Japan Holds Out on Joining China-Led AIIB

Japan held out on joining China’s planned development bank as ministers in Tokyo cast skepticism over its governance on the final day for nations to sign up as founding members.

Japan remains cautious about the prospect of becoming part of the Asian Infrastructure Investment Bank and has yet to get answers from China on questions about the governance of the institution, Finance Minister Taro Aso told reporters in Tokyo on Tuesday. Foreign Minister Fumio Kishida rejected one report that cited Japan’s ambassador in Beijing as saying the nation may join within a few months.

The AIIB has the potential to weaken the clout of the almost 50-year-old Asian Development Bank, dominated by Japan and the U.S. Strategic allies of the U.S. from Asia to Europe plan to join the new institution, underscoring the draw of closer commercial ties with China.

Bloomberg

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