China-led AIIB to complement other financial institutions, says official
Demand for capital is huge nad development banks do not have to compete
Although there might be some overlapping of projects under the "One Belt, One Road" initiative, China believes the Asia Infrastructure Investment Bank (AIIB) will play a complementary role alongside other financial institutions because the demand for capital is huge.
New development banks such as the AIIB and the BRICS (Brazil, Russia, India, China and South Africa) Development Bank might focus on projects under the "One Belt, One Road" framework, but they would supplement one another rather than compete, said Liu Jinsong, deputy director general for international economic affairs at the Ministry of Foreign Affairs.
"The need for funding is really huge," Liu said on Friday.
"Even if there are more, similar financial institutions, it may not be enough to meet all the different funding needs."
China has set up a US$40 billion Silk Road Fund to invest in projects to boost infrastructure and businesses in countries stretching through Asia to Europe.
Contributions will come from China's foreign exchange reserves, the China Investment Corporation, the Export-Import Bank of China and the China Development Bank.