Chinese President Xi Jinping took center stage at the Shanghai Cooperation Organization (SCO) summit in Tianjin on September 1, 2025, unveiling a series of sweeping initiatives aimed at expanding the organization’s global reach and influence. With leaders from Russia, India, and a host of Central and Southeast Asian nations in attendance, Xi’s announcements signaled not just China’s ambitions for the SCO, but also its vision for a new world order—one less dominated by the United States and its allies.
The highlight of the summit was Xi’s pledge to accelerate the creation of a development bank under the SCO’s umbrella. According to ABC and the Associated Press, Xi said the new financial institution would be designed to "expand the organization's influence and scope." The bank would serve as a vehicle to foster economic development among member states, offering an alternative to existing Western-dominated institutions like the International Monetary Fund and the World Bank.
But Xi’s ambitions didn’t stop there. He also announced the establishment of an international platform for energy cooperation, aiming to bolster collaboration in green and traditional energy sectors. As reported by ABC and AP, Xi pledged $1.4 billion in loans to SCO members over the next three years, though these funds are not specifically earmarked for the new development bank. The move, he argued, would help member states address pressing development needs while deepening economic ties across the region.
In a further bid to enhance the SCO’s technological independence, Xi opened the door for member states to use China’s BeiDou satellite navigation system, offering a direct alternative to the U.S.-controlled GPS. This move, highlighted by the Associated Press, underscores China’s drive to reduce reliance on Western technology and foster greater self-sufficiency among its partners.
Russian President Vladimir Putin and Indian Prime Minister Narendra Modi were among the key leaders present at the summit. Putin, in particular, was vocal in his support for Xi’s initiatives, stating that the SCO could "take on the leading role in efforts to form a more just and equal system of global governance in the world." According to an interview released by China’s Xinhua news agency and cited by AP, Putin said, "It is essential to end the use of finance as an instrument of neocolonialism, which runs counter to the interests of the global majority." He also expressed support for reforming the IMF and World Bank, aligning Russia closely with China’s push for new international financial mechanisms.
The summit’s significance was further underscored by its timing—just days before a major military parade in Beijing marking the 80th anniversary of Japan’s World War II surrender. While Putin planned to attend the parade, Modi was expected to depart beforehand. North Korean leader Kim Jong Un and Myanmar’s military leader Senior Gen. Min Aung Hlaing were also slated to attend the parade, though Kim did not participate in the SCO summit itself.
This year’s meeting marked a notable expansion for the SCO, with Laos joining as a partner and bringing the total number of members and partners to 27. As Chinese Foreign Minister Wang Yi told reporters, the group now represents a swath of countries spanning Central and Southeast Asia, including major powers like China, India, Russia, and Iran. Afghanistan and Mongolia serve as observer states, while 14 other countries, many from the Middle East, participate as "dialogue partners."
Founded in 2001, the SCO was initially conceived as a security forum and a counterweight to U.S. influence in Central Asia. Over the years, it has grown in both size and ambition. As Xi made clear in his remarks, the organization is now positioning itself as a platform for economic, technological, and political cooperation—one that seeks to "reject Cold War thinking, rival power blocs and bullying" in favor of a more "just and balanced global governance system." In his words, "The shadows of Cold War mentality, bullying, are not dissipating, and there are new challenges that are increasing, not diminishing. The world has entered a new period of tumultuous change and global governance has arrived at a new crossroads."
According to Alfred Wu, a professor at the National University of Singapore’s Lee Kuan Yew School of Public Policy and quoted by the Associated Press, Xi’s vision is nothing short of an "alternate world order, because the U.S.-led world order is very much in decline." This sentiment was echoed by Putin, who said the SCO should "create a new, more effective and functional system of global governance."
Despite these lofty ambitions, questions remain about the SCO’s effectiveness. Historically, the organization has focused on security cooperation, particularly in combating terrorism, separatism, and extremism. Beijing has often cited these threats to justify its sweeping crackdowns on Uyghurs, Kazakhs, and other largely Muslim minorities, with over a million people swept into detention facilities since 2018. Derek Grossman, a professor of international relations at the University of Southern California, told the Associated Press that "their anti-terrorism exercises are more about countering threats to authoritarian regimes rather than countering terrorism in its own right." Still, he noted, "China is on a diplomatic uptick and the U.S. is self destructing."
The summit also provided an opportunity for bilateral diplomacy. On the eve of the meeting, Xi and Modi held talks aimed at resolving a long-standing border dispute that has frozen relations between their countries since 2020. Meanwhile, Putin updated Xi on the latest round of Russia-U.S. talks on the Ukraine war, which took place in Alaska the previous month.
For many observers, the flurry of initiatives and diplomatic activity at the Tianjin summit reflects a broader shift in the global balance of power. With the U.S. facing internal and external challenges, China and its partners in the SCO are moving assertively to shape the rules of the game. Whether the organization can translate its growing membership and ambitious rhetoric into real-world influence remains to be seen. But as this week’s summit made clear, the contest for global leadership is far from settled—and the SCO, under Xi’s leadership, intends to be a player to watch.
As the world watches the parade in Beijing and the next moves of the SCO, one thing is certain: the landscape of international power and cooperation is changing, and China is determined to be at the forefront of that transformation.
