White House objects to $1 billion World Bank loan program for China

The Trump administration has refused to support a World Bank loan program for China worth more than $1 billion per year, the latest sign of how the economic rivalry between Washington and Beijing has spilled over into multilateral institutions, reported the Financial Times. 

Steven Mnuchin, the US Treasury secretary, said that Washington had “objected” to the financial support for China through its representative on the World Bank’s board, where the five-year funding plan was discussed on Thursday.

The program, known as the Country Partnership Framework, is designed to help Beijing fund green investments, encourage market-oriented reforms and promote early childhood development and healthcare initiatives. 

The US decision to oppose the new Chinese loan program at the World Bank, which lasts from 2020 to 2025, highlights the potential for a rift between Mnuchin and David Malpass, the World Bank president, over the institution’s dealings with Beijing.