World Bank is set to gradually phase out its lending to China by 2031, marking a major shift in its long-standing development relationship with the world’s second-largest economy.
According to officials familiar with the new country partnership framework, the decision reflects China’s economic transformation over recent decades, which has significantly reduced its reliance on external development financing.
World Bank lending to China has already been declining steadily, dropping from a peak of $2.42 billion in 2017 to about $750 million in 2025 as the country continues to record strong domestic growth and reduced poverty levels.
Officials described the transition as a move from traditional lending toward a “knowledge partnership,” focusing more on technical support and policy cooperation rather than financial assistance.
The development also followed broader changes in the bank’s global lending strategy, including similar plans to phase out loans to other emerging economies as they reach higher income levels.
The shift comes amid longstanding political pressure from some global leaders, including former U.S. President Donald Trump, who previously called for an end to World Bank lending to China, arguing it should no longer receive development loans given its economic size
