World Bank Will Phase Out Financial Lending To China by 2031
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Washington DC: The World Bank will phase out its lending to China by 2031 under a newly established country partnership framework.
This strategic adjustment marks a new phase in the relationship, reflecting the nation's massive developmental advances and poverty reduction over recent decades.
Financial lending to the world's second-largest economy has steadily declined since peaking at $2.42 billion in 2017. By 2025, annual lending dropped to $750 million as China's economic trajectory evolved, making Beijing the fifth-largest donor to the bank's poorest country fund.
Political pressures also tracked this transition, as US President Donald Trump demanded a total lending halt during his first term. Although he maintains an aggressive tone toward the economic rival in his second term, he has not repeated that specific demand.
Ultimately, the international institution's role is shifting entirely from a lender to a specialized knowledge partner. This strategy mirrors a plan announced for Poland on June 16, which reduces development lending by 2031 while preserving technical assistance.
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