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In Development Bank Battle, Surge to China Rattles Japan

Japan expressed doubts over the credibility of China’s planned development bank as European nations sought to join a new institution that could weaken the clout of the almost 50-year-old Asian Development Bank, dominated by Japan and the U.S.

“Will this bank be able to ensure fair governance?” Chief Cabinet Secretary Yoshihide Suga told reporters when asked about the Chinese-led Asian Infrastructure Investment Bank on Tuesday. “Will it lend without regard to the sustainability of loans and end up inflicting losses on other creditors?” He reiterated that Japan would maintain a cautious stance on signing up.