China on Friday welcomed South Korea’s decision to join a Chinese-led development bank to fund infrastructure projects in Asia, widely viewed as a potential counterbalance to U.S.-led multilateral lenders such as the Asian Development Bank.
South Korea announced its decision on Thursday, becoming the latest U.S. ally to join the Asian Infrastructure Investment Bank (AIIB), despite U.S. concerns about the bank’s governance structure and decision-making process.
“The Chinese side welcomed South Korea’s decision,” China’s finance ministry said in a brief statement.
If agreed upon by existing members of the AIIB, South Korea will become a founding member of the new regional lender by April 11, according to the statement.
During a regular press briefing on Friday, Chinese foreign ministry spokeswoman Hua Chunying echoed the welcome, saying that South Korea submitted its application to join the AIIB on Thursday.
“As the chair of the AIIB negotiations, China will consult with existing member states and, if the application gets approved, South Korea will become a prospective founding member of the AIIB,” Hua said.
So far, about 30 countries, including major Western economies such as Britain, Germany and France, have applied to join the AIIB.
China has offered $50 billion to the bank, which is expected to start operations by the end of this year, with other member countries expecting to increase the total funding to $100 billion. (Yonhap)
