China and Russia are using the Shanghai Cooperation Organisation (SCO) summit to defy the Western-dominated global order by expressing their vision of a multipolar world in which non-Western powers have taken center stage. The meeting in Tianjin has turned into the arena where both Beijing and Moscow demonstrate the other model of government that directly opposes the influence of the US.
Xi Jinping reveals grand global rule project
During the summit, Chinese President Xi Jinping proclaimed extensive reforms in the representation of the SCO in the world arena. Xi informed the leaders present that global governance had entered a new crossroads, and this was generally understood to be a criticism of the United States. He stressed that we should be consistent in opposing hegemonism and power politics, and that we should also exercise real multilateralism.
The biggest announcement that was made by Xi was the introduction of a new “Global Governance Initiative” and massive financial investments. China promised 2billion RMB (280 million) grants plus another 10billion RMB (1.4 billion) loans to the members of the SCO, which would be a big step towards development finance. Xi also urged the establishment of a new SCO development bank, turning what has remained more of a symbolic institution into a financial juggernaut.
Putin repeats the new world order
Russian President Vladimir Putin took a second stab at this message by stating that the SCO summit would bring back a sense of real multilateralism when it laid the political and the new order of Eurasian society in terms of socioeconomic systems. The international liaison between Beijing and Moscow indicates that they are united in their determination to reorder world governance arrangements.
These announcements must come at a time when President Trump’s trade policies have put a strain on the relationships between the US and its traditional allies. According to Eric Olander, the editor-in-chief of The China-Global South Project, this has changed: “Since the inception of the SCO 24 years ago, it has been an insignificant organization that has not made any major achievements. I believe that will change as the membership grows and Xi provides development finance funds to the SCO.
Realigning strategies in the midst of US tensions
The summit was attended by more than 20 leaders, most of them from Asian and Middle Eastern nations, except the Indian Prime Minister, Narendra Modi. The arrival of Modi is an indication of a possible reappearance of rapport between China and India following the introduction of a punitive 50 percent tariff by Trump on Indian products. Xi and Modi committed to reconciling their differences, and each party insisted that the relationship between the two would not be affected by a third party.
According to Chatham House analysis, China is positioning itself as the champion of the multipolar world dominated by the Global South. The 10-member SCO has since incorporated a significant part of Central Asia, Russia, China, India, Iran, Pakistan, and Belarus, and over a dozen dialogue partners such as Saudi Arabia and Turkey. Olander stressed the importance of the approach taken by Xi: “In the GGI, Xi is effectively choosing to say the quiet part aloud, that China is trying to establish a parallel global governance system beyond the US and European-led system that would have been unthinkable a decade ago.
The summit participants will stay in China to take part in a colossal military parade in Beijing celebrating the end of World War II, during which North Korean President Kim Jong Un will be joining Xi and Putin as a sign of unity against the West. As Trump undermines multilateral institutions, China and Russia are setting up their own template of governance to fill the gap with adequate financial resources and an increasing number of members of the Global South.