Trading with mutual trust: China, SCO eye closer economic ties

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The Shanghai Cooperation Organization (SCO) was set up on June 15, 2001, in Shanghai, China, by the leaders of China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan.

The organization expanded its membership to eight countries when India and Pakistan joined as full members on June 9, 2017 at a summit in Astana, Kazakhstan.

An economic high point

Hefty inroads have been made in terms of economic cooperation between SCO member states since the organization made its debut 18 years ago, coupled with marked advances in GDP growth, trade, investment and inter-connectivity projects.

Trade volume between China and other SCO member countries surged 19 percent year on year to 217.6 billion U.S. dollars in 2017 with a 17-fold increase from the early days of the organization's inception. Trade structure has been constantly improved and dominated by mechanical and electrical products.



CGTN Photo

Chinese investment to SCO member states reached up to 84 billion U.S. dollars as of end-March 2018, and a slew of large energy, mining and industrial projects it set foot in run smoothly.

Meanwhile, the organization's total GDP settled at 18.5 trillion U.S. dollars in 2018, closely following the 18.7 trillion notched up by the EU in the same period and accounting for 21.7 percent of the world's total.

SCO members are also sharing stronger economic ties and growing mutual trust with the ratification of an SCO agreement regarding international road transportation facilitation and an infrastructure network concerning the construction of roads, railways and telecommunications.



Chinese Premier Li Keqiang (C, front) attends the 17th meeting of the Shanghai Cooperation Organization (SCO) Council of Heads of Government in Dushanbe, Tajikistan, October 12, 2018. /Xinhua Photo

As Chinese Premier Li Keqiang put it at the 17th meeting of the SCO Council of Heads of Government in the Tajik capital of Dushanbe last year, China is set to propel more Chinese enterprises to invest in other SCO members and extend cooperation with these friends in the fields of infrastructure, processing, manufacturing, energy exploitation and agriculture.

A natural partner to the Belt and Road Initiative

Six years have passed since Chinese President Xi Jinping proposed the most ambitious infrastructure investment effort in history. Global enthusiasm for and confidence in the grand vision for promoting common development through better connectivity have grown rapidly despite the "debt trap" rumors made up by some countries.

Composed of the Silk Road Economic Belt and the 21st Century Maritime Silk Road, the Belt and Road Initiative (BRI) has close bearing on the SCO from the very beginning.

The BRI and SCO member states share similar principles and highly overlapping geography, both of which intend to push for greater regional prosperity via growing connectivity in an equal and mutually beneficial manner.



VCG Photo

The spirit embodied in the BRI ¨C solidarity and mutual trust, equality and mutual benefit, inclusiveness, a disposition to learn from each other, and cooperation in finding win-win solutions were perfectly matched with the "Shanghai Spirit" of the SCO, which also features mutual trust, mutual benefit, equality, consultation, respect for diverse civilizations and pursuit of common development, according to Xinhua.

SCO members have shown their firm support to the BRI, expanding pragmatic cooperation, increasing the construction of infrastructure and aligning their countries own development plans with the initiative.

One landmark cooperation was in May 2015 ¨C China and Russia signed a joint declaration of the connection of the Silk Road Economic Belt and the Eurasian Economic Union (EAEU).