China is set to create its own version of the World Bank and Asian Development Bank. The bank will start with a $100 billion capital, The Financial Times reports citing the sources familiar with the situation.
According to Beijing, the above-mentioned international financial institutions are under the United States’ control, thus not providing China with freedom of action.
“China feels it can’t get anything done in the World Bank or the IMF so it wants to set up its own World Bank that it can control itself,” the FT quoted a source close to the discussions. “There is a lot of interest from across Asia but China is going to go ahead with this even if nobody else joins it,” it says.
To date, more than 22 countries, including some oil-rich countries of the Middle East also have shown their interest in the project to be called the Asian Infrastructure Investment Bank (AIIB). The new financial institution aims to recreate the Silk Road, the ancient trade route, connecting China with Europe. Beijing expects the Bank to be all set by 2015.