World Bank to Gradually Halt New Lending to China by 2031

[Financial News] The World Bank (WB) is reportedly planning to end lending to China by 2031.
Agence France-Presse (AFP) reported on the 30th, citing sources, that the World Bank will phase out new lending to China by 2031 under its new Country Partnership Framework (CPF).
A World Bank official, who asked not to be named, said, "China has made clear progress over the past several decades, and that is a result supported by the World Bank and the international community." The official added, "We are now entering a new stage in our relationship, reflecting China's development reality."
The World Bank's lending to China, the world's second-largest economy, has steadily declined in recent years as the country's rapid economic growth and poverty indicators have improved.
World Bank lending to China peaked at $2.42 billion in 2017, then fell steadily to $750 million last year, or about 1.1164 trillion won.
The move also aligns with the United States' hard-line stance toward China. During his first term, President Donald Trump took an aggressive approach toward China, America's biggest economic rival, and called on the World Bank to stop lending to China altogether. He is said to have maintained that pressure in his second term, although he has not specifically renewed the demand to end lending.
China is currently both a borrower from the World Bank and a major donor to the International Development Association (IDA), the World Bank arm that supports the poorest countries. At a recent IDA replenishment meeting, China contributed $1.5 billion, becoming the world's fifth-largest donor.
The World Bank official emphasized, "As China's development trajectory changes, the World Bank's role is also shifting from a lender to a knowledge partner."
Meanwhile, on June 16, the World Bank announced a similar plan for Poland, saying it would reduce lending to zero by 2031 while continuing technical assistance.
jjyoon@fnnews.com Yoon Jae-jun Reporter