The Shanghai Cooperation Organisation 25 summit
The recent Shanghai Cooperation summit (SCO 25) in Tianjin (August 31 to September 1rst) under the motto “Reshaping the global order through multilateral cooperation” that was attended by several heads of state including Indian PM Modi, Russian President Putin, as well as leaders from Central Asia, Caucasian nations like Armenia, Azerbaijan, Türkiye, Pakistan and Kazachstan- all in all 26 heads of state, has marked a phase change in world geopolitics. The world’s future will be determined by China, India, Russia and the Global South putting an end to the delusions of a US and Western dominated future. In the midst of a raging war in Ukraine and European states being in a cute state of economic downturn and a hugely overindebted USA, we are witnessing the complete downfall of the West and its 500 years colonialist thinking. The SCO meeting was followed by an impressive military parade of Chinese armed forces commemorating the 80th anniversary of the end of the second world war in Asia, which was also attended by non -SCO members such as Serbian President Vucic, the PM Fico from Slovakia, Indonesia, Malaysia et al, which also marked a fundamental strategic shift in the present world order. The message given by the SCO is that the world has begun to shift from a unipolar world order into a multipolar world order and that the “unipolar order” represented by the US hegemonic strive for world dominance is definitely over.
To see Indian PM Narendra Modi, arm in arm with President XI Jinping and Russian President Vladimir Putin, was a demonstration of power, showing that the three largest countries on earth representing two and a half billion (!) people are not only defying President Trump’s slogan that the US is the “Number one” but that it is fighting against the sanctions imposed by Trumps trade tariff war against India. The two countries India and China are in fact at this point buying more oil and gas from Russia, in direct defiance of the sanction threats, while China’s President Xi Jinping signed the biggest natural gas pipeline deal with Russia “Power of Siberia 2” which also involves Mongolia as a transit partner for oil and gas deliveries from Russia to China. The other clear signal given by the SCO to the world is, that they are preparing themselves to survive a global financial crisis and cautiously begin to move away from an exclusive dollar -based payment system, that will be backed by gold.
The West in disarray
There could be no greater contrast to the developments which have since then taken place in particular in Ukraine and Europe. The latest escalation centered around the not yet fully evaluated attack by supposedly 19 Russian Shahed drones (“Gerbera”) that had been violating Polish airspace; some of them were shot down by Polish others by NATO air defense forces. While Russia maintains the line that this was not a deliberate attempt from Russia to violate Polish airspace, the Polish government was demanding the consultation of NATO according Art 4 in reaction to this incident. Previous to this, a week earlier, the EU coalition of the willing, had announced at a meeting in Paris (4.9.25) that they will escalate against Russia and are prepared to station troops on Ukrainian territory in case of an eventual ceasefire or peace deal. The main push came from EU commission President Ursula von der Leyen, who not only overstepped her authority, but may soon have to face a mistrust vote in the European Parliament. Similarly French President Emanuel Macron whose PM Bayrou (September 8th ) had to resign in reaction to a mistrust vote against him and the government in the French Assembly. The mistrust vote was based on the rejection of Bayrou’s proposed budget plan. Even if Macron replaced him with his defense minister Le Cornu, the destiny of France will be increasingly characterized by political and economic /financial instability and social revolt. A similar fate might wait for British PM Keir Starmer, another key architect of the coalition of the willing, that may be replaced by Nigel Farage one day. Similarly instable is the economic situation of Germany that is sliding deeper and deeper into a recession, hoping to compensate this weakness by more arms production and a hype for more defense against Russia. The Russian government has repeatedly rejected this kind of “European security guarantees” for Ukraine, insisting that there can and never will be security guarantees unless they are shared with Russia. One should add the fact that President Trump is “wavering” in respect to Europe. From the 16. to the 18. of September Trump and his wife will be in UK on a state visit. Europe’s proposed security guarantees for Ukraine are so far going nowhere.
SCO laying framework for Eurasian security architecture
A close study of the 21 pages long final SCO declaration reveals the immense “paradox” between reality that is shaped increasingly by China, Russia, India and the Global South (including the BRICS) and the tremendous “delusion” on the side of the US and Europe. The declaration emphasized optimistically how in midst of a fundamental and historic shift in the global political and economic landscape “the international system is evolving toward more just, equitable and representative multipolarity, opening new prospects for the countries’ own development and mutually beneficial cooperation (…) At the same time geopolitical confrontations are intensifying, posing threats and challenges to the security and stability of the world and the SCO region. The global economic, particularly international trade and financial markets, is suffering severe shocks.” They also emphasize that the year 2025 “marks the 80th anniversary of the victory in World War II and the founding of the United Nations. The great victory of peace- loving nations united to defeat Nazism, fascism and militarism determined the course of world history and created conditions for establishing a stable international relations system ensuring peaceful development for humanity.”
