Japan declined China's offer of a top AIIB position

Want China Times, Staff Reporter 2015-04-19

Representatives of the 21 nations that signed the MOU on establishing
 the AIIB in Beijing, Oct. 24, 2014. (File photo/Xinhua)

Angela Merkel and Shinzo Abe shake
 hands at the prime minister's official
 residence, Tokyo, March 9. (File photo/
Xinhua)

Beijing had offered Japan a position as top-ranking vice-president at the China-backed Asia Infrastructure Investment Bank (AIIB) but Japan declined the offer and chose to align with the US instead, Japan's Nikkei reported on April 15.

Sources also reveal that Germany has asked Japan to join the AIIB, but Japan's government spokesman has refuted the statement.

Jin Liqun, China's former deputy finance minister and the interim head of AIIB, reportedly spoke with Takehiko Nakao, president of Asian Development Bank (ADB), at the Diaoyutai State Guest House in Beijing.

Jin expressed China wish for Japan to join the AIIB and that he was willing to explain this in person to the Japanese government if necessary, according to informed sources.

Jin, a former vice president of the ADB, is deemed the most probable candidate for the position of AIIB's first president. His meeting with Nakao was on March 22, nine days before the deadline for applications to become one of the organization's founder members.

In addition to offering Japan the post of vice president, Jin also proposed the creation of a post of director which would represent Japan only.

Despite the preferential deal, Japan has stood with the US and chose to stay away from the AIIB.

In a telephone call on April 1 between the German chancellor, Angela Merkel, and the Japanese prime minister, Shinzo Abe, Abe asked Germany to collaborate in an effort to ensure transparency in the operation of the AIIB, while Merkel urged Japan to join the AIIB, Japan's Kyodo News reports informed sources as saying.

Yoshihide Suga, Japan's chief cabinet secretary, denied the Kyodo News report. He said in a press conference on April 16 that Japan is cooperating with the G7 in regard to the AIIB.

Among the G7 nations, the UK, Germany, France and Italy plan to join the AIIB as founding members. The total numbers of founding members stands at 57.

The US has recently stated that they welcome the establishment of the AIIB. Yang Tao, assistant to the director of Institute of Finance and Banking at the Chinese Academy of Social Sciences, has said that the US had not expected to see so many developed nations in the west join the AIIB. The AIIB will become more influential as more countries join, and the US would be marginalized in the new financial institution if it does not take part.

There are scholars and former politicians in Japan calling for it to join the regional financial institution. Abe is to meet with President Barack Obama on April 28 and the AIIB is expected to be on their agenda.