World Bank to End Lending to China by 2031: A Shift in Global Economic Policy

The World Bank will phase out its lending to China by 2031, reflecting China's rise as a major economy. This decision, part of a five-year framework, will limit lending to $2 billion until then. The move has been welcomed by the U.S. but remains contentious.

The World Bank will cease its lending to China by 2031, underscoring China's emergence as the world's second-largest economy. Sources close to the plan revealed the decision, though no formal vote is required. The shift aligns with the World Bank and China’s five-year "country partnership framework."

Reports indicate a steady decline in lending, from $2.4 billion annually in 2017 to just $750 million by 2025. The U.S. and other countries have long advocated for this policy change, given China's economic influence. U.S. officials, particularly during the Trump administration, found China's borrowing practices from the World Bank controversial.

A U.S. Treasury spokesperson hailed the decision as a progressive step, urging similar actions from other institutions. "As the second-largest economy, China should not receive aid from multilateral entities," they stated. The Chinese Embassy in Washington has yet to comment.