Chinese President Xi Jinping on Monday pledged 2 billion yuan (~$281 million) in grants this year and 10 billion yuan (~$1.4 billion) in loans over the next three years to Shanghai Cooperation Organization (SCO) member states to boost economic cooperation.
Addressing the largest-ever SCO summit, attended by more than 20 foreign leaders including Russian President Vladimir Putin and Indian Prime Minister Narendra Modi, Xi also called for the establishment of an SCO Development Bank to finance regional projects and infrastructure.
Economic push for the bloc
Xi highlighted that Beijing’s cumulative investment in SCO economies has already surpassed $84 billion. He noted the bloc’s combined economic output is approaching $3 trillion, underscoring its growing global influence.
“The SCO has entered a new stage of high-quality development. Strengthening financial support mechanisms will allow member states to achieve mutual benefit and deeper integration,” Xi said.
Broader geopolitical backdrop
The funding pledge comes amid heightened geopolitical tensions, including the Russia-Ukraine war, fallout from the Israel-Hamas conflict, and persistent trade disputes with the United States. Xi urged SCO members to prioritize development and cooperation over confrontation, repeating his warning against a “Cold War mentality.”
Earlier in the summit, Xi had also pushed for greater cooperation in artificial intelligence (AI), calling it a transformative force for economic growth across Eurasia.
Education and people-to-people ties
China also committed to supporting 10,000 students from SCO nations through its “Luban” vocational education program, furthering cultural and educational exchanges alongside economic initiatives.
India-China engagement
The summit spotlighted a cautious thaw in India-China ties. Xi’s meeting with PM Modi in Tianjin saw both leaders reaffirm that their nations must act as partners, not rivals. India’s Ministry of External Affairs noted that cooperation between the two Asian powers, based on “mutual respect, mutual interest, and mutual sensitivity”, is essential for the growth of their combined 2.8 billion population.
