World Bank confirms plan to phase out lending to China by 2031

The World Bank confirmed that it plans to phase out lending to China by 2031 under a new country partnership framework for the world's second-largest economy.

The World Bank Group said lending through the International Bank for Reconstruction and Development would continue to decline during the five-year framework period and would not exceed $2 billion. It said that, in principle, no further borrowing from the IBRD is expected by the end of the framework period.

A country partnership framework is a mutually agreed plan between the World Bank and a client country that sets development priorities for a multi-year period. The World Bank Group said the new plan marks a new phase in a 45-year partnership with China, as the country moves from needing financing to mainly requiring technical assistance and knowledge sharing.

Anna Bjerde, the World Bank managing director of operations, said the partnership was increasingly focused on knowledge, innovation and shared solutions. She said the bank would work with China as it faces an aging society, a shifting economy and other development priorities, and would seek ideas relevant to China and other emerging markets.

China's Deputy Finance Minister Liao Min said China would continue to deepen its engagement with the World Bank despite the changing lending relationship.

The new five-year plan agreed with China focuses on economic growth, better jobs, social resilience and a low-carbon economy.

World Bank lending to China has declined in recent years as China recorded strong growth and improved poverty indicators. Lending peaked at $2.42 billion in 2017 and had fallen to $750 million by 2025.

During Trump's first term, the US president demanded that the World Bank stop lending to China entirely as he took a more aggressive approach toward Washington's chief economic rival. Trump has kept that tone in his second term, but has not specifically repeated that demand.

China also contributes funds to the World Bank's International Development Association pool for the world's least developed countries. Its $1.5 billion contribution in the latest replenishment round made Beijing the fifth-largest donor.