Philippines makes last-minute entry to China-led infra investment bank

Amid a row with China over the South China Sea, the Philippines on Wednesday sprang a surprise by deciding to join the Beijing-sponsored Asian Infrastructure Investment Bank (AIIB) as a founding member just before the deadline. Philippine President Benigno S Aquino III has approved Manila's participation in the AIIB, which is seen as potential rival to the World Bank and Asian Development Bank, China's state-run Xinhua news agency reported.

Manila will sign the Articles of Agreement (AOA) of the AIIB before year-end, Philippines Finance Secretary Cesar Purisima said. The Philippines is the last country of the Association of South East Asian Nations (ASEAN) to join the bank which is due to begin its operations from here in the next few weeks after the New Year. The delay was caused due to growing frictions between the Philippines and China over the South China Sea (SCS) dispute. Manila was the most vocal in asserting its right over several islands and shoals in the SCS. While China asserts almost all of SCS as its own, Vietnam, Malaysia, Brunei and Taiwan have overlapping claims.