World Bank Plans to End Loans to China by 2031

The World Bank is set to halt its loan program to China starting in 2031, with a gradual reduction of its financial commitments leading up to that year, an informed source told Agence France-Presse on Tuesday, confirming details previously reported by the Financial Times.

The source explained that the gradual decrease will begin by capping loans at $2 billion, which will then be steadily lowered to zero as part of a new partnership framework discussed with Beijing.

This framework is scheduled to be presented to the World Bank's board of directors in the coming days and will not require a formal vote.

A representative from the financial institution told Agence France-Presse, "China has made significant development progress over recent decades, progress that the Bank has especially supported. We are now entering a new phase in our relationship that reflects this reality."

The Bank will continue to assist Beijing, but future support will shift from loans to advisory expertise.

The source added, "This is the same type of transition we are witnessing with other economies, such as Poland, which is moving away from Bank loans and gradually contributing to global development."

The World Bank is also expected to end its lending to Poland by 2031.

According to the institution's data, China ceased receiving aid from the International Development Association, the World Bank's arm dedicated to the poorest countries, at the start of the millennium and has gradually become its fifth-largest contributor.

World Bank loans to China through its lending arm, the International Bank for Reconstruction and Development, reached about $2.4 billion in 2017 but declined to $750 million by 2025.

Meanwhile, the World Bank continues to provide expertise to China, particularly in strengthening financial institutions and public services.

Although China is still classified as an emerging economy, many Western countries, led by the United States, have opposed the continuation of the world's second-largest economy benefiting from the World Bank's lending mechanisms, which allow countries to finance projects at costs lower than those available on financial markets.

At the same time, China has become a major player in international aid, both through multilateral institutions and bilateral loans with countries, especially under its "New Silk Road" initiative, which involves infrastructure projects aimed at connecting the world with China.