The World Bank will phase out its lending to China by 2031 under a new country partnership framework, according to a source familiar with the matter, AFP reported on Tuesday.
The source confirmed an earlier report by the Financial Times.
“China has made significant development advances over the past several decades, progress that the World Bank and others have supported,” a World Bank official familiar with the plan said, speaking on condition of anonymity.
“Now we are reaching a new phase of our relationship, reflecting that reality.”
World Bank lending to China, the world’s second-largest economy, has steadily declined in recent years as the country has experienced rapid economic growth and reductions in poverty levels.
In its early years, China was one of the bank’s major borrowers, but funding has fallen sharply in the past decade. Lending peaked at $2.42 billion in 2017 before dropping to about $750 million in 2025.
During his first term, US President Donald Trump called for the World Bank to end lending to China entirely, reflecting a broader hardening of Washington’s stance toward Beijing. He has maintained a similar tone in his second term, though without repeating the specific demand.
China also remains a contributor to the World Bank’s International Development Association (IDA), which supports the world’s poorest countries. Under the latest replenishment, Beijing contributed about $1.5 billion, making it the fifth-largest donor.
“The World Bank’s role is shifting from lender to knowledge partner, in line with China’s development trajectory,” the official said.
The planned phase-out for China follows a similar move announced on June 16 regarding Poland, where the bank said it aims to reduce lending to zero by 2031 while continuing technical assistance.
AFP
