The Strategist

Chiesa: Europe is not Afraid to Challenge US

03/20/2015 - 14:40

Italian journalist and former MEP Giulietto Chiesa thinks that all the BRICS countries will join Asian Infrastructure Investment Bank, and Washington will not cope with such a competitor easily.

Source : Réseau Voltaire
Source : Réseau Voltaire
European’s accession to Chinese Asian Infrastructure Investment Bank (AIIB) is a challenge for the United States, said an Italian journalist and social activist, a former MEP, Giulietto Chiesa to Sputnik.
- US government has used a lot of effort and means to prevent Europe from participating in what Washington calls" a trap "- said Chiesa.

However, the journalist recalls, as they say, "business is business", and European countries do not want to miss this opportunity.

China, he said, is already dominant in the development of Asian infrastructure, transport and energy. Investments with the participation of a partner are likely to be very profitable and well secured.
 - Thus, the United Kingdom decided to join the game, while Germany, France and Italy are watching closely, - says the former MEP.

He stressed that AIIB will be a key tool in promoting and attracting foreign investment from around the world.

Chiesa reckons that all the BRICS countries (Brazil, Russia, India, China and South Africa) and, possibly, Iran’s joining is clear and evident.
 - For the US, it will be difficult to deal with a competitor that level, - he said.

United States, said the journalist, plan to review the rules of international trade, which is now being discussed in the negotiations on the transatlantic free trade agreement and investment partnership. The author believes that now the rules are intended to force Europe to follow a path that would be in Washington’s interests.

In the US, AIIB was immediately perceived as a competitor to the Asian Development Bank, the Anglo-American financial structure, which in tandem with the World Bank set the tone in Asia for decades.
Earlier it was reported that France, Germany and Italy, following the United Kingdom, agreed to join AIIB set up by China Infrastructure Investment.

Britain's decision angered official Washington. The administration of US President Barack Obama said that London "constantly adjust" to China.

AIIB was established in 2014 on the initiative of China. The purpose of the bank is financing of infrastructure projects in the Asia-Pacific region. The authorized capital of the bank is $ 50 billion.
AIIB is a potential competitor of the World Bank, which is dominated by the US and Japan. As Financial Times notes, the decision of the European governments indicates a "serious failure" of Obama’s administration, which urged Western countries, saying that they will have more impact on the operation of the bank, if they stay together outside and set higher lending standards.

The creation of a central bank made the question in the growing rivalry between the US and China over who will set the rules of the economics and trade in Asia. Australia, the key US ally in the Asia-Pacific region, which previously was forced to reject joining AIIB, also reconsiders its decision.

Switzerland, Korea Republic and Luxembourg are also considering the possibility of joining the bank. In October 2014, China, India, Thailand, Bangladesh, Malaysia, Singapore, Philippines, Pakistan, Brunei, Cambodia, Kazakhstan, Kuwait, Laos, Myanmar, Mongolia, Nepal, Oman, Qatar, Sri Lanka, Uzbekistan and Vietnam signed the agreement on the bank’s establishing.