The real problem the U.S. has with the AIIB is heavy Chinese involvement in the bank, which the Americans see as a potential danger to the world's strategic balance. However, there is no need to see the establishment of the Chinese-led bank as a Chinese bid for economic hegemony. It is simply a fact that the Asian region is in need of huge infrastructural investment, and China has both the resources and the willingness to provide such investment. The obvious need for a structure to process the transfer of the required project finances must be met, and it is hardly surprising that China will take a leadership role in this enterprise, as China will be putting up most of the money. (It has been estimated that Chinese-held shares in the AIIB will comprise about two-thirds of total shares.)

Of course there are legitimate concerns about the governance standards to be applied by the new bank. Any enterprise of such size needs to be solidly structured to avoid disasters. This being the case, it makes perfect sense for a country like the U.K. - with its vast experience in international financial management - to participate in the design of the necessary structures. This makes more sense than standing outside and readying oneself to cast blame the first time anything appears to have gone wrong. "We told you so" is not an attractive attitude. The U.S. may also be making a virtue of necessity to some extent: U.S. politics at the moment renders a positive China policy almost impossible. President Obama's Republican opponents control both houses of Congress, and would never allow the President such a breakthrough. We can also expect some China-bashing from Congress as part of the 2016 election campaign.

Osborne's spokesman also denied that the new bank should be seen as "cutting across" the work of existing international development banks in the region. The AIIB will be in a position to complement the work already being done, providing an additional network of contacts and channels to assess needs and design and implement projects. There is plenty of work to be done for the region's infrastructure, and large infrastructure projects are an area in which China has developed considerable expertise.

But though the Chinese government has formally welcomed the U.K.'s application, it has warned that formal approval is still pending and that consultations with existing prospective partners must still be held. There are still pockets of historically-based disapproval of the U.K. within China. There is also a feeling that, though the U.K. may have taken a different approach from the U.S. on this occasion, the country remains completely loyal to the "special relationship" and should therefore be treated with suspicion. I hope that Britain's constructive participation in the AIIB will help dispel such suspicions.

The writer is a columnist with China.org.cn. For more information please visit: http://www.ccgp-fushun.com/opinion/timcollard.htm

Opinion articles reflect the views of their authors, not necessarily those of China.org.cn