Tue, Apr 14, 2015 - Page 8 News List

Rejecting the AIIB is a no-brainer

By Su Tzu-yun 蘇紫雲

China will have gained share of the global rail transport market worth almost US$250 billion before next year, and this will make a significant contribution to the Chinese economy. This is also the reason Japanese Prime Minister Shinzo Abe tried so hard to sell the Japanese Shinkansen system during his visit to India in August last year, which marked the beginning of a “railway war” between China and Japan.

Beijing has now won a round in this battle by obtaining the deal to build Russia’s first high-speed rail by means of financing the deal. This may become a business model for the AIIB.

Germany first proposed a “railway strategy” about 100 years ago. Based on this land-based strategy, Germany attempted to resist Russia in the east and France in the west by relying on the mobility of railways. A century later, China is now enhancing and glorifying this strategy by integrating the railway strategy with its thinking on diplomacy, economic and resource safety issues.

As it extends a railway network into other countries, the AIIB will be the main source of its financing, placing China’s “high-speed rail diplomacy” at the core of the bank.

Should Taiwan put its limited capital in the China-dominated AIIB, whose mechanisms and benefits are still unclear to us, or should it put its money in mature multilateral development mechanisms such as the Asian Development Bank dominated by the US and Japan? The decision is self-evident.

Su Tzu-yun is chief executive officer of the Center for Advanced Technology at Tamkang University.

Translated by Eddy Chang

This story has been viewed 5035 times.

Comments will be moderated. Keep comments relevant to the article. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned. Final decision will be at the discretion of the Taipei Times.

TOP top