Xi Jinping Proposes New Global Economic Order at SCO Summit

At the Shanghai Cooperation Organization (SCO) summit in Tianjin, China, President Xi Jinping unveiled a vision for a new global economic order aimed at reducing U.S. dominance. Addressing over 20 world leaders, including Russian President Vladimir Putin and Indian Prime Minister Narendra Modi, Xi emphasized the need for a multipolar world with equitable governance.

Xi proposed the establishment of an SCO development bank to finance infrastructure and development projects within member states, aiming to reduce reliance on Western financial institutions. He also announced plans for an international energy cooperation platform to enhance energy collaboration among SCO members through joint ventures, technology sharing, and coordinated energy policies. Additionally, Xi encouraged the adoption of China's BeiDou satellite navigation system as an alternative to the U.S.-controlled GPS, promoting technological independence among member states. To support these initiatives, Xi pledged $1.4 billion in loans to SCO member states over the next three years.

Criticizing "Cold War-era divisions" and economic protectionism, Xi implicitly referenced U.S. trade policies that have impacted developing nations. He advocated for "true multilateralism" and inclusive globalization, positioning the SCO as a platform to project an alternative to the U.S.-led global system.

Russian President Vladimir Putin supported Xi's vision, advocating for the use of national currencies in trade to reduce dependence on the U.S. dollar. He praised the SCO's move toward multilateralism and suggested that the organization had revived genuine multilateralism by promoting the use of national currencies.

Indian Prime Minister Narendra Modi affirmed India's commitment to improving relations with China, emphasizing cooperation on trade, investment, and regional stability. Modi highlighted the need to reduce India's trade deficit with China and reiterated that India-China relations should not be influenced by external parties, especially under recent U.S. tariff pressures.

The SCO, established in 2001, is a Eurasian political, economic, and international security organization. Its founding members include China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. The organization expanded in 2017 to include India and Pakistan, with Iran joining in 2023 and Belarus in 2024. The SCO covers approximately 24% of the world's total area and 42% of the global population, making it the world's largest regional organization in terms of geographic scope and population.

The proposed initiatives signal a shift towards a multipolar global order, challenging Western dominance and promoting alternative governance models. This could lead to increased collaboration among Global South nations, fostering economic development and reducing dependency on Western institutions. However, it may also intensify geopolitical tensions, particularly with the United States, as nations align with competing economic and security frameworks.

The 2025 Tianjin summit is notable for its scale and the ambitious proposals put forth, reflecting China's growing influence and its strategic intent to reshape global governance structures. The initiatives, if realized, could have profound implications for international relations, trade, and global governance, marking a pivotal moment in the evolution of the SCO and China's role on the world stage.