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🇳🇬 Nigeria /Economy & Trade

World Bank to stop lending to China by 2031

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • The World Bank plans to phase out lending to China by 2031, according to a new country partnership framework.
  • Lending has steadily declined as China's economy grew and poverty indicators improved.
  • The bank's role is shifting from lender to knowledge partner, reflecting China's development trajectory.

The World Bank is set to conclude its lending operations in China by 2031, as outlined in the organization's new country partnership framework. This decision reflects China's significant economic advancements and reduction in poverty over recent decades, supported in part by World Bank initiatives.

A source familiar with the matter confirmed the plan, stating, "China has made significant development advances over the past several decades, progress that the World Bank and others have supported. Now we are reaching a new phase of our relationship, reflecting that reality."

World Bank lending to China, the world's second-largest economy, has seen a consistent decrease. This trend aligns with China's rapid growth and improved poverty metrics. Notably, during his first term, U.S. President Donald Trump had advocated for the World Bank to cease lending to China entirely, reflecting a more assertive stance towards a key economic rival.

China has made significant development advances over the past several decades, progress that the World Bank and others have supported. Now we are reaching a new phase of our relationship, reflecting that reality.

— World Bank officialExplaining the rationale behind phasing out lending to China.

While Trump has maintained this position, he has not reiterated the specific demand in his second term. World Bank lending to China reached a peak of $750 million in 2025. China also actively contributes to the World Bank's International Development Association (IDA) fund, which supports the world's least developed countries, ranking as the fifth-largest donor with a $1.5 billion contribution in the latest replenishment round.

The World Bank official emphasized a strategic shift, noting, "The World Bank’s role is shifting from lender to knowledge partner, in line with China’s development trajectory." This transition mirrors a similar plan announced for Poland, which also aims to reduce loans to zero by 2031 while continuing technical assistance.

The World Bank’s role is shifting from lender to knowledge partner, in line with China’s development trajectory.

— World Bank officialDescribing the evolving nature of the World Bank's engagement with China.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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