World Bank confirms plan to phase out China lending by 2031

The World Bank has officially confirmed its intention to cease lending operations to China by 2031, marking a significant shift in a 45-year partnership. This move is outlined in the organization's new country partnership framework (CPF) for the world's second-largest economy.

Under the new five-year CPF, the International Bank for Reconstruction and Development (IBRD) will continue to phase down its lending, not exceeding $2 billion during this period. The framework signals a transition from China's need for financing to a primary requirement for technical assistance and knowledge sharing. "As our partnership evolves, we are increasingly focused on knowledge, innovation and shared solutions," said Anna Bjerde, World Bank managing director of operations.

World Bank lending to China has seen a steady decline in recent years, reflecting the country's substantial economic growth and significant poverty reduction. As China addresses challenges such as an aging population and economic shifts, the World Bank aims to collaborate on generating ideas beneficial not only for China but also for emerging markets globally. China's Deputy Finance Minister Liao Min affirmed that the country would continue its engagement with the World Bank, irrespective of the lending changes.

The new plan prioritizes economic growth, improved employment, social resilience, and a low-carbon economy. This strategic adjustment follows past pressures, notably from former U.S. President Donald Trump, who had demanded an end to World Bank lending to China. Despite the shift away from lending, China remains a significant contributor to the World Bank's International Development Association (IDA) fund, supporting the world's least developed countries.

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As our partnership evolves, we are increasingly focused on knowledge, innovation and shared solutions.