icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm
2 Oct, 2023 16:05

Germany sticks with Chinese rival to World Bank

The move signals divergence within the Group of Seven nations
Germany sticks with Chinese rival to World Bank

Berlin has announced plans to keep supporting the Asian Infrastructure Investment Bank (AIIB), a Chinese state-backed financial development lender. This comes in contrast to G7 partner Canada’s move to freeze ties with the institution over concerns about Beijing’s influence within it.

The announcement was made shortly after a Sunday meeting between German Finance Minister Christian Lindner and Chinese Vice Premier He Lifeng in Frankfurt.

In June, Lindner’s Canadian counterpart, Chrystia Freeland, said that Ottawa had decided to freeze all ties with the financial institution until further government review. The move occurred due to claims of widespread “communist dominance” within the AIIB by a former Canadian top executive at the bank.

The AIIB, launched in 2015 as an alternative to the Western-dominated IMF and the World Bank, has denied the allegations.

According to a joint statement released after the Frankfurt summit,  Germany, one of the AIIB’s founding members, would “continue strengthening coordination” with China in the financial field and expand two-way market opening based on fair competition.

The parties have also expressed their dedication to enabling the AIIB to better serve the sustainable development needs of its member countries. Moreover, Berlin and Beijing pledged to ensure that the development bank operates by international standards and becomes an institution integrated into the global financial architecture.

The AIIB, currently the world’s second-largest multilateral development institution, has so far admitted 109 nations from all continents as members.

For more stories on economy & finance visit RT's business section