WORLD BANK TO STOP LENDING TO CHINA BY 2031

The World Bank has announced plans to gradually phase out lending to China, with all new financial assistance expected to cease by 2031 as the country transitions to a high-income economy and assumes a greater role as a global development partner.

The decision, outlined in the institution’s latest country strategy document released on Friday, reflects China’s remarkable economic transformation and its shift from a major borrower to one of the world’s leading providers of development finance. World Bank President Ajay Banga described the move as “a natural evolution” of the Bank’s engagement with its second-largest shareholder.

“China has achieved extraordinary progress in poverty reduction and infrastructure development. It is now time for the country to rely more on its own robust domestic capital markets while continuing to collaborate with us on global public goods such as climate change and pandemic preparedness,” Banga stated.

Over the past four decades, the World Bank has provided China with more than $60 billion in loans, supporting projects in transportation, energy, agriculture, and urban development. These interventions played a significant role in lifting hundreds of millions out of poverty. Under the new strategy, existing projects will be completed, but no new lending commitments will be made after 2031.

Chinese officials welcomed the announcement, reaffirming the country’s commitment to multilateralism. “China will continue to work closely with the World Bank on knowledge sharing, South-South cooperation, and addressing global challenges,” a senior finance ministry official said.

Analysts view the decision as part of broader efforts to reallocate scarce concessional resources to lower-income countries in Africa, Asia, and Latin America that still require substantial support for development. The move is also expected to free up World Bank capacity to tackle pressing issues like climate adaptation and debt sustainability in vulnerable economies.

As China’s engagement with the World Bank evolves into a more equal partnership focused on innovation and global development solutions, the institution says it will maintain technical cooperation and policy dialogue with Beijing.