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World News
02 September 2025

Shanghai Cooperation Organization Summit Signals New Global Order

China and Russia push for multipolarity and deeper economic ties as the world’s largest regional bloc convenes in Tianjin, with the U.N. urging principled leadership and reform.

The city of Tianjin, China, became the epicenter of shifting global dynamics this week as the Shanghai Cooperation Organization (SCO) convened its largest summit to date. With leaders from across Asia and Eurasia—including China’s President Xi Jinping, Russia’s President Vladimir Putin, and India’s Prime Minister Narendra Modi—gathered under one roof, the event underscored a world in transition: away from unipolar dominance and toward a multipolar order where new alliances and institutions are reshaping the landscape.

President Xi Jinping opened the summit on Monday, September 1, 2025, with an ambitious agenda. According to the Associated Press, Xi announced plans to accelerate the creation of an SCO development bank and to establish an international platform for energy cooperation. These initiatives, he argued, would not only deepen economic ties among member states but also position the SCO as a counterweight to Western-led institutions. "The shadows of Cold War mentality, bullying, are not dissipating, and there are new challenges that are increasing, not diminishing," Xi said, emphasizing the need for a world order with multiple power centers and a more just and balanced system of global governance.

Xi’s proposals didn’t stop there. He pledged $1.4 billion in loans over the next three years to SCO members and opened the door for them to use China’s BeiDou satellite navigation system—a direct alternative to the U.S.-controlled GPS. The message was clear: China is ready to offer both the financial muscle and technological infrastructure to underpin a new era of cooperation in Eurasia and beyond.

Russian President Vladimir Putin was quick to voice his support. Echoing Xi, Putin said the SCO could "take on the leading role in efforts to form a more just and equal system of global governance in the world." In an interview with China’s Xinhua news agency, Putin criticized "discriminatory sanctions" imposed by the West, arguing they undermine socioeconomic development globally. He called for an end to the use of finance as "an instrument of neocolonialism," and advocated for reforms to the International Monetary Fund and World Bank to better serve the interests of the so-called global majority.

The summit’s significance was further underscored by the addition of Laos as a new partner country, bringing the combined total of members and partners to 27. The SCO, founded in 2001, now includes Russia, Belarus, China, India, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, and Uzbekistan as full members, with Afghanistan and Mongolia as observer states and 14 other countries as dialogue partners. This growing roster reflects the bloc’s evolution from a narrowly focused security alliance to a major platform for economic, technological, and diplomatic engagement.

But the summit’s agenda was hardly limited to economic development. United Nations Secretary-General António Guterres, addressing the gathering, called for strengthening multilateralism in a world he described as both "multipolar" and fraught with widening divisions. As reported by the UN News Service, Guterres identified four priorities: peace and security, reform of the global financial architecture, confronting climate change, and digital cooperation. He specifically called for immediate ceasefires and humanitarian access in Gaza and Ukraine, progress towards a two-state solution for Israelis and Palestinians, and a just, comprehensive peace in Ukraine aligned with the UN Charter.

Guterres also urged the G20 countries, responsible for 80 percent of global emissions, to lead on climate action and submit new plans before COP30 in Brazil this November. He welcomed China’s Global Governance Initiative, announced at the summit, which he said "is anchored in multilateralism and underscores the importance of safeguarding the international system with the UN at its core." The Secretary-General’s remarks reflected a broader consensus among summit participants: the need for principled leadership to address global challenges collectively, rather than through unilateral or bloc-based approaches.

The summit’s timing was notable. It came just days before a major military parade in Beijing marking the 80th anniversary of Japan’s World War II surrender—a reminder of the region’s complex historical legacies. Putin was scheduled to attend the parade, while Modi, after meeting with Xi to discuss their long-standing border dispute, chose to return home. North Korean leader Kim Jong Un and Myanmar’s Senior Gen. Min Aung Hlaing were also expected at the parade, highlighting the event’s geopolitical weight.

Regional relationships were very much in the spotlight. As Reuters reported, India is currently facing its most severe crisis in relations with the United States in over a quarter-century and is seeking to stabilize its ties with China while deepening its partnership with Russia. Indonesia, which had planned to send President Prabowo Subianto to the summit, canceled at the last minute due to anti-government protests at home. Nevertheless, the presence of the ASEAN Secretary-General signaled Southeast Asia’s growing interest in the SCO’s evolving agenda.

China’s efforts to recast the SCO as a platform for economic integration and technological advancement come at a moment when U.S. trade policy is increasingly protectionist, with tariff barriers rising and Washington’s reliability as a partner being questioned by many global South countries. As Sarang Shidore, Director of the Global South Program at the Quincy Institute, noted in Foreign Affairs, "the increased recourse to hedging and multi-alignment across the international system can only accelerate the decline of unipolarity in the longer-run." Summits such as the one in Tianjin provide opportunities for countries like India and Indonesia to diversify their partnerships and pursue multi-alignment strategies.

Still, the SCO’s record on security remains a point of contention. Beijing touts the group’s effectiveness in combating terrorism, separatism, and extremism, but critics argue that its anti-terrorism exercises are often more about suppressing dissent and propping up authoritarian regimes than addressing genuine security threats. As Derek Grossman of the University of Southern California told the Associated Press, "their anti-terrorism exercises are more about countering threats to authoritarian regimes rather than countering terrorism in its own right."

Yet, even those skeptical of the SCO’s ultimate reach acknowledge that China is experiencing a "diplomatic uptick" while the U.S. grapples with its own internal and external challenges. The summit in Tianjin, with its ambitious proposals and diverse attendance, illustrates a world in flux—one where the old certainties of global leadership are giving way to new forms of collaboration, competition, and complexity. As the SCO looks to expand its influence, the choices made in Tianjin may well echo far beyond the meeting halls, shaping the next chapter of the international order.