This week, the northern Chinese city of Tianjin is playing host to one of the most consequential diplomatic gatherings of 2025: the 25th Summit of the Shanghai Cooperation Organization (SCO). As influential leaders from Eurasia converge under the Upholding the Shanghai Spirit theme, the summit has emerged as a crucible for ideas and strategies poised to propel a historic shift in the global balance of power. On September 1, several path breaking decisions and alliances have come to light, pointing unmistakably to a future where old hierarchies especially economic ones are challenged and reconfigured.
The SCO’s Geopolitical Context
Founded in 2001 by China and Russia as a security alliance focused on Central Asia, the SCO has rapidly evolved into one of the globe’s largest and most powerful regional organizations, now comprised of 10 full member states. Its roster includes China, Russia, India, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, Iran, and, most recently, Belarus. Numerous other countries including Turkey and Egypt participate as observers, indicating the SCO’s expanding international reach.
The 2025 summit is particularly significant. World politics are in flux, with U.S. trade tariffs rattling global supply chains, and mounting dissatisfaction among many major economies over dollar dominance and Western-centric institutions. Against this backdrop, Tainjin has become ground zero for a recalibration of how nations collaborate economically, manage security threats, and negotiate international influence.
Attendance and Atmosphere
The list of attendees reads like a who’s who of Eurasian and increasingly, global leadership. India’s Prime Minister Narendra Modi has arguably been the star of the summit, receiving a red carpet welcome and playing a central role in both plenary sessions and bilateral meetings with Russian President Vladimir Putin, Chinese President Xi Jinping, and several others. Russia, under President Putin, arrives as a nation urgently seeking new partners amid enduring Western sanctions due to the Ukraine conflict. China’s President Xi Jinping, meanwhile, oversees the proceedings, eager to assert his country’s position as the principal driver of SCO expansion and reform. Turkish President Erdogan, Iranian President Pezeshkian, and the heads of Central Asian republics round out the group, each with distinct agendas but a common interest in challenging Western dominance.
The summit’s theme, upholding the Shanghai Spirit: SCO on the Move, is an explicit call for unity, equality, and win-win cooperation. The underlying message: the time has come for a multipolar world, one that reflects collective interests rather than a single country’s priorities.
Major Highlights and Developments of the Summit
1. Strengthening Ties Among Top World Leaders
Perhaps the most newsworthy element has been the visible thaw in relations between leaders of China, Russia, and India the three largest and most influential SCO members. In a marked departure from recent years, PM Modi and President Xi Jinping met officially for the first time in seven years. The session was cordial, with both agreeing to move beyond border clashes and focus on partnership, not rivalry.
President Xi reiterated the need for a strategic, long-term perspective, especially as China and India celebrate 75 years of diplomatic relations. Both countries pledged to boost trade and ease travel between their peoples while navigating outstanding border and trade disputes. The two sides also discussed balancing cooperation with competition, particularly as U.S. tariffs and global trade tensions inadvertently push India and China closer.
On a similar note, PM Modi’s bilateral with President Putin reinforced their special and privileged partnership across defense, energy, trade, and technology. Modi invited Putin to India for the upcoming summit in December while both leaders underscored the importance of disregarding Western sanctions and asserting autonomy in world affairs.
The three leaders’ convergence on several issues including economic reform, terrorism, and multipolarity marks a significant pivot. Their guideline suggests a world order where cooperation among major powers is prioritized over undisputed Western supremacy.
2. Reducing Dollar Dominance: The Finance Revolution
Among the summit’s most-discussed outcomes is the advancement of an anti-dollar pact through new SCO banking mechanisms. China, backed by Russia and India, has intensified its campaign to reduce dependence on the dollar for international trade. By building independent payment networks and encouraging settlements in local currencies (notably the ruble and yuan), the SCO members are laying the groundwork for a future where Western financial institutions carry less sway.
President Xi’s strategy is to turn the U.S. alliance system on its head—using current trade and currency tensions to pull erstwhile U.S. partners into Beijing’s expanding orbit. This reorientation is not limited to rhetoric. Xi and Putin have spotlighted new banking mechanisms, including the establishment of a SCO Bank, designed explicitly to bypass dollar-dominated systems and champion alternative payment networks. As Trump-era tariffs continue to disrupt global commerce, SCO members are increasingly incentivized to cultivate financial and economic autonomy.
