The planned phase-out is contained in the institution's new Country Partnership Framework, according to a source familiar with the decision. The development was first reported by the Financial Times and later confirmed to AFP by a World Bank official.
The move reflects China's remarkable economic transformation over the past several decades, during which the country experienced rapid industrialisation, sustained economic growth and a dramatic reduction in poverty.
A World Bank official familiar with the matter said the evolving relationship is a recognition of China's development progress.
"China has made significant development advances over the past several decades — progress that the World Bank and others have supported.
"Now we are reaching a new phase of our relationship, reflecting that reality."
World Bank financial support to China has already been on a downward trajectory in recent years as the country's growing economic strength reduced its dependence on development financing traditionally provided by multilateral institutions.
At the same time, the World Bank has increasingly focused its engagement with China on technical expertise, policy advice and knowledge-sharing rather than direct financial assistance.
Explaining the institution's future role, the official said:
"The World Bank’s role is shifting from lender to knowledge partner, in line with China’s development trajectory."
The decision also comes against the backdrop of longstanding criticism from the United States regarding continued World Bank lending to China.
During his first term in office, US President Donald Trump repeatedly argued that the World Bank should stop extending loans to China, contending that the country had become too economically advanced to qualify for such financing. Although Trump has maintained a tough stance toward Beijing during his second term, he has not publicly renewed that specific demand.
According to available data, World Bank lending to China reached approximately $750 million in 2025, although annual financing has continued to decline as part of the institution's broader strategy of reducing support to countries that have achieved higher levels of economic development.
Despite borrowing less from the World Bank, China has increasingly become a contributor to global development financing through the institution. Under the latest replenishment of the World Bank's International Development Association (IDA)—the fund that supports the world's poorest countries—China pledged $1.5 billion, making it the fifth-largest donor to the programme.
The shift underscores China's changing role within the global financial system, where it now serves not only as a recipient of development assistance but also as a contributor to international poverty reduction efforts.
China is not the only country affected by the World Bank's evolving lending strategy. On June 16, the institution announced a similar roadmap for Poland, stating that it also plans to reduce lending to zero by 2031 while continuing to provide technical assistance and advisory services.
The gradual withdrawal of lending to China signals the World Bank's intention to redirect more of its financial resources toward lower-income and developing economies, while maintaining strategic partnerships with countries that have reached more advanced stages of economic development.