The World Bank will gradually phase out lending to China by 2031, marking a significant shift in its relationship with the world’s second-largest economy as Beijing continues its transition from a developing nation to a major global economic power.
According to the World Bank’s newly unveiled country partnership framework, lending to China will steadily decline over the coming years before reaching zero by the end of the decade. The move reflects China’s remarkable economic growth and development progress over recent decades, which have dramatically reduced poverty levels and strengthened the country’s financial capacity.
A World Bank official familiar with the plan said the institution’s relationship with China is entering a new stage, noting that the country has achieved substantial development gains with support from the World Bank and other international organizations. As a result, the bank’s role will increasingly focus on providing technical expertise and policy guidance rather than direct financial assistance.
World Bank lending to China has already been falling for several years. Funding peaked at approximately $2.42 billion in 2017 before declining significantly. By 2025, annual lending had dropped to about $750 million, reflecting China’s growing ability to finance its own development projects.
The decision comes amid ongoing scrutiny of World Bank lending practices, particularly from the United States. During his first administration, President Donald Trump called on the institution to stop providing loans to China, arguing that the economic powerhouse no longer required development financing. Although Trump has maintained a tough stance toward China during his second term, he has not publicly renewed that specific demand.
Despite the reduction in borrowing, China remains an important contributor to global development efforts through the World Bank. Beijing recently pledged $1.5 billion to the International Development Association (IDA), the World Bank’s fund that supports the world’s poorest countries, making China the fifth-largest contributor in the latest funding round.
The World Bank emphasized that its future engagement with China will center on knowledge-sharing, technical assistance and policy cooperation rather than traditional lending. Officials described the transition as a natural evolution that aligns with China’s current economic status and development trajectory.
China is not the only country facing a gradual reduction in World Bank financing. Earlier this month, the institution announced a similar framework for Poland, outlining plans to reduce lending to zero by 2031 while continuing advisory and technical support services.
The move underscores the World Bank’s broader strategy of redirecting financial resources toward lower-income nations with greater development needs while maintaining strategic partnerships with more advanced economies.