Key facts
- The World Bank will phase out lending to China by 2031.
- Lending will be capped at less than $2 billion through 2031.
- The decision is based on China's economic development.
The World Bank has decided to phase out its lending to China by 2031, capping the total amount of loans to the country at less than $2 billion through that year. This decision comes in light of China's substantial economic development.
The move signifies a shift in the global financial landscape, as China, once a recipient of significant development aid, has grown into a major global economic power. The World Bank's lending policies are typically adjusted based on the economic status and needs of borrowing countries.