China's top representative in Malaysia has made waves in a way that has earned much respect albeit with raised eyebrows at times
DR Huang Huikang (pic) is no ordinary ambassador. This Chinese envoy has become one of the most-watched diplomats in Malaysia.
As China’s ambassador to Malaysia, he represents his country in important government and political functions here and works hard to promote bilateral ties, trade and investment between the two nations.
Like his predecessors, he mingles well with local Chinese leaders, praising the community for its sacrifices and devotion made over the decades in the development of Chinese education in Malaysia.
But unlike his low-key predecessors, this diplomat hands out cash donations to Chinese schools in a high-profile manner and celebrates Chinese New Year with locals.
The 62-year-old doctorate holder in international law and former law professor, who began his posting here in January 2014, has the poise of an envoy but stands out among his peers with his unconventional mannerism. While other ambassadors are usually more measured in their statements, he does not hesitate to make comments that may raise anxiety.
At official functions, Dr Huang is addressed as “ambassador extraordinary and plenipotentiary” – an ambassador’s official title in full. This may be no exaggeration.
Having served as vice mayor of Tangshan in Hebei province and completed stints as deputy consul-general in New York and minister counsellor-cum-deputy chief at China’s embassy in Ottawa, Dr Huang is a seasoned spokesman for China.
Late last year, he was re-elected as a member of the International Law Commission at the United Nations.
Here are snapshots of Dr Huang:
Role in vast investments
The role played by Dr Huang in bringing in large Chinese investments has put him in good stead.
Chinese Premier Li Keqiang’s visit here in 2015 was crucial to Malaysia and the Middle Kingdom.
When Prime Minister Datuk Seri Najib Tun Razak visited China in November last year, Dr Huang was also seen in Beijing. The trip resulted in the signing of deals and investments totalling RM144bil.
Of late, there has been quite a number of visits by China’s central departments, provinces and cities here to promote trade and forge closer ties.
The influence of Dr Huang is pervasive.
When China’s investments in Malaysia came under attack by some opposition politicians, he crafted a strongly-worded statement to these unnamed politicians, explaining how China could help the local economy and its people. But to these naysayers, China is stealing jobs, eating into the economic pie and depriving opportunities to small and medium businesses.
Once, during a nationwide tour of Malaysia, he cautioned that “slander, vilification and obstruction” could dampen the enthusiasm of Chinese firms.
Chinese investments in Malaysia
With investments from China coming to Malaysia in a never-seen-before scale, particularly under China’s Belt and Road initiative, Dr Huang has hinted that Malaysia should not take all this for granted.
Chinese enterprises are encouraged to venture into Malaysia because of the close ties between the two countries, he said.
Dr Huang spoke of how China would share the benefits from its economic growth with Malaysia, citing technology transfer and job creation.
Malaysian industries could become world class if they adopt advanced technology, he said.
Though not an economist, he predicted that the value ofthe Ringgit would rise in line with the increased foreign trade and foreign reserves.
To a large extent, Dr Huang’s remarks reflected China’s confidence as a superpower and its responsibilities on the global stage.
Even DAP – after criticising MCA for acting like “China’s agent” with the setting up of the Belt and Road Centre and MCA People’s Republic of China (PRC) Affairs Committee – paid Dr Huang a courtesy call in February.
And Dr Huang, ever the gracious, told the delegation that bilateral cooperation transcended political parties and race.
In the limelight
Dr Huang has gained substantial coverage in the Malaysian media, particularly in the Chinese dailies.
Last year, Dr Huang contributed RM40,000 to eight SJK (C) schools in Sembrong, Johor. Early this year, he gave RM100,000 to five schools in Nilai and Seremban, and another RM200,000 to 10 Chinese primary schools and one secondary school in Raub, Pahang.
While the recipients were grateful to him and possibly China, some saw this gesture as China flexing its financial muscle.
As usual, Dr Huang took it in his stride. He said the embassy would continue to support the development of Chinese education here.
More recently, he went on a high-profile trip within peninsular Malaysia to visit projects with Chinese investments, covering Negri Sembilan, Selangor, Kuala Lumpur, Pahang, Kedah, Malacca and Johor.
His visits were splashed across the Chinese dailies. The spotlight trained on Dr Huang has led to much feedback.
