According to a new study released on October 8th by Reuters, since 2010, China's investment in multilateral development institutions has increased tenfold. However, China's voting rights and influence within international institutions still do not correspond to its economic size.
According to a report released by the Global Development Center, in 2024, China invested $3 billion in multilateral development banks, and its investment in United Nations agencies related to development increased by 47%. Meanwhile, China's investment in multilateral climate financing will rise to $5.25 billion in 2025.
Reporter Ian Mitchell said, “This is a significant improvement over 15 years ago, but it still only accounts for a tiny portion of China's economy.”
He pointed out that China's decisions regarding funding are quite selective. He said, "China has not made many voluntary contributions to the United Nations, and it has hardly supported any vertical funds. It continues to carry out bilateral efforts, but on a smaller scale."
Another co-author, Beya T. Chijocar, said that while China had provided substantial donations to the World Health Organization (WHO) after its withdrawal from the organization in the U.S., it hadn't entirely filled the gap left by major Western nations like the U.S. and others; many countries had reduced spending on development.
According to Reuters, China has long been pushing for a greater role in the World Bank and the International Monetary Fund (IMF), in order to better reflect its size and contributions. China's share of the World Bank is about 6%, which is less than half of the level recommended by the Bank's own economic formula. The United States, with a stake of about 16%, still retains the power of veto.
Reports state that U.S. and other Western officials have prevented adjustments to the IMF and World Bank shareholder structure on the grounds that no consensus has been reached on re-adjustments, and that China “lacks transparency”. Such adjustments would give China greater voting rights.
Currently, Chinese citizens hold five senior management positions at the World Bank and other multilateral development banks. This number has remained stable since 2021. However, research indicates that since 2020, there has been a reduction in senior positions held by Chinese individuals in several United Nations agencies, including the World Health Organization and the International Telecommunication Union.
Research also found that as China approaches the high-income standards set by institutions like the World Bank, its borrowing from development banks has significantly decreased. In 2024, total borrowing amounted to $4.7 billion, which is less than the $8 billion in 2021. China was the world’s largest borrower for the World Bank in 2017, but now ranks 18th. The World Bank recently announced that it will cease all loans to China after 2031.
