Chinese President Xi Jinping addressed the Shanghai Cooperation Organisation (SCO) summit in Tianjin, asserting that “global governance has reached a new crossroads.” His comments point to a dramatic change in the government’s foreign policy posture. Behind this shift are changing views towards the United States and increasing calls from the Global South for more seats at the table in international decision making.
During his speech, which was attended by over 20 leaders primarily from the Middle East and Asia, Xi outlined a new “Global Governance Initiative” (GGI). This project seeks to protect and promote an alternative global governance architecture that would function separately from the existing order dominated by the US and Europe.
Xi’s proposal for the creation of a new SCO development bank was the high point of his speech. In particular, he announced billions of dollars in financial assistance for SCO member states. This involves 2 billion RMB (approximately $280 million) in grants and an additional 10 billion RMB ($1.4 billion) in loans. These initiatives lead one to conclude that China is dedicated to improving the quality of development finance in the region.
“Global governance has reached a new crossroads.” – Xi Jinping
Even more striking was the Chinese leader’s insistence on multilateralism, which rang like a theme through Xi’s speech. He stated, “We must continue to take a clear stand against hegemonism and power politics, and practise true multilateralism.” This claim is an important reminder of China’s motivation here. It seeks to re-establish itself as a leader in a multipolar global order that will re-emphasize sovereign equality between countries.
Xi was photographed engaging with Indian Prime Minister Narendra Modi and Russian President Vladimir Putin, signaling a united front among these leaders. Xi and Modi promised to address their geopolitical rifts at the two leaders’ summit. This action is an important step underscoring their determination to mend relationships that have grown contentious over the past few years.
Vladimir Putin of Russia supported Xi’s ideas, calling for the restoration of “true multilateralism” among the SCO members. His remarks are an indication of a growing bloc on the part of member states to push back against the dominance and influence of the West.
As international relations expert Eric Olander recently remarked, Xi’s GGI is the most ambitious attempt at global influence that China has ever constructed. He remarked, “With the GGI, Xi is basically saying the quiet part out loud, that China is seeking to create a parallel global governance system outside the US and European-led order, something that would have been inconceivable a decade ago.”
Recent geopolitical dynamics and Russia’s aggressive war in Ukraine are reshaping these discussions. Perhaps most significantly, Donald Trump’s trade war hastened the normalization of diplomatic relations between China and India. Astonishingly, we find ourselves today standing on this very backdrop during the most consequential time since the establishment of the framework, the adoption of the Sustainable Development Goals.
Xi’s outreach at the summit went well beyond ceremonial speaking appearances. He made it a point to actively engage with multiple leaders to promote dialogue and collaboration. His efforts well demonstrate China’s broader campaign to increase its clout across the region. Simultaneously, they push development priorities that align with China’s geopolitical goals.
“We must continue to take a clear stand against hegemonism and power politics, and practise true multilateralism.” – Xi Jinping
