Shanghai Cooperation Organisation (SCO) Summit 2025 in Tianjin, China: Rising Trade and Maritime Industry Among Global South

09/04/2025

Discover the key takeaways from the 25th Shanghai Cooperation Organisation (SCO) Summit in Tianjin, where China and Russia pledged to reshape global governance. Learn about Beijing’s new financial initiatives, regional maritime implications, and the growing role of the SCO in world politics.

Why the SCO Summit in 2025 Matters

On the first crisp autumn day of September 2025, the port city of Tianjin became the center of global attention. Leaders from across Asia, Eurasia, and the Middle East gathered for the 25th Council of Heads of the Shanghai Cooperation Organisation (SCO). What was once seen as a symbolic bloc now appears to be stepping into a new era of ambition.

China’s President Xi Jinping and Russia’s President Vladimir Putin used the summit to announce their shared vision for reshaping the global order. Xi outlined plans for a new SCO development bank, backed by billions of renminbi in grants and loans. Putin emphasized the revival of “genuine multilateralism” as a counterbalance to U.S.-led institutions. For maritime observers, the SCO Summit is not simply about landlocked geopolitics. With member states stretching from China’s Pacific coast to Russia’s Arctic seaways and from India’s Indian Ocean ports to Iran’s Persian Gulf gateways, the SCO’s evolution has direct consequences for shipping routes, port development, and global trade flows.

The Shanghai Cooperation Organisation: From Security Bloc to Global Player

Founded in 2001, the SCO began as a regional security forum focused on counterterrorism and border confidence-building. Its early achievements were modest but significant:

Joint actions against terrorism, separatism, and extremism.
Confidence-building measures in Central Asian border regions.
A framework of long-term good-neighborliness and friendship treaties.

Over 24 years, the SCO has grown into the world’s largest regional organization in terms of geographic coverage and population, now including:

Full members: China, Russia, India, Pakistan, Iran, Belarus, and Central Asian states (Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan).
Dialogue partners: Saudi Arabia, Qatar, Türkiye, Cambodia, and most recently Laos (approved at the 2025 summit).

While the SCO’s reputation has often been that of a “talk shop,” Xi Jinping’s proposals in Tianjin mark a clear shift toward institutional power.

Xi Jinping’s Five Pillars for the Future of the SCO

In his keynote address, President Xi urged SCO members to remain true to their founding mission and presented five guiding priorities:

Common ground over differences – Strengthen solidarity, avoid divisive rivalries.
Mutual benefit – Align national development strategies and implement Belt and Road projects across borders.
Openness and inclusiveness – Expand cultural, economic, and people-to-people exchanges.
Fairness and justice – Resist unilateralism and strengthen UN-centered governance.
Efficiency and reform – Make SCO institutions more effective and results-driven.

These principles echo Xi’s Global Governance Initiative (GGI), presented at the SCO Plus meeting the same day. The GGI stresses sovereign equality, adherence to international law, people-centered cooperation, and practical results.

Russia’s Alignment: Putin’s Call for “Genuine Multilateralism”

For Russia, the SCO has become a crucial forum amid strained relations with the West. President Putin praised the SCO as the foundation of a new Eurasian stability and security order. He emphasized:

Rejecting bloc politics and Cold War mentalities.
Supporting multipolarity and sovereign equality.
Building a Eurasian order resilient against Western sanctions and trade disruptions.

The symbolism was notable: Putin, Xi, and India’s Prime Minister Narendra Modi were photographed walking and talking together, signaling unity despite recent Sino-Indian tensions.

Financial Turning Point: New SCO Development Bank

Perhaps the most consequential outcome of the summit was Xi’s pledge of 12 billion RMB (≈$1.7 billion) in new funding:

2 billion RMB in grants.
10 billion RMB in low-interest loans for SCO members.

Alongside this, Xi called for the creation of a new SCO development bank, which would parallel institutions like the Asian Infrastructure Investment Bank (AIIB) and the BRICS New Development Bank. Such a bank would:

Finance infrastructure projects, including ports, railways, and energy grids.
Provide alternatives to Western-dominated financial systems.
Support SCO members’ ambitions for connectivity, particularly along maritime and overland Belt and Road corridors.

