1st Edition

Configuring the Asian Infrastructure Investment Bank Power, Interests and Status

By Ian Tsung-Yen Chen Copyright 2021
    232 Pages 11 B/W Illustrations
    by Routledge

    232 Pages 11 B/W Illustrations
    by Routledge

    Studying the Asian Infrastructure Investment Bank (AIIB) through the lens of international relations (IR) theory, Chen argues that it is inappropriate to treat the AIIB as either a revisionist or a complementary institution.

    Instead, the bank is still evolving and the interaction of power, interests, and status that will determine whether the bank will go wild. Theoretically, the current shape of the AIIB will influence global strategic conditions and global perceptions of the bank itself, consequently affecting China’s level of dissatisfaction with its power and status in the international financial system and maneuvering in the AIIB. To empirically show that, this book presents the evolution of the AIIB, compares the bank with its main competitors in the Asia-Pacific region, and conducts ten comparative case studies to show how countries around the world have positioned themselves in response to the emergence of the AIIB.

    This book presents critical insights for scholars and foreign-policy practitioners to understand China’s surging influence in international organizations and how China can shape the world order. It should prove of interest to students and scholars of IR, strategic studies, China Studies, Asian Studies, developmental studies, economics, and global finance.

    1 Introduction

    China’s participation in the global financial system

    Structure of the book

    PART I Evolution of the AIIB

    2 An integrative framework: power, interests, status and global responses

    A revisionist instrument of power

    A complementary institution supporting the status quo

    Pursuing status and reputation

    Global responses to the AIIB

    An integrative framework


    3 China and the evolution of the AIIB

    Power, interests, and status

    The AIIB and china’s status deficit

    The launch of the AIIB

    Who joins the bank?

    Political and strategic loans?

    Toward a multilateral institution

    The AIIB and the Belt and Road Initiative


    4 AIIB in comparative perspectives

    Debates surrounding the AIIB

    Power structures comparison

    Institutional design

    A race to the bottom?

    Competition for loans


    PART II Global responses to the AIIB

    5 Asia-Pacific participation in the AIIB

    How Asia and Oceania view the AIIB

    India: participation and restraint

    Kazakhstan: joining for an admission ticket

    Indonesia: obsession with infrastructure funding

    Oceania: too weak to refuse


    6 European participation in the AIIB

    Explaining Europe’s reactions to the AIIB

    Probability of becoming an AIIB founding member

    Germany: romantic and rational encounter

    Belgium: enthusiastic but hesitant

    Romania: show me the money


    7 Countries shunning the AIIB

    Imminent strategic concerns and ambiguous economic interests

    United states: a looming threat ahead

    Japan: stand with the patron

    Taiwan: sovereignty first


    8 Conclusion: Crouching tiger, hidden dragon

    Inner ambition

    Outward obedience

    The AIIB and the Belt and Road Initiative


    Ian Tsung-yen Chen is Associate Professor in the Institute of Political Science at National Sun Yat-sen University, Taiwan.