China Champions New Global Order at SCO Summit

China Champions New Global Order at SCO Summit, Challenging U.S. Dominance

Beijing / New Delhi / Moscow — In a powerful geopolitical message, Chinese President Xi Jinping used the recent Shanghai Cooperation Organisation (SCO) summit to call for a new global order—one that shifts influence away from Western powers and centers around the “Global South.” Joined by Russian President Vladimir Putin and Indian Prime Minister Narendra Modi, Xi laid out an ambitious vision that could reshape global governance and economic alignments in the years ahead.

A Questioning of Western Hegemony

At the summit held in Tianjin, Xi criticized “hegemonism and power politics,” making clear that China and its partners are seeking alternatives to U.S.-led global institutions. In his remarks, he warned that existing international mechanisms are increasingly outdated and argued for a model based on true multilateralism—one that empowers countries beyond the traditional Western bloc.

By framing the SCO as a counterweight to over-centralized power, Xi struck a tone of both defiance and cooperation. He invited SCO members to back a new SCO Development Bank, a multilateral financial institution that would help reduce dependence on Western-led banks and the U.S. dollar.

Proposals for Institutional Overhaul

A key part of Xi’s pitch was a detailed proposal for the bank, designed to fund infrastructure, digital development, and climate resilience projects across SCO states. He also floated the idea of an AI cooperation center under SCO auspices and invited member states to contribute to a lunar research project—symbolically extending cooperation beyond Earth.

Leaders like Modi and Putin expressed support. Modi, speaking on the sidelines, stressed that India’s future lies in “development partnerships,” not zero-sum power plays. Putin, for his part, embraced the idea of a multipolar world, calling the SCO’s increasing importance “a foundation for genuine global governance.”

Strategic Rivalries Take a New Turn

The timing of Xi’s push is noteworthy. With the U.S. facing political turbulence—and trade tensions flaring—China seems to be pressing its advantage. Analysts observe that economic cooperation under the SCO now serves as a geopolitical tool: member nations may increasingly lean toward Beijing for capital, tech, and security.

There are, however, risks. Critics warn the proposed development bank could entrench China’s influence, effectively giving it a financial lever over smaller member states. There’s also concern that an AI research center funded by Beijing may favor Chinese companies and raise data sovereignty issues.

Yet, some regional powers seem to be buying into the vision. Their motivation is simple: a seat at decision-making tables, more control over their futures, and the ability to use China’s financial weight without bowing to U.S. demands.

Economic & Security Implications

For many in the SCO, Xi’s proposals offer real opportunity. Expanded infrastructure funding could accelerate development in Central Asia and South Asia. AI cooperation may help emerging economies skip legacy development phases and leapfrog into advanced tech.

On the security front, the collaboration could bolster regional stability. SCO member states have historically worked to counterterrorism, and a more institutionalized SCO might better coordinate intelligence-sharing, military logistics, and border control.

Analysts suggest that if this plan succeeds, it could reduce the global dominance of U.S.-led financial institutions like the World Bank and IMF, replacing part of their role with a new “Eastern-led” financial architecture.

Reactions and Pushback

Not everyone is comfortable with the shift. Western officials are closely watching SCO’s moves, particularly the financial proposals, viewing them as a challenge to the existing global system. Some fear a bifurcation of finance where major projects are increasingly funded through non-Western institutions.

Meanwhile, civil society voices raise questions about governance and transparency. A new development bank would need robust safeguards to ensure it doesn’t invest in authoritarian projects or neglect human rights. Similarly, data experts warn that cooperation in AI must come with strong ethical, regulatory, and privacy frameworks.

What’s Next

• Formal launch: Leaders are expected to push formal agreements for the SCO Development Bank by next year, including capital commitments from member states.

• Lunar and AI cooperation: Efforts to build the AI center and lunar research platform may accelerate, with China taking the lead in governance and technical setup.

• Global ripple effects: Western powers may respond by strengthening multilateral frameworks or creating alternative institutions to retain influence.

• SCO Growth: More countries could join the SCO as they see value in a bloc that offers both economic development and a voice in a changing world order.