AIIB headquarter based in Beijing

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Asia should march toward a community of shared destiny in order to start a new future. The Asian Infrastructure Investment Bank (AIIB) is exactly a new platform for establishing a community of shared destiny for humanity. Initiated by China, the AIIB belongs to Asia and the whole world. Transforming from an active participant and beneficiary to builder and guider of international development system, China has always contributed to global development, upholding a strategy of opening up that is mutually beneficial. As the AIIB sails into the deep ocean, China is actively and voluntarily making its contributions.

Since its establishment, the AIIB has launched practical cooperation with other multilateral development banks. The AIIB signed cooperation agreements with the World Bank, the Asian Development Bank, the European Bank for Reconstruction and Development and European Investment Bank, expanding the overall strength of multilateral development banks.

Five multilateral financial development institutions, including the AIIB, signed a memorandum of cooperation with China’s Ministry of Finance on the construction of the Belt and Road initiative. 16 out of the 24 projects launched by the AIIB were jointly financed by the AIIB and other multilateral development banks. These loan projects worth a total of $4.2 billion leveraged a further $20 billion from both the public and private sectors, greatly promoting the implementation of these projects.

The AIIB honors its commitments and has taken pragmatic actions to promote development through cooperation. The AIIB actively provides financing support to infrastructure development in middle- and low-income developing countries. China did not apply for a large amount of loans from the AIIB in the early stages following its establishment. Not until December last year, after more than 20 projects had been approved, was the first investment project in China approved.

This was the only investment in China since the AIIB has made its establishment in 2015. This project was approved based on a comprehensive consideration of the purpose and focus the AIIB’s investment strategy as well as the demonstration effect of the project. Upholding the principles of being lean, clean and green, the AIIB has won global trust.

At the same time, as a multilateral financial institution, the AIIB upholds openness and inclusiveness as its principle. The AIIB demonstrates its professional spirit by abiding by rules and being highly efficient, winning itself a good image as a trustworthy cooperation partner. The AIIB has shown its global nature, normality and high standard in terms of governance structure, business policies, agreements on safeguard and procurement, and human resource management. China, as the nation that initiated the AIIB, did not push the RMB as its dominant currency. The AIIB adopted the prevailing international rule of prioritizing the US dollar. Other currencies are compatible in AIIB transactions and the currencies of the parties of the transaction can also be used.

China provided the most capital stock of the AIIB, accounting for 30 percent of the total while it was allotted 26 percent of the total voting rights. The ultimate decision-making rights are shared by all the participants.

In terms of staff composition, the five vice-presidents of the AIIB came respectively from the Great Britain, Germany, India, the Republic of Korea and Indonesia. Chinese employees account for only 25 percent of the staff team. Other employees come from more than 30 countries and regions. The operational and management rules of the AIIB demonstrate the good faith of Chinese people.

 

The article was translated from Guangming Daily.

(edited by MA YUHONG)