The World Bank is planning to limit its lending to China to no more than US$2 billion annually through 2031 before ending new loans to the country thereafter, according to a report by the Financial Times.
The proposal has reportedly been submitted to the World Bank’s Board of Executive Directors for consideration. The board is expected to discuss the plan during the week beginning 20 July.
If approved, the measure would mark a significant shift in the World Bank’s lending strategy towards China, the world’s second-largest economy. China has long been one of the institution’s borrowers, although its growing economic strength has prompted calls from some shareholders to reduce or phase out financial support.
According to the Financial Times, the proposed lending cap would remain in place until 2031, after which the World Bank would cease providing new loans to China.
The reported proposal comes amid broader discussions over the World Bank’s role in supporting middle-income countries while directing more resources towards lower-income and more vulnerable nations facing development and climate-related challenges.
The World Bank has not publicly commented on the reported proposal, and the outcome of the board’s deliberations later this month remains uncertain. If endorsed, the plan would represent a notable milestone in the institution’s evolving approach to development financing.
