Some media reports in the US characterize the AIIB as China's tool to challenge US domination over the rules of the game in Asia. But so far, it seems that nothing about the AIIB supports that assumption. It is true that a significant part of the funding may come from China, yet the Chinese government has made it a point from the very beginning that decision-making in the AIIB will be primarily based on consensus building and thorough evaluation. The design of its institution will not give any country the de facto veto power like in the World Bank or IMF. In other words, the AIIB is not poised to become a political and diplomatic lever for China to compete with the US in the financial arena. Accepting the applications of countries like the UK, France, Germany and Italy says even more about the importance the AIIB's creators attach to ensuring good governance. As a matter of fact, France and Germany have expressed confidence in the constructive role that the bank will play in Asia's economic and social development and, in turn, the global economy.

In the late 1990s, during his visit to the UK, the then Chinese Premier Zhu Rongji was asked by then-governor of the Bank of England when China would open up its capital market. The premier's answer was something to the effect that when it comes to finance, China would like to learn from the UK like a student from his teacher and open up its financial market the day it graduated. Around twenty years later, China has finally made its first major mark in the financial world by proposing the creation of the AIIB. It is also the latest sign of China's readiness to further open up the Chinese financial market. Though it is a bank for Asia, all countries, including the UK and the US, are welcome to join.

It may sound a little blunt, but Asia needs the US to be more relaxed about China. Isn't it better to invest in economic growth rather than arms and drills? The world is no longer held together by guns and alliances. If the US wants what's best for Asia and for itself, the smart thing to do is to acknowledge China's role and welcome its contribution. According to our observation, there are signs suggesting that perhaps the US is starting to come around and just needs a bit more time before agreeing that it doesn't always have to be a zero-sum game after all.

Chen Yonglong is Director of the US Center of the China Foundation for International Studies.

The article was first published at Chinausfocus.com. To see the original version please visit: http://www.chinausfocus.com/foreign-policy/aiib-is-not-to-challenge-the-u-s-dominance/

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