Unlike the ADB, which restricts contracts to member countries, the AIIB will open bidding for projects to all. In this sense, the importance of the AIIB will extend far beyond China's "Belt and Road" Initiative, which is regional but will have positive spillover effects across the world.

Despite the US' initial opposition, its allies in East and Southeast Asia joined the AIIB. Following in the footprints of India and Russia so did the rest of the countries in South Asia, and Oceania, Central Asia, and much of the Middle East and Latin America.

The AIIB is not a rival to existing multilateral financial institutions. Rather, it will complement them, as suggested by the Japanese, US and European heads of the ADB, the World Bank and the IMF, respectively. AIIB critics have argued that it would not meet environmental standards, procurement requirements and other safeguards strictly followed by the World Bank and the ADB. In reality, the World Bank, the IMF and the ADB have been criticized for years for their lending rules, policies and staffing bias.

Over the past few years, the White House has seen the BRICS' New Development Bank as a potential threat to the existing multilateral organizations. It is pushing for a trans-Pacific trade bloc, which excludes China. And it has opposed the reserve currency status of the Chinese yuan. As a result, senior US figures have argued that Washington has mishandled its response to China's efforts to serve as a "responsible stakeholder" in the world economy. Among others, former secretary of Treasury Lawrence Summers has said the US cold-shouldering of the AIIB may be recalled as the moment America "lost its role as the underwriter of the global economic system".

US participation in the AIIB will be very much in the interest of American companies, cities and states, and Washington itself. It would mitigate the perception that the US seeks to "contain" China, or emerging Asia. And it would pave the way to greater stability and prosperity in Asia and the rest of the world.

Dr Dan Steinbock is a columnist with China.org.cn. For more information please visit:http://www.ccgp-fushun.com/opinion/DanSteinbock.htm