A Chinese community leader told Sunday Star: “He is grabbing so much limelight, even more than our own ministers.”
And a senior government official felt that it was “as though he is a politician on a campaign trail seeking re-election, or attempting to claim credit for the projects.”
Chinatown controversy
He did a Chinatown walkabout a day before the planned “Red Shirt” rally in September 2015 when a group led by Datuk Seri Jamal Yunos threatened a riot at the predominantly-Chinese trading area in Kuala Lumpur.
Accompanied by his wife, Dr Huang distributed mooncakes to the traders for the Mid-Autumn Festival celebration.
He told the media that China was against anyone resorting to violence to disrupt public order and that he would not stand idle if the interests of China’s citizens and firms were undermined. To him, it would be “a waste” if the harmony among the races in the area was jeopardised. However, his remarks were seen by some as an interference in Malaysia’s domestic affairs.
With all his fascinating activities and remarks, the diary of this diplomat will continue to come under the public microscope in the days to come.
Relations between Asean and China are already strong, but expect them to draw even closer as they mark the 25th anniversary of dialogue relations.
THERE is a narrative in China that illustrates the interdependence of trade between Asean countries and China.
The little story, told in a programme produced by the state television broadcaster, goes like this: 36g of palm oil from Indonesia are needed to deep-fry three packets of instant noodles that would be consumed by Chinese customers.
The bio waste generated from producing the palm oil, meanwhile, can power 200 five-watt energy-saving light bulbs in Singapore for an hour.
To China, Asean is its “close neighbour connected by mountains and waters”. Collectively, the 10 nations in Asean are China’s third largest trading partner, while China is Asean’s largest trading partner.
In 2014, the two-way trade reached US$480bil (RM2 trillion) and investment was valued at US$130bil (RM558bil), with both sides aspiring to elevate the figures to US$1 trillion (RM4.3 trillion) and US$150bil (RM644bil) respectively by 2020.
To help realise this goal, China and Asean sealed a deal during the Asean summit in Kuala Lumpur to upgrade their Free Trade Area in November.
The geographical proximity makes Asean countries the first participants of China’s 21st century Maritime Silk Road (MSR), an initiative to foster connectivity and collaboration with countries along the route.
One of the flagship aspects of Belt and Road is railway connectivity. Last year, China embarked on rail projects with three Asean countries as part of Beijing’s ambition to connect China and Asean in order to facilitate the movements of goods and people.
In October, China won the bidding for the first high-speed rail (HSR) project in South-East Asia – the Jakarta-Bandung HSR in Indonesia.
A ground-breaking ceremony for the joint Lao-Chinese railway was held in December, followed by another ceremony to launch the Thai-Chinese railway project for two medium-speed lines.
Cooperation between ports is another key area of the MSR.
Malaysia, which is China’s largest trading partner in Asean, forged a port alliance with China during Chinese Premier Li Keqiang’s official visit to Malaysia in November.
China-Asean Business Council executive president Xu Ningning said Port Klang, which is the world’s 13th busiest port, can become an important locale for Chinese to “go out”, referring to China’s policy that encourages its enterprises to invest overseas.
“Malaysian investment in China is still higher than Chinese investment in Malaysia at the moment. I’d suggest Malaysia step up its promotional activities on investment opportunities to attract Chinese enterprises to Malaysia,” he commented on the sidelines of a China-Asean forum on the MSR in Beijing recently.
Former minister counsellor (economic affairs) in the Malaysian Embassy in China Datuk Ong Chong Yi pointed out that the two-way trade between Malaysia and China, which has reached US$ 102bil in 2014, accounted for one-fifth of the China-Asean trade.
Ong, who had just assumed the role as the CEO of China-Malaysia Qinzhou Industrial Park (Guangxi) Development Co Ltd, said once the Trans-Pacific Partnership deal and other multilateral or bilateral trade agreements are put in place, Malaysia would be an ideal destination to help China to enter other markets.
To provide capital support and drive infrastructure projects, China has set up the US$40bil (RM171.6bil) Silk Road Fund and a US$10bil (RM42.9bil) China-Asean Investment Cooperation Fund (CAF).
CAF CEO Li Wen said the fund, which focuses on investment opportunities in infrastructure, energy and natural resources in Asean, has invested in 10 projects in eight countries since its establishment five years ago.
