China to no longer receive financial loans from World Bank starting 2031

A source familiar with the matter revealed to AFP on Tuesday that the World Bank intends to gradually discontinue its lending to China by 2031, as outlined in the organisation's new country partnership framework, corroborating an earlier report by the Financial Times.

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This development marks a significant shift in the World Bank's relationship with China, which has made substantial development strides over the past several decades, with the World Bank being one of the supporters of this progress, according to a World Bank official speaking anonymously.

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The official noted that the World Bank and China are now entering a new phase in their relationship, one that reflects the country's current reality, as China's economic growth and poverty reduction have led to a decline in World Bank lending in recent years.

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World Bank lending to China, the world's second-largest economy, has been steadily decreasing, with the lending peaking at $750 million in 2025, and this downward trend is expected to continue until lending is phased out by 2031.

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During his first term in office, US President Donald Trump called for the World Bank to cease lending to China entirely, adopting a more aggressive stance towards China, Washington's main economic rival, although he has not repeated this demand in his second term.

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Despite being a recipient of World Bank loans, China also contributes to the World Bank's International Development Association (IDA) pool, which supports the world's least developed countries, with its $1.5 billion contribution making it the fifth-largest donor under the latest replenishment round.

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A World Bank official stated that the organisation's role is evolving from that of a lender to a knowledge partner, aligning with China's development trajectory, as the country's economic growth and development needs have changed over time.

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On June 16, the World Bank announced a similar plan for Poland, aiming to reduce loans to zero by 2031, while maintaining technical assistance, a move that reflects the organisation's shifting approach to its relationships with countries like China and Poland.