China’s push for de-dollarization within the SCO is motivated by the risks and limitations imposed by dollar reliance, especially under threat of U.S. sanctions. This initiative resonates well with other members: Russia, grappling with sanctions over Ukraine, is keen to access alternative finance channels. India also sees merit in insulating itself against the volatility of Western-dominated structures, particularly amidst recent trade disputes with the U.S.
The potential implications are profound. As more countries within the SCO (and beyond) adopt local currency settlements, the demand for the U.S. dollar could witness a measurable decline. This could trigger a broader shift in global financial power dynamics and accelerate the process of de-dollarization elsewhere.
3. Reforming Global Governance and Security Architecture
A recurring refrain in both plenary and side meetings has been the necessity to reform global governance architecture from the United Nations to regional security organizations. PM Modi in particular has spoken out strongly on this, urging the SCO to advocate for reform-driven agendas and ensure that multilateral institutions are not held hostage to the interests of a select few.
The summit saw concrete discussions on counterterrorism, radicalization, and cross-border security threats. PM Modi demanded zero tolerance for terrorism, warning against double standards in dealing with state-sponsored aggressors, a veiled reference to persistent tensions with Pakistan over terror attacks in Kashmir. Member states also reaffirmed their commitment to coordinated action against terror financing and organized crime, with new centers to tackle drug trafficking and cybersecurity expected to be unveiled soon.
Russia, meanwhile, has used the forum to lambaste Western military alliances like NATO, labeling them as provocateurs of current conflicts, especially Ukraine, and emphasizing the need for Eurasian security autonomy. By aligning their security strategies and intelligence-sharing protocols, SCO members aim to preempt the imposition of foreign security norms and build region-specific responses to common threats.
Deep Dive: India’s Role at the Summit
1. India’s Diplomatic Leverage
India has utilized the 25th SCO summit and especially Modi’s high-profile attendance to underline its commitment to open economic practices, sovereignty, and connectivity rooted in mutual respect. Modi’s emphasis on Security, Connectivity, and Opportunity as pillars under the SCO umbrella has been echoed by several delegations.
A particular focus has been placed on India’s active participation in major initiatives: PM Modi reiterated India’s support for the Chabahar port and the International North-South Transport Corridor, both crucial for boosting intra-Eurasian trade and connectivity. India is also pushing for a Civilizational Dialogue Forum to expand people-to-people ties, cultural understanding, and youth innovation.
2. Counterterrorism and Security
India has been firm in urging the SCO to take decisive action against terrorism, especially cross-border variants. The group expressed solidarity with India following the recent Pahalgam terror attack, underscoring the need for unified action and accountability for countries supporting terror.
In this context, India has proposed strengthening SCO’s institutional mechanisms to root out organized crime, narcotics trade, and cyber threats. The group broadly agreed to set up dedicated centers for these purposes, marking a first step toward practical security collaboration beyond dialogue.
3. Economic Opportunity
With local currency trade enjoying unprecedented attention, India is poised to become a beneficiary of reduced dollar dependency. Trade with China and Russia, especially around energy and high technology, is expected to expand notably in coming months provided ongoing disputes are managed effectively.
The opportunity for Indian startups, innovators, and youth was also highlighted. New pathways for exchange and joint ventures, especially in digital economy and green technologies, are on the horizon.
Key Summit Moments and Statements
- Historic Bilateral: Modi and Xi’s first official meeting in seven years set a positive tone, with agreements to boost trade, ease travel, and foster partnership despite deep-rooted disputes.
- Anti-dollar Pact Unveiled: The SCO Bank and related banking mechanisms, championed by China, Russia, India and others, signal the start of practical steps towards de-dollarization.
- Putin’s Strong Address: Putin lambasted Western military interventions and called for greater autonomy, cementing Russia’s alignment with Eurasian powers.
- Turkey and Iran’s New Partnerships: Turkish President Erdogan and Iranian President Pezeshkian used the summit to reinforce new economic partnerships with China, further eroding the boundaries of old Western alliances.
