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s global power dynamics continue to shift, the Shanghai Cooperation Organisation is positioning itself as a serious counterweight to traditional Western-dominated institutions. With 10 member states, two observer states, and 15 dialogue partners, the SCO now represents nearly half of the world’s population and a quarter of the global GDP — signalling the emergence of a new centre of gravity in global affairs.
Rooted in the principle that development and security are shared responsibilities, the organisation is increasingly presenting a strategic and ideological alternative. While the extent to which its vision will be realised remains uncertain, growing coordination among SCO members points to a deliberate move toward a more multipolar world order. This broader vision of collective development and multipolarity was echoed in remarks by Chinese President Xi Jinping who warned last week that the international situation was becoming increasingly “chaotic and intertwined” and blamed the “bullying behaviour” of certain countries for it. “The security and development tasks facing member states have become even more challenging,” he said. “The world has reached a new crossroads in global governance,” Xi said. “We must continue to take a clear stand against hegemonism and power politics.”
In response to what he called an outdated systems of global power, Xi presented his Global Governance Initiative — a vision for a new international order prioritising the Global South. It rests on five key principles: upholding sovereign equality; respecting international law; practicing true multilateralism; adopting a people-centred approach; and focusing on practical solutions. “These real-world solutions mirror the Panjasheela or Panchsheel principles advocating a system where all nations, regardless of size or power, have equal participation in global governance,” says Naghmana Hashmi, Pakistan’s former ambassador to China.
A key highlight of the summit was the announcement of a proposed SCO Development Bank — a move seen as part of the broader effort to build financial systems independent of the US dollar and resistant to American sanctions. By offering 2 billion yuan ($280 million) in aid and 10 billion yuan in loans, the proposed SCO Development Bank is aimed at creating financial institutions that bypass the World Bank and the IMF. The GGI and the proposed SCO Development Bank aim to deepen cooperation across key areas such as security, trade, energy and technology — reinforcing the Shanghai Cooperation Organisation’s role as a platform for regional integration. For SCO leaders, the age of multilateralism is not just an aspiration — it is already under way.
Ambassador Hashmi (retired), who has built a deep and practical understanding of the Chinese system through 25 years of focused engagement and senior diplomatic assignments, told The News on Sunday: “China has used the SCO platform to send a clear message: It is prepared to challenge US dominance in the international order.”
The United States has long relied on a style of diplomacy marked by unilateralism, often pursuing its interests through military alliances, economic coercion and ideological pressure. Since the end of World War II, it has been involved in numerous wars across the globe, from Vietnam and Iraq to Libya and Afghanistan. Washington has frequently used bullying tactics, imposing its will through sanctions, tariffs, regime change operations and selective use of human rights narratives to justify interference in other countries’ internal affairs. “This approach has alienated many nations, especially in the Global South, who increasingly see US friendship as harmful rather than beneficial — echoing the famous quote by Henry Kissinger, as cited by Jeffrey Sachs: “If America is your enemy, it’s dangerous. If it’s your friend, it’s fatal,” says Naghmana Hashmi.
Beijing has steadily built its economic and strategic strength — abolishing absolute poverty at home and promoting the idea of the Great Rejuvenation of the Chinese Nation. China is among five nuclear-armed states, a P5 member, and has nearly 30pc of the world’s GDP under its umbrella. “With this strength, it has laid the foundation for the SCO to assert itself more confidently on the global stage.” Ambassador Hashmi said China’s long-term approach is key to understanding this shift. As often noted, “the Chinese think in terms of centuries.” Rather than chasing short-term wins, they focus on goals that may take decades — or even generations — to achieve. Beijing believes time is on its side.
Russia was once seen encouraging India to checkmate China. However, it later signed a strategic cooperation agreement with China with a vision of a “new era.” China sees India’s return to the SCO — despite past border clashes and strategic tensions — as a sign of shifting geopolitical realities. The battering from Pakistan has humbled India.
China has steadily bolstered the SCO’s relevance, transforming it from a largely symbolic forum into a serious geopolitical actor. Hosting its first summit since signing a strategic pact with Russia—and its last as chair for nearly a decade—China used the platform to assert its global influence.
As another policy pillar, China plans to build an Artificial Intelligence Cooperation Centre for SCO nations and has invited them to join its lunar research station project. China is now several years ahead of the US and the West in artificial intelligence — a result of massive investment, estimated to be 300 times more than made in the US. “Recognising both the potential and risk of the AI, China is pushing for global AI governance to prevent its misuse, especially by rogue actors. The goal is to avoid chaos and ensure that the AI is used to support shared development and global stability,” she said.