Silk Road Fund Co Ltd managing director Luo Yang said the fund is interested in collaborating with Asean countries under the framework of connectivity.
A discussion of China-Asean relations will surely involve the South China Sea territorial row, which sees China and four Asean neighbours – Malaysia, Brunei, Vietnam and the Philippines – laying overlapping claims on the busy passageway.
While China has carried out extensive construction on the Spratly Islands (which it calls Nansha), it said it preferred direct consultation with other claimants to tackle the problem, and rejected the Philippines’ move to file claims with the International Tribunal for the Law of the Sea over the dispute.
“The dispute is only temporary. As long as China and countries along the MSR have enough goodwill, political wisdom and sincerity, it will be solved through friendly negotiation,” Bai Tian, the deputy director of Chinese Foreign Ministry’s Asian Affairs Department, said.
He added: “South China Sea will be a sea of peaceful cooperation and prosperity.”
It is important to note that despite the territorial disagreement, all parties are still engaging each other actively in economic cooperation. For example, Malaysia, Vietnam, Brunei and the Philippines have all joined the China-led Asian Infrastructure Investment Bank (AIIB) as founding members.
The Beijing-based multilateral lender aims to help Asia build roads, power grids and other essential infrastructure. It will hold the first meetings of its board and executive council on Jan. 16-18, 2016. The AIIB counts 57 founding members.
This year, China and Asean will mark the 25th anniversary of the establishment of dialogue relations.
A series of commemorative activities, including a summit, is expected to be held to mark the milestone and draw the region and China closer to each other.
Oct 27, 2014 ... Chinese President Xi Jinping's (C-R) meeting with the members of the AsianInfrastructure Investment Bank (AIIB) in the Great Hall of the...
Apr 5, 2015 ... Every single U.S. ally with the exception of Japan have all hopped on board the
Asian Infrastructure Investment Bank, or AIIB. Italy and France ...
Apr 11, 2015 ... Many see the rush to join the Asian Infrastructure Investment Bank as the
beginning of a new international financial order and the decline of US ...
Jun 30, 2015 ... Financial leaders of 57 states gathered in Beijing on June 29 to sign the
agreement for establishing the Asian Infrastructure Investment Bank ...
Sunday, November 29, 2015 ... To recap, at the Malaysia-China High-Level
Economic Forum on Nov 23 in Kuala Lumpur, Li said: “It is imperative to stabilise
the ... Malaysian top businessmen meeting with Premier Li on Nov 23 of 2015.
President Xi Jinping looked forward to 2016 in a speech calling for confidence and hard work for a good start in the home stretch of building a “well-off society in an all-round way”.
In his New Year speech, Xi said a Party meeting in late October had set out a promising blueprint for development over the next five years.
He said lifting tens of millions of rural people out of poverty was his top concern and called for joint efforts to achieve this goal.
“We should care for all people facing difficulties ... making them feel warm from the bottom of their hearts,” he added.
China must not be absent from international affairs, Xi said in the speech, as the world was looking forward to voices and answers from China.
“The world is so big, the challenges so complicated. For those people torn by hardship and war, we need to offer not only sympathy and compassion, but also responsibility and action.
“China will always welcome the world with an open embrace, and we will extend our hand to those in difficulty as best as we can, and our ‘circle of friends’ will grow,” Xi said, borrowing a term from the messaging app WeChat. — China Daily / Asia News Network
Events that shaped China in 2015
THE year 2016 will see China implementing its 13th five-year plan, pursuing an economic growth of no less than 6.5% and hosting the G20 summit.
But before that, let’s take a look at eight major headlines in China in 2015.
China Victory Day parade
All eyes were on Beijing on Sept 3 as Chinese soldiers marched along Chang’an Avenue to commemorate the 70th anniversary of the victories of the Anti-Japanese War and World Anti-Fascist War.
Seventeen other countries such as Russia, Mexico and Cuba sent their troops to take part in the parade, while Russian President Vladimir Putin and South Korean President Park Geun-hye were among the international dignitaries in attendance.
But most Western leaders, as well as Japanese Prime Minister Shinzo Abe, shunned the event. The parade was widely interpreted as a showcase targeting Japan, which China has denied.
