China has no aim to recreate Bretton Woods

Source:Global Times Published: 2015-3-26 0:28:01

The establishment of the Asian Infrastructure Investment Bank (AIIB) has been depicted by a few overseas media outlets as if China is building its own version of the Bretton Woods system.

The bank is not yet in operation, and it will take time for people to come to grips with its purpose. However, overblown hype from foreign media claiming that China is seeking financial hegemony could create preconceived notions for people who are not familiar with it.

The Bretton Woods system refers to the international financial order that prevailed in the post-WWII era. It is also perceived as a triumph of dollar hegemony and gave birth to the World Bank (WB) and the International Monetary Fund (IMF) as its two representative global organizations.

The system held until 1971, when the US ended the convertibility of the dollar to gold. But the dollar had already become the bedrock of the international monetary system, and it remains so today.

Some foreign observers claim that the AIIB is the beginning of the Chinese yuan's hegemony. What they are actually trying to imply is that "China is another US."

This kind of statement is nonsensical, which uses historical experience to fool readers. It is divorced from the truth and shows no common sense and doesn't stand up to any scrutiny.

Through the Bretton Woods system, the US was able to wield supreme influence over its allies which had been severely battered during the war. China today is in a totally different position.

Founding the AIIB is only a China-led initiative. Over 30 countries from Europe and Asia have so far applied to join, some of which even have territorial disputes or political divergences with China. They are not courting Beijing, or pushing yuan hegemony. What they are pursuing is the win-win principle of cooperation.

The AIIB will not confront the WB or IMF, nor will it turn the current international monetary order upside down. The spirit of the AIIB is diversity and justice.

International relationships are entering an era of democracy that means pursuing hegemony is a wrong path whether one is an existing power or a rising power. 

China always maintains a low profile when it comes to showing the strength of our nation. Moreover, the Chinese media resists the hype over describing China as "number one" or a "superpower."

Chinese people would like to see that most of our economic and political resources can be used for the country's domestic construction.

We support our government to pursue equal rights for development in the international arena, but we don't support pursuit of hegemony.

The Bretton Woods system is a product of the old days. The new global trends created the AIIB and there is no room to look back to the old days of one currency's hegemony.

Posted in: Editorial, Commentary

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