The World Bank on Saturday said its lending to China has fallen sharply and added that continue to be pared back. This comes after US President Donald Trump demanded it to stop altogether. On Friday, Trump took to Twitter saying, “Why is the World Bank loaning money to China? Can this be possible? China has plenty of money, and if they don’t, they create it. STOP!”.
Why is the World Bank loaning money to China? Can this be possible? China has plenty of money, and if they don’t, they create it. STOP!— Donald J. Trump (@realDonaldTrump) December 7, 2019
World Bank president, David Malpass, a former US Treasury official, issued a statment saying, “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. “We eliminate lending as countries get richer,” the statement reads.
Earlier, Treasury Secretary Steven Mnuchin told US lawmakers Thursday that the United States “has objected” to the institution’s multi-year program of loans and projects in China.
Trump’s very public stance comes amid negotiations between Washington and Beijing seeking to end the US president’s 18-month-long trade war, which is aimed at forcing China to make concessions on protecting American businesses and reducing its trade surplus. There is a great deal of uncertainty about the date of a possible partial agreement, which Trump said was imminent in October.
(With PTI inputs)