Bank Alliance

Germany Banks on China, Angering U.S.

China's President Xi Jinping 4th Right meets with the guests at the Asian Infrastructure Investment Bank AIIB launch ceremony at the Great Hall of the People in Beijing October 24 2014 42358626
Germany has joined a banking club based in China, where the new Asian Infrastructure Investment Bank is located.
  • Why it matters

    Why it matters

    The new China-led development bank poses a long-term challenge to U.S. dominance of the world’s financial system.

  • Facts

    Facts

    • Asian Infrastructure Investment Bank was launched in Beijing last year, with China as its biggest capital contributor.
    • Germany, France and Italy have signed up to the new bank after Britain joined last week.
    • The new bank will promote investment in Asia in transport, energy, telecommunications and other infrastructure.
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    Audio

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The Asia Infrastructure Investment Bank, which plans to finance major infrastructure projects in Asia, has become a symbol of the global power struggle between the United States and China.

Now Germany, together with France and Italy, said they will become founding members, after Britain said last week it would join.

Washington criticized Britain’s move last week and urged its allies to think twice about backing what it sees as a Chinese strategy to challenge the dominance of the World Bank, which is based in Washington.

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