Regarding the success of GGI and the proposed SCO Bank, Ambassador Hashmi says dozens of Global South nations - from Africa and South America to East Asia - are engaging with China. Some European countries too are now reaching out to this growing network.
Several countries - including Pakistan, Iran and India - are already conducting trade in local currencies with Russia and China. Even the IMF and the World Bank require China’s approval before doling out loans, the ambassador said. Much of the financial backing is coming from Beijing, which now holds both the economic and strategic blueprint to assert itself as a global power beyond the US in a multilateral world order. “While the United States now accounts for 16pc of global production, China contributes close to 39pc. “This economic muscle gives the SCO states leverage—and credibility. The West must now take these countries seriously,” Ambassador Hashmi remarked. This trend outlines a clear path for the SCO over the coming decade.
China has steadily bolstered the SCO’s relevance, transforming it from a symbolic forum into a serious geopolitical actor. Hosting its first summit since signing a strategic pact with Russia—and its last as chair for nearly a decade—China used the platform to assert its global influence. The summit also highlighted the rise of emerging ‘middle powers’ like Pakistan, Turkey and the Central Asian Republics, all seeking a stronger role in the shifting multilateral world order.
Ambassador Hashmi concludes that the SCO envisions a safer, more stable future based on cooperation over confrontation. It signals a shift toward a truly multipolar world rooted in equality, mutual respect and shared prosperity—rather than dominance and dependency.
“However, the SCO, despite growing in size, remains deeply divided and ineffective as a regional platform,” said Abdul Basit, a former high commissioner to India. He noted that while the SCO had grown — from the original Shanghai Five in 1996 to ten members today — the expansion had not translated into similar effectiveness.
Basit, whose career reflects a consistent focus on strategic engagement and high-level diplomatic service, told TNS, “India’s inclusion, encouraged by Russia to balance China’s influence, has introduced more rivalry than cooperation,” he said. “India’s border tensions with China and its frozen ties with Pakistan have created major roadblocks.” These unresolved tensions continue to limit the SCO’s ability to deliver real cooperation.
Recent developments have shown how fragile this cooperation can be. An SCO defence ministers’ meeting failed to release a joint statement because of India’s objections. India also distanced itself from the SCO’s condemnation of Israeli strikes on Iran — reflecting its close relationship with Tel Aviv. “These examples show that India’s strategic priorities often don’t align with other SCO members,” Basit said. “Even when China offers trade concessions, India stays cautious. It doesn’t trust China’s intentions.” Some analysts argue that Pakistan’s presence in the SCO is also a source of tension. But Basit believes the bigger issue is India’s difficult relationships with both Pakistan and China.
“Had India not been a member, the SCO might have worked more smoothly between China, Pakistan and Central Asia. Right now, the organisation is gridlocked,” he said. He concluded by warning that symbolic growth cannot replace real progress: “Summits, speeches, and photo-ops may look impressive, but without shared goals and political will, the SCO will remain just another forum with limited results.”
Ahead of visiting China for the SCO summit, Prime Minister Narendra Modi’s visit to Japan — where India signed trade agreements and reaffirmed ties under the Quad alliance — highlighted India’s dual engagement with both Western and non-Western groupings. “These power imbalances make real cooperation very difficult.”
The Central Asian states — Kyrgyzstan, Tajikistan, Uzbekistan, Kazakhstan and Turkmenistan — continue to face unresolved border and water disputes. “They reflect deep regional mistrust and the absence of binding agreements on water sharing and border management.” “The SCO looks strong from the outside. Within, it’s paralysed by mistrust,” Basit said. “Without solid bilateral ties between key members, the organisation cannot move forward in a meaningful way.”
Basit dismissed the idea that the SCO could become a counterweight to the West or serve as a platform for a new strategic, multilateral bloc. “That’s wishful thinking.” He pointed to the failure of other regional bodies like SAARC and the Economic Cooperation Organisation as cautionary examples. “Just like the SAARC and the ECO, the SCO is being held back by internal divisions. These organisations have great promise, but without trust between members, they stay stuck,” Ambassador Basit concluded.
The image of Xi, Putin, and Modi sharing the same stage sends a powerful message of challenging Western dominance. An international TV network summed it up well: “The agreements struck at the SCO summit are not what onlookers are likely to remember. It is the striking optics that will stick.” Leaders from some of the world’s most populous, powerful and openly anti-American nations sat together — eating, smiling and nodding in agreement. “It was a carefully choreographed scene, clearly intended to unsettle Western observers.”
The writer is a senior The News staffer in Karachi.