The SCO declaration gave particular emphasis about the role of the UN and the UN Charta: “Member states reaffirm their commitment to the purposes and principle of the UN Charter and other recognized principle of international law, respect for civilization and diversity, and equality and mutually beneficial cooperation, supporting the central coordination role of the UN in building a more representative, democratic and just multipolar world.” It further states that “member states emphasize that cooperation within SCO framework will lay the foundation for forming an equal and indivisible security architecture in Eurasia(!)” In this respect they mentioned the development of a “Charter of Diversity and Multipolarity of Eurasia in the 21st Century” which aims to consolidate the development process in Eurasia. The “member states note the initiative to establish a ‘Greater Eurasian Partnership’ and express their willingness to promote dialogue among the SCO, the Eurasian Economic Union, ASEAN and other relevant countries and multilateral mechanisms.”
They adopted the “Statement of the council of Head of State of the SCO member States in support of Multilateral trading System” and called for financing tools of future development. Hence the declaration made special emphasis on: “Member States hence believe that there is necessity to support reforming international financial institution to increase the representation and voice of developing countries in the management departments of international financial institutions such as the International Bank for Reconstruction and Development and the International Monetary Fund.” Furthermore the member states “believe it is important for the relevant member states to continue implementing the “Roadmap for Expanding the Share of Local Currency Settlement among the SCO Member States (Samarkand Sept 16 2022).” What was added was that “the relevant member states reaffirm the importance of establishing an SCO Development Bank and decide to establish the Development Bank and accelerate consultation on a range of issues related to the operation of this financial institution” (!)
Emphasis was also laid by the member states on the need to build new and upgrade existing international transport corridors, including advancing the construction of the “North-South” and “East- West” corridors. Aside the need to encourage civilizational dialogue, the member states also “emphasize that expanding exchanges and cooperation with the United Nations and its specialized agencies as being a “priority direction of the SCO’s international engagement. They will continue to engage in high -level dialogue with the United Nations and its specialized agencies to enhance the ability to respond to various new threated and challenge and jointly achieve world peace, stability and sustainable development.”
President Putin speaking at SCO
According to President Putin’s speech at the SCO summit in Tianjin, “China put major focus of the role of the SCO and its ‘2035 strategy -the financial services development, de- dollarization and alternatives such as the creation of an SCO Bank’.”(!) Aside praising the “principles of the UN Charta” as a major guideline in international politics, he clearly pointed out that part of the SCO discussions were devoted to bring about a sound and just financial architecture: he said that “national currencies are being used more and more widely in mutual settlements. We advocate the issuance of joint bonds by the SCO member states, the establishment of our own payment, settlement and depository infrastructure, and the creation of bank for joint investment projects (!) These measures will increase the efficiency of our economic exchanges and protect them from external market fluctuations.” In fact about 90% of the intra SCO trade has been de- dollarized, collective GDP of the SCO being US $ 59,1 Trillion in actual nominal terms, i.e. this way they bypass western sanctions by making use of Ruble, Rupee, ad Chinese RMB and Yuan. The SCO is also to develop its own bank together with the Asian Infrastructure Investment Bank and the BRICS New development Bank for regional projects, i.e. the International North- South Transport Corridor, the Middle Corridor and Northern Sea Route.
Putin invites US firms for development of the Arctic region
Upon his return from the SCO summit, on September 5th, President Putin had a major panel discussion at the “Far Eastern Economic Forum” in Vladivostok together with the PM of Mongolia, Gambojavyn Zandanshatar, the PM of Laos People’s Democratic Republic Sonexay Siphandone and the Chinese Li Hongshong, Member of the Politbureau of the CP and Vice Chairman of the Standing Committee of the National People’ Congress. Putin in his speech outlined at length the details of Russia’s long- term development and cooperation plans for the Asia Pacific as well as the Arctic region, which according to Putin also “includes the United States. And there are many interested parties there who want to resume or begin new work with us…. We have received excellent proposals for working with US companies in Alaska they have resources there, and we have technologies for extracting and liquefying gas that are much more effective than those that some of our American partners have. They know this and at the level of economic players, companies are ready for cooperation.” He added that “we have already discussed possible work in a trilateral format on some possible work in a trilateral format on some of our Arctic fields with our Chinese friends. In fact, all these options are being discussed, they are on the table. We only need a political decision. This is possible, and cooperation in both gas and oil would be mutually beneficial.”
The Chinese representative Li Hongzhong, aside the Mongolian representative and the one from Laos, was very outspoken, praising the in-depth cooperation between China and Russia “especially the strong momentum of cooperation within the Northeast China – Russia Far East framework, made possible by the personal attention and efforts of our two heads of state. For many years China has remained the largest trading partner and leading external investor in the Russian Far East,” he said. “In 2024, trade under the Northeast China- Russia Framework reached $105,8 billion representing 43 % of total bilateral trade and serving as a key driving force in China- Russia economic Relations.” Aside his mention of President Xi’s “SCO initiative on global governance 2025”, he announced that from now on Russian tourists that want to visit China, don’t need any more visas.(!) According to Putin this came to Russia as complete surprise which will create more favorable conditions for businesses.
E. Hellenbroich, Wiesbaden, September 10, 2025
