The AIIB and China’s Normative Power in International Financial Governance Structure

Abstract

This article examines the role of the Asian Infrastructure Investment Bank (AIIB) in China’s emerging normative power in international financial governance area. Based on the existing framework of normative power concept, the AIIB’s role in China’s normative power is examined from three angles: normative principles, norm diffusion, and external perception. As a Chinese initiative, the AIIB’s policy framework has inherited Chinese norms of unconditionality and infrastructure construction. The management structure of this new bank also manifests China’s preference of a lean internal arrangement. Moreover, Asian developing countries hold the majority of voting power of the AIIB. This distribution of votes also falls in line with China’s appeal of a fair governance structure in international financial institutions. The analysis reveals that with the endorsement of 57 member states, the AIIB will significantly enhance China’s normative power in the international society. Some other international institutions have changed their policies to adapt Chinese norms. Moreover, the cooperation between the AIIB and the other financial institutions is a chance to improve the external perceptions of China’s normative power in western society, including European states and the United States. However, it is still necessary to observe whether China will be able to maintain its normative principles during the operation of the AIIB.