China as a rapidly rising power has been actively seeking a greater voice in world affairs in commensurate with its growing economic clout. The Asian Investment Infrastructure Bank (AIIB) is a case in point. The new bank has recently become China's signature foreign policy, attracting extensive attention worldwide. Despite pressure and opposition from the US, China played a leading role and successfully brought together 57 countries, including a number of staunch American allies in Europe and Asia-Pacific, as the AIIB founding members. Nevertheless, the fundamental principles as regards governance, social and environmental safeguards outlined in the Articles of Agreement largely mirror those of existing multilateral development banks such as the World Bank and the Asian Development Bank.
How to explain China’s strenuous effort to create a new institution reflecting its interest and yet its clear willingness to comply with international best practice? The paper draws conceptual insights from social identity theory (SIT) to examine the multi-layered drivers of China’s prominent role in spearheading the creation of the AIIB. Based on the SIT, states of lesser political and economic clout seek to boost status through social mobility, social competition and/or social creativity. It finds out in the case of AIIB, China combines these 3 strategies in order to win broad support and recognition without gravely alarming the established powers.