Yuan in the basket
The Chinese yuan has been admitted into the special drawing rights (SDR) currency basket in the Washington-based International Monetary Fund alongside the US dollar, British pound, Japanese yen and euro.
Back in 2010, the yuan had failed to be included in the SDR as it did not meet the “freely usable” criterion. China then introduced a series of measures to reform its financial market and speed up the process of capital account convertibility. The new basket, to be launched on Oct 1, 2016, will feature the yuan with a 10.92% weighting.
Xi visited the United States
Chinese President Xi Jinping had his first trip to the United States as China’s leader in September. Among the deliverables in a 49-point outcome list of Xi’s state visit published by the Xinhua News Agency were conducting a forum to exchange views on judicial reform, seeking to enhance counter-terrorism cooperation, designating 2016 as China-US Tourism Year and agreeing not to steal each other’s trade secrets.
When speaking at the United Nations General Assembly, Xi pledged a donation of US$1bil (RM4.29bil) to the UN for a peace and development fund. He also took a group photo with the chief executives of top US and Chinese tech companies, including Facebook’s Mark Zuckerberg and Alibaba’s Jack Ma, at the Microsoft campus.
The Chinese media noted that the total market value of the companies present was almost US$2.5 trillion (RM10.73 trillion) “or one-tenth of the combined GDP of China and the United States, or the total GDP of the United Kingdom”.
... and the United Kingdom
Xi visited Britain in October. China and the United Kingdom issued a joint statement declaring a “global comprehensive strategic partnership for the 21st century” which, among others, pledged to support each other in (China’s) Belt and Road initiative and (Britain’s) National Infrastructure Plan and the Northern Powerhouse.
During Xi’s trip, China General Nuclear Power Corporation entered into a deal with energy company EDF for a £18bil (RM115bil) nuclear plant at Hinkley Point, Somerset.
A light-hearted moment was captured in a selfie at Manchester City’s ground. China’s elite politicians are rarely seen taking selfies but at Manchester City’s ground, football fan Xi obliged to a selfie with footballer Sergio Aguero and UK Prime Minister David Cameron. Xi’s UK trip was hailed by Xinhua as opening a “golden era” of China-UK ties.
Belt and Road is underway
The Belt and Road initiative continued to be a buzzword in China. Countries along the routes – land-based Silk Road Economic Belt and seafaring 21st Century Maritime Silk Road – have responded warmly to the initiative to foster connectivity and cooperation.
The Asian Infrastructure Investment Bank (AIIB), a development bank for infrastructure projects, was formally established in December and will be put into operation following the first-ever meeting of its board of directors and executive council in January.
The US$40bil (RM171bil) Silk Road Fund, meanwhile, announced its first investment – a US$1.65bil (RM7bil) Karot hydropower station in Pakistan – during Xi’s state visit to the country in April.
The US presence in the South China Sea
The South China Sea, an important maritime passage for trade and a resource-rich region, is the subject of overlapping territorial claims among China, Brunei, Malaysia, the Philippines and Vietnam. China has said that its extensive construction on the Spratly Islands, which it calls Nansha, is for civilian purposes.
The United States, in denying China’s claims over the rocks and reefs, expanded its military presence in the waters by sending a destroyer within 12 nautical miles of Subi Reef in the Spratly Islands in October.
In early December, it deployed a spy aircraft to Singapore for the first time to step up its surveillance in the South China Sea.
Most recently, an American B-52 bomber unintentionally flew within two nautical miles of the Cuarteron Reef, prompting Beijing to lodge solemn representations with the United States.
First Nobel laureate in science
In October, Tu Youyou became the first Chinese citizen to win a Nobel Prize in Physiology or Medicine for discovering the anti-malaria drug artemisinin, which is extracted from sweet wormwood.
Tu, 85, is also the first female Chinese national to win a Nobel. Chinese Premier Li Keqiang said Tu’s Nobel prize “marks a great contribution of traditional Chinese medicine to the cause of human health”.
Enter the second child
China’s decades-long one-child policy has officially been scrapped. All couples are now allowed to have a maximum of two children in a legislation rubber-stamped on Dec 27 to address the challenges of an ageing population.
Xinhua said the two-child policy would inject 30 million more people into the workforce by 2050, lower the percentage of senior citizens in the population by 2% and boost economic development by 0.5%.
