China’s Asian Infrastructure Bank needs borrowers...badly

The place to start down this path would be through funding such Chinese "near abroad" infrastructure projects such as theTrans-ASEAN Gas Pipeline (TAGP) and Trans-ASEAN Electricity Grid (TAEG). Both of these fit well into China's concepts of a One Belt, One Road concept linking China to the world.

They also fit with other energy infastructure concepts for Asia such as the Japan's Masayoshi Son's proposed East Asian Super Grid connecting northeast Asia and southeast Asia and Grenatec's Pan-Asian Energy Infrastructure stretching from Australia to South Korea with gas pipelines, high voltage power lines and fiber optic cables.

This in turn could reduce the risk of territorial war in the South China Sea through creating a deepening web of cooperative ventures focused on energy security. This in turn would be best served through creating Joint Development Areas in the South China Sea protected by multilateral patrols.

This in turn would meet all the criteria of Chinese President Xi Jinping's "Three No's":

1. No interference in the internal affairs of other nations

2. Does not seek to increase the so called "sphere of influence"

3. Does not strive for hegemony or dominance

Ultimately, the AIIB can be a great force for political stability, economic growth and a greening economy in Asia. The key is recognizing that China needs to make outward investment as much as her neighbors need inward investment. Doing things right will solve a host of problems simultaneously.

China's Asian Infrastructure Investment Bank is being used to channel China's trade surpluses into overseas infrastructure projects for Chinese state champions like State Grid Corp. of China and China National Overseas Oil Company (CNOOC).

After years of exporting to the world, China's now struggling to keep her economy moving amid a slowing global economy.

The alternative could be political unrest among a populace choking on pollution that's increasingly rendering hollow President Xi Jinping's 'Chinese Dream.'

Overseas infrastructure,therefore, represents a key pump-priming relief valve for the Chinese economy.