The past week has seen a major shift in US attitudes towards the Asian Infrastructure Investment Bank as Treasury Under Secretary for International Affairs Nathan Sheets told the Wall Street Journal that the United States welcomes new multilateral institutions that strengthen the international financial architecture. He also hoped that the AIIB would co-finance projects with the World Bank and Asian Development Bank.

This was welcome progress given the rhetoric from several US officials just a week ago. In his testimony before the US Congress last week, Treasury Secretary Jack Lew continued to express deep doubt about AIIB's standards on governance, transparency, corruption, labor and environment.

For months, US officials have been pressuring the country's allies to stay away from AIIB, but the decision by its key European allies to apply to join as founding members has sent a clear message that they are no longer Washington's poodles. Australia, which is feeling the brunt of US pressure, is very likely to apply before the March 31 deadline. South Korea, another country that has been heavily pressured by the US, is yet to make a firm decision.