For the maritime industry, this could mean increased funding for port expansions in Iran, Pakistan, and India, as well as logistics hubs in Central Asia connected to seaports via rail.

Maritime Dimensions of the Shanghai Cooperation Organisation (SCO)

Although the SCO is often described as a land-focused Eurasian bloc, its maritime relevance is growing:

China: Access to the Pacific through Tianjin, Shanghai, and Guangzhou.
India & Pakistan: Indian Ocean powerhouses, controlling key shipping lanes.
Iran: Strategic position in the Strait of Hormuz, a critical chokepoint for global oil shipping.
Russia: Arctic sea routes and access to the Black Sea.
Saudi Arabia & Qatar (dialogue partners): Key energy exporters whose cargoes pass through the Suez Canal and Red Sea.

The SCO’s expansion into economic governance means its collective decisions will increasingly influence maritime transport, including:

Port finance through the new SCO development bank.
Shipping security through SCO anti-terrorism and anti-drug centers.
Trade corridors linking Eurasian inland states with seaports.

Rising Trade and Maritime Industry Among SCO Members

In recent years, the SCO has become more than a geopolitical forum—it is also a trade engine connecting some of the world’s fastest-growing markets. According to UNCTAD’s Review of Maritime Transport (2023), intra-Asian trade now accounts for more than 60% of global containerized cargo, and SCO members make up a significant share of this growth.

Container and Bulk Shipping Growth

China–Russia trade reached a record $240 billion in 2024, much of it moving via maritime routes through Vladivostok, Dalian, and Shanghai. Russian coal and LNG shipments to China have surged, while Chinese manufactured goods flow in the opposite direction.
India–Iran trade, facilitated through Chabahar Port, has increased steadily since 2022, with India investing in port upgrades to bypass traditional routes affected by sanctions.
China–Pakistan maritime trade via Gwadar Port, part of the Belt and Road Initiative, has begun to see rising cargo throughput as road and rail links expand.

Port Expansions and Logistics

Several SCO states have invested heavily in modernizing ports and shipping corridors:

Iran’s Chabahar and Bandar Abbas are becoming hubs for connecting Central Asia with the Indian Ocean.
Pakistan’s Gwadar has received Chinese financing for terminals, container yards, and logistics centers.
India’s Jawaharlal Nehru Port Trust (JNPT) and Mundra Port are scaling capacity to handle rising transshipment from SCO and dialogue partner states.
Russia’s Arctic and Pacific ports are being adapted to handle increasing Asian demand for energy exports.

Energy and Maritime Exports

Energy remains the backbone of SCO maritime trade:

Qatar and Saudi Arabia (dialogue partners) are directing a growing portion of LNG and oil shipments to SCO markets.
Russia’s Arctic LNG projects are linked to China’s rising LNG import needs, with shipments increasing via the Northern Sea Route (NSR).
Kazakhstan and Uzbekistan are exploring expanded Caspian Sea shipping routes that connect to Iran and, via pipelines and maritime trade, to global markets.

Shipping Industry Cooperation

Beyond physical trade, SCO members are beginning to coordinate on shipping technology, shipbuilding, and regulatory practices:

China’s shipyards (Shanghai Waigaoqiao, Hudong-Zhonghua) have signed contracts with Russia and Iran for new LNG carriers and container ships.
India and Russia are discussing greater collaboration in maritime training and crew exchange programs, echoing IMO’s calls for enhanced capacity-building.
The SCO has also highlighted the importance of digitalization of shipping documents, inspired by UN/IMO initiatives to streamline global port calls.

Taken together, these developments indicate that the SCO is not only a political bloc but increasingly a maritime trading community. The strengthening of port infrastructure, shipping routes, and maritime logistics is knitting together a Eurasian network that rivals traditional Atlantic trade corridors.

