In recent years, China has emerged as a pivotal economic player in the international system. From measures to strengthen the internal system to designing and implementing trade policies, China relies excessively on economic influence in order to maintain its dominance in the international order.

However, another aspect of China’s economic strategies has come to the spotlight, lately. Although, China has been in the ‘lending game’ since the mid-2000s by aiding states in Africa, Latin-America and Asia for purposes of infrastructural development, the strategy has however, shifted towards one that competes with the IMF.

Analysts define this as an act of invocation due to China’s weaker position in the decision making within the IMF. The influence is traditionally divided among the US and its allies and China seldom hold the greater voice. However, with its status as a lending power, China can now achieve an increased ability to sway, along with a strengthened position at the IMF.

The Asian Infrastructure Investment Bank (AIIB) was proposed by China in 2013 and officially launched in 2016. This was seen as China’s response to western-led IMF, by many. Through AIIB, development financing was intended by China, competing precisely with the aims of IMF. AIIB has been utilized in funding Asian countries and those which would much rather not opt for IMF, in order to boost their economies and fund infrastructural initiatives.

The formation of AIIB was heavily discouraged by the US as it was seen as a direct challenge to its influence in the........

© Eurasia Review