ADB chief seeks to cooperate, not compete, with China-led OBOR, AIIB

Reuters: Asian Development Bank President Takehiko Nakao said on Thursday the bank would cooperate, rather than compete, with China-led infrastructure plans under the Asian Infrastructure Investment Bank (AIIB) and broader “One Belt One Road” initiatives (OBOR).

Speaking at a news conference in Yokohama, eastern Japan, to kick off the ADB’s annual meeting, Nakao also said rising protectionism around the world was not yet hurting growth in developing Asia.

“It’s a good idea to connect countries and to promote activities in this region. The ADB has been promoting this kind of activities,” Nakao said, when asked about how the ADB should deal with the OBOR.

“We can cooperate because we have similar ideas. I discussed this issue with (Chinese Finance) Minister Xiao (Jie) and other senior officials of China, and we can cooperate.”

The ADB and the AIIB have agreed to co-finance three projects - two last year and one this year, Nakao said.

The two lenders have discussed how they can use local currencies for financing instead of dollars, how they can enhance expertise by their staff and how they can secure environmental and social safeguards, Nakao said.

Asked how rising protectionism around the world is affecting Asia, Nakao said he wants regional economies to keep the momentum alive to open up trade for continued growth in Asia.

“I’d say it’s too early to say protectionism is starting to harm Asia,” Nakao said. “We must make efforts to keep momentum for further opening of our trade system.”