Regarding the World Bank's (WB) decision to phase out development finance loans to China by 2031, the Chinese government expressed its practical acceptance of the move, describing it as a natural shift following its economic growth.

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On July 1, China's Ministry of Finance announced its acceptance of the World Bank's decision to phase out loans to the country by 2031. Shown is the entrance to the ministry's headquarters building. / Beijing News (Xinjingbao).

According to reports from online media outlets including Qianlong Wang on July 2, China's Ministry of Finance released a statement on its website the previous day, noting that China and the World Bank have maintained productive cooperation and built a comprehensive partnership over the past four decades, which actively contributed to China's reform and opening-up as well as global poverty reduction and development efforts.

The ministry emphasized that the scale of World Bank loans to China has gradually decreased in recent years alongside the significant growth of China's overall national strength. It explained that this is a natural outcome reflecting changes in domestic demand and a transition in the cooperative approach between both sides, while also aligning with international practices regarding evolving partnerships between the World Bank and many of its member states.

The statement further stressed that as the world's largest developing country, China will continue to strengthen cooperation with the World Bank in areas such as addressing global challenges. It added that Beijing will focus particularly on knowledge cooperation to promote high-quality domestic development while supporting shared prosperity among developing nations at large.

This follows the World Bank's decision to phase out development finance loans to China by 2031, a move seen as a determination that China's economic strength has reached a level where it no longer requires development finance support. Once finalized, the plan will effectively bring an end to China's status as a borrower from the World Bank.

The United States and other member states have consistently demanded a halt to World Bank lending to China, pointing to the country's spectacular economic growth spanning from the late 20th century to recent years. Consequently, this measure is viewed as the World Bank fully accepting these demands from the US and others.

The World Bank has reportedly submitted the proposal to its executive board, with a final decision expected to be confirmed during a board meeting in the fourth week of July. The shift appears to leave little doubt that China is making a definitive leap into the ranks of advanced economies.

                                                                                                           Hong Soon-do