By Tho Xin Yi Check-in-China
Video and full text of President Xi’s New Year address
December 31, 2015
In a televised address on Thursday evening, Chinese President Xi Jinping extended New Year wishes to people across the Chinese mainland, compatriots in the Hong Kong SAR, the Macao SAR and Taiwan, along with overseas Chinese and friends in other countries and regions around the world.
During the speech, Xi recounted the achievements made through the year with regard to economic growth, judicial and education reforms and the fight against corruption, while pledging that the Communist Party of China and the government will continue their efforts to improve people’s livelihood.
In a few hours, the New Year bell will be ringing. We will say goodbye to the year 2015 and welcome the first ray of sunshine of the year 2016.
At this turn of the year, I wish to extend my New Year greetings to the people of all ethnic groups in China, to our compatriots in the Hong Kong Special Administrative Region and the Macao Special Administrative Region, to our compatriots in Taiwan and overseas Chinese, as well as to friends in other countries and regions in the world.
As long as we pay, there will be gains.
In 2015, the great efforts of the Chinese people have paid off.
China’s economic growth continues to lead in the world. Reform has been pushed forward comprehensively. Reform in the judicial system has been further deepened. The special educational campaign of “Three Stricts and Three Earnests” has promoted the improvement of the political eco-system. The fight against corruption has been carried out deeply. Through the joint efforts of the people of all ethnic groups across the country, we see a successful conclusion of the “12th Five-Year Plan”. The general public has enjoyed the increasing “sense of gain”.
During this past year, we solemnly commemorated the 70th anniversary of the Victory of the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War. We held a grand military parade, making the truth clear to all that justice will prevail, peace will prevail, and the people will prevail.
Mr. Ma Ying-jeou and I met in Singapore, with a handshake that transcended 66 years of time and space. This shows the peaceful development of cross-Strait relations is the common wish of the people on both sides of the Taiwan Strait.
During this past year, Beijing won the bid to host the 24th Winter Olympic Games. The renminbi has been included into the Special Drawing Rights basket of the International Monetary Fund. China’s domestically-produced C919 large passenger aircraft rolled off the production line. China’s super computer broke the world record for a sixth consecutive year. A satellite developed by Chinese scientists to detect “dark matter” was launched. Tu Youyou became China’s first scientist to win a Nobel Prize.
These show that as long as we persevere, dreams can always be realized. During the past year, we had happiness, as well as sadness.
The capsizing of the “Eastern Star” ferry, the major fire and explosions at Tianjin Port, the Shenzhen landslide and other accidents have taken the lives of many of our countrymen. And some countrymen were brutally killed by terrorists.
All these are deeply heartbreaking. We will remember them. We wish all the deceased to rest in peace and the living safe and healthy.
Some difficulties and troubles still remain in people’s daily life.
The Communist Party of China and the government will surely continue efforts to effectively guarantee the safety of people’s lives and property, guarantee the improvement of people’s livelihood, and guarantee people’s health.
The year 2016 is the first year when China enters the crucial period to build a moderately well-off society in an all-around way.
The 5th Plenary Session of the 18th CPC Central Committee has made clear China’s development direction for the next five years. The future is encouraging and inspiring. But happiness does not fall from the sky.
We shall establish a spirit to prevail, continue to immerse ourselves in hard work, implement the development concepts of innovation, coordination, green, openness and sharing.
We shall put forth efforts in promoting structural reform, and reform and opening up, promoting social fairness and justice, as well as creating a green political eco-system.
We shall get off to a good start as we advance in the crucial period for China to build a moderately well-off society in an all-around way.
To build a moderately well-off society in an all-around way, our 1.3 billion people should join hands and move forward together. A better life for tens of millions of poor people in rural regions is dear to my heart.
We have sounded the trumpet to win the battle of poverty alleviation. All Party members and fellow countrymen should pull together and work hard as a team, put forth efforts to lengthen this short stave. We should make sure that the entire poor population in rural regions can rise out of poverty on schedule. For all the people in difficulties, we should care for them and let them feel the warmth from deep in their hearts.
Comrades and friends, ladies and gentlemen,
We have only one earth, which is the common home of people of all countries.
