The Netherlands plans to participate in a new Asian Infrastructure Investment Bank (AIIB), prime minister Mark Rutte told a trade conference in China at the weekend.

‘The AIIB is good for Asia and that is good for the Netherlands,’ the prime minister said in a statement. ‘The Netherlands earns 30% of its income abroad… in particular we must be well represented in this region.

More than 1,000 Dutch companies are already doing business in China, he said. ‘Our trade mission to China underlines how valuable it is to invest in a sustainable relationship.’

The US has advised against participation in the AIIB  because it is unclear how much influence China will have. China will deliver the biggest share of the capital but has said it will not demand right of veto.

Britain, France, Germany and Italy have aleady said they will join the AIIB despite US objections.

According to Reuters, the AIIB is seen as a challenge to existing institutions like the World Bank and Asian Development Bank. The aim of the bank is to finance infrastructure projects such as roads and railways in Asia.