It focuses on funding the construction of roads, railway lines, ports and energy and rural infrastructure, mainly in Asia, and currently has 84 member countries, with China holding just under 27 per cent of its voting shares. That gives Beijing effective veto power, as major bank decisions require at least 75 per cent support. India is the second largest shareholder, with 7. No free AIIB pass for belt and road projects, bank executive says Xi also proposed the belt and road plan in , with the aim of building infrastructure to better connect China, Europe and countries in between.
How India became China-led development bank’s main borrower | South China Morning Post
The initial context was to make better use of Chinese foreign currency reserves in the wake of the global financial crisis. Dominance by both countries and slow reforms underlie China's wish to establish the AIIB, while both countries worry about China's increasing influence. Indonesia signed the MOU on 25 November A US government official told Financial Times , "We are wary about a trend toward constant accommodation of China, which is not the best way to engage a rising power. It was further stated that joining the bank as a founding member would allow the UK to influence the development of the institution. By encouraging Chinese investments in the next generations of nuclear power plants, Osborne announced that "the City of London would become the base for the first clearing house for the yuan outside Asia.
Asian Infrastructure Investment Bank