World Bank to Cease Loans to China by 2031

The World Bank plans to end its lending to China by 2031, reflecting China's economic rise. Loan amounts have decreased significantly over the years, and this decision aligns with a new phase in their relationship. The move has been influenced by international pressure, particularly from the U.S.

The World Bank will phase out its lending support to China by 2031, signaling a shift in recognition of China's transformation into a global economic powerhouse. Sources familiar with the plan confirmed these reports on Tuesday, revealing that the World Bank board is set to review the strategy later this month, although a formal vote is not required.

China, which exited the World Bank's International Development Association for the poorest nations in 2000 and started contributing in 2007, now stands as its fifth-largest donor. Lending to China has steadily decreased, from $2.4 billion in 2017 to $750 million projected for 2025. The Financial Times first reported the development, emphasizing the Bank's strategy to limit lending to $2 billion until 2031, with all lending afterward stopping entirely.

U.S. officials have applauded the decision, arguing that as the world's second-largest economy, China no longer needs such support. The shift comes amid ongoing requests for similar actions from other financial institutions like the Asian Development Bank. Amid these changes, China has committed to continued collaboration with the World Bank to address global challenges.