China Advocates New Global Order at 25th SCO Summit

At the 25th Shanghai Cooperation Organization (SCO) summit held in Tianjin, China, President Xi Jinping called for a restructured global order favoring the "Global South," challenging U.S. dominance. He proposed establishing an SCO development bank and alternative financial systems to reduce reliance on the U.S. dollar.

The summit, attended by leaders from over 20 countries—including Russian President Vladimir Putin and Indian Prime Minister Narendra Modi—highlighted China's strategic efforts to reshape international alliances and financial structures. Xi's proposals aim to position the SCO as a counterbalance to Western influence, fostering a multipolar world order.

The SCO, established in 2001, is a Eurasian political, economic, and security alliance comprising China, Russia, India, Pakistan, and several Central Asian nations. It aims to promote regional cooperation and stability. The 2025 Tianjin summit, held from August 31 to September 1, marked the fifth time China hosted the annual event and was the largest in the organization's history.

In his address, Xi emphasized the need for a multipolar world, opposing "hegemonism" and promoting multilateralism. He criticized Cold War-era divisions and economic protectionism, implicitly referencing U.S. trade policies. Xi proposed creating an SCO development bank to reduce dependence on the U.S. dollar and enhance financial cooperation among member states. Additionally, China announced plans to provide 2 billion yuan (approximately $281 million) in grants to other SCO member states within the year and issue an additional 10 billion yuan in loans to member banks of the SCO Interbank Consortium over the next three years. Xi also announced the establishment of an AI cooperation center to enhance technological collaboration among SCO members.

The summit also served to mend China-India relations, with Xi and Modi agreeing on a shared development path. Additionally, Xi announced plans to showcase China's military advancements during a major parade in Beijing, marking the 80th anniversary of the end of World War II, with possible attendance from Putin and North Korea's Kim Jong Un.

The summit's emphasis on a new global order favoring the "Global South" reflects a strategic shift towards reducing Western, particularly U.S., influence in global affairs. This move could lead to increased cooperation among developing nations, fostering a multipolar world order. The proposed SCO development bank and alternative financial systems aim to reduce reliance on the U.S. dollar, potentially reshaping global financial dynamics. The military parade commemorating WWII serves to bolster national pride and showcase China's military capabilities. The attendance of leaders like Putin and Kim Jong Un underscores China's strengthening alliances with nations often at odds with Western powers.

The 2025 Tianjin SCO Summit marks a pivotal moment in international relations, with China leveraging the platform to advocate for a new global order that challenges existing power structures. The proposed initiatives, including the SCO development bank and AI cooperation center, signal a concerted effort to enhance cooperation among developing nations and reduce dependence on Western-dominated systems. These developments warrant close attention as they have the potential to significantly alter the geopolitical landscape.