Xi urges setting up SCO development bank as soon as possible

Xi urges setting up SCO development bank as soon as possible

Chinese President Xi Jinping has called for the swift establishment of a development bank for the Shanghai Cooperation Organization (SCO) during the upcoming SCO summit in Tianjin. Speaking at a banquet on Sunday evening, Xi underscored the organization's mission for regional peace and stability, as well as its role in driving economic development and prosperity among its member states [2].

The proposed SCO development bank would serve as a coordinating mechanism for regional development institutions in Eurasia, working closely with existing financial bodies such as the New Development Bank and the Eurasian Development Bank. This initiative aligns with the pattern observed in the BRICS space, where the launch of the BRICS New Development Bank (NDB) bolstered investment cooperation among its members [1].

The SCO summit, scheduled for August 31 to September 1, 2025, is expected to bring significant breakthroughs in transforming the bloc's focus towards prioritizing economic cooperation. One of the key decisions at the summit could be the launch of the SCO development bank, which would expand the array of development institutions in Eurasia [1].

The SCO's expansion has been marked by the inclusion of new member states, such as India, Pakistan, Iran, and Belarus, as well as the creation of a partnership belt. The SCO+ format, introduced in 2024, is set to be further broadened this year, with representatives from regional and international organizations expected to attend [1]. This convergence in membership and format with the BRICS grouping points towards a closer SCO-EAEU-BRICS partnership, which has been widely discussed within Eurasian circles.

The SCO's evolution, particularly in terms of its economic cooperation and development initiatives, is likely to be influenced by the advances made by the EAEU and BRICS. The EAEU-SCO-BRICS triad may bring on board regional integration blocs from outside Eurasia, such as Mercosur or AU/AfCFTA, potentially leading to a broader BRICS+ platform for regional integration arrangements [1].

The call for the SCO development bank also reflects China's commitment to economic cooperation and regional stability. The SCO, under China's leadership, has positioned itself as an alternative to the NATO military alliance, focusing on economic development and peacekeeping efforts. The upcoming summit in Tianjin is a powerful show of Global South solidarity amid global conflicts and economic disruptions.

In conclusion, Xi's push for the SCO development bank underscores the organization's commitment to economic cooperation and regional development. The establishment of this bank, if successful, could significantly enhance investment opportunities and financial coordination among SCO member states, aligning with the broader goals of economic integration and stability in Eurasia.

References:
[1] https://brics-plus-analytics.org/forging-greater-alignment-between-brics-and-the-sco/
[2] https://www.aljazeera.com/news/2025/8/31/chinas-xi-says-sco-bears-greater-responsibility-for-keeping-peace