The World Bank will officially phase out its lending to China by 2031 under its newly adopted Country Partnership Framework, signaling a major shift in its decades-long relationship with the world’s second-largest economy.
The decision, confirmed by a source familiar with the matter on Tuesday, aligns with an earlier report by the Financial Times and reflects China’s remarkable economic transformation over the past several decades.
A World Bank official, speaking on condition of anonymity, said the move recognizes China’s sustained economic growth and development achievements.
“China has made significant development advances over the past several decades — progress that the World Bank and others have supported,” the official said.
“Now we are reaching a new phase of our relationship, reflecting that reality.”
The World Bank has steadily reduced its financial support to China in recent years as the country expanded its economy, lifted millions out of poverty, and strengthened its global economic position.
According to reports, World Bank lending to China totaled approximately $750 million in 2025, a sharp decline from previous years.
The decision also echoes calls made during U.S. President Donald Trump’s first term, when he urged the World Bank to stop providing loans to China, arguing that the country no longer needed development financing. Although Trump has continued to maintain a firm stance on Beijing during his second term, he has not publicly repeated that specific demand.
Despite receiving World Bank loans, China remains one of the institution’s major contributors. Under the latest replenishment of the International Development Association (IDA)—the World Bank’s fund for the world’s poorest nations—Beijing pledged $1.5 billion, making it the fifth-largest donor.
A World Bank official said the institution’s engagement with China will increasingly focus on technical expertise rather than financial support.
“The World Bank’s role is shifting from lender to knowledge partner, in line with China’s development trajectory,” the official stated.
China is not the only country affected by the policy shift. The World Bank announced on June 16 that it will also reduce lending to Poland to zero by 2031 while continuing to offer technical assistance, reflecting a broader strategy of transitioning middle- and high-income economies away from borrowing and toward advisory partnerships.
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