At the 25th Shanghai Cooperation Organisation (SCO) Summit in Tianjin, China made a bold statement to the world: it no longer seeks to merely participate in global governance—it aims to shape it. With strategic speeches, major financial pledges, and fresh initiatives, China leveraged the world’s largest SCO Summit to assert its growing influence in a multipolar global order.
From Regional Partner to Global Power
President Xi Jinping used the summit to launch the Global Governance Initiative (GGI) a framework encouraging sovereign equality, multilateralism, and adherence to international law. Far from just symbolic language, the GGI was presented as a blueprint for a fairer, more inclusive world order that resists dominance by any single superpower.
China framed the summit as an opportunity to resist what it described as an “unstable and unpredictable” international environment, calling on SCO nations to collectively safeguard peace and regional balance. These remarks signaled a clear ambition: to transition from being a regional actor to becoming a global leader.
Economic Muscle: From Words to Action
China didn’t rely on words alone to show its intent. It backed up its ambitions with solid financial commitments and institutional proposals:
SCO Development Bank: China proposed the creation of a dedicated financial institution to enhance economic ties among member states and reduce reliance on Western-led financial systems.
2 billion yuan in grants and 10 billion yuan in loans were pledged to support infrastructure, trade, and social projects across SCO nations.
China also promised “small and beautiful” public welfare projects, plus expanded technical and vocational training through programs like Luban Workshops, aimed at strengthening human capital within the SCO.
This economic push aims to deepen trust and interdependence, turning the SCO from a political-security bloc into a development engine—led by Beijing.
China and the Global South: A Shared Vision
China used the SCO platform to extend its influence over the Global South, promoting a vision of non-hegemonic cooperation. In Beijing’s framing, the West’s long-standing dominance of global institutions is outdated, and the SCO offers an alternative where emerging economies have a real voice.
The Global Governance Initiative explicitly calls for a new framework that reflects modern geopolitical realities emphasizing diversity, mutual respect, and shared growth. China positioned itself as a bridge builder between the developing world and global leadership, advocating for inclusive international systems.
This approach resonates with countries across Asia, Africa, and Latin America that seek to avoid being caught in US-China rivalry while still benefiting from economic partnerships.
Underlying Tensions Within the SCO
Despite the positive optics, internal challenges within the Shanghai Cooperation Organisation remain:
India-China relations are tense due to past border clashes and ongoing strategic rivalry. While both nations participate in the SCO, their political trust is thin.
Not all member states are aligned with China’s long-term vision, particularly when it comes to the proposed financial institutions or digital governance norms.
The Global Governance Initiative lacks detailed implementation strategies, leaving some observers to question whether it is more aspirational than actionable.
Furthermore, China’s increased leadership role in global institutions could provoke pushback from Western powers, particularly the US and EU, who may view the initiative as an attempt to rewrite international rules in China’s favor.
The Broader Geopolitical Implications
China’s aggressive engagement at the SCO Summit reflects several evolving dynamics in international relations:
Multipolarity is no longer a forecast—it’s a reality. China’s push suggests it’s ready to contest global narratives and power centers once dominated by the West.
The SCO Development Bank, if realized, could offer new funding streams outside the purview of Western institutions like the World Bank or IMF.
The expansion of soft power through vocational training, development aid, and digital infrastructure is a long-term strategy to bind emerging economies more closely to China’s orbit.
Geoeconomic competition will intensify, especially in Central Asia, Southeast Asia, and parts of Africa where both the West and China seek influence.
Looking Ahead: A Power Shift in Real Time?
Whether the Shanghai Cooperation Organisation evolves into a genuine counterweight to Western alliances remains to be seen. However, this year’s summit marked a significant shift: China is no longer content to be a participant it seeks to lead.
Through initiatives like the Global Governance Initiative, financial tools such as a proposed SCO Development Bank, and diplomatic themes centered on multipolarity and non intervention, China has laid the groundwork for a new global leadership style one rooted in development, cooperation, and ideological competition.