China has emerged as the prime driver and a leader of the Shanghai Cooperation Organization (SCO) not only in the political, economic, and commercial sectors but also by providing the backbone of infrastructure, including roads, railroads, and air links. China has invested a total of $150 billion, reinforcing its broader Eurasian strategic sectoral development.
This figure includes direct investments, loans, and financial support provided through various Chinese financial institutions such as the AIIB and the Silk Road Fund. Seeing is believing.
During my visit to China in August 2024, I witnessed the breathtaking development taking place at a neck-breaking speed, particularly in Xinjiang and Shaanxi provinces, aimed at uplifting the SCO.
While the SCO may not yet be equal to, it is becoming competitive with other regional organizations such as NATO, ASEAN, the EU, and BRICS. With two emerging superpowers, China and Russia, as the engines of influence, weight, and financial might, the SCO, currently strong in Central Asia, is likely to expand its integration and scope to eventually become a global force.
This will help balance Western influence, particularly in Eurasia, and serve as a platform for China and Russia to collaborate on regional issues.
During the visit, we observed that China has established sectoral hubs for all initiatives under the purview of the SCO, including security (counter-terrorism, regional stability) through the institutional framework of the Regional Anti-Terrorist Structure (RATS).
Economic cooperation is being advanced through the Belt and Road Initiative (BRI), with China committing over $50 billion in infrastructure projects such as roads, railways, and energy pipelines to enhance connectivity within the SCO region.
China has invested over $10 billion in the Digital Silk Road, focusing on digital infrastructure, including 5G networks, fiber optic cables, and smart city initiatives. It has invested $5-7 billion in developing logistics hubs, warehousing, and cross-border trade facilities. It has invested in agricultural R&D and joint ventures within SCO member states at around $2-3 billion, which includes funding for advanced farming techniques, seed development, and sustainable agriculture projects.
Besides providing sectoral hubs for SCO initiatives, which we witnessed firsthand, China is also pursuing highly capital-intensive bilateral projects with other SCO member countries.
Copyright Business Recorder, 2024
Comments
Comments are closed for this article.