World Bank to phase out China lending by 2031

The World Bank will phase out all lending to China by 2031, according to a plan submitted to the institution's board on Tuesday, June 30. The decision marks a fundamental shift in the bank's relationship with the world's second-largest economy, transitioning it from a borrower to a knowledge partner.

The plan, part of a new five-year Country Partnership Framework agreed upon by the World Bank and China, will be reviewed by the bank's board during the week of July 20. It caps total lending to Beijing at no more than $2 billion between now and 2031, after which lending will cease entirely. A World Bank official said the move reflects China's significant development advances over recent decades and its readiness to no longer rely on financing from a development institution.

Lending has declined steadily for years, dropping from $2.4 billion annually in 2017 to $750 million in 2025. The decision follows similar action regarding Poland, for which the World Bank announced a plan earlier in June to end development loans by 2031. Officials noted the plan for China contains no exceptions, unlike the Poland agreement, which included potential carve-outs for programs related to Ukraine and...