Japan Not currently Planning to Join China-led Bank

Japan has no plan as of now to join the China-led Asian Infrastructure Investment Bank, its government spokesman said Tuesday.

Chief Cabinet Secretary Yoshihide Suga told reporters Japan is still seeking answers about how the regional financing institution would be governed.

"As of today, Japan will not join AIIB and a clear explanation has not been received from China," Suga said.

Beijing set a March 31 deadline for founding members to express interest in joining the AIIB.

The U.S. maintains that the Beijing-based regional bank should work in partnership with existing institutions such as the Asian Development Bank, which by convention is headed by a Japanese official, and the U.S.-dominated World Bank and International Monetary Fund. It contends the bank might extend credit without adequate environmental, labor and social safeguards.

But it has found itself isolated on the issue as other major Western countries and U.S. allies in Asia have indicated they plan to join.

Suga did not say Japan would never consider joining the bank. Recently, Finance Minister Taro Aso indicated it was a possibility, but backpedalled on the issue. Japanese media reports Tuesday said the ruling Liberal Democratic Party was still considering its stance.

Prime Minister Shinzo Abe told party leaders, "There is no need to participate hastily," Kyodo News Service reported. He indicated Japan was siding with its powerful ally the U.S. on the issue, adding that "The United States now knows that Japan is trustworthy."

Suga denied reports Japan was seeking more time to decide on the issue.

"We want to ensure there is clear governance," he said. "We want to make sure no other lenders would be damaged."