July 1 (THEWILL) — The World Bank will gradually phase out lending to China by 2031, marking a significant shift in its relationship with the world’s second-largest economy as Beijing’s economic development reduces its need for financial support.
According to a source familiar with the matter, the decision is contained in the World Bank’s new Country Partnership Framework for China. The development was first reported by the Financial Times and later confirmed to AFP by a World Bank official.
“China has made significant development advances over the past several decades—progress that the World Bank and others have supported”, the official said on condition of anonymity. “Now we are reaching a new phase of our relationship, reflecting that reality.”
The World Bank has steadily reduced lending to China in recent years as the country recorded rapid economic growth, lifted millions of people out of poverty and expanded its access to domestic and international financing.
The move also comes after years of criticism from the United States, the bank’s largest shareholder. During his first term, US President Donald Trump repeatedly urged the World Bank to stop lending to China, arguing that the country no longer qualified for financial assistance intended for developing economies. While Trump has maintained a tough stance on China during his second term, he has not publicly renewed that specific demand.
Despite the planned phase-out of lending, China remains an important contributor to the World Bank. Under the latest replenishment of the International Development Association, the institution’s concessional financing arm for the world’s poorest countries, Beijing pledged $1.5 billion, making it the fifth-largest donor.
The World Bank said its future engagement with China will increasingly focus on technical assistance, policy advice and knowledge sharing rather than financing. A similar transition is underway in Poland, where the bank also plans to end lending by 2031 while maintaining advisory support.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
