China World Bank Rival Draws Global Queue

More than 40 countries, including the UK, have applied to join a China-backed bank in the face of opposition by the US.

Even Taiwan, which split from China in 1949 and has been at loggerheads ever since, is seeking to join the Beijing-led Asian Infrastructure and Investment Bank (AIIB).

Japan and America are notable absences from the line-up of nations which have signed up.

China had set a 31 March deadline to become a founding member of the AIIB, which is set to increase Beijing's regional and global influence.

Washington had initially attempted to persuade allies not to join the organisation , viewing it as a rival to the US-led World Bank.

Britain's decision to join triggered a rebuke from Washington , with one official saying it appeared to be part of a trend towards "constant accommodation" of China by the UK.

However, with so many countries signing up, including France, Germany, Italy, Australia and South Korea, Washington has shifted its position.

US Treasury Secretary Jack Lew said Washington would welcome the AIIB as long as it complemented existing institutions and adopts high governance standards.

China has said it welcomes Taiwan's decision to apply "under an appropriate name".

The two sides have been locked in a feud spanning more than six decades and Beijing has not ruled out the use of force to bring what it calls the "renegade province" under control.

Most countries, including the US, do not recognise Taiwan due to pressure from China.

However, there has been a thaw in relations in recent years under Taiwan's current president Ma Ying-jeou.

Chancellor George Osborne announced last month the UK was becoming the first major Western country to apply to be a founder member of the AIIB.

The bank will support access to finance for infrastructure projects across Asia, using a variety of measures including loans, equity investments, and guarantees.

Mr Osborne said at the time: "This Government has actively promoted closer political and economic engagement with the Asia-Pacific region and forging links between the UK and Asian economies to give our companies the best opportunity to work and invest in the world's fastest growing markets is a key part of our long-term economic plan.

"Joining the AIIB at the founding stage will create an unrivalled opportunity for the UK and Asia to invest and grow together."