Germany will no longer grant promotional loans to China from 2026, the Federal Development Ministry (BMZ) confirmed on Tuesday, in the latest measure to reduce Germany’s strategic dependence on China, reports Reuters. The German ministry informed the Chinese Ministry of Finance in mid-September of the federal government’s decision to permanently stop granting promotional loans to China.
“We are no longer treating China as a developing country,” German Development Minister Svenja Schulze said. “China is and remains an important partner, without whom we cannot successfully overcome global crises,” she added.
Contracts for promotional loan projects between German state-owned KfW Bank and the Chinese Ministry of Finance can only be signed up to and including 2025. “These promotional loan projects must have ambitious impacts in the areas of climate and environment,” the ministry said.