Publication

This commentary provides a brief overview of how the US and China are using international financial institutions to gain influence, particularly in Asia. More specifically, the author discusses 1) the application of a number of countries, including US allies, to become founding members of the China-led Asian Infrastructure Investment Bank (AIIB), despite concerns in Washington about the bank; 2) the US and US-led IMF’s rejection of the Asian Monetary Fund (AMF), the aim of which was to help create a fund to deal with regional economic crises following the 1997 Asian financial crises; and 3) competition between the US-led Trans-Pacific Partnership (TPP) which locks out China, and the ASEAN-led Regional Comprehensive Economic Partnership (RCEP) which locks out the US. The author also discusses what can be done to incorporate Chinese-led financial institutions into the existing international financial system.