In a statement submitted to the World Bank, Bessent welcomed the bank's gradual phase-out of sovereign lending to countries that have met graduation criteria, such as China.
The nearly completed Trishuli 1 Hydropower Plant, financed by the World Bank and other institutions, with a total investment of $647 million and a capacity of 216 megawatts, was destroyed in a mudslide in August 2026, wiping out the investment.
A China economic briefing released by the World Bank on July 8 pointed out that China's domestic demand will continue to shrink and housing prices will fall, with the root cause being that the government of the Chinese Communist Party (CCP) uses 43% of its budget for investment while underfunding people's livelihood.
A plan submitted to the World Bank Board of Directors shows that the bank will gradually phase out state loans to the Chinese Communist Party and terminate its borrower status by 2031.