- UN’s Endorsement: UN Secretary-General Antonio Guterres called for a revival of multilateral institutions with China as a fundamental pillar, publicly acknowledging the SCO’s new global clout.
- India’s Counterterrorism Call: Modi’s forceful message against terrorism and double standards created diplomatic momentum for a unified, action-oriented response by SCO.
- Adoption of ‘Tianjin Declaration’: At the conclusion of the core sessions, leaders adopted the Tianjin Declaration outlining these reforms and strategic priorities for the coming years.
Broader Impact: Is the Dollar’s Dominance Waning?
The shakeup in global finance is one of the central stories of Tianjin. By 2:30 PM IST on September 1, a consensus has emerged on the need to build alternative payment systems and fortify economic resilience against U.S. sanctions.
Practically, this is being done by encouraging trade and cross-border deals in local currencies—especially between China and Russia, which have already increased ruble-yuan settlements to over 80% in recent bilateral transactions. India’s engagement with similar models could further dilute the global importance of the U.S. dollar; this, in turn, may incentivize other emerging economies—both inside and outside SCO—to explore parallel arrangements.
While the dollar’s centrality will not disappear overnight, the summit has made it clear that this monopoly is no longer unchallenged. The scope and scale of anti-dollar initiatives, coupled with the willingness of influential non-Western powers to create new banking and financial norms, represent perhaps the biggest challenge to post-war financial order in decades.
The Strategic Vision of China, Russia, and India
The summit’s top three world leaders the heads of China, Russia, and India have sketched a roadmap for a multipolar future, where neither currency nor power lies singularly in Western hands.
President Xi’s speech was especially pointed: The SCO is shouldering greater responsibilities safeguarding peace and unity. Our future lies in cooperation, not competition. This underscores China’s ambition to serve as both architect and anchor of the Eurasian order.
President Putin, ever the pragmatist, acknowledged embargoes and sanctions as short-term obstacles for Russia but positioned his country unambiguously as a pillar of the emerging anti-dollar coalition. Best in history relations with China and new trade opportunities with India assure that even as Russia faces headwinds, its global relevance is undiminished.
PM Modi recapped India’s approach: The gravest threat facing humanity is terrorism. But prosperity depends on cooperative connectivity and inclusive opportunity. In this, India finds a balancing act maintaining diversified partnerships while fostering key strategic relationships.
The Road Ahead: Implications for Global Order
The immediate implications of the SCO summit’s decisions are already reverberating across international news cycles, financial markets, and diplomatic channels.
Multipolarity as the New Normal: The summit’s theme and tone indicate growing consensus among the world’s largest developing economies that the unipolar era—dominated by Western political and financial norms is fading. Multipolarity, with several centers of power and collaboration, is the new norm.
Challenges for the West: Traditional Western alliances and Bretton Woods institutions face real challenges as the SCO’s initiatives gain traction. The success of the anti-dollar pact and alternative payment networks will depend on how well member and observer states coordinate, but the signal is clear a willingness to disrupt established order and inaugurate new paradigms.
Security and Stability: With new mechanisms for intelligence sharing, counterterrorism, technology, and energy agreements, the SCO is positioning itself as a credible alternative to regional groupings like NATO or the EU. This could mean greater stability in Eurasia, but also more fragmented blocs globally.
Climate, Tech, and Development: Key discussions at Tianjin also focused on climate change, digital technologies, and sustainable development. The hope is that by controlling their destinies and financial systems SCO members can address these global challenges with autonomy.
Conclusion
The 25th SCO Summit in Tianjin is not merely a routine international meeting. It is a turning point, where large parts of the world increasingly confident in their collective heft have chosen to redefine core rules of engagement, finance, and security. By weakening dollar dominance, strengthening top-level partnerships, and embracing genuine multipolarity, the SCO is ushering in a new epoch in global affairs.
Whether these ambitions will be realized swiftly or incrementally remains to be seen. But the statements, summits, and signed declarations in Tianjin are no longer empty promises. They reflect a new resolve among the world’s rising powers to not just participate in the world order, but to fundamentally reshape it.
