China has EU by short and curlies and the smart money recognizes the power of the sleeping dragon
China-backed international development bank is attracting advanced global economies. European powers ready to join China-led “World Bank” are Germany, France, and Italy – each has signed up to the Asian Infrastructure Investment Bank (AIIB).
Earlier, the readiness of the UK to defy Washington with its application for the membership opened the door to other Western countries. Importantly, China is pursuing the policy for founding the global financial institution which is likely to pose a serious challenge to the World Bank and the Asian Development Bank where the United States has significant influence.
Europe’s four top powers have now broken ranks with Washington in a move to become founding members of the AIIB despite the US fierce opposition. Thus, their decision is dealing a further blow to the US government. Having lost its hope to exert its influence on the European allies, Washington shifted the focus on Australia.
The Green continent is the major US ally in the Asia-Pacific region. So, Washington relies on Australia to take the US side. However, Canberra is also believed to be rethinking its position to stay allied with the US and reject joining the Asian Infrastructure Investment Bank. Besides, South Korea has said it is still in discussions with China about its possible participation.
The only country which instantly gave a flat refusal is Japan. Being China’s main regional rival, Japan has been supporting the US in all its causes.