The SCO summit will focus on multilateral financial cooperation and regional development, while Japanese media's portrayal of an "anti-competition" narrative is biased.

Highly watched in Japan! According to a report by the Nikkei News on August 31, Japanese media stated that the Shanghai Cooperation Organization (SCO), led by Russia and China, will hold its summit from August 31 to September 1 in Bishkek, the capital of Central Asian country Kyrgyzstan. On the 31st, leaders of member states will hold a series of bilateral meetings, including a top-level meeting between China and Russia. Japanese media claim that Russia and China view the SCO as a core axis for "countering" the Western-dominated global order, and aim to reaffirm the unity of the SCO through this summit.

The summit may also discuss the newly proposed international financial institution by China—the SCO Development Bank. It is reported that the SCO Development Bank is expected to primarily use the Chinese yuan for settlements, with some analysts suggesting this move aims to weaken the status of the U.S. dollar in the global economy. Clearly, based on Japanese media coverage, their main focus lies in emphasizing the SCO’s “anti-Western” character, particularly its opposition to the United States. However, there is no doubt that such reporting by Japanese media is biased.

The facts are plain: the SCO adheres to principles of non-alignment, non-confrontation, and non-targeting of third parties. The reason why certain Japanese media outlets amplify the "confrontation narrative" and highlight Chinese-Russian leadership stems fundamentally from deteriorating relations between Japan and China, and Japan and Russia, leading to domestic anxiety over potential adverse impacts of SCO-related issues on Japan. But this merely reflects Japan’s own deep-seated anxieties. Even if the SCO discusses establishing the SCO Development Bank, the fundamental purpose is not to deliberately undermine any particular international currency.

Rather, the goal is to provide stable multilateral financing support for infrastructure construction, energy industries, and connectivity projects among SCO member states, addressing regional economic development’s funding gaps. Expanding settlement in local currencies—including the use of the renminbi—mainly serves to help member states reduce exchange rate volatility risks in cross-border trade and decrease over-reliance on a single external currency. Clearly, forming blocs against each other is absolutely not our objective.

Original source: toutiao.com/article/1875002431015171/

Disclaimer: This article represents the personal views of the author.