The World Bank plans to phase out its lending to China by 2031 after years of steadily reducing financial support, reflecting the country’s emergence as the world’s second-largest economy, according to sources familiar with the plan.
The proposal will be reviewed by the World Bank’s board during the week of July 20. One source said no formal vote is required as the plan was agreed upon by the World Bank and China under their five-year Country Partnership Framework.
Lending to decline before ending
Under the plan, the World Bank will limit its lending to China to US$2 billion between now and 2031 before ending development loans altogether.
The bank has gradually reduced its lending to China over the years, from US$2.4 billion in 2017 to US$750 million in 2025.
China ceased to qualify for loans from the World Bank’s International Development Association, which supports the world’s poorest countries, in 2000. It began contributing to the fund in 2007 and has since become its fifth-largest donor.
A World Bank official familiar with the matter said China had made significant development progress over the past several decades and that the relationship between both sides was entering a new phase reflecting that reality.
US welcomes the move
The United States and several other countries have long urged the World Bank to stop lending to China, citing its growing economic strength.
China’s continued access to loans from the World Bank and other multilateral institutions has remained a point of contention for the Trump administration since its first term.
Earlier this month, the World Bank agreed to a similar arrangement for Poland, under which development lending to the country will also end after 2031.
A US Treasury spokesperson described the latest move as ‘a step in the right direction’ and said Washington hoped other international financial institutions would adopt similar measures.
The spokesperson said China, as the world’s second-largest economy, should no longer receive development funding from multilateral institutions.
A senior US official also called for development assistance to China from institutions such as the Asian Development Bank, the International Fund for Agricultural Development and United Nations agencies to be discontinued.
The Chinese embassy in Washington did not immediately respond to a request for comment.
