The Shanghai Cooperation Organisation (SCO) heads of state summit underway in the northern Chinese city of Tianjin (Aug 31–Sept 1) showcases the group’s ambition to anchor what analysts describe as an ‘alternative model’ of multilateral cooperation within the rules-based World Trade Organisation (WTO) framework at a time of heightened global economic and geopolitical uncertainty.
The bloc has showcased itself at Tianjin as a ‘pillar of multipolarity’ rooted in the ‘Shanghai Spirit’ characterised by “mutual trust, equality, benefit and respect for diversity”.
The timing of the summit is crucial as the world is torn by recent wars, rising US-led trade protectionism and climate emergencies. The meeting is expected to push deeper economic and security cooperation among member states and signal the emergence of an alternative to a global order dominated by the US-led West. The gathering’s significance is underscored by its scale, as leaders from more than 20 countries and 10 international organisations are in Tianjin to attend the largest SCO summit in the alliance’s history.
Among the headline participants is Russia’s President Vladimir Putin, who has made his first trip abroad since talks with Donald Trump in Alaska earlier last month.
Equally significant is the participation of Indian Prime Minister Narendra Modi, who has returned to China after a seven-year hiatus amid US pressure over oil purchases from Russia and Washington’s new tariffs of 50 per cent on its goods — dubbed as “sanctions” on New Delhi.
Iran’s President Masoud Pezeshkian, who would seek Tehran’s quest to further integrate itself into the alliance after its recent twelve-day war with Israel, is also present. Prime Minister Shehbaz Sharif is another prominent participant, with the United Nations Secretary-General António Guterres and the Secretary-General Kao Kim Hourn of the Association of Southeast Asian Nations also attending.
Born in 2001 as a six-member security bloc, the SCO now spans 26 countries — 10 full members, two observers and 14 dialogue partners — across Asia, Europe and Africa, representing 40pc of the world’s population and more than a third of global GDP. Together, India, China and Russia account for nearly $54 trillion in output, almost a third of global GDP, and exports worth $5.1tr, about one-fifth of international trade.
This year’s agenda of the SCO conference ranges from climate resilience and biodiversity protection to digital connectivity, trade facilitation and counterterrorism cooperation. Chinese officials have framed the SCO as a counterweight to what they call “hegemonism and power politics”.
‘In today’s world, outdated mindsets of hegemonism and power politics still have influence, seriously threatening world peace and stability’
At a media briefing a few days before the start of the summit, China’s assistant foreign minister, Liu Bin had, in a veiled reference to Washington, argued that solidarity and cooperation are the antidote to instability, warning that unilateralism threatens global peace. “In today’s world, outdated mindsets of hegemonism and power politics still have influence, with certain countries attempting to prioritise their own interests above others, seriously threatening world peace and stability,” he said.
SCO members support an open, transparent and inclusive multilateral system with the WTO at its core. They stress the need to strengthen stable and diversified supply chains at a moment when unilateralism and protectionism loom large. As Chinese foreign minister Wang Yi told his Pakistani counterpart Ishaq Dar during his visit here last month, “The bloc must resist unilateralism and uphold multilateralism to remain credible.”
In fact, this kind of mindset prevalent in the western capitals is bringing SCO countries closer. For example, the fraught bilateral ties between Beijing and New Delhi — badly damaged by the deadly 2020 border clashes between the two sides — show tentative signs of thaw.
The recent decisions, like India’s resumption of tourist visas for Chinese people alongside discussions on restoring direct flights, may seem like modest steps, but they carry a lot of symbolic weight. Trump’s tariff war has nudged New Delhi closer to China, lending a new layer of significance to India’s noticeable presence in Tianjin.
The summit also highlights China’s closest regional partnerships. Pakistan remains pivotal, with both sides reaffirming plans to upgrade the China-Pakistan Economic Corridor into a “growth, livelihood, green and open corridor”.
At their sixth Strategic Dialogue last month, the two countries had pledged to expand cooperation in industry, agriculture, mining and connectivity from Gwadar Port to the realignment of the Karakoram Highway as they tighten counterterrorism coordination and continue discussions on Afghanistan’s fragile stability.
The SCO summit will likely adopt today a 10-year development strategy spanning security, trade, infrastructure and cultural exchange — clear evidence of its transformation from a security club into a multidimensional platform for governance and multipolar cooperation.
Proposals under discussion include an SCO Development Bank, local currency settlement systems and enhanced energy cooperation, all designed to reduce dependence on Western-dominated financial and energy structures.
Published in Dawn, The Business and Finance Weekly, September 1st, 2025
