[Source/Observer Network, Liu Chenghui] On June 17, Hong Kong's English-language media South China Morning Post cited analysts as saying that with Western pressure forcing Russia to readjust its strategy and turn to Asia, China's efforts to deepen Eurasian economic integration have gained momentum. The long-stalled plan for the Shanghai Cooperation Organization (SCO) development bank is approaching implementation.

On June 3, the 2025 Finance Ministers and Central Bank Governors Meeting of SCO member states was held in Beijing. The meeting各方supported taking action to deepen regional financial cooperation, including advancing the establishment of the SCO development bank and building an SCO financial think tank network.

Finance Minister Lan Ruoyan of the Ministry of Finance said at the meeting that against the backdrop of accelerating changes in the global landscape and the in-depth development of a new round of technological revolution and industrial transformation, trends towards digitalization, greenization, and intelligence are providing new cooperation opportunities for SCO member states. At the same time, challenges such as trade protectionism, the backlash against globalization, geopolitical conflicts, and climate change are intertwined, posing severe tests to the stability of the global and regional economies and finance.

Analysts pointed out that as the U.S. reduces foreign aid and strengthens financial sanctions through "long-arm jurisdiction," China is strengthening its influence in international development financing and regional economic cooperation. Driven by geopolitical tensions and Russia's "eastward shift" strategy, the long-stalled concept of the SCO development bank is now closer to realization than ever before.

The 2025 Finance Ministers and Central Bank Governors Meeting of SCO member states was held in Beijing. People's Bank of China website.

The report noted that China first proposed setting up this bank in 2010, aiming to promote regional trade and currency use. This topic has repeatedly appeared in high-level meetings but has never made substantial progress.

A source familiar with policy discussions told the South China Morning Post that Russia previously opposed the plan, favoring the expansion of the Eurasian Development Bank (EDB), which it dominates. The SCO decision-making mechanism requires unanimous consent from all member states.

An anonymous Chinese scholar said that the conflict between Russia and Ukraine has led to comprehensive sanctions imposed by Europe and America on Russia, forcing Moscow to accelerate its "eastward shift." Russia's stance has softened somewhat.

"China is pushing to establish a new bank, but there is currently no clear timetable," the scholar added.

Rui Si Li, deputy researcher at the Institute of Russian, Eastern European, and Central Asian Studies of the Chinese Academy of Social Sciences, believes that the current environment is more conducive to launching a new multilateral bank than ever before.

She pointed out that the SCO initially focused mainly on regional security issues such as counter-terrorism and combating separatism, but as the region becomes more stable, the organization is increasingly turning to economic cooperation.

In recent years, Kazakhstan, Kyrgyzstan, and Uzbekistan have expressed support for the new bank. SCO member states are exploring cooperative projects requiring funding, such as clean energy and responding to climate change.

Farzin, governor of Iran's central bank, attending the SCO finance ministers and central bank governors meeting in China, said that the purpose of this visit is to explore how to strengthen monetary and banking cooperation among member states of the organization and hold bilateral meetings with other central bank governors.

Farzin emphasized that Iran supports the establishment of the SCO development bank. Establishing settlement and financing infrastructure within the SCO framework helps to摆脱长期存在的 unilateralism in the international financial sector and create opportunities for the development of regional countries.

"This highlights the necessity of establishing a development bank," Rui Si Li said, noting that given the different levels of economic development among member states, it is essential to clarify their respective contribution shares.

Siyu Jiang, assistant researcher at the Institute of World Economy and Politics of the Chinese Academy of Social Sciences, said that the SCO development bank can prioritize infrastructure and energy projects in Central Asia to better meet local development needs.

She pointed out that the bank could also play a unique role in financing border infrastructure construction and cross-border security projects, areas often overlooked by other multilateral banks.

Jiang Siyu also believes that the bank should strike a balance between supporting underdeveloped countries and achieving reasonable investment returns.

However, The South China Morning Post mentioned that India's resistance may become an obstacle for the new development bank. A think tank based in New Delhi, the Observer Research Foundation, stated in a report last year that "India's multilateral balancing diplomacy aims to offset China's regional ambitions while maintaining China as an important trading partner."

Moreover, a development bank aimed at strengthening regional cooperation and integration may attract attention and scrutiny from Western countries. For example, at the end of last year, newly elected U.S. President Trump threatened BRICS countries, stating that if these countries did not abandon plans to develop an alternative to the dollar, the U.S. would impose a 100% tariff on them.

In response, Foreign Ministry spokesperson Lin Jian said that BRICS countries, as an important platform for cooperation among emerging markets and developing countries, advocate openness, inclusiveness, win-win cooperation, not forming camps or targeting third parties, in order to achieve common development and universal prosperity. China is willing to continue working with BRICS partners to deepen practical cooperation in various fields and make more contributions to the sustained and stable growth of the world economy.

This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.

Original article: https://www.toutiao.com/article/7517117022644355623/

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