“The Indo-Chinese conflict is the AIIB’s greatest test”

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NEW DELHI: The Asian Infrastructure Investment Bank (AIIB) faced its biggest challenge during the Indo-China conflict in 2020, said bank chairman and former Chinese vice finance minister Jin Liqun.
Speaking to a China International Finance 30 Forum symposium in May, Jin said many people in China question why the AIIB continues to lending to India, even when the two countries are involved in a border dispute. “When the Sino-Indian border conflict arose, the management of the AIIB still met international standards and the international response was very positive. This was the first severe test of the nature of the AIIB as a as a multilateral institution, “he added.
In an informal translation of the speech given by keen observers of China and its internal systems, Jin said, “Our companies cannot enter even if they want to enter, why should not AIIB grant the loans? , the funds are not given to India for nothing, India has to pay back the principal and the interest. Others have thought, why do you have to provide loans to India at this time? ”
India is AIIB’s biggest borrower, but the bank, despite being a multilateral financial institution, has a Chinese veto. Due to the size of its economy, China’s participation is 30.77%, which translates to 26.57% of the vote. AIIB is currently assisting around 42 infrastructure projects in India. Jin also pointed out that with China’s growing power, the United States would eventually have to “come to terms with the reality of China’s rising power.”
“Of course, this is a painful process for the United States. Our leader made an important statement: Big countries should behave in a way that suits their status (or a big country should look like a big country. ). Although there is no name … calling, the meaning is clear. This sentence is a warning to some countries, “Jin said in one of China’s clearest statements on the Inevitability of the transfer of power from Washington to Beijing According to Jin, a powerful China will not rock the Western boat or the “Washington consensus”, on the contrary, it seeks to play a smaller role.



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