Security Implications for Maritime Trade

Beyond its economic focus, the Shanghai Cooperation Organization (SCO) continues to prioritize security cooperation, a commitment with significant consequences for maritime trade. The recent summit launched new centers dedicated to enhancing information security, coordinating anti-drug operations, and countering organized crime. In the maritime domain, this could manifest through SCO navies, particularly those of China and Russia, deepening their joint patrols in critical waterways like the Indian Ocean and South China Sea. Furthermore, the organization’s established counterterrorism frameworks could logically be extended to focus on preventing attacks on vital maritime infrastructure such as ports and key shipping lanes. For maritime professionals, this evolving security landscape raises a pivotal question: as Western naval presence declines in certain parts of Asia, will the SCO step in to become a new security guarantor for commercial shipping in the region?

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Case Study: The Belt and Road Initiative and SCO Synergy

The SCO’s role is closely linked with the Belt and Road Initiative (BRI). At Tianjin, Xi Jinping stressed that SCO states should “march toward modernization hand in hand.”

Examples include:

China–Pakistan Economic Corridor (CPEC): Linking Kashgar to Gwadar port, strengthening Pakistan’s role as a maritime hub.
Iran’s Chabahar Port: A project where India has invested, showing how the SCO could mediate cooperation between rivals.
Kazakhstan’s dry ports (Khorgos): Serving as inland gateways for rail cargo that ultimately connects with Chinese Pacific ports.

These projects suggest that the SCO is not merely a diplomatic stage but increasingly a logistical backbone for Eurasian maritime trade.

Future Outlook: SCO to 2035 and Beyond

The summit concluded with the issuance of the Tianjin Declaration and the formal adoption of the SCO Development Strategy, a comprehensive roadmap extending to 2035. This strategic vision outlines a path toward greater financial integration, potentially through the establishment of a dedicated SCO bank, and aims to expand cooperation in energy and green technology, including renewable resources. A key component involves the development of deepened maritime trade corridors designed to more effectively connect Eurasia to global markets. The strategy also anticipates continued military and security collaboration, though it is carefully framed as “non-confrontational” in nature. If successfully implemented, this ambitious agenda could see the SCO emerge as a parallel governance system, offering a distinct alternative to Western-led institutions such as the IMF, the World Bank, and NATO.

Frequently Asked Questions (FAQ)

What is the SCO?
The Shanghai Cooperation Organisation is a regional bloc founded in 2001, now including 10 full members and several dialogue partners. It focuses on security, economic cooperation, and cultural exchange.

Why is the SCO Summit 2025 important?
For the first time, China pledged significant development financing and proposed an SCO development bank, signaling a shift toward becoming a more influential global institution.

How does the SCO affect maritime trade?
Several members are key maritime powers (China, India, Pakistan, Iran). SCO financing could expand port infrastructure and secure major shipping routes.

Is the SCO an alternative to NATO or the UN?
Not formally, but China and Russia frame it as a platform for “genuine multilateralism,” counterbalancing Western institutions.

What role does India play in the SCO?
India balances between cooperation (e.g., on trade) and rivalry (border disputes with China). Its participation keeps the SCO from becoming fully China-Russia dominated.

Will the SCO bank rival the World Bank or IMF?
Not immediately, but it could offer alternative financing to members seeking to reduce dependence on Western institutions.

Conclusion: A Turning Point in Global Governance

The 25th SCO Summit in Tianjin may be remembered as a watershed moment. What began in 2001 as a regional security forum is now positioning itself as a financial, political, and cultural pillar of Eurasia.

China’s push for a development bank and new financing tools, supported by Russia’s call for multilateralism, reflects a world where maritime trade, port finance, and global shipping corridors are no longer solely shaped by Western powers.

For maritime professionals, students, and enthusiasts, the SCO Summit offers a case study in how geopolitical decisions on land ripple out to sea, influencing port development, shipping security, and the rules of international trade.

As the SCO moves toward 2035, the question is not whether it will reshape global governance, but how far its influence will extend into the oceans that connect us all.

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