Chinese Multilateralism in the AIIB

Abstract

The Asian Infrastructure Investment Bank (AIIB, or the Bank) marks the first endeavor of Asian developing countries as initiators, with China at the center, in multilateral development financing. The glamour of the AIIB lies in multilateralism—the underlying principle based on which it is institutionalized. Chinese multilateralism for the AIIB is different from American multilateralism, which is embedded in the Bretton Woods institutions and has enabled the USA as a hegemon to strengthen its leadership in the world economy. China is not a hegemon; and most importantly, it has no will to counter the existing world order through the establishment of the AIIB. Rather, the Bank has positioned itself in a complementary role in international development financing. Meanwhile, Chinese multilateralism aims to improve global governance, tilting toward balance in favor of those underrepresented. The AIIB meets both the needs of China’s domestic reforms, and the world’s expectation of a responsible stakeholder and contributor. It fulfills multilateralism in both its constitutional charter and standards.