	Introduction

In October 2013, Chinese President Xi Jinping announced the establishment of a new China-led multilateral development bank, the Asian Infrastructure Investment Bank (AIIB), to "promote interconnectivity and economic integration in the region" and "cooperate with existing multilateral development banks," such as the World Bank and the Asian Development Bank (ADB). The centerpiece of Chinese foreign economic policy since 2013 is the "One Belt, One Road" (OBOR) initiative. A report released by the China International Trade Institute in August 2015 identified 65 countries along the Belt and Road that will be participating in the Initiative, which aims to use trade promotion, infrastructure development, and regional connectivity, to boost economic linkages between China and dozens of countries along a land route (the Silk Road Economic Belt) and a sea route (the 21st Century Maritime Silk Road). AIIB Membership and Operations

Chinese President Xi Jinping first proposed the AIIB in October 2013, at the Asia-Pacific Economic Cooperation Summit in Bali, Indonesia. Initially, the United States government was opposed to the AIIB's creation and reportedly urged its allies and partners in Europe and in Asia not to join the AIIB, ostensibly because of concerns about the Bank's proposed policy guidelines and standards, and whether they would undermine existing MDB standards. As of March 2017, AIIB has 52 members. As AIIB membership grew to include European and other advanced economies, Chinese officials distanced the AIIB from China's OBOR initiative. It is uncertain how China will balance its stated goal of establishing an independent and high-standard MDB with pursuing its own economic and national security priorities for the region. Membership

Membership in the AIIB is open to all members of the World Bank or the ADB and is divided into regional and non-regional members. Regional members are those located within areas classified as Asia and Oceania by the United Nations. The AIIB has potentially 57 permanent founding members ( Table 1 ). Governance

The AIIB has a governance structure similar to the other MDBs, with two key differences: the AIIB does not have a resident board of executive directors, and the AIIB's articles give a larger degree of decisionmaking authority to regional countries and the largest shareholder country, China. China's voting share at the AIIB (28%) is over 350% that of the second-largest AIIB member nation, India (8%). This is currently the largest gap between the first- and second-largest shareholders at any of the MDBs, although the United States has the largest voting share in any single other MDB (30% at the Inter-American Development Bank). Mr. Jin worked previously as chairman of China's first joint-venture investment bank, China International Capital Corporation, Ltd (CICC); chairman of the Supervisory Board of China's sovereign wealth fund, the China Investment Corporation (CIC); vice president of the ADB; and vice minister of China's Ministry of Finance. The initial subscribed capital of the AIIB is $100 billion. To date, the AIIB has approved nine projects worth $1.7 billion, most of which are being co-financed with established MDBs ( Table 2 ). Potential U.S. Role

Members of Congress could consider possible ways to participate with the AIIB beyond the co-financing of projects between the AIIB and U.S.-led institutions such as the World Bank and the ADB.
In October 2013, at the Asia-Pacific Economic Cooperation Summit in Bali, Indonesia, China proposed creating a new multilateral development bank (MDB), the Asian Infrastructure Investment Bank (AIIB). As its name suggests, the Bank's stated purpose is to provide financing for infrastructure needs throughout Asia, as well as in neighboring regions. As of January 2017, the AIIB has approved nine projects, investing a total of $1.7 billion.
The AIIB commenced operations on January 16, 2016. Membership in the AIIB is open to all members of the World Bank or the Asian Development Bank (ADB). The AIIB's Articles of Agreement create two classes of membership: regional and non-regional members. According to the AIIB articles, regional members hold 75% of the total voting power in the Bank. Fourteen of the G-20 nations are AIIB members. The United States is not an AIIB member.
The AIIB was initially conceived as a regional financing mechanism for Chinese President Xi Jinping's "One Belt, One Road (OBOR)" initiative. This initiative is a central component of President Xi's regional economic and foreign policy and aims to boost economic connectivity from China to Central and South Asia, the Middle East, and Europe (the Silk Road Economic Belt) and, along a maritime route, from Southeast Asia to the Middle East, Africa, and Europe (the 21st Century Maritime Silk Road). President Xi, more than previous Chinese leaders, has pursued policies to establish new China-led trade and financial institutions, as well as to further integrate China within the existing international financial institutions. President Xi said that the AIIB would "promote interconnectivity and economic integration in the region" and "cooperate with existing multilateral development banks," including the World Bank and the ADB.
As AIIB membership has expanded to include developed countries in Asia and Europe (and possibly Canada), China has since tried to distance the AIIB from the OBOR initiative through co-financing arrangements for its initial loans. It is uncertain how China will balance its stated goal of establishing an independent and high-standard MDB, while pursuing China's own economic and national security priorities.
The AIIB's initial total capital is $100 billion, with 20% paid-in and 80% callable. China has subscribed to $29.7 billion as authorized under the Articles. India is the second-largest shareholder, contributing $8.4 billion. The Bank is based in Beijing, China, and headed by Jin Liqun, a former Chinese vice minister of finance, Chinese sovereign wealth fund chairman, and ADB vice president.
China's voting share at the AIIB (28.7%) is substantially larger than that of the second-largest AIIB member nation, India (8.3%). This is the largest gap between the first- and second-largest shareholders at any existing MDB. Voting share will reduce as remaining capital is subscribed by remaining permanent founding members and any new members. The AIIB has a governance structure similar to other MDBs.
The AIIB presents several policy issues for Members of Congress to consider, including
the future direction of the AIIB and potential U.S. role, including the question of whether the United States should join and U.S. policy toward the new institution; independence, transparency, and governance of the bank and implications for other MDBs, particularly projects that are co-financed with other MDBs; and commercial implications for U.S. firms, including procurement opportunities.