Xi Jinping "Will create an SCO development bank"

Summit: building an anti-U.S. coalition

"Lending 10 billion yuan to member states"

Chinese President Xi Jinping officially proposed the establishment of a security response agency and a development bank at a Shanghai Cooperation Organization (SCO) summit attended by Russia, India and others. It is interpreted as an intention to develop the SCO into an alternative global governance body to counter U.S. 'bullying.' Analysts suggest world leaders are strengthening ties by channeling grievances toward U.S. President Donald Trump.

In his speech at the 25th meeting of the SCO Council of Heads of State held in Tianjin, China, on the 1st, Xi said, "We will promptly activate a comprehensive center and a narcotics response center to respond to security threats and challenges, and swiftly establish an SCO development bank to support member states' security and economic cooperation." The SCO is a multilateral consultative body launched in 2001 by China, Russia and four Central Asian countries. India and Pakistan joined in 2017, Iran in 2023, and Belarus in 2024, bringing the current membership to 10 countries. Initially it focused on security cooperation such as counterterrorism and separatism, but recently it has expanded its cooperation to economics, finance and culture. China is seen as aiming to make this, together with BRICS, a core pillar for rallying the Global South (emerging and developing countries) and to develop it into a 'bloc to check the United States.'

On the day, Xi continued with remarks aimed at the United States. He indirectly criticized the U.S., saying, "We must oppose Cold War thinking, bloc confrontation, and acts of bullying." He added, "We must uphold the international order centered on the United Nations and the World Trade Organization (WTO), and build a fair and reasonable global governance."

He also emphasized China's economic influence within the SCO. He said, "China's cumulative investment in SCO member states has surpassed $84 billion (about 117 trillion won), and bilateral trade has also exceeded $500 billion annually (about 696 trillion won). We will promote 100 'small but beautiful' livelihood projects to support member states and provide 2 billion yuan (about 390 billion won) in grant aid within this year." He added, "Over the next three years, we will provide new loans of 10 billion yuan (about 1.95 trillion won) to member banks of the banking alliance."

Reporter Lee Hye-in hey@hankyung.com