The World Bank will phase out its lending to China by 2031 under its new Country Partnership Framework, marking a significant shift in its relationship with the world’s second-largest economy.
A source familiar with the matter confirmed the development on Tuesday, corroborating an earlier report by the Financial Times.
According to a World Bank official who spoke on condition of anonymity, the decision reflects China’s economic progress over the past several decades.
“China has made significant development advances over the past several decades — progress that the World Bank and others have supported,” the official said.
“Now we are reaching a new phase of our relationship, reflecting that reality.”
World Bank lending to China has steadily declined in recent years as the country experienced rapid economic growth and recorded significant reductions in poverty.
During his first term, US President Donald Trump called on the World Bank to stop lending to China, arguing that the country no longer required development financing. While Trump has maintained a tough stance toward Beijing in his second term, he has not publicly renewed that specific demand.
According to the report, World Bank lending to China reached $750 million in 2025.
Despite receiving loans, China also contributes to the World Bank’s International Development Association (IDA), the fund that supports the world’s poorest countries. Under the latest replenishment round, Beijing pledged $1.5 billion, making it the fifth-largest donor to the IDA.
“The World Bank’s role is shifting from lender to knowledge partner, in line with China’s development trajectory,” the official added.
The move follows a similar decision announced on June 16 regarding Poland, where the World Bank said it would also reduce lending to zero by 2031 while continuing to provide technical assistance.
AFP
