China-U.S. Economic Ties Weaken, as China-led AIIB Grows

China-U.S. Economic Ties Weaken, as China-led AIIB Grows

People’s Daily English Edition

Cindy Hannon

BEIJING, April 14

America has gained much from its relationship with China over the years, and Americans stand to benefit even more if the two countries can find new ways to work together.

However, the refusal of the U.S. to join the AIIB is weakening China-U.S. economic ties.

The AIIB was proposed by China to finance infrastructure projects in Asia, and is regarded as a rival to other multilateral development banks like the Asian Development Bank and the World Bank. Most Asian countries have joined the bank, as have European powers like Britain and Germany.

“With widespread support, the bank will not only directly benefit economies that plan to develop infrastructure, non-regional countries will also benefit from their investment by tapping into the vast potential of Asia’s future development,” Yuan Gangming, a research fellow at Tsinghua University, said.

However, the US reportedly lobbied allies, including Australia, South Korea, and the UK, to oppose the AIIB over fears of transparency. After all of these countries applied for founding member status with the China-led AIIB, US and Japan continue to resist. But with over 40 founding members so far, transparency and credibility have greatly increased. China remains open and would welcome them as AIIB members.

U.S. and China have the most critical bilateral relationship in the world, and it serves America’s national security, economic health and environmental well-being to keep it strong.