The World Bank will phase out its lending to China by 2031, according to the organisation’s new country partnership framework, a source familiar with the matter told AFP yesterday. ― AFP pic Earn a fixed rate of up to 4.2%* p.a. for 210 days with Versa Save! Plus, enjoy an additional FREE RM10 when you sign up using code VERSAMM10 with a min. cash-in of RM100 today. T&Cs apply. Wednesday, 01 Jul 2026 1:06 PM MYT WASHINGTON, July 1 — The World Bank will phase out its lending to China by 2031, according to the organisation’s new country partnership framework, a source familiar with the matter told AFP yesterday.The source confirmed an earlier report of the development by the Financial Times.“China has made significant development advances over the past several decades — progress that the World Bank and others have supported,” said a World Bank official familiar with the matter, speaking on condition of anonymity.“Now we are reaching a new phase of our relationship, reflecting that reality.”World Bank lending to China — the world’s second-largest economy — has steadily declined in recent years as the Asian giant saw explosive growth and a reduction in poverty indicators.In his first term in office, US President Donald Trump demanded that the World Bank stop lending to China entirely, as he adopted a more aggressive approach to Washington’s chief economic rival.Trump has maintained that tone in his second term, but has not specifically repeated that demand.World Bank lending to China peaked at US$2.42 billion (RM9.8 billion) in 2017, but has fallen since then, reducing to US$750 million in 2025.China also contributes funds to the World Bank’s International Development Association (IDA) pool for the world’s least developed countries, with its US$1.5 billion under the latest replenishment round making Beijing the fifth-largest donor.“The World Bank’s role is shifting from lender to knowledge partner, in line with China’s development trajectory,” said the World Bank official.On June 16, the World Bank announced a similar plan for Poland, planning to reduce loans to zero by 2031 while maintaining technical assistance. — AFP