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Business / Economy

UK seeks to become member of China-proposed bank

(Agencies/Xinhua) Updated: 2015-03-13 14:21

UK seeks to become member of China-proposed bank

China's Finance Minister Lou Jiwei (L) gives a speech, with the guests of the signing ceremony of the Asian Infrastructure Investment Bank at the Great Hall of the People in Beijing October 24, 2014. [Photo / Xinhua]

Britain said it has sought to become a founding member of the Asian Infrastructure Investment Bank (AIIB), making it the first Western nation to embrace the China-proposed institution.

The AIIB was launched in Beijing last year to spur investment in Asia in transportation, energy, telecommunications and other infrastructure. Analysts have said it could challenge the Western-dominated World Bank and Asian Development Bank.

However, Britain's finance ministry said on Thursday that the AIIB could complement work already done in the region by those organizations.

Britain would meet other founding members this month to agree on the principles of the bank's governance and accountability arrangements, the ministry said.

Finance minister George Osborne said joining the bank would boost the country's push to foster business and investment ties with countries in the region, chief among them China.

"Joining the AIIB at the founding stage will create an unrivalled opportunity for the UK and Asia to invest and grow together," he said in a statement.

China's Ministry of Finance said it welcomed Britain's decision, and would consult with the AIIB's existing founding members on its proposed entry.

"If all goes well, the UK will become a founding member of the AIIB by the end of March," it said in a statement on its website.

The articles of agreement of the AIIB, which will include its shareholding and lending strategy, will not be finalized until the end of 2015, Chinese officials have said.

Twenty one countries were represented at the announcement of the bank in October - Bangladesh, Brunei, Cambodia, China, India, Kazakhstan, Kuwait, Laos, Malaysia, Mongolia, Myanmar, Nepal, Oman, Pakistan, the Philippines, Qatar, Singapore, Sri Lanka, Thailand, Uzbekistan and Vietnam.

Other countries, including Indonesia and New Zealand, soon followed.

Earlier this month, China's Finance Minister Lou Jiwei said 27 countries had applied to jointly build the bank as founding members.

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