The president of China, Xi Jinping promised on October 2, 2013 that he will establish an Asian investment bank in order to help facilitate connectivity within the Southeast Asian region. Xi said that the bank will be offering capital support to developing countries in the region and their infrastructure construction.
The latest development will also mark the first time that China offered to support regional connectivity through an Asian investment bank. Xi went on to say that the bank will be working together with the current multilateral development banks located within the region or outside of it and will try to provide sustained stability of development of the economy in Asia.
Zhang Yunling, the senior research fellow of Asia-Pacific studies at the Chinese Academy of Social Sciences said, “Boosting connectivity is now a necessary step for China and the Southeast Asian Nations to deepen their cooperation, and relevant projects are in desperate need of funding from such an investment bank”. On Wednesday, October 2, 2013, Xi had a meeting with the president of Indonesia, Susilo Bambang Yudhoyono and they finalized a trade plan for the upcoming five years and also agreed to upgrade their bilateral partnership.
Yudhoyono said that they have once again made history by agreeing to create a comprehensive strategic cooperation.
Photo Credits: Channel News Asia
