ADB Will Stop Issuing New Loans to Communist China

Masatsugu Asakawa, president of the Asian Development Bank (ADB), said recently that the bank would consider halting new loans to communist China, starting as early as next year.

 Asakawa said in an interview that discussions will be held next year on whether Beijing can terminate the new loan from the ADB.

 Mainland China’s economy has grown significantly in recent years, and it is now the second largest economy in the world, with Chinese people’s income also increased. Moreover, the country also provides financial aid to other Asian countries, and some observers say that communist China no longer needs financial aid from other countries.

 The ADB’s 2021-2025 loan plan to Beijing totals US$7 billion to US$7.5 billion, lower than the US$9 billion in 2016-2020. Discussions will begin in 2023 on whether to stop lending in 2025. Asakawa said that it will be the first time the issue of “Chinese graduation” will be discussed.According to reports, communist China no longer meets the standards in terms of per capita GNI and financing. The ADB will continue to assess whether the country meets the criteria for economic development indicators. Asakawa said that from the perspective of social security and other situations, there are differences between Shanghai and the inland areas, and he hopes to have a full discussion. As of last year, communist China’s ADB loan balance was about $19.6 billion, second only to India, accounting for 14%, the report said. In 2021, the country received $1.8 billion in new loans, making it the fifth-largest recipient after India, Pakistan, and others.