During this past year, Chinese leaders have participated in many international conferences and conducted many diplomatic activities. We have achieved solid progress in promoting the development of the “Belt and Road” initiative. We engaged in many international affairs including the United Nations 2030 Agenda for Sustainable Development and issues on dealing with global climate change.
The world is so big, and the problems are so many. The international community expects to hear China’s voice and see China’s plans. China cannot be absent.
Seeing the people trapped deep in suffering and war, we should have compassion and sympathy, but also take responsibilities and action. China will always open its arms to the world and will make all efforts possible to extend our helping hand to the people facing difficulties. Let our “circle of friends” grow bigger and bigger.
I sincerely hope that the international community can work together. With more peacefulness and more cooperation, let’s turn confrontation into cooperation, and turn swords into ploughshares.
Let’s work together to build a community of common destiny of all mankind, which is shared by all people in every country.
Washington's Lobbying Efforts Against China's 'World Bank' Fail As Italy, France Welcomed Aboard. The cheese really does stand alone. Every single U.S. ally with the exception of Japan have all hopped on board the Asian Infrastructure Investment Bank, or AIIB. Italy and France were approved on Thursday to become founding members, bringing the total membership base to 33 from the original 21.
The AIIB groundswell
Just in time for the deadline, an impressive coalition of countries have signed on for the newest development bank on the block
THE deadline of March 31 has passed, and 52 countries are now on the list of would-be founders of the Asian Infrastructure Investment Bank (AIIB).
The China-led bank was launched in October last year at the Great Hall of the People in Beijing, a year after Chinese President Xi Jinping proposed a bank to offer funds for development projects during his official visit to Indonesia.
The initiative would promote regional inter-connectivity and economic integration, he said when delivering a speech at the Indonesian Parliament.
In the past few days leading up to the deadline, news of more countries hurrying to join the AIIB made headlines, especially when a few of them announced the decision at the recently concluded Boao Forum in Hainan province, which Xi officiated.
The world was watching closely to see if the United States and Japan would sign up as founding members just before the deadline, but both have decided to opt out of the bank that is seen as a rival to the Western-dominated World Bank and International Monetary Fund.
Back in October last year, the bank had confirmation from 21 countries to participate as founding members – Malaysia was one of them – all of which are in the Asian continent.
The tipping point came when the United Kingdom announced its decision to join the AIIB in the middle of March, to the surprise of many.
More countries followed suit right after that, including France, Italy, Germany and Switzerland.
Martin Jacques, a senior fellow at the Department of Politics and International Studies at Britain’s Cambridge University, said the rise and growing awareness of the Chinese possibility in the context of a multilateral initiative pressed Britain to act the way it did, making AIIB not just an Asian institution but a global one.
“I think this is an extraordinary historical moment,” he said in a panel discussion during the Boao Forum.
“The new institutions (AIIB and the New Development Bank operated by Brazil, Russia, India, China and South Africa) do not necessarily conflict with the Bretton Woods institutions. They are very different.
“The developing countries now account for nearly 60% of global Gross Domestic Product and they represent 85% of the world population.
“The new institutions, unlike the Bretton Woods institutions, are being defined as relevant to the needs of this 85% of world population, most of whom are concentrated in this continent.”
Countries which have missed the March 31 deadline can still join as ordinary members, while those that have already submitted their application will find out if they are on the final list of founding members by April 15.
With an initial capital of US$50bil (RM184bil), AIIB is scheduled to be officially established at the end of the year, after the rules are finalised and signed in mid-2015.
New Zealand’s former Prime Minister Jenny Shipley said there is a need to define “infrastructure” to determine the types of projects that are qualified to obtain funding from the AIIB.
“If I could be provocative – if you were to put a diverse group of qualified women and men together and ask them the question, you’ll get a broader definition than if you just ask the question of classical male concept of buildings,” she said.
“We need to stand in the shoes of the people whose lives will be unleashed if we get this right. Just bringing in the classical morals of the same thing would not give us the breakthrough.”
Josette Sheeran, the president and Chief Executive Officer of the Asia Society, chipped in on this, citing Indian Prime Minister Narendra Modi’s agenda of building more toilets as an example.
“The reason young girls don’t go to school in India is that there is no toilet. That’s the kind of infrastructure that would really capture the mind of humanity and transform hope in the world,” she said.
