BEIJING: A top Chinese finance ministry has refused the media reports that Beijing is obtaining veto power over the country’s new ‘World Bank’.
Several European countries, including Britain, Germany, France and Italy, have announced their intention to join the China-led Asian Infrastructure Investment Bank (AIIB), despite scepticism in Washington.
The new lender is viewed as a potential competitor to the US-led World Bank and the Japan-led Asian Development Bank, although China has denied any such intention and says the region’s burgeoning infrastructure needs mean there is plenty of room for it.
The Wall Street Journal reported that as part of its efforts to persuade the European countries to sign up over Washington’s opposition, Beijing offered to give up authority over the bank’s decisions. It cited Chinese and European officials negotiating its establishment, and contrasted the position with the IMF, where the US has the final say on some decisions despite holding less than 20 percent of its shares.
“It is an unfounded proposition that China seeks or foregoes veto power,” vice finance minister Shi Yaobin said in a statement.
“Every member’s share will decline commensurately with the gradual increase in the number of the member countries,” he said, reiterating Beijing’s position that “all interested countries, either inside or outside the region” were welcome to join.
China and 20 other countries signed a memorandum of understanding in October to establish the Beijing-headquartered US$50 billion bank.
