The reality is the West has not been able to take its eyes off of the area of China for centuries. For example; how many generations did the Celestial Empire inclined to influence with economic paths waste; as for the English in the 17th century, who were able to put their foot through the door, while purchasing Chinese goods, they did not sell anything in return. Likewise, China gave their attention to Europe’s goods and started turning a blind eye towards their own diplomats.

During the 18th century in the face of persuasion efforts, the answer that the English received from the Emperor was serious:

“Our Empire is the owner of everything in excess and does not have any missing products outside of its boundaries. For this reason, we do not need anything imported from the outside barbarians. However, since Europe needs what we produce - tea, silk and porcelain - as an act of kindness, we allowed the establishment of foreign firms in our Canton region in order for your country to be honored with our grace.”

Would silver be able to endure this?

Such an answer from the high! It is not the kind that could be accepted. Already because of the increasing tea addiction, China's imports to others and the trade deficit was incalculable. As for the thousands of tons of Silver that was transferred to China as payment… The payments China accepted were silver and Royalty; yet, there was not enough silver to sustain this course.

Opium an excuse

Whatever happened, happened to the Chinese public. When the situation hit the fan, the Celestial Empire accused the English of leaving the Chinese people exposed with the article that was banned in their country. The tensions rose with the order to exterminate tons of opium, resulting in the Opium War of 1839. This would have meant that the Chinese would have had to make many concessions if the battle was won by the English. Let us also add that during 1856 a 2nd Opium War occurred.

After this period, the English gained more control over the region and the desired (including opium) extensive trade relationships began. During these years, Hong Kong became like an English colony. As a matter of fact in 1865, in order to fulfil the need for a bank for trading with China, the Hong Kong and Shanghai Banking Company was formed. In short, HSBC.

After all, the Opium Wars became the reason for the social and economic traumas in China and it secured an English power that settled into the area. As for the topic’s excuse of opium sales, with the support given by the U.S., it picked up speed. Even before the war, one of China’s strong trade partners was the U.S. Besides the English, the door for the U.S. was now opened fully.

England is at the bank

Thanks to opium in the 19th century, today an interesting argument is coming to scene with the two allies of Asia’s belly. If you remember, I have already touched upon the Asia Pivot, which was the U.S.’ plan to equal out Asia against China. As a matter of fact with China, we dealt with the rush they were in to form their own power with the pressure it was feeling. 

Last week, England made a surprise move. While it is part of this urgency and in October 2014 the Asian Infrastructure Investment Bank- AIIB, made up of Chinese leadership, it continued forward with strong steps. England, who announced it would be a founding member of the bank, looked like it blew the U.S’ top off. 

A new trick for an old dog 

The goal of AIIB headquartered in Beijing is to support it infrastructure financing… For the region, the bank has the characteristics of being an alternative to the organizations that have a say in Japan, such as the IMF, World Bank and the Asian Development Bank. China will take control of teaching a new trick to an old dog; even if turns into a giant economy, it cannot raise its voice to these organizations.

China became the lead role with its funds, will reinforce its role as a “soft power” in Asia Pacific. Separately AIIB will be an important tool for its other goal in the trade of the Yuan and by promoting the use of it.

All of this is displeasing the U.S., who is trying to make China passive. For a while, the U.S. who is lobbying for the allies to stay away from the bank, while saying that the AIIB’s transparency and standards are being concerned, it makes one want to say “blah blah.”

Now the ancient ally England is saying, “Count me in.” It has already clearly stated that it wants to grow with Asia; in order to strengthen the regional ties, it has seen AIIB as an opportunity.

As for Washington, who has disregarded the announcements’ reaction, they must be scared that countries that are good with banking, such as Australia and S. Korea, will barely make the allies do a U-turn.

The result that is seen in the bigger picture is that the Washington-Beijing rivalry will form the future of the world’s economic, political, and military developments, with no doubt.

Both sides are in a big Asia Pacific dream… Let's say good luck with that.