India-China tensions will not influence AIIB as newly re-elected president vows to keep lender an ‘apolitical institution’
- Former Chinese deputy finance minister Jin Liqun was re-elected president of the China-backed Asian Infrastructure Investment Bank (AIIB) on Tuesday
- China, the largest AIIB shareholder, has seen tensions with India rise since the deadly clash in the disputed Himalayan border region last month
The China-backed Asian Infrastructure Investment Bank will remain an “apolitical institution” and will continue to back projects in India despite recent tensions in the disputed Himalayan border region, according to newly re-elected president Jin Liqun.
Last week, US Secretary of State Mike Pompeo also urged India to reduce its reliance on China in its supply chains while the US’ own relations with the world’s second largest economy are at an all-time low.
The management will look at the proposed projects from the economic and financial point of view [rather than a political view]
“[The Asian Infrastructure Investment Bank] is an apolitical institution, the management will look at the proposed projects from the economic and financial point of view [rather than a political view],” said former Chinese deputy finance minister Jin on Tuesday after winning a second five-year term.
As of mid-July, the bank has approved US$19.6 billion for 87 projects in 24 economies, with US$4.35 billion channelled to India, followed by Turkey with US$1.95 billion.
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India is also the biggest beneficiary of the bank's Crisis Recovery Facility project which aims to support members in mitigating the impact from the coronavirus pandemic. This year, the bank approved a US$1.25 billion loan in two batches to India under the project.