Former Pakistan Prime Minister Shaukat Aziz was more concerned about the governance of the new banks, placing emphasis on professionalism, transparency and quality leadership.
“The people hired for AIIB must be professionals who know what infrastructure financing is all about,” he said.
“The quality of people will determine the ability of these banks to analyse risks to give money and to make credible loans which are payable back.”
Transparency, in the opinion of Deloitte global chairman Steve Almond, is also key to attract the private sector to come onboard.
“The regional or sub-regional projects are arguably the ones that bring the greatest impact to economic development. But because they go across the borders, they are also harder to manage and least likely to attract private sector capital,” he said.
“We need the mechanism to provide confidence to the private sector, and transparency governance is one of the compelling reasons to encourage them to come and join the projects.”
And what is the magic that would make good governance work?
Li Ruogum, former chairman and president of Export-Import Bank of China, believes in understanding.
“This newly established institution cannot just clone the older one, as we are working in a very different environment.
“We have to accumulate our experiences and need to have a mind of innovation. All should come together and understand each other, and try to achieve good governance.”
Check-in-China by Tho Xin Yi
Asian development to the fore
Chinese President Xi Jinping. - AFP
Hungry for development: In 2013, President Xi Jinping proposed a new development bank, the Asian Infrastructure Investment Bank. One year later, 22 Asian countries had signed up, including 10 Asean countries - Blooberg
Asia’s need for better infrastructure and more development is too important to be held to ransom by outdated big power politics and petty posturing.
FOR many observers, the US “pivot” (later renamed “rebalancing”) to the Asia-Pacific was classic Obama: the rhetorical flourish was more dramatic than the policy substance.
In the second half of its first term, the Obama administration sought to assign two-thirds of its military assets to the Asia-Pacific theatre, up from the standard half from the even split between the Pacific and the Atlantic.
By the middle of its second term, officials were struggling to maintain a semblance of a policy largely left to coast under its steadily diminishing momentum. US foreign policy, and by extension US defence policy, appeared distracted by other concerns.
The State Department and the Pentagon seemed consumed at once by the Syrian debacle, Iraq’s instability, rising terrorism everywhere, civil war in Ukraine, Europe’s problems with Russia, Iran’s nuclear programme and an uppity Israel.
Then there were the ever-present budgetary constraints. Deploying another 16% of military assets to the Asia-Pacific, from half to two-thirds, seemed hardly noticeable or achievable.
Meanwhile, officials were anxious to insist that the rebalancing had nothing to do with the rise of China and its growing assertiveness in the region. It was, they said, part of efforts to preserve US strategic interests.
Whatever the choice of words, and however implicit China may be as motivation, rebalancing was fast becoming history. By March last year, a Pentagon official admitted it was going nowhere.
However, the Obama administration’s gift of verbalising policy intent made US intentions clear enough.
President Obama had famously said the US should be writing trade rules in the Asia-Pacific rather than let China do it.
Thus, the Trans-Pacific Partnership, a trade pact with controversial demands that swiftly became synonymous with US trade preferences. But China had not been idle either.
In 2013, President Xi Jinping proposed a new development bank, the Asian Infrastructure Investment Bank (AIIB). One year later, 22 Asian countries had signed up, including all 10 Asean countries.
In Asia, the world’s most promising continent for rapid economic growth, infrastructure needs for development are peaking. The IMF, World Bank and Asian Development Bank (ADB) can serve only a fraction of its needs: between 2010 and 2020 alone, some RM30tril is needed.
China set a deadline of March 31 this year for countries around the world to sign up as Prospective Founding Members (PFMs) before operations begin later in 2015. China would provide the biggest contribution to the authorised capital of US$100bil (RM363.49bil) and initial subscribed capital of US$50bil (RM181.75bil).
The US immediately saw this as a game-changer challenge to its dominance in global lending. For decades, it has controlled the World Bank, and through its European allies, the IMF and through its ally Japan, the ADB.
These institutions have been known to set tough conditions on debtor countries that may not serve domestic aspirations or national interests. A cash-rich China also felt it remained under-represented in these institutions even after becoming a leading global economy.
Washington had hoped, even expected, that its allies and friends would stay away from the AIIB as a rival institution. But like its pivot or rebalancing strategy, that hope steadily faded.
