World Bank to Gradually Curb Lending to China

Lending to China has fallen through the years and will continue falling, said the World Bank. US President Donald Trump criticized the hefty funds lent to this World’s Second Largest Country in terms of GDP.

Crux of the Matter

1. “World Bank lending to China has fallen sharply and will continue to reduce as part of our agreement with all our shareholders including the United States,” World bank said.

2. World Bank recently made a deal to lend around $1-1.5 bn to China at a below-market lending rate.

3. Besides arguing that China has become eligible for ‘graduation’ under the World Bank support criteria, USA has argued China is using these funds, which are derived from the American and developed country’s taxpayers’ money, to fund mass detention camps like in that of Xinjiang.

4. World Bank’s statement comes amid the tension when US and China look to end the trade war.

Curiopedia

The Bretton Woods Conference, formally known as the United Nations Monetary and Financial Conference, was the gathering of 730 delegates from all 44 Allied nations at the Mount Washington Hotel, situated in Bretton Woods, New Hampshire, United States, to regulate the international monetary and financial order after the conclusion of World War II. It had three main results: (1) Articles of Agreement to create the IMF, whose purpose was to promote stability of exchange rates and financial flows. (2) Articles of Agreement to create the IBRD, whose purpose was to speed reconstruction after the Second World War and to foster economic development, especially through lending to build infrastructure. (3) Other recommendations for international economic cooperation. More Info

Curated Coverage

1. Deutsche Welle – World Bank says lending to China to drop

2. The Washington Post – The World Bank’s loans to China must not further enable repression

3. Economic Times – World Bank to reduce lending to China

#China #Geopolitics #USA #WorldBank