Paul Tayor and William James — How Europe and U.S. stumbled into spat over China-led bank

Historians may record March 2015 as the moment when China's chequebook diplomacy came of age, giving the world's number two economy a greater role in shaping global economic governance at the expense of the United States and the international financial institutions it has dominated since World War Two.

The US view:

Officially, the United States says it is concerned about whether the bank will uphold human rights, environment and labor standards and be open and transparent in its governance. 

In private, senior U.S. officials acknowledge this is about power. One Obama administration member said Congressional foot-dragging on IMF reform had "created an opportunity for China to assert itself".

As usual, follow the money.

Within European governments there were debates about tactics and timing but the prevailing view was that it was better to try to influence the Chinese project from inside, several officials said. 

"The debate mostly pitted national security advisers, who leaned towards hugging the Americans close ... against economic and Asia advisers, who argued that this big train was leaving the station and it was in our interest to jump aboard," a European diplomat involved in some of the discussions said.

Perhaps the biggest surprise is that the UK jumped in first, regardless of the "special relationship." But the UK is chiefly supported by finance.

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How Europe and U.S. stumbled into spat over China-led bank

Paul Tayor and William James | Reuters