By Andrea Shalal

WASHINGTON, (Reuters) – China, with more than $66 billion of total capital, has passed Japan to be the second-largest contributor to the development bank system that provides around $200 billion annually in subsidized loans for poor countries. A new report was released Thursday.

According to Center for Global Development, China is still receiving loans and other aid from multilateral institutions, such as the World Bank and U.N. Agencies. But it also has the potential to be one of the world’s most powerful donors.

The UN Development Program and the World Food Program are the largest donors to China.

Beijing has a role in international institutions as a shareholder, major donor and aid recipient. The think tank also cited a comprehensive look at China’s participation at 76 global organizations.

“There’s been a lot of attention to China’s Belt and Road lending to developing countries, but a lot less on its growing footprint at global institutions like the World Bank,” said Scott Morris, a senior fellow at the center.

China’s increasing role in financial institutions and as the biggest creditor to the globe has been a source of concern in America and other countries in recent years. Morris warned that this should not be viewed as a threat.

Morris explained that this is not always a reason to be alarmed. “It’s better for everyone to have China working inside the system instead of outside of it.”

Automatic contributions, based on China’s expanding economy, have contributed to some of this increase. But Beijing has also scaled up its voluntary donations, including at the World Bank’s low-income lending arm, the International Development Association, where it is now the 6th largest donor.