Standing in front of the national flag and a portrait of Dr. Sun Yat-sen, the founding father of the Republic of China, Taiwan’s Premier Mao Chi-kuo speaks to the foreign media about Taiwan’s interest in joining the Asian Infrastructure Investment Bank (AIIB) in Taipei, Taiwan, Wednesday, April 1, 2015. AP/Wally Santana
BEIJING — China on Wednesday announced the 57 charter members of the proposed Chinese-led Asian Infrastructure Investment Bank, with longtime rival Taiwan left off the list despite expressing a desire to join.
Taiwan’s exclusion means it won’t participate in drawing up the bank’s foundational documents and governance rules, although Beijing says the island is welcome to join later.
Beijing on Monday indicated that issues surrounding Taiwan’s accession still need to be hammered out, especially the question of what name the island should be referred to by.
Asian Infrastructure Bank membership and potential membership.Philstar.com/Ember Edison
Prospective Founding Members, or PFM, which signed the memorandum to build AIIB
Approved as PFM of AIIB
Applying to become PFM of AIIB
Application under consideration
No commitment to participate
Uncommitted
Chinese pressure forces Taiwan to participate in international sporting competitions and other events as “Chinese Taipei,” the name suggested by Taiwanese President Ma Ying-jeou when he proposed the island’s membership in the bank.
However, Beijing appeared to have rejected that suggestion. Although it has not offered an alternative, China succeeded in 1986 in having Taiwan’s name at the Asian Development Bank changed from “Chinese Taipei,” to “Taipei, China.”
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Following China’s Monday announcement, Taiwan’s government said it will seek to join later, but would continue to insist on the name “Chinese Taipei.”
The U.S. has expressed concern the new bank will allow looser lending standards for the environment, labor rights and financial transparency, undercutting the World Bank, where the U.S. has the most clout, and the Asian Development Bank, where it is the second-largest shareholder after Japan.
While Japan remains among the holdouts, other U.S. allies such Britain, Australia, France, Germany and Italy have signed on as charter members. The list also includes financial powerhouse Switzerland, the United Arab Emirates, India, Brazil, Russia and all 10 members of the Association of Southeast Asian Nations, including the Philippines.
China proposed the bank last year as a vehicle for financing the construction of roads, railways, ports and other infrastructure. Beijing has pledged to put up most of the initial $50 billion in capital for the bank, which is expected to be set up by year’s end.
