Chinese President Xi Jinping announced plans to accelerate the creation of a Shanghai Cooperation Organization (SCO) development bank during the summit in Tianjin, signaling a broader ambition to expand the bloc’s influence beyond security matters. He pledged $1.4 billion in loans over the next three years to support SCO member states, though no clear timeline was given for the bank’s launch.
Xi emphasized that member nations face growing challenges amid global turbulence, calling for closer cooperation in both security and development. He urged states to reject “Cold War mentality” and bloc-based confrontation while advocating for a multipolar world order and fairer global governance structures.
The SCO, founded in 2001, currently includes China, Russia, India, Iran, and several Central Asian nations. With the proposed bank and expanded development initiatives, Xi seeks to position the organization as a counterbalance to Western-led institutions while promoting financial support for the so-called “Global Majority.”
Russian President Vladimir Putin and Indian Prime Minister Narendra Modi also attended the summit, with discussions covering economic cooperation and regional disputes. Xi and Modi agreed to address long-standing border tensions, while Putin aligned with China in opposing sanctions and supporting reforms of global financial institutions.
The SCO’s evolution from a regional security forum toward a broader economic and political platform marks a key step in China’s strategy to reshape global governance and present alternatives to Western-led systems.