China is challenging the global political and economic order, as it has emerged as the world's second biggest economy, and is now backing a new development bank.

The Asian Infrastructure Investment Bank (AIIB) will be based in Beijing, and it will come into existence at the end of March 2015. It was formed because China has long wanted more influence at the IMF, the World Bank and regional investment banks, but has been blocked by the US Congress.

Now, some of Europe's biggest economies are among the nations defying the US to become founding members of the infrastructure bank. The AIIB does not aim to be a direct competitor to the World Bank or Asia Development Bank.

The World Bank for instance has a mandate to end extreme poverty by decreasing the number of people living on less than $1.25 a day, while the AIIB will focus on infrastructure.

So, is the Asian Bank a strategic alternative to the Western-backed financial institutions? 

Professor Jeff Kingston, the director of Asian Studies at Temple University, talks to Counting the Cost, and Tom Ackerman reports on China's investments in the US.

Source: Al Jazeera