China unveils plans for new Shanghai Cooperation Organization development bank

In Tianjin, China, leaders from the Shanghai Cooperation Organization (SCO) gathered for a two-day summit on August 31 and September 1, 2025. This event featured representatives, including Russian President Vladimir Putin and Indian Prime Minister Narendra Modi, discussing regional security, economic stability, and cooperative development. During the summit, Xi Jinping emphasized China’s intent to bolster its influence in Eurasia by advancing the creation of a development bank aimed at supporting member states' safety and economic growth. Promoting a multipolar world order, Xi focused on economic globalization while voicing opposition to ‘hegemonism’ and ‘bullying practices,’ indicative of tensions with the United States. The summit also allowed leaders to discuss sensitive topics, such as the ongoing issues related to border disputes between India and China, as well as Russia’s actions in Ukraine. Xi and Modi even pledged to address their historical conflicts peacefully. The collaboration among SCO members highlights their shared vision to counter Western dominance in global governance, aiming to reshape the current international order, fundamentally shifting the future geopolitical landscape in favor of the Global South as tensions with Western powers continue to escalate. This summit reflects the SCO's evolving role in global politics and its position as a counterbalance to U.S.-led alliances. Observers noted that while the SCO aims for a significant role in international relations, internal disparities could undermine its long-term effectiveness, particularly as it grapples with establishing a unified identity amidst varying national interests within member states.