Analysis Of China'S Intention To Join The European Bank For Reconstruction And Development

In the history of Sino British relations, the announcement of the United Kingdom to join Asia Investment Bank is an important event that can not be ignored. During the Sino British Joint Declaration issued by President Xi Jinping shortly after his visit to Britain, China expressed its "admiration" to the British move, but another important financial event that could not be ignored was the British side's announcement that China should cooperate with the European investment bank.

As a related move, China has applied to join the European bank for reconstruction and development (EBRD), according to the financial times. Although the European investment bank and EBRD are two different financial institutions, the former is one of the latter's shareholders, and the financial times mentioned that during the talks, Chinese and British leaders also talked about strengthening the relationship between China and EBRD. The German Chancellor Merkel, who has just visited China, also clearly supports China's accession to the EBRD.

Since Britain and Germany can become shareholders of Asia Investment Bank, China's EBRD shareholders are also reasonable. But this undoubtedly means that China has begun to go deep into the core financial institutions in Europe, though this step is actually a little late. If the European investment bank is a European bank, then EBRD can be regarded as the European version of Asia Investment Bank, and its establishment time is not too long. After the drastic change of Soviet Union and Eastern Europe, in order to support the Eastern European and former Soviet Union countries turning to the market economy, EBRD was announced in 1991 by the then president of France, Mitterrand.

A confident and promising China is bound to play an important role in this financial order. Joining EBRD is just an episode. In fact, Jin Liqun, President of the Asia Pacific Investment Bank, spoke very well in the United States. Although TPP actually rejected China, the Asia Investment Bank has always opened its door to the United States. "Whenever you give me a call, I will give you the best business." Jin Liqun "Someone asked me a very interesting question. Why do you still welcome the entry of the United States? Even if the United States does not allow China to join the TPP, the answer is very simple, we are tolerant and we are more generous."

At present, EBRD has 64 member countries and two entities (the European investment bank and the European Union). Its name is "Europe", but it is similar to Asia Investment Bank, and its member states come from five continents. Among them, the United States is the largest shareholder, occupying 10% of the shares, and the four largest European countries - France, Germany, Italy and the United Kingdom each share 8.5% of the shares. The Japanese shares from Asia are also 8.5%, and many countries in Central Asia, West Asia and North Africa are members.

There is one detail. In May 2011, MENOIR, who was president of EBRD, displayed goodwill on the one hand, claiming that China's accession to the EBRD was "no problem at all". But on the one hand, it also tactfully indicated that China's accession to the EBRD constitution is not very easy. Because according to the constitution of the Western multilateral financial institutions, China is obviously not very consistent, though many Central Asian countries that are also not very consistent have joined the EBRD.

The attitude of Europe has changed dramatically now. Katenin, vice chairman of the European Commission, stressed in his visit to Beijing last month that the EU will encourage China and EBRD Deepen cooperation, including China's accession to the bank. Now, the United Kingdom and Germany reiterated this position, taking into account the influence of EBRD in London, and the influence of Britain as an old financial empire.

Europe has changed its course to a certain extent, which is the continuation of Asian investment bank's strategic success. There are basically three points: first, China has led the establishment of Asia Investment Bank, which has made western countries realize that China still has new space for activities to leave western financial institutions. Second, China is an open and inclusive country. Asia Investment Bank has extended its olive branch to western countries. EBRD has rejected China. It is unreasonable. Third, China will become a big investor in the future. EBRD also needs to use China, including strengthening cooperation with Asia Investment Bank.

However, the western countries did not welcome the late welcome. China Cooperation has also illustrated a very simple truth: there is a place for a promising party. It is China's new path in the financial field that enables western countries to realize that the changes in the international financial order are irreversible. China's role and influence can not be ignored. Cooperation with China will surely outweigh the disadvantages. Western countries such as the United Kingdom have declared that joining Asia Investment Bank is an obvious signal.

Interestingly, in the Sino British Joint Declaration, the two countries also called on all members who have not yet approved (IMF) the share and governance reform plan of 2010 to no longer delay and immediately approve the plan. Taking into account the only obstacle to the implementation of the IMF reform plan, the United States will refuse to ratify it, and the United States has the sole veto power of IMF. This irresponsible attitude has been widely criticized by the international community, and China and Britain are putting pressure on the United States without naming it.

From the future, Asia Investment Bank and EBRD are located at both ends of the Eurasian continent, covering many "one belt and one road" countries, and can cooperate on major projects. For example, a British project or a Kazakhstan project can be invested from Asia investment bank or EBRD or even from the world bank and IMF. This joint development will not only help to share risks, but also strengthen cooperation among financial institutions and contribute to the formation of a more equitable and reasonable financial order.