China-led AIIB as a Gradual Modification of Asian Financial Order: Chinese Strategies to Launch New Financial Institution

Abstract

Regarding China-led AIIB, the dominant discourse tends to take simplistic approaches based upon the heated debate over Chinese revisionism and status quo from conventional IR theories. While the dichotomous approach seems to suggest compelling narratives, it cannot fully reflect the real dynamics behind the establishment of AIIB. To more comprehensively understand Chinese behaviors behind AIIB and the bank’s implications in the Asian financial order, this article reviews Chinese rhetoric, attitudes, and behaviors during the setup processes of AIIB, and compares the bank’s institutional design with that of the World Bank and Asian Development Bank. Suggesting China’s four strategic approaches to AIIB, this article argues that China-led AIIB can be viewed as a gradual modification of Asian financial order.