The World Bank intends to stop its loans to China by 2031 | economy

Informed sources told Reuters that the World Bank will gradually stop its loans to China by 2031, after years of a decline in the volume of loans, which reflects the rise of the Asian country to become the second largest economy in the world.

Agence France-Presse also quoted an informed source as saying that the gradual reduction was stipulated in the new framework of the partnership that was discussed with Beijing.

This framework will be presented in the coming days to the World Bank’s Board of Directors without the need for a vote on it.

This change – which was first reported by the Financial Times – will limit the Multilateral Bank’s loans granted to Beijing to $2 billion between now and 2031, with these loans to be terminated after that.

A World Bank official said, “China has made great progress in development in recent decades, a progress that was particularly supported by the Bank. We are now entering a new phase in our relationship that takes this reality into account.”

He added that the bank will continue to provide assistance to Beijing, but from now on it will be in the form of advisory expertise rather than loans.

This month, the World Bank approved a similar change for Poland, where it will stop development loans granted to this country after 2031.

International pressure

World Bank loans to China have declined steadily, falling from $2.4 billion annually in 2017 to $750 million in 2025.

The United States and other countries have long been pressing the World Bank to stop lending to China, given its economic strength.

China’s continued borrowing from the World Bank was a source of irritation to the administration of US President Donald Trump during its first term.

A US Treasury Department spokesman described this measure as a “step in the right direction” and said that Washington looked forward to other institutions following suit.

“As the second largest economy in the world, China should not receive aid from multilateral institutions,” the spokesman said.

China has become a major player in the field of international aid, whether through international institutions or through bilateral loans with countries, especially in the context of its huge plan to invest in infrastructure projects linking China to the world, known as the “Silk Road.”