China invites India to join Asian Infrastructure Investment Bank

[idune]

to indian reaction -

 

[cirr]

will chinese capital come with a clause ? if not go for it, if it does forget it ... we have access to capital anyways

Access to what capital？

IMF？WB？ADB？

 

[Alfa-Fighter]

Access to what capital？

IMF？WB？ADB？

don't need more ...

 

[pursuit of happiness]

China invites India to join Asian Infrastructure Investment Bank
Atul Aneja
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China has invited India to participate in the Asian Infrastructure Investment Bank (AIIB) — Beijing’s brainchild to steer development along the ancient “silk route” free from the influence of western-backed lenders such as the World Bank and the Asian Development Bank (ADB).

Diplomatic sources, who did not wish to be named, told The Hindu that China had sought India’s participation during the visit to New Delhi by Chinese Foreign Minister Wang Yi soon after the Modi government assumed office. “It is clear that the Chinese will not tie the lending from the investment bank to non-economic issues, such as human rights, which western-backed lenders have often leveraged as instruments of political influence and control,” the sources observed.

India is yet to make up its mind on Beijing’s offer, though partnership in the bank could, eventually, facilitate New Delhi’s access to infrastructural funding. Sources pointed out that there are major geopolitical implications in China’s offer as there is little doubt that Beijing now views India as a potential partner in an interlocking politico-economic network of neighbouring countries.

India’s entry into SCO
“If India opens its doors to Chinese investments, especially in the field of infrastructure, after taking care of the sensitivities in the security arena, New Delhi’s entry into the Shanghai Cooperation Organisation (SCO) could become the prize,” the sources said. India, along with Pakistan and Iran, has observer status in the SCO, a China and Russia-led grouping, whose role would be central in defining the balance of economic and political power in Eurasia.

Analysts pointed out that following the events in Libya, Syria and Ukraine, China and Russia have reinforced their geopolitical connections, evident in the signing of a $400-billion gas pipeline deal. But New Delhi, too, could be part of this expanding arrangement, for visiting Russian Deputy Prime Minister Dmitri Rogozin said in New Delhi earlier this month that the extension of this pipeline to India would be “one of the largest infrastructure projects that could be conceived”.

The Financial Times is reporting that 22 countries, including some of the wealthy monarchies of West Asia, have so far shown an interest in China’s bold push to establish the AIIB, with a registered capital of $100 billion. The fund is sizeable enough to compete with the ADB, which runs on a capital of $165 billion and is dominated by Japan and the United States.

An ADB study has projected that Asia would require an annual funding of $800 billion till 2020 for developing infrastructure, offering China enough financial leg room to exercise its soft power in its neighbourhood.

China invites India to join Asian Infrastructure Investment Bank - The Hindu

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can anyone tell me what benefit india get if gets in to SCO?

 

[$@rJen]

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can anyone tell me what benefit india get if gets in to SCO?

I've no idea..... but china gets more influence.... So i'm against India joining

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can anyone tell me what benefit india get if gets in to SCO?

See post #12

 

[pursuit of happiness]

I've no idea..... but china gets more influence.... So i'm against India joining


See post #12

-
still its not clear REAL benefit of SCO..
its like SAARC is as good as noting ..
ASEAN is more in trade block...
SCO?
what are strategic , political, deiplotiac, military, economic , benefit ?to india
what its loose if not member?

Access to what capital？

IMF？WB？ADB？

--
IMF quota reform delay to help India save Rs 14K cr in FY14 | Business Standard News
he Indian government had earmarked Rs 14,000 crore in the current fiscal's Budget towards its contribution for higher share in the IMF.

 

[Mr.S.Singh]

Access to what capital？

IMF？WB？ADB？

WB, japan and internal capital

 

[JSCh]

Japan reluctant to join China-led investment bank | The Japan Times

Kyodo Jul 5, 2014

Japan has told China that it is reluctant to accept an invitation to be one of the founding members of a new infrastructure investment bank Beijing aims to set up in Asia this autumn, Japanese government sources said Saturday.

Tokyo’s stance on the envisioned “Asia Infrastructure Investment Bank” may affect how other countries respond to Beijing’s bid to expand its influence in the Asia-Pacific region.

With the United States warning against China’s growing regional assertiveness, Prime Minister Shinzo Abe might urge Australian counterpart Tony Abbott not to take part in the AIIB during their planned summit Tuesday, the sources said.

At a meeting in Tokyo last month, Jin Liqun, head of the working group for setting up the AIIB, asked Japan’s then top finance diplomat, Mitsuhiro Furusawa, to provide capital for the project, which is aimed at improving infrastructure in developing Asian economies, the sources said.

But Furusawa, the vice finance minister for international affairs, told Jin that Tokyo is “not convinced.” He also cast doubt on the necessity of the bank, given that the Asia Development Bank already plays that role, they said.

Jin asked Furusawa to continue talks on the matter, saying the AIIB would be launched even if Japan does not sponsor it, they added.

“The ADB has worked well so far. There is skepticism about whether we need to create a new (international) body,” one of the sources said.

Japan and the United States are the largest shareholders in the ADB, which has provided financial support to industrializing countries in Asia for around 50 years. Since the ADB was established in 1966, the presidency has traditionally been held by a Japanese.

Tokyo has apparently decided to act together with Washington to maintain the status quo in the 67-member ADB, in which China has roughly 6 percent of the shares. The ADB tripled its capital base from $55 billion to $165 billion in 2009.

Since voting rights are allocated to ADB members in proportion to their contributions, China is trying to challenge the leadership of the United States and Japan in the Asian finance sector by creating the AIIB, which is expected to have initial capital of $50 billion to $100 billion, the sources said.

Chinese President Xi Jinping announced the AIIB plan last October. Beijing has since been stepping up efforts to invite many countries, including members of the Association of Southeast Asian Nations, to fund the venture.

From January to June, Beijing held a series of events to prepare for the bank’s establishment. At an event on June 10, the number of participating countries hit 22, up from 15 at separate event on March 28.

China has told Japan that around 20 nations, including those in the Middle East and Central Asia, have been eager to engage in the Beijing-led project, the sources said, but some major countries in the Asia-Pacific region are unwilling to do so.

The United States has applied pressure behind the scenes on ally South Korea to refrain from joining the AIIB, a U.S. government official and a diplomatic source said.

India, Asia’s third-largest economy, is reluctant to become a member of an institution in which China would have more than half of the shares, but Australia may be interested in it as a way to boost infrastructure investment in Asia, the Japanese sources said.

 

[axisofevil]

Australia seems to be the one nation that puts it foot in its mouth