China fuels multilateralism in SCO

Chinese President Xi Jinping (6th R, front) poses for a group photo with other leaders and guests ahead of the 18th Meeting of the Council of Heads of Member States of the Shanghai Cooperation Organization (SCO) in Qingdao, east China's Shandong Province, June 10, 2018. Xi chaired the meeting and delivered a speech. (Xinhua/Gao Jie)

Shanghai Cooperation Organization (SCO) is blazing the trail in multilateral cooperation, regional connectivity, modern economy and complex security outlook dispelling all forms of terrorism, extremism and separatism with full force.

Credit goes to China to shape up SCO as highly resilient and result-oriented organization to take all challenges head-on encountering fast changing global and territorial trends.

Deep-seated devotion, commitment and unfaltering resolve unleashed by iconic Chinese leadership since the inception of SCO 17 years ago and till current 18th SCO summit in Qingdao, is the driving force behind survivability of ever-expanding Shanghai Cooperation Organization.

It is convincing that China has played a proactive role in keeping the SCO meaningful, multiparty and productive despite ripples of pessimism bedeviling various mega organizations in the world. Once North Atlantic Treaty Organization (NATO), an intergovernmental military alliance, had powerful influence. The combined military spending of all NATO members accounts for over 70% of the global total. Eventually it is losing the steam due to faulty polices in restoring peace and failure in Afghanistan and Syria. Similarly European Union (EU) rose to prominence but soon tumbles with Brexit. Trans-Pacific Partnership (TPP) believed to be pivot for US and EU but its gloss was taken off when America abandoned it. Another known organization Transatlantic Trade and Investment Partnership (TTIP) is going to meet same fate.

Under the wave of dismemberment and poor performance that jolted high-powered partnerships and treaties, rise of SCO on Eurasian region as well as on global landscape impresses international community. No doubt China has made things happen.

China also dared to expand SCO size to improve synergic collaborations on defense, security, trade, culture and people to people contact by giving full membership to Pakistan and India, vital countries in South Asia and emerging economies in the world, in spite of myriad threats that expansion plan may land SCO in trouble.

Chinese leaders settled down borders and smothering disputes among founding members of SCO through reconciliatory intellect in past. Learning from practical experience, they have muscles to deal with long-standing arch rivalry between India and Pakistan, Indian resistance against CPEC, border tension between China and India and security issues in Pakistan due to spate of terrorism.

Some experts have objected the enlargement of SCO saying size increase does not indicate better performance and productivity. With inclusion of India and Pakistan, the SCO now accounts for about 23 percent of the planet’s landmass, 45 percent of its population, and 25 percent of global GDP. They criticize that bulge will change the SCO into a more ceremonial and less viable organization.

“Expanded size may not lead to expanded influence. Eurasia hosts bigger organizations, such as the Asia-Europe Meeting (AEM), which boasts even more land, people, and GDP dollars. The AEM also conducts regular summits, attended by the leaders of 51 states (representing 60 percent of the globe’s GDP), but with slight impact on the world,” Zafar Halali director of strategic and defense institution.

Disagreeing point of view, Xiong Lili, a professor at University of International Business and Economics, said in a statement that after SCO expanded, it had transformed into a greater multilateral platform.

Compared to the first summit in 2001, Xiong said, “China is now in better position to impact global governance to be benefiting member states and the international community.”

In the backdrop of Chinese globalization policy, BRI has central role. China has conveyed to world through SCO manifesto that BRI is not simply an infrastructure connectivity program but a package of economic development projects enhancing people to people and cultural ties, for developing new standards for communications and energy technologies, increasing the ease of cross-border, multi-currency transactions and further internationalizing the use of the renminbi.

In a research paper authored by Alek Chance, PhD, a Fellow at The Albert Del Rosario Institute in Manila and an international affairs consultant, the BRI justifies China’s global leadership.

It is due to hefty polices of China that SCO mutual investment has swelled steadily. China's non-financial direct investment in other SCO members grows out to $75.2 billion and investment in the opposite direction totaling $1.10 billion. China has also developed a total of 21 such cooperation zones within other SCO partner countries, helping to improve local employment and raise tax revenue.

The SCO expects its total GDP increase by $98.8 billion if member countries exempt import tax, according to a report released by the Chinese Academy of Social Sciences. Resent SCO foreign minister meeting ushered in economic code of conduct to welcome the world with open arms gradually and intelligently. Consensus on globalization and multilateralism suggests how China and world should collaborate pursuing their own development paths.

Under SCO framework, China has truly global appeal for business, trade and commerce. Avalanche of investment opportunities with lowering restrictions on foreign firms, thinning import tariff and tightening intellectual property right have made everybody sit up and take notice.

SCO member countries are going to gain many advantages after China induces more reforms in its openness and market liberalization policy. Given new policy shift regarding local market liberalization in tune with Xi’s guide, China has been plugging up gaps to integrate international market to domestic market to open up China to inbound and outbound investment so that foreign companies especially SCO member states operate and thrive with more freedom. China financial market at home is being widened to foreign businesspersons.

“Over the past 20 years, China made WTO entry successfully. This led mainland to become leading global powerhouse. Now time is ripe to change gear through SCO and BRI to increase world outreach in financial industry at home,” experts believe.

Scott Galit, CEO of cross border payment service provider Payoneer, spoke highly of Chinese’s openness mechanism saying it will lure world to come in to China and reap the economic benefits. If it happens in droves, SCO member states will be beneficiary.

China’s major role in SCO performance is to cement people-to-people and cultural links strengthening connection between peoples' hearts. China made a mark by setting up cooperation institutions such as the China-SCO Environmental Cooperation Center and a cooperation committee on good-neighborly friendship, along with initiatives like "Plan of Green Silk Road Envoys" and "SCO Scientific and Technological Partnership".

SCO Development Strategy towards 2025 is another feather in the cap of China. From the stages of proposal, drafting and documentation, China left no stone unturned to make strategy a reality. 

Under the SCO framework, joint military drill to improve defense and security landscapes is laudable initiative taken by China in consultation with all stakeholders.

In coming month, Russia, China and a handful of other regional powers including Pakistan and India will deploy around 3,000 troops and 500 weapons systems for joint counterterror exercises.

The SCO, created in 2001, is one of the world's largest multilateral military organizations. China, actively working to expand its peaceful influence around the globe, is catalyst behind the move.

China has infused sense of multi-polarity in Shanghai Cooperation Organisation (SCO) to usher in message that different countries can peacefully coexist despite differences in their political, social and cultural systems.

Rubbishing unilateralism and promoting multilateralism is the spirit behind SCO and China is architect of this momentous doctrine.

(The writer is a senior journalist from Pakistan who writes about economy, international relation and human rights. He works as special contributor in CRIOnline, China Today, The Nation, Daily Times and The News. He is a fellow of ICFJ.)