Chinese President Xi Jinping said Monday that China will speed up the creation of a Shanghai Cooperation Organization (SCO) development bank, using the summit in Tianjin to promote the expansion of the bloc’s influence and reach.
"Currently, as the global situation becomes more complex and turbulent, member states are facing more arduous safety and development responsibilities," Xi said in opening remarks to the forum. He pledged $1.4 billion in loans in the next three years for SCO members. They are not specifically designated for the new development bank, for which no timeline has been released.
Russian President Vladimir Putin and Indian Prime Minister Narendra Modi were among the leaders of a couple of dozen nations meeting as part of the SCO. The group, originally seen as a foil to U.S. influence in Central Asia, has grown in size and influence over the years, but has remained largely a security forum.
With the addition of the bank and an emphasis on providing loans, Xi is attempting to expand the scope of the organization.
"He wants to provide an alternate world order, because the U.S.-led world order is very much in decline. This is the main narrative," said Alfred Wu, a professor at the National University of Singapore's Lee Kuan Yew School of Public Policy.
Xi also said states should "oppose the Cold War mentality, bloc-based confrontation and bullying, and safeguard the international system with the United Nations at its core" while "advocating for an equal and orderly multipolar world, an inclusive economic globalization, and promote the building of a more just and reasonable global governance system."
Xi's remarks were consistent with China's past comments. Opposition to a Cold War mentality is a reference to America's tough approach to China, as well as its withdrawal of funding from some U.N. agencies. But at this moment in time, China's consistency is the message, Wu said.
Founded in 2001, the SCO now includes Russia, Belarus, China, India, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan and Uzbekistan. Afghanistan and Mongolia are observer states, and 14 other countries, including several from the Middle East, serve as "dialogue partners."
The summit comes days ahead of a military parade in Beijing to which China has invited its allies and neighbors.
On Sunday, Xi met with Modi, where they vowed to resolve their differences about a border dispute, which had led to a freeze in relations in 2020. The disputes revolve around three points along their vast border in India's northern Ladakh and Arunachal Pradesh regions, as well as near Bhutan.
Putin arrived for the summit on Sunday and will attend the parade on Wednesday for the 80th anniversary of Japan's World War II surrender. Modi will not stay for the parade. North Korean leader Kim Jong Un, who is not attending the SCO summit, will be present for the military parade, along with the leader of Myanmar's military government, Senior Gen. Min Aung Hlaing.
Putin spoke to Xi on Sunday, ahead of the bilateral talks that the two were scheduled to hold on Tuesday. He updated the Chinese leader on the Russia-U.S. talks on the Ukraine war in Alaska last month.
"I would like to note that the understandings reached at the recent high-level Russian-American summit in Alaska are also, I hope, moving in this direction, opening the way to peace in Ukraine," Putin said.
Development policy has been a large part of the messaging in recent days. Putin said Russia and China were jointly "against discriminatory sanctions" that hurt the socioeconomic development of the world at large in a written interview released by the Chinese official news agency Xinhua on Saturday.
He said Russia, alongside its Chinese partners, supports the reform of the International Monetary Fund (IMF) and the World Bank.
"It is essential to end the use of finance as an instrument of neo-colonialism, which runs counter to the interests of the Global Majority," he said.
While China is eager for the SCO to take a larger role on the global stage, it remains to be seen how effective the organization will be. Its focus in the past has been on propping up the security initiatives of its member states. China said the SCO is effective in combating what it refers to as the three forces: terrorism, separatism and extremism.
