China applies to join European development bank as it bids to increase global financial clout

China has applied to become a member of the European Bank of Reconstruction and Development, the lender said, giving Beijing a new way of extending its global influence after its steps to boost trade links with Europe and Asia.

The bank’s board is expected early next week to recommend approval of China’s bid to the bank’s shareholders.

That group, dominated by G7 governments, is likely to make a final decision in December and, if successful, China would take a small, symbolic but prestigious stake, and the lender would not invest there.

Joining the bank would build on initiatives by the world’s second-largest economy to thicken trade ties with Europe and Asia, the so-called “One Belt, One Road” plan.

“China has made a formal application for membership of the EBRD just a few days ago. This is going to be considered by the board," its acting chief economist Hans Peter Lankes said. “We would expect there to be a mid-December decision on this.”

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The bank said in May it was ready to cooperate on projects with China and its newly launched Asian Infrastructure Investment Bank, or AIIB.