The World Bank has officially announced its intention to cease lending operations to China by 2031. This decision is detailed in the institution’s latest Country Partnership Framework (CPF), which outlines the strategy for its collaboration with the world’s second-largest economy.
Under the new five-year framework, International Bank for Reconstruction and Development (IBRD) lending will decrease, with a cap set at US$ 2 billion. The organization expects that by the conclusion of this agreement, China will no longer require financial borrowing from the IBRD.
Anna Bjerde, the World Bank’s managing director of operations, noted that the relationship is shifting from a reliance on financing toward technical support and knowledge exchange. As China faces issues such as an aging population and economic transitions, the bank plans to assist in developing solutions that benefit both China and other emerging markets.
While World Bank lending to China reached a high of $2.42 billion in 2017, the figures have dropped significantly to $750 million by 2025. China’s Deputy Finance Minister Liao Min confirmed that the nation intends to maintain a deep connection with the World Bank despite this reduction in borrowing. Furthermore, China continues to act as a significant contributor to the bank’s International Development Association, which supports the world’s poorest countries.
This strategic shift comes after years of pressure from U.S. leadership, including former President Donald Trump, who previously advocated for a total halt to World Bank loans for China.
