Constant China Accommodation
A major spat between the US and the UK broke out last week with the Obama administration attacking UK prime minister David Cameron and the UK for Britain’s decision to join AIIB, a new China-sponsored financial institution that allegedly could rival the World Bank.
In particular, Obama accused David Cameron of “Constant China Accommodation”.Â
 The Obama administration accused the UK of a “constant accommodation†of China after Britain decided to join a new China-led financial institution that could rival the World Bank.
The rare rebuke of one of the US’s closest allies came as Britain prepared to announce that it will become a founding member of the $50bn Asian Infrastructure Investment Bank, making it the first country in the G7 group of leading economies to join an institution launched by China last October.Â
Thursday’s reprimand was a rare breach in the “special relationship†that has been a backbone of western policy for decades. It also underlined US concerns over China’s efforts to establish a new generation of international development banks that could challenge Washington-based global institutions. The US has been lobbying other allies not to join the AIIB.
Relations between Washington and David Cameron’s government have become strained, with senior US officials criticising Britain over falling defence spending, which could soon go below the Nato target of 2 per cent of gross domestic product.
A senior US administration official told the Financial Times that the British decision was taken after “virtually no consultation with the US†and at a time when the G7 had been discussing how to approach the new bank.
“We are wary about a trend toward constant accommodation of China, which is not the best way to engage a rising power,†the US official said.
US Pressure, Self-Serving Statement
In a self-serving if not downright idiotic statement, a US official claimed “Large economies can have more influence by staying on the outside and trying to shape the standards it adopts than by getting on the inside at a time when they can have no confidence that China will not retain veto powers.“
I do not believe it’s possible to ever have more influence on the outside than in. And certainly had the US, UK, other European nations, and Australia all gotten together on the inside, the position of the US is downright idiotic.
The US pressured Australia to not join the group. Australia initially relented, but now has had second thoughts.
Australia Shifts StanceÂ
Please consider Australia Shifts Stance on China-Led Development BankÂ
