Tag Archives: Asian Infrastructure Investment Bank

China’s ‘New Tianxia’ and the Indian Response

This is an updated version of a paper presented on 28 February 2015 at a conference, India’s Foreign Policy Strategies through the 21st Century, organized by the University of Kerala, Thiruvananthapuram, Kerala.

Following the ascension of a new leadership at the 18th CPC Congress in 2012, China has conducted a dynamic foreign policy – on the one hand asserting itself on territorial issues from the East and South China Seas to Line of Actual Control with India and on the other, coming up with new initiatives to draw the Asian continent first and then further afield into an ever closer economic and political relationship with China. It is this latter aspect of that is the subject of this paper. Two parts of this form of Chinese foreign policy are examined – one, China’s frequent hosting of international conferences and seminars and two, its promotion of new ideas and new organizations as a way of shaping a common narrative for Asia with China in the lead. Alongside, this paper also highlights how India lags behind China in terms of organizing principles and institutional capabilities. By way of conclusion, I suggest that China is harking back to ancient principles and the worldviews of an imperial power as a framework for its foreign policy that continues to evolve in a world where its economic power is growing stronger, the influence of the West appears to be declining and calls for China to take greater international responsibility are also increasing.

Continue reading China’s ‘New Tianxia’ and the Indian Response

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Asian Infrastructure Investment Bank: Promise and Responsibility

This article was specifically requested as an op-ed by the Renmin Ribao at very short notice. I submitted it in early December 2014 in English and they sent a Chinese translation for my approval. I approved it but it was then never published.

English original

The Asian Infrastructure Investment Bank (AIIB) is a sign of Asian commitment to both regional and global economic development. Besides promoting regional connectivity and self-reliance for Asian countries, the AIIB also creates opportunities for developed countries in the form of greater investment opportunities as well as for promoting their own economic recovery.  As the Chinese Finance Minister Lou Jiwei has pointed out, historically, the establishment of regional multilateral development banks such as the Asian Development Bank (ADB) or the European Bank for Reconstruction and Development did not weaken the influence of existing development banks such as the World Bank. Rather, it was the total capacity of development financing that increased promoting still further development of the global economy. Thus, the AIIB will be an additional source for development financing in the Asian region with a specific focus on infrastructure and in contrast to the ADB with its focus on poverty alleviation. Continue reading Asian Infrastructure Investment Bank: Promise and Responsibility