WASHINGTON, July 25, (v7n)– The World Bank confirmed that it plans to phase out its lending to China by 2031, according to the organization's new country partnership framework (CPF) for the world's second-largest economy.

"IBRD lending will continue to phase down during the CPF period, not exceeding US$2 billion," the World Bank Group said, referring to lending through the International Bank for Reconstruction and Development. "In principle, no further borrowing is expected from IBRD by the end of the CPF period."

The five-year CPF "marks a new phase in a 45-year partnership," as China moves from needing financing to primarily requiring technical assistance and knowledge sharing. "As our partnership evolves, we are increasingly focused on knowledge, innovation and shared solutions," said Anna Bjerde, World Bank managing director of operations.

World Bank lending to China has steadily declined in recent years as the Asian giant saw explosive growth and a reduction in poverty indicators. Lending peaked at $2.42 billion in 2017 but had fallen to $750 million by 2025. Bjerde said the Bank would work alongside China to generate ideas that matter for emerging markets globally as it tackles challenges including an aging society and economic transition.

China's Deputy Finance Minister Liao Min said China would continue to deepen engagement with the World Bank regardless of the changing lending relationship.

The new CPF focuses on delivering economic growth while also providing better jobs, social resilience, and a low-carbon economy.

US President Donald Trump, who has maintained an aggressive approach toward Washington's chief economic rival, had demanded during his first term that the World Bank stop lending to China entirely. He has not specifically repeated that demand in his second term.

China also contributes funds to the World Bank's International Development Association pool for the world's least developed countries, with its $1.5 billion contribution under the latest replenishment round making Beijing the fifth-largest donor.

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