World Bank confirms plan to phase out China lending by 2031

The World Bank has officially confirmed its intention to phase out lending to China by 2031, according to the organization's latest country partnership framework. This move signifies a significant shift in the long-standing financial relationship between the multilateral lender and the world's second-largest economy.

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IBRD lending will continue to phase down during the CPF period, not exceeding US$ 2 billion.

Under the new framework, lending through the International Bank for Reconstruction and Development (IBRD) will progressively decrease, with a cap of $2 billion expected during the current framework period. The World Bank indicated that no further borrowing from the IBRD is anticipated by the conclusion of this framework. This Country Partnership Framework (CPF) represents a new chapter in a 45-year partnership, acknowledging China's transition from a recipient of financing to a provider of technical assistance and knowledge.

Anna Bjerde, World Bank managing director of operations, stated that as the partnership evolves, the focus is increasingly on knowledge, innovation, and shared solutions. She noted that as China addresses challenges such as an aging population, economic shifts, and other development priorities, the World Bank will collaborate to generate ideas beneficial not only for China but also for emerging markets globally.

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

China's Deputy Finance Minister Liao Min affirmed that the country would continue its engagement with the World Bank, irrespective of the changes in lending dynamics. The World Bank's new five-year plan with China prioritizes economic growth, improved job creation, social resilience, and the development of a low-carbon economy. Previously, during his presidency, Donald Trump had urged the World Bank to halt all lending to China, viewing it as a primary economic rival. While Trump maintained this stance, he did not specifically reiterate the demand in his second term.

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As China tackles the challenges of an ageing society, a shifting economy, and other development priorities, we will work alongside it to generate ideas that matter not just for China, but for emerging markets around the world.