The United Kingdom’s unexpected decision to join the China-led Asian Infrastructure Investment Bank will likely trigger a snowball effect, with holdouts like Australia and the European Union following suit, according to Australian foreign policy and development experts.
With its announcement Thursday, Britain became the first major Western country to apply to join as a founding member of the $100 billion multilateral bank.
“We have taken the decision to become a prospective founder member of the AIIB to address a real investment need in Asia. It is in all of our interests to strengthen growth in this region and by taking this decision early on the U.K. is leading the way in influencing the AIIB’s founding processes to ensure that international best practice on safeguards and governance is met,” a representative from the British Treasury told the Financial Times.