BEIJING: China has not sought veto power over a new multilateral bank, a top finance ministry official said on Wednesday, after a report Beijing enticed major European countries to join by offering to give up control over decisions.

Britain, Germany, France and Italy have in the last two weeks announced their intention to sign up for the China-led Asian Infra­structure Investment Bank (AIIB), despite scepticism in Washington.

The new lender is viewed as a potential competitor to the US-led World Bank and the Japan-led Asian Development Bank, although China has denied any such intention and says the region’s burgeoning infrastructure needs mean there is plenty of room for it.

The Wall Street Journal reported that as part of its efforts to persuade the European countries to sign up over Washington’s opposition, Beijing offered to give up authority over the bank’s decisions.

It cited Chinese and European officials negotiating its establishment, and contrasted the position with the IMF, where the US has the final say on some decisions despite holding less than 20 per cent of its shares.

Published in Dawn, March 26th, 2015

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