BRICS, 57 countries have launched the new AIIB

If doubt has been growing over China’s stock markets – the fall has been sharp for two consecutive weeks after an excessive bullish jump of 100% and more YTD – the Chinese government has been implementing its world finance objectives intensively. Surprisingly, this is the incoming financial storm in Greece that could put such ambitions in the international spotlight. Beijing’s accelerated development of the Asian Infrastructure Investment Bank (AIIB) has become a real concern in Washington DC where the US government (USG) considers it’s a major attempt to undermine the prominent role of the International Monetary Fund (IMF), the World Bank and indirectly the role of the USG on the world public finance scene too.

The core agreement establishing the new AIIB has been signed in Beijing this week by 57 participating countries and revealed that with a $30 billion contribution, China has become the top provider of the AIIB’s $100 billion capital base, followed by India and Russia, respectively the second and third largest contributors. This is thus within the framework of a relative media discretion, at least seen from Europe, that China has been setting up the first main financial arm of the BRICS. Despite acute economic difficulties, especially in Brazil, Russia and South Africa, the BRICS have reaffirmed their trust in the defense of their common long-term interests under Beijing’s decisive and resolute determination.

As the European Union (EU) and the European Central Bank (ECB) keep predicting that in case of a “Grexit,” Greece would undergo an unprecedented economic crisis, there is one question, possibly voluntarily forgotten, that asks would such a crisis happen if China and/or Russia took over the IMF about Greece’s financial aid? Both the cost and the risk are high, but as a small country, Greece could be a perfect insertion point for Chinese and/or Russian political interests into the EU. Just as Greece is on the brink of financial collapse, the new AIIB has just been created. This could be more than a coincidence, likely a turning point.