US President Donald Trump has called on the World Bank to stop lending to China. “Why is the World Bank lending money to China? Can that be possible? China has a lot of money, and if not, they can do it. Stop! “Trump wrote in a post on Twitter.
The World Bank, despite objections from the United States, recently approved billion-dollar loans on favorable terms to China. The People’s Republic, with which America has been involved in a trade dispute for months, is to receive between 1.0 and 1.5 billion dollars in loans at low interest rates by mid-2025.
“China will receive between 1.0 and 1.5 billion dollars in loans at low interest rates by mid-2025”
The five-year plan adopted on Thursday evening (local time) in Washington envisages that lending will “gradually” be phased out compared to the previous five-year cut of $1.8 billion. The Beijing government had asked for funding.
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
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 US Treasury Secretary Steven Mnuchin had spoken out against the promotion. The second-largest economy in the world, after the United States, 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 new Silk Road, which is supposed to improve the connections between the People’s Republic of China and other regions of the world.