World Bank to end China lending by 2031

The World Bank is preparing to phase out its development lending to China by 2031 under a new country partnership framework. Under the proposal, total development lending to China would be capped at about $2 billion between now and 2031. After that date, the institution would stop approving new development loans to the country. The phase-out is structured within a five-year framework that has been agreed with Chinese authorities.

The plan comes as World Bank financing to China has already been trending lower. Reported lending has declined from about $2.4 billion in 2017 to roughly $750 million in 2025. The proposed cap and end-date would formalise this trajectory into a clear timeline for exiting development lending.

The World Bank’s board is scheduled to review the new country partnership framework for China during the week of July 20. The proposal reportedly does not require a formal board vote. Instead, the review will focus on endorsing the framework that has been negotiated with Chinese counterparts. This process places the phase-out within the Bank’s standard governance for medium-term country strategies.

The framework’s structure means that lending commitments over the coming years will be constrained by the $2 billion cap. Any new projects would have to fit within this envelope and the 2031 cut-off for approvals. This provides borrowers and the institution with a defined horizon for planning remaining operations in China.

China’s status within the World Bank system has shifted over the past two decades. The country exited eligibility for concessional International Development Association (IDA) loans in 2000. It then became a contributor to IDA in 2007. Since then, China has moved into the ranks of major donors to the concessional fund.

Reports cite a $1.5 billion pledge from China under the latest IDA replenishment, making it the fifth-largest donor. This evolution from concessional borrower to significant donor underpins the argument for winding down standard development lending. The new framework aligns China’s borrowing profile more closely with its current economic and financial position within the World Bank system.

The proposed phase-out of China lending has drawn a positive response from the United States. A U.S. Treasury spokesperson has described the plan as a "step in the right direction" and indicated that Washington hopes other multilateral lenders will adopt similar approaches. This highlights broader international interest in how development institutions engage with higher-income and major emerging economies.

Earlier in June, the World Bank adopted a comparable policy approach toward Poland. For that country, development lending is also planned to end after 2031, while technical assistance would continue. The China framework therefore fits into a wider pattern of recalibrating the Bank’s engagement with countries whose income levels and global roles have changed, while preserving non-lending support tools.