The government isn't worried about getting caught in power politics between China and the United States after promising money to an investment bank.

New Zealand is paying in $125 million over the next five years to be a founding member of the Asian Infrastructure Investment Bank - despite the U.S. lobbying other countries not to join on the basis of concerns about its governance.

The bank will have capital of nearly $139 billion to invest in infrastructure projects in Asia.

Finance Minister Bill English said that while some described the bank initially as "looking like a Chinese SOE", changes have now been made.

"Certainly I wasn't lobbied directly about it," English said. "I know there was some concern expressed but we make our own decisions about what we join up to, our own strategic, long-term interests in the Asia-Pacific region."

Prime Minister John Key believes it made sense to join and solidify ties with the region.

"There will be a wide ranging number of countries involved in the governance of it and actually we're quite comfortable that it's going to be professionally managed."

Business NZ CEO Phil O'Reilly supports the investment, as the countries which will see investment will likely be trade partners for New Zealand.

He said the move's not just about remaining friends with China, but "also about the New Zealand people having at least some influence and some say and some voice around how infrastructure develops and it plays out in some of those target markets."

O'Reilly believes New Zealand has a real stake in making sure the countries in our region develop and become sustainably wealthy.

Despite Japan and the United States refusing to back the fund, O'Reilly believes the government is better off maintaining an independent foreign policy.

"We don't put a foot either in the camp exclusively of an emerging China or in the camp of an established Japan, United States, Europe union."

Former Reserve Bank Governor Don Brash is delighted with the move. He claims US concerns stem from China having more "soft" power in the region. 

Brash believes despite tension in China-US relations, New Zealand has come out on top. 

"We've got a conflict of loyalties there and I think we've handled it very well indeed."