Turkey to join US allies backing China-backed bank

South Korea said on Thursday it has decided to seek to become a member of of the Asian Infrastructure Investment Bank (AIIB), another key US ally joining the China-led institution despite Washington’s misgivings. Turkey intends to become member of the China-led bank, the country’s Treasury said on Thursday.

At least 35 countries will join the China-led Asian Infrastructure Investment Bank (AIIB) by the deadline of March 31. India, Indonesia and New Zealand h

South Korea said on Thursday it has decided to seek to become a member of of the Asian Infrastructure Investment Bank (AIIB), another key US ally joining the China-led institution despite Washingtonand#39s misgivings.

Turkey intends to become member of the China-led bank, the countryand#39s Treasury said on Thursday. At least 35 countries will join the China-led Asian Infrastructure Investment Bank (AIIB) by the deadline of March 31.

India, Indonesia and New Zealand have also expressed interest in joining the bank, following a request by Britain, France, Italy, South Korea and Luxembourg to become founding members. Some prospective members have worried that Chinaand#39s shareholding in the bank may allow it to exercise veto power The Wall Street Journal reported this week that China had proposed to forgo veto power at the AIIB to attract more countries to join the new bank.

Chinese foreign ministry spokeswoman Hua Chunying has however dismissed the notion that Beijing sought – or gave up – veto power as an andquotimpossible propositionandrdquo.

Twenty-one countries initially signed up as the founding members of the bank and seven others later joined.

The United States had warned against the new institution but its European allies Britain, France, Germany and Italy announced this month they would join the bank, leading the Obama administration to reassess its stance. The AIIB has been seen as a significant and possibly historic setback to US efforts to extend its influence in the Asia Pacific region to balance Chinaand#39s growing financial clout and assertiveness.

Although Australia is a vital part of Washingtonand#39s strategic andquotpivotandquot toward Asia, it is close to joining as well. Japan is more cautious.

Tokyo andquotdoes not need to sign inandquot on joining the bank unless China lays out clear rules on when and what conditions it will provide loans, Finance Minister Taro Aso said on Tuesday.

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SOURCE: Today’s Zaman