​China needs to strengthen its AIIB balancing act

The Asian Infrastructure Investment Bank (AIIB) has become part of Xi Jinping’s ‘Chinese Dream’ of national rejuvenation, and The United States has failed to block other developed economies from joining the AIIB.

But it is way too early to celebrate.More members - especially from developed countries - will dilute China’s influence. China needs to prepare for the potential challenges from other states inside the AIIB. It should invite experts from leading financial and economic institutions to set up agendas, rules, procedures and even norms according to mutually agreed international standards.

Good governance and transparency is the key to the success of any financial institution. China will gain more soft power if it respects the rules, norms and procedures negotiated with other members inside the AIIB.