Canadian Finance Minister Chrystia Freeland announced on Wednesday that Canada is suspending its ties with the Asian Infrastructure Investment Bank (AIIB), led by China, while it investigates allegations of dominance by the Chinese Communist Party. Freeland stated that she did not rule out any potential outcomes of the investigation, including the possibility of Canada withdrawing from the bank, which it officially joined in 2018.
The global communications director of the AIIB, a Canadian national, resigned from his position on Wednesday and criticized the bank for being “dominated by the Communist Party.” The AIIB responded by calling the allegation baseless and disappointing.
Freeland informed reporters that the Canadian government would immediately cease all government-led activities at the bank. She instructed the Department of Finance to conduct a thorough review of the raised allegations and Canada’s involvement with the AIIB. She emphasized the need for democracies to be clear about how authoritarian regimes exercise influence and limit strategic vulnerabilities.
The Chinese embassy in Ottawa dismissed the claim that the AIIB is controlled by the Communist Party of China as a lie, according to Reuters.
The decision to join the AIIB was made under Prime Minister Justin Trudeau’s leadership, attracting criticism from the opposition Conservatives, who have long demanded Canada’s withdrawal from the bank. They assert that the AIIB serves as a tool for China to export authoritarianism.
Canada’s relationship with China has been strained over the past five years, and the finance minister’s remarks mark a new low in bilateral relations.
Former AIIB communications chief Bob Pickard, who left China abruptly out of safety concerns, stated that the bank serves China’s interests, and the Chinese Communist Party exerts undue influence over all aspects of its operations. He claimed that the AIIB primarily directs its lending to countries involved in China’s Belt and Road Initiative (BRI), suggesting that the two endeavors are interconnected and serve China’s political objectives.
Pickard highlighted that the AIIB and BRI focus on cultivating politically aligned countries, suggesting a correlation between China’s efforts in the two initiatives.
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