New AIIB chief Zou Jiayi to boost China-led development bank lending by 70%

BEIJING -- Zou Jiayi began her five-year term Friday as president at the Beijing-headquartered Asian Infrastructure Investment Bank, giving her a chance to fill a void left by the mounting unilateralism of the Trump administration. "I look forward to working with our members, clients and partners to deliver infrastructure that strengthens economies, protects the climate and nature, and expands opportunity across Asia and beyond," Zou said during her first day, according to an AIIB release. The AIIB has set a new goal of investing and lending $17 billion a year by 2030, up from approximately $10 billion last year. In particular, the bank plans to expand climate change project funding. Zou has served as a vice minister overseeing international affairs at China's Finance Ministry. She also has extensive experience in international organizations, including more than nine years at the World Bank. She possesses "a wealth of knowledge in international finance and economics, as well as many connections overseas," said a source. Zou was elected president by the bank's board during an annual meeting in June. She replaced Jin Liqun, the first president who served since the bank was established in 2016. Member countries and economies of the bank have ballooned to 111 from 57 since its founding -- far exceeding the 69 members of the Asian Development Bank (ADB) led by Japan and the U.S. Japan and the U.S. are the only two Group of Seven countries that are not members of the AIIB. China holds the largest funding share at 30%, essentially wielding veto power over important projects. China is looking to upgrading its position in international finance. In September, President Xi Jinping proposed the early establishment of a development bank within the Shanghai Cooperation Organization (SCO), a framework of emerging nations led by China and Russia. Xi also announced that China would provide 2 billion yuan ($287 million) in grants to the 10 member countries, including Russia and India. As China is attempting to expand its influence through international cooperation, the U.S. is moving in the opposite direction. U.S. President Donald Trump last week ordered his administration to withdraw the country from 66 international organizations and treaties. This includes the United Nations Framework Convention on Climate Change and the U.N. Conference on Trade and Development. While there are high hopes for Zou regarding her term at the AIIB, there are also concerns that Beijing will wield even more influence over the institution. Zou serves simultaneously as a member of the Communist Party's Central Committee, ranking her among the party's top 200 members. Such a distinction was not shared by Jin or by Pan Gongsheng, the governor of the People's Bank of China, the central bank. Zou had worked for the Central Commission for Discipline Inspection, an anticorruption body. The appointment indicates a high level of trust by Xi, and Central Committee members are expected to be loyal to the Communist Party. Since its establishment, the AIIB has been viewed by Europe, the U.S., and Japan as a means to provide financial support for China's Belt and Road Initiative. During his time in office, Jin strongly touted the AIIB's neutral stance to dispel those suspicions. In one example, the AIIB suspended projects benefitting Russia and Belarus following the 2022 invasion of Ukraine. Zou will face scrutiny on how she will respond in similar situations. The AIIB plans to expand its locations outside of mainland China to find funding opportunities. Following its Abu Dhabi office in the United Arab Emirates, the bank is considering opening a Hong Kong office.