of infrastructure projects: airports, mobile phone towers, railways, and roads in Asia, he added.
Photo: Xinhua/Li Xin)
