December 6, 1999
The World Bank is to cut its lending to Beijing by up to US$1 billion over the next three years, according to reports.
Huang Yukon, director of the World Bank’s operations in the mainland, said that funding would be cut from the present $3 billion level to $2 billion during the next two to three years, China Daily reported.
“The shift reflects China’s maturation in economic strength and the higher efficiency of lending projects,” Mr Huang said.
“Even at $2 billion a year, [the mainland] will still be among the largest borrowers of the bank and will probably continue to be the largest borrower for investment projects,” he added.
According to Mr Huang, the World Bank plans to change its mainland strategy to place more emphasis on assistance in structural reforms carried out by the government in social, banking and private enterprises.
The inclusion of the mainland in the World Trade Organisation would increase technical and financial aid, helping the country’s economy modernise further.
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