(S Korea/China) Torn between two giants

[unhappycamper]

http://www.koreatimes.co.kr/www/news/opinon/2014/07/202_160830.html

There is no hurry about joining China-led bank

Torn between two giants
Posted : 2014-07-11 16:08
Updated : 2014-07-12 12:06

Korea is being driven into a situation where it may have to choose between the United States and China, and on the agenda is whether Seoul has to join a China-led regional development bank.

During his summit with President Park Geun-hye in Seoul last week, China's President Xi Jinping expressed the hope that Seoul will take part in the Asian Infrastructure Investment Bank (AIIB) he hopes to launch next year as a founding member. President Park took the proposal as "well-timed'' but didn't respond to it immediately.

The U.S. is adamant in opposing the bank out of fear that China intends to grow its clout in the global financial market and take the lead in reshaping Asia's economic order. Washington, in particular, appears sensitive because Beijing reportedly intends to exclude the world's largest economy from the new bank. Jen Psaki, spokeswoman of the State Department, expressed skepticism about the bank at a press briefing Tuesday, saying, "There is already the ADB, which plays a critical role in regional infrastructure development … that's the bar we believe it (AIIB) should pass.''

American officials are bluntly calling for Korea not to join the AIIB. On Monday, Sydney Seiler, director for Korea at the National Security Council, cautioned Seoul to be prudent in joining the AIIB in an interview with Yonhap News. U.S. President Barrack Obama reportedly conveyed his concern about Seoul's participation in the proposed bank during his visit to Korea in April.