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TAIWAN NEWS
Taiwan leader backs joining China-led infrastructure bank
by Staff Writers
Taipei (AFP) March 27, 2015


Russia to join China-led development bank: official
Moscow (AFP) March 28, 2015 - Russia is to sign up to the Chinese-led development bank AIIB, first deputy prime minister Igor Shuvalov said Saturday at an international forum in China, cited by Russian news agencies.

"I'd like to inform you that Russian President Vladimir Putin has taken the decision that Russia will participate in the capital of the Asian Infrastructure Investment Bank (AIIB)," Shuvalov said at China's Boao Forum, quoted by RIA Novosti state news agency.

The Beijing-backed AIIB, unveiled in October, is a multinational lender that the United States perceives as a threat to the Washington-led World Bank.

It has proved highly successful with countries that are US allies, however, with Britain, Germany, France, Italy and this week South Korea all saying they intend to join the $50 billion (46 billion euro) bank.

Russia has sought to align itself more closely with China in recent years and these efforts have intensified amid a freeze in relations with the Western powers, which have imposed harsh economic sanctions over Moscow's role in the Ukraine conflict.

"We are glad to have the opportunity to build up cooperation in the format of China and the Eurasian Economic Union," Shuvalov said, referring to a free trade union championed by Putin made up of Russia, Kazakhstan, Armenia and Belarus, which came into force in January.

"We in Russia are sure that joint work in developing Eurasian partnership and the Silk Route economic belt will create further opportunities for the development of the countries of the Eurasian Union and China," he said.

Chinese Foreign Minister Wang Yi said this month that "practical cooperation between China and Russia is based on mutual need" and has "enormous internal impetus and room for expansion."

China is hungry for Russia's vast hydrocarbon resources, while Western sanctions have made seeking stable markets an urgent need for Putin, whose economy has been hit hard by the fall in prices for oil, a major source of revenue.

Both countries are permanent members of the UN Security Council, where they have in the past jointly used their veto power against Western-backed moves such as in the civil war in Syria.

China Construction Bank says net profits up 6 percent
Beijing (AFP) March 28, 2015 - China Construction Bank, the nation's second largest lender by assets, said its net profit rose six percent in 2014 from a year earlier, as interest income rose.

Net profit for 2014 was 227.83 billion yuan ($36.69 billion), up from 214.66 billion yuan in 2013, it said in a statement to the Hong Kong stock exchange on Friday.

"Net interest yield rose steadily, driven by an increase in net interest income over the previous year," the bank said.

China's gross domestic product grew 7.4 percent last year, the slowest pace in nearly a quarter of a century.

Taiwan's leader said he is in favour of joining the Asian Infrastructure Investment Bank in comments published Friday, making it the latest economy to express interest in joining the Beijing-backed institution.

It was not immediately clear if the island could actually join the AIIB, as the mainland has long opposed allowing Taiwan to join any international organisations that confer sovereignty upon it.

President Ma Ying-jeou's remarks came after the bank, which the United States has opposed, has attracted several potential new members this month, including staunch American allies Britain and South Korea.

"I am in favour of joining (AIIB) in principle," Ma told the Taipei-based China Times newspaper.

"We should not stay on the sidelines. (We) should actively participate in it."

He explicitly linked potential membership in the AIIB to Taiwan's bids to join other proposed multinational free-trade blocs, such as the Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership (RCEP).

"We hope to participate in regional economic integration and many countries that will benefit from AIIB are members of RCEP or are in the Asia-Pacific region," he said.

It was not immediately clear whether Beijing would allow any application by Taiwan, which it regards as part of its territory awaiting reunification.

- 'Welcome all countries' -

This week Beijing's vice finance minister, Shi Yaobin, said it "welcomes all countries" to join the bank, which it has touted as a tool for financing regional development alongside other lenders such as the World Bank and the Japan-led Asian Development Bank.

Beijing's foreign ministry referred enquiries by AFP to the finance ministry, which did not immediately respond. Calls to the Taiwan Liaison Office were not answered.

Ma acknowledged the hurdle of statehood in the interview, the newspaper said, but claimed those obstacles could be discussed when former vice president Vincent Siew and Chinese President Xi Jinping meet Saturday at the Boao Forum, an annual gathering of political and economic leaders.

Taiwan's involvement in international agreements is often curtailed by China, which considers it part of its territory awaiting reunification. They split in 1949 at the end of a civil war.

It has, however, joined international organisations in the past under different names. The International Olympic Committee refers to it as "Chinese Taipei", and it is known as the Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu at the World Trade Organization.

Ties have improved rapidly between China and Taiwan since Ma and his Beijing-friendly Kuomintang (KMT) party came to power in 2008.

The KMT, however, is tipped to lose power in next year's presidential polls to the China-sceptic Democratic Progressive Party (DPP).

The opposition grouping expressed reservations over the AIIB on Friday. Spokesman Cheng Yun-peng said the government "should evaluate why is it necessary and ensure that Taiwan will join with an identity that won't hurt our dignity or affect the overall national development".

Britain, Germany, France and Italy have all said they intend to join the $50 billion bank, despite scepticism about the AIIB in Washington and Tokyo.

South Korea on Thursday became the latest country with close ties to the US to say it would also seek membership.


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