The World Bank will stop lending to China by 2031 under a new country partnership framework, marking a significant shift in its relationship with the world’s second-largest economy.
According to AFP, as reported by Channels Television, the new framework reflects China’s economic transformation after decades of rapid growth and declining poverty.
A World Bank official, speaking anonymously, said China has achieved substantial development gains with support from the institution and other international partners.
“Now we are reaching a new phase of our relationship, reflecting that reality,” the official said.
The World Bank said its role in China is evolving from that of a lender to a knowledge partner, providing technical expertise rather than financial support.
Lending to China has steadily declined in recent years. After peaking at $2.42 billion in 2017, World Bank financing fell to $750 million in 2025.
The decision comes after years of criticism from the United States over continued lending to China. During his first term, US President Donald Trump called on the World Bank to end all loans to Beijing, arguing that the country no longer required development financing. While he has maintained a tough stance on China during his second term, he has not renewed that specific demand.
Despite the planned end to lending, China remains a major contributor to global development through the World Bank. Under the latest replenishment of the International Development Association, which supports the world’s poorest countries, Beijing pledged $1.5 billion, making it the fund’s fifth-largest donor.
The World Bank recently announced a similar approach for Poland, saying it intends to reduce lending to zero by 2031 while continuing to provide technical assistance.
