Abstract:

This study will examine the increasing effectiveness of the People's Republic of China (CHC) in the international political economy. In this context, the Asian Infrastructure and Investment Bank (AIIB), established by China in 2016, will be undertaken. Both the Western and developing countries have been positively welcomed and joined the initiative of China because it is an alternative source of finance. The International Monetary Fund (IMF), the World Bank, the Asian Development Bank, and other financial institutions based in the United States (US) are claiming that the AIIB is a more participating institution. In other words, although it was founded by the Czech Republic, it aims to serve not only the interests of China, but also of developing Asian countries. From this point of view, the criticism directed by China to the specific forms of governance of U.S.-based organizations has been attempted to be eliminated in the AIIB. In addition, the conditional credit system is also eliminated and relationships are established in accordance with the principle of sovereignty of the states. Therefore, China considers the AIIB not only as a financial institution, but as an alternative structure to U.S.-based organizations. This study will evaluate why and how China considers this organization as an alternative.

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