The establishment of the Asian Infrastructure Investment Bank (AIIB) has signified a “charm offensive” by China towards multilateral institutions and existing global financial governance. If the rise of China is inevitable, what will the future world look like and what should other countries be prepared for? Borrowing insights from institutional balancing theory and role theory in foreign policy analysis, this project introduces a “leadership transition” framework to explain policy dynamics in global governance with the AIIB as a case study. It suggests that China, the US, and other countries have employed different types of institutional balancing strategies, i.e., inclusive institutional balancing, exclusive institutional balancing, and inter-institutional balancing to compete for influence and interest in the process of establishing the AIIB. A state’s role identity as a “leader,” a “challenger,” or a “follower” will shape its policy choices regarding different institutional balancing strategies in the process of leadership transition in global governance. Institutional balancing is a new form of balancing among states in the future of global governance. China’s institutional rise in global governance might be more peaceful than widely predicted.
About the Authors
Kai He is a Professor of International Relations in Griffith Asia Institute and Centre for Governance and Public Policy at Griffith University in Brisbane, Australia. He is currently an Australian Research Council (ARC) Future Fellow (2017-2020). He was a postdoctoral fellow in the Princeton-Harvard China and the World Program (2009-2010). He is the author of Institutional Balancing in the Asia Pacific: Economic Interdependence and China’s Rise (Routledge, 2009), the co-author of Prospect Theory and Foreign Policy Analysis in the Asia Pacific: Rational Leaders and Risky Behavior (Routledge, 2013), and the author of China’s Crisis Behavior: Political Survival and Foreign Policy (Cambridge, 2016).
Huiyun Feng is a Senior Lecturer in the School of Government and International Relations at Griffith University, Australia. She is a former Jennings Randolph Peace Scholar at United States Institute of Peace. Her publications have appeared in the European Journal of International Relations, Security Studies, The Pacific Review, International Politics, Chinese Journal of International Politics, and Asian Perspective. She is the author of Chinese Strategic Culture and Foreign Policy Decision-Making: Confucianism, Leadership and War (Routledge, 2007) and the co-author of Prospect Theory and Foreign Policy Analysis in the Asia Pacific: Rational Leaders and Risky Behavior (Routledge, 2013).
East Asia and Asia Pacific / International Political Economy / Regionalism and Multilateralism / Working Papers
Last updated on 05/08/2019