The New York Times has a fascinating article about the birth of the China-led Asia Infrastructure Investment Bank (AIIB), and how Washington’s lack of leadership and bad judgment resulted in its humiliating defeat.

Apparently, China first lobbied the U. S. to join the AIIB in 2014 when the bank was still a concept. But a skeptical Washington worried “that China will use the bank to set the global economic agenda on its own terms.”

The Treasury secretary, Jacob J. Lew, the person who would normally be in charge of a matter like this, did not even call for a meeting to discuss whether the United States should consider joining or not. In addition, the administration sought to discourage its allies from joining, and advised G-7 countries that “the United States wanted a united front.”

However, America’s most steadfast ally, the United Kingdom, ignored the American request. The British government only gave Washington 24 hours’ notice after deciding to join the bank this March. Other US allies rushed in. This was an embarrassing diplomatic defeat for the United States.

Mr. Jin Liqun, the head of AIIB, refers to the lines in Shakespeare’s play “Cymbeline” to describe British defiance:

For China, British membership in the bank was a defining moment. Back in Beijing, Mr. Jin reached for his copy of Shakespeare’s drama “Cymbeline.”

The play takes place in Roman-occupied Britain and part of the action revolves around the British refusal to pay tribute. Mr. Jin read two lines by the character Cloten, who tells the Roman ambassador: “Britain’s a world by itself. We will nothing pay for wearing our own noses.”

Mr. Jin realized that just as ancient Britain had refused to pay Rome in an earlier age, contemporary Britain had defied the United States and joined the Chinese bank.

By this June, the AIIB had 57 founding members with a total capital of $100 billion, double the amount originally envisioned.