The Reasons Of The Establishment Of Asia Infrastructure Investment Bank And It's Influence

The Asian infrastructure investment bank,which was initiated and initiated by china,blowing a "Asian investment bank hot" rapidly across the globe since its inception.The AIIB not only attracts Asian countries,but also Europe countries.Until now,here are 57 founding member countries from five continents,almost covering all the major economies.The reason of establishing AIIB can be divided into two aspects:the objective need of Asian countries economy development and the inner need of Chinese economy reform.As the second-biggest economy,Chinese economy is in the period of transformation and upgrading,the excess capacity is looking for export opportunity and the huge exchange reserve also need more investment channels to improve investment return rate and security.Considering this situation,the establishment of AIIB satisfies the China own interest demands and corroborate the trend of Asian economy development,and this is the performance of China starts to shoulder responsibilities as a huge power.What's more,as a fresh international multilateral financial institutions,it brings challenges to the existing financial institutions and the existing financial system guided by them,especially,impacts the American financial hegemony,to some extent.In the future,AIIB will constantly conduct cooperation and competition with the other financial institutions in the process of business operation.And AIIB could strengthen competitiveness and enlarge the financial right in the operation process.Beyond this,the AIIB also could promote the reform pace of financial system.What's can be predicted is that AIIB will increasingly highlight its role and influence to the world economy.In the view of influence of AIIB,domestic scholars are still very enthusiastic about the topic of research,though the AIIB was established soon.The research perspectives involve the world governance,the internationalization of the RMB,the geopolitics and the great power games and so on.Foreign scholars have actively carried out related research,mainly focus on the attitude of various stakeholders on the establishment of AIIB,investment bank voting rights allocation,whether AIIB would lower the standard,the impact on current world financial order and etc.However,there are few work which perfectly analyze the reasons and effects of the establishment of AIIB in the same time.The paper conduct analysis to the reasons and influence of the establishment of AIIB from many angles,trying to include the politic reasons,economic reasons and the relevant influence.Furthermore,discuss some possible challenges in the future and try to give some proposals.The first part of the paper introduces the research achievements and perspectives of domestic and foreign scholars in the establishment of AIIB.The second part of the article briefly introduces the domestic scholars' research work in the area about the establishment of Asian investment bank,then gives the key questions of this paper.The third part mainly describes the basic situation of AIIB,including the creation process,management mechanism,members,and try to prove that the establishment of AIIB conforms to the interests of every party and that is also in favor of the development of world economy.Besides,it does some creation on the management governance mechanisms.The fourth part mainly analyze why establish the AIIB,including Chinese own development reasons,Asian economies' development need in the present period and world economy and so on.The fifth part of the article analyzes the future impact of AIIB.Including the impact on China and its impact on the rest of the world economy.What's more,here also a brief description of the impact on the existing financial system.The sixth part of the article mainly discusses the challenges that may be encountered in the future,and gives some suggestions.Among them,the AIIB may encounter many challenges,including political challenges and economic challenges and challenges from the traditional economic hegemony.The proposals are focus on the improvement of itself capacity of AIIB and actively seeking cooperation.Including in the prevention of investment risk,careful evaluation of the project,to help developing countries improve their financial system.In addition,in the process of business development,the AIIB should forwardly cooperate with other financial institutions.To be able to carry out AIIB business smoothly,play the original intention of the establishment of AIIB,China and the other founding member should pay attention to the provisions of the relevant designation on governance and business rules,promote the AIIB management level follows international standards and keep pace with the times.In this way of the scientific project access rules and reasonable regulations to deal with the possible risks.The future development of AIIB business could effectively cope with the challenges encountered,so as to promote long-term stable Asian infrastructure development,expand the influence of AIIB.