The World Bank will stop lending to China by 2031, according to the organization’s new country partnership structure, a source familiar with the situation told AFP on Tuesday.
The insider corroborated the Financial Times’ earlier article on the development.
“China has made significant development advances over the past several decades — progress that the World Bank and others have supported,” said a World Bank official familiar with the matter, speaking on condition of anonymity.
“Now we are reaching a new phase of our relationship, reflecting that reality.”
World Bank financing to China, the world’s second-largest economy, has progressively fallen recently as the Asian powerhouse experienced tremendous development and a drop in poverty indicators.
In his first term in office, US President Donald Trump asked that the financial institution discontinue funding to China entirely, as he took a more aggressive stance toward Washington’s main economic adversary.
Trump has maintained that tone during his second term, although he has not explicitly stated that requirement.
The World Bank’s lending to China peaked at 750 million in 2025.
China also contributes funding to the World Bank’s International Development Association (IDA) pool for the world’s least developed countries, with $1.5 billion in the most recent replenishment round, 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,” said the World Bank official.
On June 16, the financial institution proposed a similar strategy for Poland, aiming to reduce loans to zero by 2031 while continuing to provide technical assistance.
