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Who cares what America thinks? UK plc needs China

OWoN: England could not give a Damn what an Illegal Kenyan in the WH, aided by his Chicago Trotskiest Commie Slumlady thinks about the UK co-sharing a new Global banking alternative to the US. Put up or shut up is London's response. 

London is the worlds Premier City because it plans structured approaches to Capital Markets and builds Global alliances. We don't waste Trillions on wars feeding Zionist Greed or protecting Texan Oil Barons. We hedge our bets and long since gave up Hegemony. 

The UK will still be a major force mid-Century unlike the US which is now in terminal decline. Billy No Mates is evermore alone on the Block it seems. Led by a Kenyan whose own history was a shameful sordid saga, and a series of alcoholic fathers with now more questionable DNA it seems. Where is the macabre misfit leading America? It's all about relationships. Good ones.

China and 20 other countries signed a memorandum of understanding to establish the Beijing-headquartered bank in October - Image: Reuters

Who cares what America thinks? UK plc needs China

George Osborne should ignore Washington's reprimands for Britain backing a Chinese state investment bank

The Telegraph
By Martin Vander Weyer
14 March 2015

There is no doubt that China is an emerging economic giant — but there is plenty of argument as to whether, in the unyielding grip of its Communist Party leaders, China is a geopolitical force for good or evil. And there are two ways of dealing with that conundrum: George Osborne’s way of getting up close in the pragmatic hope of gaining financial advantage for the UK; or the American way, which is to play tough in the attempt to impede China’s advance as a trading rival.

The boldest statement of the Osborne position (“the next big step in the relationship”, he called it) was the agreement in 2013 to allow Chinese companies to invest in next-generation UK nuclear power, beginning with the £14 billion Hinkley reactor now under construction. Now Britain has signed up to be a founder member of the Asian Infrastructure Investment Bank (AIIB), a $50 billion Chinese-led venture to fund projects across the Asia-Pacific region.

Done deal: China has bought into Britain’s nuclear energy programme on condition it has a controlling interest in future projects

We’re already a shareholder in a clutch of similar institutions, including the World Bank, the International Monetary Fund, and the Asian Development Bank so why not collect the full set, as it were, and back the AIIB — especially if it wins business for UK infrastructure firms? One reason could be a reprimand from Washington, which worries about “a trend toward constant accommodation of China, which is not the best way to engage a rising power”.

George Osborne shakes hands with Chinese Vice Premier Ma Kai during his week-long visit to China

To understand that argument, you need to know that international financial institutions have long been regarded as instruments of “soft power”— economic and cultural influence as a substitute for the “hard power” of military intervention. The World Bank tends to reflect US foreign policy imperatives; the IMF traditionally mixes US and European influence; the Asian Development Bank is an American fiefdom shared with Japan. No wonder, then, that America is reluctant to see China establish a parallel institution designed to exercise its own soft power across its region, backed by (for the time being) almost limitless Chinese funds available for large-scale investment.

Generated from external trade surpluses, these are the very same funds that have effectively bailed out the US government for the past decade by buying its debt. But Chinese investment in US Treasury bonds is a relatively passive intervention, useful to Washington; whereas funding mass-transit systems and highways in developing Asian nations is an active way to win influence over their governments, as well as contracts for Chinese contractors.

If China’s exploitative record in the poorest countries of Africa is anything to go by, that could bring with it high-level corruption, environmental damage and brutality towards anyone who gets in the way. Nor do Chinese business standards inspire confidence in Beijing’s ability to run a lending institution on behalf of international shareholders: its own state banks so lack transparency that no one really knows whether they are actually solvent.

Does all this make a solid argument against UK participation in the AIIB? No it doesn’t. The only “soft” way to influence Chinese behaviour — whether in commerce or in human rights — is to be at the table doing business with them, not shouting at them over a wall. The UK has real financial skills to bring to an entity such as AIIB, and emphatically needs the export orders that might come with it. Uncomfortable though it may be to have Chinese money in our nuclear plants, it’s clear we will continue to need it (alongside other foreign investors, such as the Canadian fund that just bought part of HM Treasury’s stake in Eurostar) to underpin our own infrastructure developments, because domestic UK investors simply aren’t interested in funding it on a sufficient scale.

A Bird's-eye View of Canton (c. 1760)

But should we align ourselves with the Americans nevertheless, in the interests of the “special relationship”? Hardly. America is our greatest ally — but essentially inward-looking and xenophobic, ruthless in pursuit of its interests abroad and hostile to rivals. The UK, by contrast, has always been an outward-looking mercantile power — and we have done business with China, warily but without getting our fingers burnt too often, since our 18th -century traders landed at Canton. Participation in the AIIB, carefully handled, can work to our advantage; and by being there, we can help make sure it does good things for the rest of Asia.

Martin Vander Weyer is business editor of The Spectator




    New York, New York (TFC) – US officials are currently in an uproar over the United Kingdom’s decision to become a founding memberof the new Asian Infrastructure Investment Bank. This is a decision that forecasts a massive change in the world economy.

    The Asian Infrastructure Investment Bank is setting itself up to be direct competition to the World Bank and IMF. These two little known institutions truly cement the West as the dominant powers in the world. The policies of the new bank will be in direct opposition to those of the World Bank.

    1. Dam right with British boots under the table for a share fast. This is the future, not the Titanic US.

    2. John,
      I do applaud the move; I do believe that this is the best move for the country and people. Also, who wants to go down with a sure sinking ship...I would cut my losses and be gone too!

      Somebody is thinking!


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