Why the United States Shouldn’t Worry About the AIIB

{
  "authors": [
    "Michael Pettis"
  ],
  "type": "legacyinthemedia",
  "centerAffiliationAll": "dc",
  "centers": [
    "Carnegie Endowment for International Peace"
  ],
  "collections": [],
  "englishNewsletterAll": "asia",
  "nonEnglishNewsletterAll": "",
  "primaryCenter": "Carnegie Endowment for International Peace",
  "programAffiliation": "AP",
  "programs": [
    "Asia"
  ],
  "projects": [],
  "regions": [
    "East Asia",
    "China"
  ],
  "topics": [
    "Economy",
    "Trade"
  ]
}

In The Media

Why the United States Shouldn’t Worry About the AIIB

The reaction from the United States over the Asian Infrastructure Investment Bank (AIIB) translates into a victory for China.

By Michael Pettis

Published on Apr 16, 2015

Source: CNBC

Speaking on CNBC, Carnegie’s Michael Pettis asserted that it is not yet clear how the governance structure of the Asian Infrastructure Investment Bank (AIIB) is going to operate. Moreover, he argued that the popular narrative contending that the AIIB represents an unprecedented move by China is simply incorrect. He concluded by maintaining that the renminbi would become—at best—a minor reserve currency.

This interview was originally broadcast by CNBC.

About the Author

Michael Pettis

Nonresident Senior Fellow, Carnegie China

Michael Pettis is a nonresident senior fellow at the Carnegie Endowment for International Peace. An expert on China’s economy, Pettis is professor of finance at Peking University’s Guanghua School of Management, where he specializes in Chinese financial markets.

Recent Work

Commentary
Who Paid for China’s Last Debt Cleanup, and Who Will Pay for the Next?
- Michael Pettis
Commentary
Is China’s High-Quality Investment Output Economically Viable?
- Michael Pettis

Economy Trade East Asia China

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

More Work from Malcolm H. Kerr Carnegie Middle East Center

Paper
Egypt’s Military Landlord Economy and its Limitations
The armed forces champion a form of capitalism that is generating revenue, but its reliance on rent faces diminishing returns, leaving the country with massive sunk costs and deferred returns, deepening dependency on external borrowing.
Yezid Sayigh
Article
From Hormuz to the Maghreb: The Geopolitical Reach of a Gulf Crisis
Morocco and Algeria, each in its own way, are having to navigate the global economic fallout of the U.S.-Israeli military campaign against Iran.
Yasmine Zarhloule
Commentary
Diwan
Unpacking Lebanon’s Gap Law
In an interview, Ishac Diwan looks at the merits and flaws in the draft legislation distributing losses from the financial collapse.
Michael Young
Commentary
Diwan
Has Sisi Found a Competent Military Entrepreneur?
Mustaqbal Misr has expanded its portfolio with remarkable speed, but a lack of transparency remains.
Yezid Sayigh
Research
Arab Diaspora Business Communities in Egypt
Arab diaspora business communities in Egypt often mirror the same systemic challenges facing Egyptian businesses.
+4
Nur Arafeh, Yezid Sayigh, Qaboul al-Absi, …

More Work from Malcolm H. Kerr Carnegie Middle East Center

Paper

Egypt’s Military Landlord Economy and its Limitations

The armed forces champion a form of capitalism that is generating revenue, but its reliance on rent faces diminishing returns, leaving the country with massive sunk costs and deferred returns, deepening dependency on external borrowing.