The Trump administration is holding out against a capital increase for the World Bank until it overhauls its lending to China and other middle income countries, creating a new source of tension between Washington and Beijing.
Jim Yong Kim, the World Bank’s president, has been pushing for extra financial resources and had hoped that shareholders would agree on at least a timetable for the increase at this week’s annual meetings in Washington.
But the Trump administration has been resisting those plans and this week aired its demands, saying it wanted the World Bank to examine its own balance sheet first and in particular its lending to China, which is presently the bank’s biggest borrower.
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