At the SCO (Shanghai Cooperation Organization) summit (held in Tianjin, China), China’s President Xi Jinping showcased the nation as a vital player in the development of a new world order. Not only was there an example of strength, but influence. China’s President Xi Jinping, Russian President Vladimir Putin, and Indian Prime Minister Narendra Modi were seen “holding hands and having a good laugh,” symbolising unity between the markets and a growing Euro-Atlantic system.
Russia and China to work cohesively away from the current United States-led system
China’s President Xi Jinping had a clear agenda to introduce a new world order, one that was Western-led. The new world order would be in the denunciation of “hegemonism and power politics.” The Shanghai Cooperation Organization summit was also the first meeting between President Xi and Prime Minister Modi on Chinese soil in seven years, hinting at the market’s goal for socioeconomic stability across Eurasia.
Russia’s President Vladimir Putin has approved and echoed the words of China’s President Xi Jinping. With the two markets simultaneously working towards a less Eurocentric model, there have been mentions that this would be more equitable than the United States-led system. The engaging relationship between Russia’s President Vladimir Putin and China’s Xi Jinping appears to be growing.
What you need to know about China and Russia’s attendance at the SCO summit
The following points can be highlighted when looking at Russia and China’s involvement in the SCO summit:
- China and Russia both used the SCO summit to their benefit, promoting the concept of a new geopolitical order.
- The new world order would not be led simply by China and Russia, but by a larger collection of nations, implying a broader coalition between Eurasian markets and, in return, more support and strategic balance.
- The U.S. dollar-based system is in question, with Beijing, China, committing to grants of 2 billion Chinese yuan and 10 billion yuan in loans to SCO members. This would increase the bloc’s economic reliance on China.
- AI and technology would be a unifying goal for the group, with the Tianjin Declaration of the SCO Council, with China leading this initiative.
China is looking to be the ‘’architect’’ of a new financial order and a multipolar world
With the new initiative to create the SCO development bank, and the notion of decreased reliance on the United States’ dollar. China is creating its own rhetoric, establishing itself as a financial powerhouse and a strategic alliance to have. Despite China being the largest shareholder of the AIIB (Asian Infrastructure Investment Bank), launched in 2014 as a way of providing financial support to developing countries, the Shanghai Cooperation Organization development bank would solidify the power of China in the global financial sector. The SCO development bank will not be as large as the Asian Infrastructure Investment Bank; however, it will still be a show of China’s will to redirect the Western world order.
Following the changes in the financial world, China has also committed to and initiated the Tianjin Declaration of the SCO Council. Goals include the strengthening of artificial intelligence amongst and across member nations. This is significant as it shows that China and Russia are looking towards the future of surrounding nations in ways beyond financial or economic issues and traditional security.
The Shanghai Cooperation Organization summit thus marks a clear and decisive push to establish a multipolar world. With China as its financial designer and Russia as its strategic partner, this new coalition aims to redefine global power dynamics and create an alternative to the United States dollar-led system. The long-term success of this endeavor remains to be seen, but its intentions are undeniably clear. What is certain is that both Russia and China have plans for well into the future and are seeking each other’s support.