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Japan's ruling party heavyweight signals readiness to join AIIB - Nikkei

Reuters  |  TOKYO 

TOKYO (Reuters) - Japan's senior ruling party official has signalled Tokyo's readiness to join the China-backed Asian Infrastructure Investment (AIIB), saying it was crucial to reach a decision soon, the newspaper reported on Tuesday.

"The key would be how quickly can decide to participate," Toshihiro Nikai, secretary-general of the ruling Liberal Democratic Party, was quoted as telling reporters on Monday.

Nikai, known for his close ties to China, was visiting Beijing to attend a two-day summit of China's Belt and Road initiative that concluded on Monday.

He also said he would meet Chinese President Xi Jinping on Tuesday to exchange views on Japan-relations and escalating tensions over North Korea's missile and nuclear programmes, the said.

Prime Minister Shinzo Abe said in an interview with CNBC on Monday that joining AIIB, created at least in part as a way to fund the Belt and Road initiative, could be an option if questions over the bank's governance were resolved.

"For now, we are still monitoring (AIIB's) operations carefully," he was quoted as saying.

Japan, following Washington's lead under former U.S. President Barack Obama, did not join the AIIB, partly from concern it was a vehicle to boost China's regional clout and a potential rival of the Asian Development Bank, the Manila-based institution dominated by and the United States.

At the summit, Xi and 29 other heads of state reaffirmed their commitment to building an open economy and ensuring free and inclusive trade under the Belt and Road initiative led by Beijing.

(Reporting by Leika Kihara; Editing by Paul Tait)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)