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Trump calls for World Bank to stop loaning to China

Published 12/06/2019, 10:54 PM
Updated 12/06/2019, 10:54 PM
© Reuters. FILE PHOTO: U.S. President Trump hosts luncheon with UN Security Council representatives at the White House in Washington

© Reuters. FILE PHOTO: U.S. President Trump hosts luncheon with UN Security Council representatives at the White House in Washington

WASHINGTON (Reuters) - U.S. President Donald Trump on Friday called for the World Bank to stop loaning money to China, one day after the institution adopted a lending plan to Beijing over Washington's objections.

The World Bank on Thursday adopted a plan to aid China with $1 billion to $1.5 billion in low-interest loans annually through June 2025. The plan calls for lending to "gradually decline" from the previous five-year average of $1.8 billion.

"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!" Trump wrote in a post on Twitter.

"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," the World Bank said in an emailed statement to Reuters.

"We eliminate lending as countries get richer."

Spokespeople for the White House declined to comment on the record.

The World Bank loaned China $1.3 billion in the fiscal 2019 year, which ended on June 30, a decrease from around $2.4 billion in fiscal 2017.

© Reuters. FILE PHOTO: U.S. President Trump hosts luncheon with UN Security Council representatives at the White House in Washington

But the fall in the World Bank's loans to China is not swift enough for the Trump administration, which has argued that Beijing is too wealthy for international aid.

Latest comments

World Bank? or, American Bank!
I love it.  Trump complains China is getting a $1.9 billion loan from the WTO while China in turn is lending the US $1.11TRILLION.  China's willingness to lend the US is keeping rates out the curve far lower than the Fed is.  In one punch, China could cause US interest rates to skyrocket and Trump acts like we don't need them.
If that happened, it would another cold war.
They dont loan. They bought bonds, bills. If they dont, others countries or american will do since the most countries in the world have negative yeilds.
Loans have to be redeemed, but in addition China receives development assistance too. Germany alone gave 630 Million $ in 2019 as development assistance to China - but at the same moment  our dear politicians warn, that China is outstripping us in many flields.
Fake news
U land at a cheap rate to China, thereafter they loan out at higher rate.
Resistance is futile.
You will be assimilated
Trump and US trying everything to stop China's raise but that ain't going to happen. The Lion China is a beast when it comes to deals and economic activities.
Is that why they are on assistance?
   It's "It's" not "It't" and it's "English" not "Engish"... learn spelling...
   learn spelling
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