Desk : The World Bank will gradually phase out its lending to China by 2031, marking a significant shift in its relationship with the world’s second-largest economy, according to the institution’s newly adopted Country Partnership Framework.
The move, first reported by the Financial Times and later confirmed by a source familiar with the development, reflects China’s transformation from a major borrowing nation into a more advanced economy with substantially improved development indicators.
A World Bank official, speaking on condition of anonymity, said China has achieved remarkable economic and social progress over the past several decades with support from the World Bank and other international institutions.
“China has made significant development advances over the past several decades. Now we are reaching a new phase of our relationship, reflecting that reality,” the official said.
As part of the transition, the World Bank will increasingly focus on providing technical expertise and policy advice rather than financial assistance. “The World Bank’s role is shifting from lender to knowledge partner, in line with China’s development trajectory,” the official added.
Lending Declines Sharply
The World Bank’s financial support to China has been declining steadily over the past several years as the country’s rapid economic growth lifted hundreds of millions of people out of poverty and strengthened its financial capacity.
Annual lending to China reached a peak of $2.42 billion in 2017, but has since fallen significantly, dropping to $750 million in 2025. The new framework envisions reducing lending to zero by 2031.
Political Pressure from Washington
The decision also comes against the backdrop of long-standing political pressure from the United States. During his first term, US President Donald Trump urged the World Bank to stop lending to China altogether, arguing that the country no longer required development financing given its economic strength.
Although Trump has maintained a tough stance toward Beijing during his second term, he has not publicly renewed that specific demand.
China Remains a Major Donor
Despite the planned end to borrowing, China continues to play an important role within the World Bank as a contributor to global development financing.
Under the latest replenishment of the International Development Association (IDA)—the World Bank’s fund for the world’s poorest countries—China pledged $1.5 billion, making it the fifth-largest donor to the fund.
Similar Transition for Poland
The World Bank recently announced a comparable strategy for Poland. On June 16, it unveiled plans to reduce lending to Poland to zero by 2031, while continuing to provide technical assistance and policy support, reflecting the country’s advanced stage of economic development.
