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US accuses UK over China stance
Geoff Dyer and George Parker
Alex Wong | Getty Images
The White House accused the U.K. on Thursday of a constant accommodation of China after the British government decided to join a new China-led financial institution that could become a rival to the World Bank.
The rare rebuke of one of the U.S.s closest allies comes as Britain prepares to announce it will become a founding member of the $50 billion Asian Infrastructure Investment Bank, making it the first G-7 country to join an institution launched by China last October.
The reprimand is a rare breach in the special relationship that has been a backbone of western policy for decades. It also underlines U.S. concerns over Chinas efforts to establish a new generation of international development banks that could challenge Washington-based global institutions. The U.S. has been lobbying other allies not to join the AIIB.
Relations between Washington and David Camerons government have been strained over recent weeks, with senior U.S. officials criticizing Britain over falling defense spending, which could soon fall below the Nato target of 2 percent of gross domestic product.
A senior administration official told the Financial Times that the British decision was taken after virtually no consultation with the U.S. and at a time when the G-7 had been discussing how to approach the new bank.
We are wary about a trend toward constant accommodation of China, which is not the best way to engage a rising power, the U.S. official said.
British officials were publicly restrained in criticizing China over its handling of Hong Kongs pro-democracy protests while Mr Cameron has made it clear he has no further plans to meet the Dalai Lama, Tibets spiritual leader — following a 2012 meeting that prompted a furious response from Beijing.
While Beijing has long been suspicious about U.S. influence over the World Bank and IMF, China also believes that the U.S. and Japan have too much control over the Ma
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