U.S. opposes World Bank plan to lend to China, Mnuchin says

Bloomberg News//December 5, 2019//

Chinese Vice Premier Liu He accompanied by U.S. Trade Representative Robert Lighthizer, left, and Treasury Secretary Steven Mnuchin, greets the media Oct. 10, 2019 before a minister-level trade meeting in Washington. (AP Photo: Jose Luis Magana)

Bloomberg News//December 5, 2019//

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Treasury Secretary Steven Mnuchin said Thursday that the Trump administration opposes the World Bank’s latest plan for low-interest loans to China, which has received more than $1 billion a year from the lender.

The World Bank is expected to soon release its latest Country Partnership Framework document for China, which lays out its lending plans to the world’s second-largest economy. Under questioning by lawmakers, Mnuchin told the House Financial Services Committee on Thursday that China should be removed from the World Bank’s loan program.

“The Treasury Department has negotiated significant reductions on China lending by the World Bank,” Mnuchin said.

World Bank lending to China declined to $1.3 billion in fiscal year 2019 from $2.4 billion in fiscal 2017.

Several lawmakers voiced concerns about what they described as unannounced World Bank plans to continue lending to China despite rapid growth in the country’s per capita income. Mnuchin said the Treasury Department on Wednesday filed an objection to the World Bank’s latest plans.

Senate Finance Chairman Chuck Grassley, an Iowa Republican, said Thursday that Congress should intervene in the World Bank’s plans.

“China is now the world’s second largest economy and its per capita income is well above the level at which countries are supposed to ‘graduate’ from needing World Bank assistance,” he said in prepared remarks for delivery on the Senate floor.

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