US President Donald Trump has called on the World Bank to stop lending to China. "Why is the World Bank lending money to China? Could it be possible? China has a lot of money, and if not, they can do it. Stop it!" Trump wrote on Twitter.
Despite objections from the US, the World Bank has recently approved billion-dollar loans on favorable terms to China. Thus, the People's Republic should get between 1 and 1.5 billion dollars in loans at low interest rates by mid-2025. According to the World Bank, China spent about $ 1.4 billion this year, but that is far less than the $ 2.4 billion it spent in 2017.
The purpose of the World Bank is to promote market and tax reforms, promote greener economic growth and improve citizens' access to health and social services. The Beijing government had asked for funding. One of the main tasks of the Washington-based World Bank is to fight poverty in developing countries by granting cheap loans.
US Treasury Secretary Steven Mnuchin opposed the promotion. The second-largest economy in the world, after the US, is too wealthy for such international aid, he criticized. China itself forgives hundreds of billions of loans to other countries for the construction of the so-called new Silk Road, which is supposed to improve the connections between the People's Republic and other regions of the world.
Chuck Grassley of the Senate Finance Committee called on the World Bank to freeze a $ 50 million grant on a project in western China. Given the repression of Muslims in the region, there is a suspicion that behind the alleged training center hides a reeducation camp that should be funded with millions. According to officially unconfirmed estimates, China's authorities have put hundreds of thousands of people into such facilities.