U.S. Failure

Dealing With China

Asian Infrastructure Investment Bank AIBB Source Reuters DISTORTED Chinas-President-Xi-Jinping_effect
The China-led Asian Infrastructure Investment Bank: Germany is in, Britain is in, the United States is out.
  • Why it matters

    Why it matters

    The new China-led development bank poses a challenge to the longtime U.S. dominance of the global financial system.

  • Facts


    • The Asian Infrastructure Investment Bank was launched last October, with China as its biggest contributor.
    • Germany, Britain, France and Italy as well as 52 other nations have signed up to the new bank.
    • It will promote investment in Asian transport, energy, telecoms and other infrastructure.
  • Audio


  • Pdf

Politicians and bankers from nearly 190 countries will gather again this weekend for the spring meeting of the International Monetary Fund and World Bank. Since the end of World War II, they have met twice a year to discuss the world economy and global financial system.

Traditionally, representatives of the most important industrial nations set the tone, and the United States has veto power in both institutions. So the IMF and World Bank perfectly reflect the dress codes of the post-war era: Without America, nothing functions in global economic and financial regulation.

Or is that about to change?

Want to keep reading?

Subscribe now or log in to read our coverage of Europe’s leading economy.