Chinese President Xi Jinping revealed a new cooperation model focusing on security and finance during the Shanghai Cooperation Organization (SCO) summit held in Tianjin, China, on the 1st. He declared a direct challenge to U.S. hegemony in front of key leaders from the 'Global South,' including Russian President Vladimir Putin and Indian Prime Minister Narendra Modi.
During his speech at the SCO summit on that day, President Xi stated, "We will expedite the operation of a comprehensive security threat response center and a drug response center, and we will strongly support member countries' security and economic cooperation by establishing an SCO Development Bank." This is a plan to elevate the SCO beyond a mere regional security consultative body into a 'Eurasian version of NATO' that possesses its own security response capabilities and financial systems.
He continued, "We must oppose Cold War mentality, bloc confrontations, and bullying actions," targeting the tariff policies of the Donald Trump U.S. administration. He also emphasized the need to safeguard the international system centered around the United Nations and the multilateral trade system centered on the World Trade Organization (WTO), proposing "a multipolar world that is equitable and orderly and a universally beneficial economic globalization." In essence, he underscored the necessity of establishing a new multilateral order while criticizing U.S. unilateralism.
President Xi emphasized that China has invested more than $84 billion (approximately 117 trillion won) in SCO member countries and that annual trade between member countries and China has surpassed $500 billion (approximately 696 trillion won). Additionally, he promised 2 billion yuan (approximately 390 billion won) in grant aid this year and a new loan of 10 billion yuan (approximately 1.95 trillion won) to the SCO banking association over the next three years.
The SCO was founded in 2001 by China, Russia, and four Central Asian countries to jointly address the 'three evils' of terrorism, separatism, and extremism. Since then, India, Pakistan, Iran, and Belarus have joined, increasing the total number of member states to 10. Combined, the populations of member countries nearly account for half of the world's total, and their economies represent one-quarter of global output.
Initially, discussions centered on security, but they have gradually expanded to include economic, cultural, and technological areas. Notably, recent U.S.-China tensions have positioned the SCO, alongside BRICS, as a key platform for China to consolidate the 'Global South,' primarily comprised of developing and emerging countries located in the southern hemisphere. China, advertising this summit as 'the largest ever,' has not hidden its intention to propose an alternative to the U.S.-led international order.
Reuters analyzed that on that day, "President Trump's unpredictable policies have helped forge a coalition of like-minded nations opposed to the United States." The Washington Post also reported that "China is attempting to use the chaos caused by President Trump's policies to rally leaders opposing the U.S.-led order."
The establishment of the SCO Development Bank emerged as a key agenda item during this meeting. It is an attempt to move away from a dollar-centric international financial system and establish an independent payment system. Alexander Lukashenko, the President of Belarus, raised his voice, stating that "we must create a payment system that does not utilize the U.S. dollar."
President Xi also proposed cooperation in the field of artificial intelligence (AI). He stated, "We must leverage the advantages of a large-scale market to enhance trade and investment levels," calling for collaboration in energy, infrastructure, science and technology, and AI.
This year's SCO meeting took place against a complex geopolitical backdrop, including U.S.-China tensions, the China-India border dispute, and the Russia-Ukraine war. President Xi showed willingness to improve relations while meeting with Indian Prime Minister Modi, who visited China for the first time in seven years, stating, "The two countries are not competitors but development partners."