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In leading the Asian Investment Bank, China should learn to accept criticisms and make compromises
By China Review News Agency
October 1, 2015


Source: http://www.CRNTT.com   2015-07-01 07:19:19

 

 

The Articles of Agreement of the Asian Infrastructure Investment Bank (AIIB) were signed in the morning of June 29, 2015, in Beijing. Among the 57 prospective founding members, 50 have completed their domestic approval and signed the Agreement. China, as the largest shareholder, accounting for 30.34 percent share of the total subscribed capital, or 26.06 percent of voting rights, has a de facto veto power in major decision-making such as electing its president. If China turns the clock backward by ten years, whether from China’s own perspective or from the perspective of the outside world, this would be the unthinkable "China moment."


An editorial in the Global Times reported that on June 29 the Chinese stock market continued to drop sharply. It seemed that AIIB’s establishment had little bearing on people's confidence in the stock market that day.  The Chinese market was amid the busy rescue effort to contain the loss, which left that day an inerasable memory in the national psyche. But the basic confidence of the Chinese community has been raised to a new level. For the first time in history China has become the world leader in a multilateral bank. Some of its implications can be seen now; others are latent, extendable or influential. It is not the same as China bustling with the accomplishment of Olympic Games.


China has led the completion of the signing of the core Articles of Agreement of the AIIB in less than six months. The efficiency has shaken the world. This was China’s first time to work on this kind of matter, with almost no experience. But the fact showed China’s strong learning ability and great sincerity for fairness and justice. The negotiations of the Articles of Agreement, considered by many people as difficult, was completed in one go so that there was coherence in thought and unity in style. Fifty countries have become the AIIB’s founding members and its first signatories, which is over ten countries more than the founding members of the Asian Development Bank (ADB) led by the US and Japan.


The editorial said that the establishment of the AIIB can be regarded as a true sign of China becoming a mature country. We used to complain about unfairness, showed grievances, sometimes even could not stop expressing sadness. Today, China has become a leader for the first time in a large international financial institution and begins to take a "leadership position" in the world. Perhaps because China did not get a fair share in the International Monetary Fund (IMF) and the World Bank, China was compelled to do so. Perhaps China just wanted to take the AIIB as a testing ground, and still firmly believed that it was still a developing country. But once you've shot the arrow, there's no getting it back. Whether China likes or not, the country has to bear part of the "leadership responsibility” that the country was not very familiar with in the past.


That editorial raised the question what kind of "responsibility" is implied by starting the AIIB. The first responsibility is to accept criticism. The Western public did not make too many irresponsible and sarcastic remarks yet.  But the public were merely holding back to make comments. The AIIB will start operating at the end of this year. Ultimately there will be troublesome matters to deal with. It will not be a surprise if many American, Japanese and European observers and writers are waiting to find fault by saying: Well, China is not able to do it.


If they say that China will not be able do it, are we really unable? Of course not. Future circumstances could be: they can say whatever they like and China will go its own way. Many Chinese people in the past could not accept what they heard and they were most afraid of foreigners’ criticisms. From now on, China will be forced to become mentally strong. Chinese people should really do good things themselves and leave the criticisms to others.


China should also get accustomed to making compromises. China must adhere to the major principles. But since the highest branch is not the safest roost, where ignorance is bliss, it is folly to be wise” may be the "overarching principle." The grander the Chinese strategy, the more China needs to understand the meaning of "winning". China should not be afraid of some specific "loss” or feel regretful about a "partial victory." It is difficult to be a “leader”, it is harder to be a leader when the "new leadership does not have enough strength yet."  Neither the old nor the new leadership is popular, if these leaders are too calculating.


Why do Britain, France, Germany, Italy, South Korea, Australia and other US allies “go along with China” by joining the AIIB? They do not mean to support China, but because the AIIB can give them benefits; these benefits are more important than their “friendship” with the US. China’s GDP is already over $1trillion. Can China create more "platforms for mutual benefit in the future? Will China let the outside world believe that dealing with China means being beneficial to both sides? These are the key elements that will determine whether China’s further rise will be subject to strong resistance.


The editorial finally said that the IMF and the World Bank are actually products of World War II, and the ADB is an institution where the US sets the policy and Japan provides money and execution. The establishment of the AIIB reflects that the environment for supporting China’s rise perhaps is not as bad as what we have imagined. Grasp the opportunity; this is the whisper of history to the Chinese people.

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