The head of communications at the China-led Asian Infrastructure Investment Bank said on Wednesday he had resigned, accusing the bank’s management of being dominated by the Communist Party, accusations the bank said were baseless .
Canadian Bob Pickard announced his resignation on his personal Twitter account, citing what he called the AIIB’s toxic culture as the reason for his departure. Pickard has been head of public relations for the AIIB for just over a year.
Pickard’s resignation could be a blow to the AIIB’s efforts to build its image as an international lender and reflects the fact that international development finance has become another area of tension between China and the West.
Canadian Finance Minister Chrystia Freeland told reporters she had ordered a halt to Canadian activity at the infrastructure bank after Pickard raised “serious concerns.”
Freeland said she had asked officials to evaluate Pickard’s claims and Canada’s participation in the AIIB. “I wouldn’t rule out any outcome after the assessment is done,” she said.
The AIIB said in a statement on Wednesday that it had accepted Pickard’s decision to resign and that his comments and characterization of the AIIB were baseless and disappointing.
The bank’s president, Jin Liqun, a former Chinese vice-finance minister, acknowledged in an email Wednesday to staff that the bank’s president and former vice-finance minister, seen by The Wall Street Journal, acknowledged that the remarks could have implications for anyone in Asia. People who work in investment banking bring uncertainty, and he wishes all staff to join in wishing Pickard all the best for the future.
Jin Liqun is on a mission to change the perception that the AIIB is an extension of Beijing’s foreign policy. He has said the AIIB does not answer to the orders of the Chinese Communist Party, noting that its board is made up of senior officials from AIIB member countries.
Pickard said in a text exchange that he submitted his resignation on Monday, citing concerns about AIIB’s management. Pickard said in Twitter and text messages that the AIIB’s day-to-day decisions are made by “people installed by the Communist Party.” He said he did not know whether other senior executives agreed with his assessment.
The AIIB acknowledged in a written statement to The Wall Street Journal that Pickard submitted his resignation on Monday and the bank accepted his resignation on Wednesday. The bank said it had invited Pickard to engage with the bank informally, as well as through the bank’s formal grievance mechanism, adding that it was disappointed that Pickard’s grievances had first been heard through public channels.
Pickard said he boarded a flight from Beijing to Tokyo on Wednesday morning and said he had already grown concerned for his safety, fearing he would be detained. He cited the general concerns of being a Canadian in China, saying: “No one threatened me, but I feel it’s time to leave.”
Pickard said he left in such a hurry that he left his wallet in China, and said he hoped his former assistant would help him pack his belongings.
Security analysts say the risks to foreign executives working in and traveling to China are rising after the government introduced a new anti-espionage law, unannounced inspections of consulting firms working with foreign companies and tightened the flow of information to the outside world.
Relations between Canada and China have been strained since Canada detained Huawei Technologies executive Meng Wanzhou at the request of the United States in late 2018.
China responded by detaining two Canadian citizens in China for more than 1,000 days, with a coordinated release in 2022.
Last month, Canada’s spy agency informed three opposition MPs that they and their relatives were under surveillance by Chinese authorities and were at risk of intimidation tactics because of their criticism of China’s ruling Communist Party. A case involving a Conservative MP led Canada’s foreign minister to expel a Chinese diplomat based in Toronto. In response, China expelled a Canadian diplomat based in Shanghai and warned Canada to stop “unreasonable provocations”.
The Chinese government set up the AIIB in 2015 with the intention of making it an alternative to Western-backed multilateral lenders such as the International Monetary Fund and the World Bank. The establishment of the AIIB is a milestone in Beijing’s quest for global influence and a major test of its willingness to abide by international standards.
But since its inception, the AIIB has struggled with identity issues, with many market participants still viewing it as a Chinese bank rather than a multilateral one. During the epidemic, the bank suffered an international brain drain due to the Chinese government’s strict epidemic control measures.
With a 26.6% stake in the AIIB, China is the bank’s largest shareholder and has effective veto power over any major decisions; major decisions of the bank require the approval of a 75% absolute majority of shareholders. The bank said last year it had approved nearly $36 billion in funding for 181 projects in 33 economies since its inception.
Before the establishment of the AIIB, the United States had urged allies not to deal with the bank, which the United States believed was set up by China to challenge the influence of the United States. Some worried at the time that the bank would become a vehicle for China to increase business opportunities for local engineering and construction firms. China scored an unexpected victory in foreign propaganda when some U.S. allies signed up to join the AIIB, despite Washington’s concerns.
In 2023, many of the Western concerns about the AIIB, which relies on international talent and operates as a multilateral bank, have not materialized. But the impact of the bank did not meet China’s previous expectations.
For a bank with $100 billion in authorized capital, the bank’s deal appears to be a pretty underwhelming one. According to the AIIB website, in 2021, the bank has approved 51 projects with a total value of US$9.93 billion.
“We are proud of our multilateral mandate and we have a diverse international team,” the bank said in a statement on Wednesday. The bank has staff from 65 different nationalities and serves 106 members, the statement said.
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