China’s Taiwan Affairs Office said on Monday that Taiwan will not be a founding member of the AIIB investment bank.
The AIIB is a China-led development fund that has attracted more than 40 countries to apply for its membership. It has been seen as a counterweight to the Washington-based World Bank.
Although Taiwan is unable to join AIIB as a founding member, China’s Taiwan Affairs Office said on Monday that Taiwan is still welcome to join the investment bank as a regular member under “an appropriate name”.
Because China still sees Taiwan as part of its territory awaiting reunification, it often curtails Taiwan’s involvement in international agreements and organizations using the name “Taiwan” or the official name “the Republic of China.” Opposition from China usually prevents Taiwan from joining organizations like the United Nations or the World Bank which require statehood for participation.
For other organizations, like APEC, which allow participation by individual economies, Taiwan often uses the name “Chinese Taipei”.
In Taiwan, Presidential Office spokesman Charles Chen spoke on Monday about the rejection. He said that while Taiwan believes AIIB membership is good for the country, it would rather not become a member if Taiwan’s status cannot be respected.
Legislature President Wang Jin-pyng also said that “Chinese Taipei” is the bottom line. He said Taiwan should not accept anything less than that.
Under China’s “one country, two systems” policy, Hong Kong can often participate in international bodies even though it is not a sovereign country. It uses the name “Hong Kong, China” or participates as part of China’s membership. There is concern in Taiwan that Taiwan will only be allowed to join AIIB under similar circumstances.