The World Bank (WB) has assured to have already reduced “drastically” and that it will continue to reduce loans to China, statements that come a day after the reprimand by the president of the United States, Donald Trump.
“World Bank loans to China have been drastically reduced and will continue to be reduced as part of our agreement with all our shareholders, including the U.S.,” a spokeswoman for the international financial institution told Efe.
Those statements came in response to a Twitter message from Trump, who on Friday demanded that the WB stop lending to the Asian giant.
“Why is the World Bank lending money to China? Is that possible? China has a lot of money, and if they don’t have it, believe it. Enough!”, he tweet.
In this way, the president expressed his rejection towards a plan approved on Thursday by the World Bank to lend China between 1,000 and 1,500 million dollars a year until June 2025 at a lower interest rate.
The WB spokeswoman explained that the institution’s policy is to eliminate loans to countries as they become richer.
“Our loans to China include private sector support and market reforms. We are also working to increase the transparency of China’s lending and investment activities,” the source said.
Loans to China from the World Bank, in which Washington is a majority shareholder, dropped from $2.4 billion in 2017 to $1.3 billion this year.
The Trump Administration has criticized World Bank loans to China as too rich to receive international aid.
With his criticism of the World Bank for loans to China, Trump has opened a new front in his constant confrontation with Beijing.
The main front of this crisis is the trade war, which already accumulates tariffs of billions of dollars and that this December could be aggravated with new impositions if Washington and Beijing do not reach an agreement before.
In addition, Trump recently sanctioned two bills in support of protests in Hong Kong that provide for sanctions for Chinese officials and irritated Beijing.
Now the U.S. Congress is considering another bill in support of Muslim minorities in the Xinjiang Uighur Autonomous Region, which also provides for sanctions against Beijing officials.