Summary

Takehiko Nakao , the head of Asian Development Bank, is positive about a new infrastructure bank suggested by Beijing and he is ready to work with China on that, in spite of fears it could weaken his institution. The new bank is called ALLB(Asian Infrastructure Investment Bank). China and 20 other countries have already signed a memorandum of understanding to establish the AIIB. However, it could be a rival to existing Western-and Japan-dominated institutions, such as the World Bank and the ADB. That is why the Japanese government has expressed anxiety and the United States is severely against the ALLB. Chinese authorities have been explaining the ALLB will be complementing and supporting the work of the ADB instead of challenging and becoming a rival.

My opinion

I think Takehiko Nakao should be more cautionary because ALBB could be a rival to World Bank and the ADB and the American government disagrees to the new bank. I consider an existing relationship with the American government on the ADB to be more important than the Chinese government. It is unreasonable that the head of ADB will support the potential threat to his bank despite benefits of the ADB.