EXPLAINER - what is the China-led SCO economic summit?

The Shanghai Cooperation Organisation (SCO) has grown from a 1996 border security forum into a major Eurasian bloc, now representing nearly half the world’s population. Its 2025 summit in Tianjin highlighted both its expanding reach and its evolving role on the global stage.

A focus on optics and positioning

The latest Shanghai Cooperation Organisation (SCO) summit drew attention not only for the agreements reached but also for the optics surrounding it. Leaders from some of the world’s most populous nations gathered in Tianjin, projecting unity and signalling closer cooperation at a time of heightened global tensions.

Chinese President Xi Jinping was at the centre of the event, with Russian President Vladimir Putin given a prominent role as guest of honour. Their interactions underscored the importance of ties between Beijing and Moscow. Putin noted that he would brief SCO members on his recent talks in Alaska with US President Donald Trump regarding the situation in Ukraine.

Xi used the summit to underline the bloc’s positioning, stating: “We must oppose hegemony and power politics and work together to safeguard regional peace and stability.”

Origins and objectives

The SCO originated as the Shanghai Five in 1996, created to settle border issues following the dissolution of the Soviet Union. It became the Shanghai Cooperation Organisation in 2001 after Uzbekistan joined. The SCO Charter, effective since 2003, set out the organisation’s aim to promote regional peace, stability, and prosperity.

The Charter itself frames the mission: “The purpose of the Shanghai Cooperation Organisation is to strengthen mutual trust, friendship, and good-neighbourliness, and to jointly maintain and ensure peace, security, and stability in the region.”

The SCO’s decision-making structure is led by the Council of Heads of State (CHS), which meets annually to set overall priorities, and the Council of Heads of Government (CHG), which oversees economic cooperation and budgets. Other specialised councils focus on areas such as security, environmental protection, and technology. Permanent bodies include the Secretariat in Beijing and the Regional Anti-Terrorist Structure (RATS) in Tashkent.

Membership and reach

The SCO now has 10 full members: China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, India, Pakistan, Iran, and Belarus. It also counts three observers and 14 dialogue partners, among them Türkiye, Saudi Arabia, and the United Arab Emirates. Altogether, the bloc represents nearly half of the world’s population and about a quarter of global GDP.

As Kazakhstan’s former president Nursultan Nazarbayev famously remarked at the 2005 summit: “The leaders of the states sitting at this negotiation table are representatives of half of humanity.”

The SCO maintains partnerships with the United Nations, ASEAN, and the Commonwealth of Independent States. Its activities cover a wide spectrum: counterterrorism, counter-narcotics operations, energy cooperation, and cultural exchange.

Achievements and ongoing challenges

Security remains one of the SCO’s most active areas of cooperation. Its RATS body has reported success in disrupting planned attacks, dismantling extremist networks, and seizing weapons and explosives. Anti-drug operations between 2012 and 2017 accounted for a notable share of global seizures.

Energy has also become a focal point. The SCO Energy Club, established in 2013, links energy producers such as Russia, Kazakhstan, and Iran with consumers including China, India, and Pakistan. Projects like the Central Asia–China Gas Pipeline and the China–Pakistan Economic Corridor (CPEC) are part of this broader framework.

Challenges persist, including differing views on economic integration. Proposals for an SCO development fund and free-trade zone have faced resistance from some members. Afghanistan also remains a sensitive issue, particularly since the Taliban’s return to power in 2021. Diverging approaches among SCO members have complicated the organisation’s stance.

Geopolitical significance

At the summit, Putin told leaders: “Russia will brief our partners here on the discussions held in Alaska. It is important that the SCO remains fully informed about matters concerning regional and global security.”

The group agreed to expand cooperation in security, economic, and cultural spheres, while also discussing proposals such as creating an SCO-led development bank.

Analysts argue that the SCO serves a symbolic role as well as a practical one. Raffaello Pantucci, senior fellow at the S. Rajaratnam School of International Studies, has observed: “The SCO is less about binding treaties and more about providing a platform where China, Russia and others can coordinate positions and show that the West does not have a monopoly on global leadership.”

This perspective aligns with the SCO’s 2018 declaration: “The SCO will continue to play a constructive role in fostering a new type of international relations based on mutual respect, fairness, and win–win cooperation.”

Outlook

While the SCO does not present itself as a military alliance, its members often highlight the organisation as a platform for regional stability and dialogue. Some critics argue it produces more statements than actions, particularly when compared to the European Union or ASEAN.

Yet others point to its growing symbolic weight. Alexander Cooley of Columbia University has noted: “The SCO has developed into a vehicle through which its members pursue both security and economic interests, while also symbolising a vision of a multipolar world.”

As the SCO expands in size and scope, its future will depend on how well it balances the interests of China, Russia, India, and smaller states. What is clear is that the organisation has become a prominent forum for countries seeking an alternative model of cooperation beyond Western-led structures.

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