Development bank part of SCO push

China presents a development bank and a green energy platform at the Tianjin SCO summit as it broadens regional influence.

Xi unveils SCO development bank at Tianjin summit

At the Tianjin summit, Xi Jinping announced plans to accelerate the creation of a development bank within the Shanghai Cooperation Organization and to launch an international platform for green and energy cooperation. He also pledged 1.4 billion dollars in loans to SCO members over the next three years and invited member states to use China’s BeiDou satellite system, expanding Beijing's tech footprint. Laos joined the group as a partner, bringing the combined membership and partners to 27.

Analysts say the moves reflect a strategy to shape global governance beyond the Western led order. The SCO has historically focused on security cooperation, and observers caution that turning these promises into real funding and influence will face tests in member commitments and in how Western economies respond. The steps could intensify competition with the United States and complicate roles for institutions like the IMF and World Bank.

Beijing is using the SCO to project stability through economic tools, not just security. The bank and energy platform could offer member states cheaper financing and closer cooperation on climate and power, but they also risk creating new dependencies on Beijing.

The plan tests how far the bloc can act as a geopolitical counterweight. If money flows and governance power follow, the SCO could shift the center of gravity in Asia. If not, it may remain a talk shop.

Highlights

The next steps will reveal how far this is planning and how far it becomes practice.