SCO Summit 2025: A New Era of Asian Diplomacy and Multilateralism

by Abdul Haq

Beyond simply another diplomatic meeting, the 25^th Shanghai Cooperation Organisation (SCO) Summit in Tianjin marks a turning point in the shifting balance of power in the world. Over 20 international leaders and the heads of ten international organisations were welcomed by Chinese President Xi Jinping to the northern port city of China. The summit became a potent statement about a different vision for international cooperation that goes against the multilateral frameworks that are dominated by the West.

Strategic Importance of the Summit

The summit this year was the largest and most ambitious in SCO history. The organisation now has 10 full member states, including new members like Belarus (2024) and Iran (2023), along with 14 dialogue partners and observer states. This means that it covers almost half of the population of the world and about 25% of its GDP. With this growth, the SCO is no longer a regional security bloc but rather a ‘mega-sized market’ with vast economic potential, according to President Xi Jinping.

There is no greater significance in the timing. Days before the summit, the Trump administration imposed punishing 50% tariffs on Indian goods, adding to the already high level of tensions between the U.S. and China. This setting gave China the ideal opportunity to position itself as an advocate of fair trade and multilateralism, providing an alternative to what Beijing refers to as American ‘bullying behaviour’ and ‘Cold War mentality’.

Chinese Vision and Leadership

In order to project Chinese leadership in international affairs, the performance of Xi Jinping at the summit presented intricate diplomatic choreography. In addition to providing financial aid, his announcement of 2 billion yuan ($280 million) in grants to SCO member states this year and 10 billion yuan ($1.4 billion) in loans through the SCO Interbank Consortium establishes China as a trustworthy partner prepared to make investments in global prosperity at a time when Western countries are retreating from their international obligations.

A strong argument against Western alliance structures is made by the appeal of the Chinese president to ‘reject Cold War mentalities and bloc confrontations’ and support ‘genuine multilateralism.’ His focus on the ‘Shanghai Spirit’ — which is defined by equality, mutual trust, benefit, consultation, respect for different civilisations, and the pursuit of shared development — offers a compelling substitute for what many developing countries view as Western conditionality and meddling.

The Russian Continued Relevance

The continued relevance of Russia in spite of Western sanctions and the Ukraine conflict is demonstrated by the prominent role of Vladimir Putin at the summit, which included his cordial interactions with both Xi and Modi. The Putin ceremonial welcome and participation in high-level trilateral talks with China and India give the impression that diplomacy is normal, undermining Western isolation efforts.

The longevity of the Sino-Russian strategic alliance is further supported by the focus of Putin on the ‘best in history’ ties between China and Russia, as well as his involvement in future military celebrations in Beijing. By giving both countries access to alternative markets and diplomatic clout, this axis lessens their susceptibility to economic pressure from the West.

The India-China Rapprochement

With Modi’s first trip to China in seven years suggesting a possible geopolitical realignment, the warming of China-India relations was perhaps the most important development. It is impossible to overstate the symbolic impact of Xi and Modi’s declaration that their countries are ‘partners, not rivals’. This détente, which comes shortly after U.S. tariffs on Indian exports, raises the possibility that U.S. pressure strategies are unintentionally drawing major powers closer to the sphere of influence of Beijing.

Concerns about the trade deficit, border stability, and measures to boost confidence were among the pragmatic topics covered in the bilateral meeting. Despite the unresolved territorial disputes, both leaders showed a practical willingness to put their differences aside in favour of more extensive strategic cooperation. This strategy could be used as a template for other regional conflicts and is similar to diplomatic frameworks that have been successful elsewhere.

Realities and Promises in the Economy

Although China’s financial pledges make news, the SCO’s economic accomplishments pale in comparison to its aspirations. In 2024, trade between China and the other SCO members totalled $890.3 billion, a substantial increase but still a small portion of world trade. Security concerns have caused years of delays in infrastructure projects like CASA-1000 and TAPI, illustrating the disconnect between grandiose plans and practical realities.

An intriguing idea, the proposed SCO Development Bank will only succeed if its members are prepared to coordinate policies and provide resources, two tasks that have historically proven difficult for the organisation. Initiatives of this nature run the risk of becoming symbolic rather than transformative in the absence of institutional mechanisms to enforce agreements or settle disputes.

Geo-political Implications

The wider significance of the summit stems from its illustration of China’s increasing capacity to bring people together and offer substitute models for global collaboration. The SCO provides developing countries with a platform that guarantees equality and non-interference at a time when Western institutions are struggling with credibility issues and the U.S. is pursuing more unilateral policies.

But it’s still unclear how effective the group is at acting as a real check on Western influence. The limitations of reaching a consensus among disparate, frequently conflicting interests are revealed by its incapacity to handle significant regional issues, such as the humanitarian crisis in Afghanistan and the conflict between Russia and Ukraine.

Although the development of the SCO is consistent with larger tendencies in international relations towards multipolarity, its institutional flaws imply that it serves more as a diplomatic platform than an operational alliance. It lacks the institutional depth and common strategic vision required for long-term group action, despite being helpful for relationship management and symbolic positioning.

Summing up, in order to support Beijing’s larger plan to reshape global governance, the Tianjin Summit effectively presented an image of non-Western unity and Chinese leadership. Although the image of world leaders coming together in China, along with significant financial pledges and cordial bilateral discussions, supports stories of changing global power dynamics, there are still serious concerns regarding the capacity of the SCO to provide real advantages or efficiently coordinate responses to regional issues. Increased diversity and complexity brought about by the growth of the organisation have made reaching an agreement more challenging in the face of enduring bilateral rivalries like those between India and Pakistan. Even though the practical impact of the SCO is still limited by structural constraints and conflicting national interests, the importance of the summit ultimately rests in showcasing Chinese diplomatic sophistication and growing confidence in challenging Western-dominated international structures.