From the Background: "In October 2013, at the Asia-Pacific Economic Cooperation Summit in Bali, Indonesia, China proposed creating a new multilateral development bank, the Asian Infrastructure Investment Bank (AIIB). As its name suggests, the Bank's stated purpose is to provide financing for infrastructure needs throughout Asia. [...] As the first China-led multilateral development bank (MDB), the AIIB presents several policy issues including the Bank's governance and operational practices, the U.S. role and possible participation, and the relationship between the AIIB and the existing MDBs. Some observers have also raised concerns about the transparency and governance of China-funded development projects. They argue that the AIIB may undermine decades of effort by the United States to improve governance, environmental, and social standards; these standards have been achieved through conditions attached to World Bank, Asian Development Bank (ADB), and other MDB loans. Other analysts note the AIIB's track record of facilitating projects and implementing robust safeguards and policies during its five years in existence and argue that the time may have come for the United States to consider joining the Bank."
CRS In Focus, IF10154
Congressional Research Service: https://crsreports.congress.gov/