The World Bank has announced plans to phase out lending to China by 2031, signaling a significant change in its long-standing relationship with the world’s second-largest economy. The move, outlined in the institution’s new country partnership framework, reflects China’s remarkable economic transformation over the past few decades and its growing role in global development. A source familiar with the matter confirmed the decision, which was first reported by the Financial Times.
According to a World Bank official who spoke anonymously, China’s rapid development and substantial reduction in poverty have brought the country to a new stage in its engagement with the institution. The official noted that the World Bank’s relationship with Beijing is evolving to match the country’s current economic standing, moving beyond the traditional borrower-lender dynamic that defined previous decades.
World Bank lending to China has been steadily declining in recent years as the country continued to experience strong economic growth. The shift also comes amid longstanding concerns from the United States, where President Donald Trump has repeatedly criticized the idea of the World Bank providing loans to a nation that has become one of the world’s most powerful economies. During his first term, Trump openly called for an end to lending to China, a position that highlighted growing tensions between Washington and Beijing.
Despite the planned withdrawal of loans, China remains an important contributor to global development efforts through the World Bank. Under the latest replenishment round of the International Development Association (IDA), Beijing committed $1.5 billion, making it the fifth-largest donor to the fund that supports the world’s poorest nations. This contribution underscores China’s increasing role as a financial supporter rather than a recipient of development assistance.
The World Bank said its future engagement with China will focus more on sharing expertise and technical knowledge rather than direct financial support. The institution described its evolving role as that of a “knowledge partner,” helping China address new development challenges while leveraging its experience for global benefit. A similar transition is already underway in Poland, where the World Bank recently announced plans to reduce lending to zero by 2031 while continuing technical cooperation, reflecting a broader strategy of adapting partnerships as countries advance economically.
source: punch
