China’s Policy of “Going Out” 2.0 : Ideas, Interests, and the Rise of the Asian Infrastructure Investment Bank (AIIB)

Abstract

The rise of the Asian Infrastructure Investment Bank (AIIB) under Chinese leadership has fueled debate on how it will affect existing regional and global economic governance. Yet, little attention has been paid to the internal impetus that actually motivates China to design a new regional development bank that focuses on infrastructure. Aiming to fill this gap, this study focuses on domestic ideas and political-economic interests China is seeking to achieve. I argue that the AIIB has been part of China’s consistent policy of “going out (zouchuqu)” since the early 2000s. This study suggests that China has strong interests in sharing not only its financial and political burdens with member countries, but also its development experiences centered on infrastructure investments with developing countries. Moreover, the AIIB’s high standards of governance help the Chinese leadership gain legitimacy for mobilizing substantial reform of domestic economic governance.