The World Bank has confirmed its plan to phase out lending to China by 2031, according to the organization's new country partnership framework (CPF) for the world's second-largest economy. The CPF, a multi-year plan outlining development priorities, marks a new phase in a 45-year partnership as China shifts from needing financing to primarily requiring technical assistance and knowledge sharing.
Declining Lending
World Bank lending to China has steadily declined in recent years as the country experienced explosive growth and a reduction in poverty indicators. Lending peaked at $2.42 billion in 2017 but had fallen to $750 million by 2025.
Shift in Focus
The World Bank's new five-year plan focuses on delivering economic growth, providing better jobs, social resilience, and fostering a low-carbon economy. As China faces challenges such as an aging society and a shifting economy, the bank will work alongside it to generate ideas that benefit not only China but also emerging markets worldwide.