In Europe, Britain as the closest US ally was the first to sign up to the AIIB early last month. Soon, other major European economies like France, Germany and Italy followed, as did all the Scandinavian countries.
Washington then quietly pressured Japan, South Korea and Australia to stay away. But Seoul and Canberra signed up anyway. By then, the US had started to soften its stand, denying that it had ever pressured any country to stay away. It was only unsure if the AIIB would adhere to best practices in international lending.
Then, other US allies like Taiwan and Israel also signed up. The US was becoming increasingly isolated, with only Japan as the other major economy for company.
But not for long, perhaps. Last Monday, Japan’s ambassador to China, Masato Kitera, said in a Financial Times (FT) interview that Japan would join the AIIB as well, probably around June.
That came as a bombshell to the conservative Japanese government. It would seem too much of a betrayal of yet another US ally, the final one being the “unkindest cut of all”.
The next day, on the deadline for countries to sign up as PFMs for the AIIB, Tokyo denied that Ambassador Kitera ever said such a thing. Chief Cabinet Secretary Yoshihide Suga said Japan had no immediate plans to join the AIIB.
Besides being a US ally, Japan was also wary of the prospect of the AIIB undercutting the ADB.
Whatever the actual chances of Japan joining the AIIB, Tokyo would want to underplay it as much as possible.
Like the US, Japan said it was reluctant to sign up because of uncertainty over the AIIB’s standards. But countries such as Britain and Singapore that have joined said the best way to ensure high standards was to get on board and be part of the decision-making process.
To be part of that process, it was necessary to sign up early before the big decisions were made. The terms and conditions of lending and borrowing have still to be firmed up as dozens of countries including giants like India and Russia are already in.
The FT report also revealed that Japanese business leaders were pressuring their government to join the AIIB. Mitsubishi bosses, for example, had expressed confidence in Jin Liqun, a former senior ADB official who will head the AIIB.
On the deadline last Tuesday, China announced that 30 countries had been admitted as PFMs. More than a dozen others were in the queue.
Then a flood of criticisms and denunciations of the stubborn US position came, mostly from within the US itself. Analysts and commentators, including in Forbes and The Economist, said the US administration had miscalculated badly in staying out, only damaging US long-term interests in East Asia and the Pacific.
Former US Secretary of State Madeleine Albright also condemned the US position, lamenting the way Washington had scored another own goal by rebuffing the AIIB. The US had placed itself behind the curve in changes in the Asia-Pacific rather than stay at the leading edge.
If and when Japan finally signs up, the US may have to be resigned to becoming a part of the AIIB. But as a latecomer, it may be limited to playing only a bit part such as an observer rather than sit at the main table.
China has long regretted the US fixation with what it calls a Cold War “them against us” bipolar mentality that frustrates progress on many fronts. For the countries of Asia hungry for more development, progress must not be held hostage to big power rivalry.
Ultimately, any rivalry between the US and China today is not over political ideology but economic ideology: the Washington Consensus of free trade rhetoric where the state and private industry are at odds with each other versus the emerging Beijing Consensus of close public-private partnerships that have worked so well for so much of Asia already.
US opposition to a proven formula for Asia is most unlikely to win friends and supporters anywhere, least of all in Asia.
By Bunn Nagara Behind the headlines
> Bunn Nagara is a Senior Fellow at the Institute of Strategic and International Studies (ISIS) Malaysia.
Chinese
President Xi Jinping's (C-R) meeting with the members of the Asian
Infrastructure Investment Bank (AIIB) in the Great Hall of the People in
Beijing, China 24 October 2014. 21 Asian countries are the founding ...
Open to ideas: Dr Huang (centre) listening to Country Garden Pacificview Sdn Bhd chief strategy officer Dr Yu Runze (right) during a visit to the Forest City project in Johor Baru. 
Dr. Huang Huikang
Washington's Lobbying Efforts Against China's 'World Bank' Fail As Italy, France Welcomed Aboard. The cheese really does stand alone. Every single U.S. ally with the exception of Japan have all hopped on board the Asian Infrastructure Investment Bank, or AIIB. Italy and France were approved on Thursday to become founding members, bringing the total membership base to 33 from the original 21.
