Tue Sep 02 08:20:00 UTC 2025: **China and Russia Challenge US Order with New SCO Financial Initiatives**

**Tianjin, China** – In a display of unity against the US-led global order, Chinese President Xi Jinping and Russian President Vladimir Putin convened leaders at the Shanghai Cooperation Organisation (SCO) summit, outlining a vision for a new international system centered on multilateralism and economic cooperation.

President Xi announced ambitious plans for a new SCO development bank and pledged substantial financial incentives to member states, including 2 billion RMB ($280 million) in grants and 10 billion RMB ($1.4 billion) in loans. This pivot toward international finance marks a significant shift for the SCO, positioning it as a potential alternative to Western-dominated financial institutions.

“Global governance has reached a new crossroads,” President Xi stated, calling for a firm stance against “hegemonism and power politics,” a clear reference to the United States. President Putin echoed these sentiments, emphasizing the SCO’s role in forging a new system of stability and security in Eurasia.

Beyond the financial incentives, Xi unveiled a “Global Governance Initiative” (GGI), signaling China’s ambition to create a parallel global governance structure outside the US and European-led system. Experts suggest this reflects a growing demand from the Global South for a greater voice in international affairs.

The SCO, a 10-member organization that includes China, Russia, India, Iran, and several Central Asian nations, is increasingly seen as a counterweight to traditional US-led alliances. The summit also saw a pledge from Xi and Indian Prime Minister Narendra Modi to resolve their differences, a development analysts attribute partly to shared grievances stemming from US trade policies.

In a show of solidarity, Xi, Putin, and Modi were seen together, underscoring the diplomatic unity at the summit. Many attending leaders are expected to stay in China to participate in a major military parade in Beijing, commemorating the end of World War II in Asia, where North Korean leader Kim Jong Un is also expected to be present.

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