The AIIB and China-ASEAN relations: Shaping a new North-South paradigm

Abstract

The Asian Infrastructure Investment Bank (AIIB), one of the largest investment institutions in the world, was established in 2015. The launch of the China-initiated AIIB generated intense debate among scholars and politicians over the functions and potential economic and political implications of the institution. This paper aims to examine the AIIB from a normative perspective, investigating its role as a cursor for structural changes in China’s foreign policy conceptualization. It goes on to hypothesize that, over the past few years, there has been a gradual transformation in China’s relations with Southeast Asian countries, which indicates a shift from a traditional “South-South” model to a “North-South” model. It observes that as Beijing continues to promote its own brand of frameworks and institutions, the emerging North-South paradigm will likely be further emphasized, transforming China’s position vis-a-vis other nations and groupings. Nevertheless, China as an emerging Northern country will continue to experiment on and develop this new North-South interaction in a way that is distinct from the orthodox North-South dyadic relationship.