China builds rival to World Bank.
The New York Times details a rush to join the China Development Bank that even stunned its founder. Rivals like Taiwan and critics like Norway signed on despite the US opposition to an institution that could compete with the World Bank.
Country's in need of cash have proven the easiest targets for expanding influence since the end of WWII but the World Bank is seen abroad as a tool of the United States.
South Korea, Australia and 14 of the G20 also joined.
Washington basically dug its own hole by failing to allow a bigger voice for China in the World Bank and the International Monetary Fund, said David Daokui Li, a former adviser to the People's Bank of China who has a Ph.D. in economics from Harvard.
"The Americans got nervous, saying to its allies, 'You guys can't join, they are not dependable,' " Mr. Li said. "But in the end, all of America's best allies ended up joining. We should be the ones most surprised, not the Americans."
The first power to join was Britain and it seems as though foreign exchange was a big reason why.
"Britain has made it clear that its chief objective is to ensure that London, and not Frankfurt, would become a center for overseas business transacted in Chinese currency."
