The Chinese historically have had a steady grasp on the usage of soft power. In an interview with the HPR, Professor Joseph Nye, the foremost scholar on smart power, stated that China’s “basic aim is to combine hard and soft power. 

From China’s point of view, such a bank makes perfect sense.For the developing countries in Asia, it will be a new source of funding. For China, it will be a channel to strengthen soft power and enhance economic benefits.