Prime Minister Narendra Modi attended the Shanghai Cooperation Organisation (SCO) summit in Tianjin, China, on Sunday. SCO is a regional political, economic and security group founded by China. On the sidelines of the Tianjin summit, PM Modi is also scheduled to meet Russian President Vladimir Putin, as US President Donald Trump escalates tensions with New Delhi over its purchase of Moscow’s crude. Ties between New Delhi and Moscow came under scrutiny after the Trump administration in August imposed 50 per cent tariffs on Indian goods bound for the US, the highest in Asia, to penalise it for those energy purchases.
SCO Summit 2025 | Can SCO Summit 2025 Brew Trump’s Tariffs?
Why In News
- Prime Minister Narendra Modi attended the Shanghai Cooperation Organisation (SCO) summit in Tianjin, China, on Sunday. SCO is a regional political, economic and security group founded by China. On the sidelines of the Tianjin summit, PM Modi is also scheduled to meet Russian President Vladimir Putin, as US President Donald Trump escalates tensions with New Delhi over its purchase of Moscow’s crude. Ties between New Delhi and Moscow came under scrutiny after the Trump administration in August imposed 50 per cent tariffs on Indian goods bound for the US, the highest in Asia, to penalise it for those energy purchases.
Shanghai Cooperation Organization
- SCO stands for “Shanghai Cooperation Organization”. It is an intergovernmental political, economic, and security alliance founded in 2001 by Kazakhstan, China, Kyrgyzstan, Russia, Uzbekistan, and Tajikistan. The first summit was held in Shanghai, China, in 2001.
- The membership of SCO has expanded since 2001, and it currently has eight member states.
- 1996: ‘Shanghai Five’ established by Kazakhstan, China, Kyrgyzstan, Russia, and Tajikistan.
- 2001: After adding Uzbekistan in 2001, the Shanghai Five was renamed the SCO.
- 2015: At Ufa, Russia, the SCO decided to admit India and Pakistan as full members.
- 2016: India and Pakistan signed the memorandum of obligations in Tashkent (Uzbekistan), thereby starting the formal process of joining the SCO as full members.
- 2017: At Astana, India and Pakistan officially joined SCO as full members
- 2021: It was announced that Iran would become a full member of the SCO.
SCO 2025
- Tianjin, the port city of China, will welcome 20 world leaders, including Prime Minister Narendra Modi and Russia’s Vladimir Putin, for the 25th Shanghai Cooperation Organisation (SCO) Summit, held under the theme “Promoting the Shanghai Spirit: SCO in Action.”
- Russian President Vladimir Putin and Indian Prime Minister Narendra Modi are among over 20 world leaders set to attend the Shanghai Cooperation Organisation summit, which will begin on Sunday and conclude on Monday.
- This marks PM Modi’s first visit to China in seven years to attend the two-day SCO summit, which brings together leaders from Russia, Central Asia, South and Southeast Asia, and West Asia, showcasing the solidarity of the Global South. The SCO Summit comes at a time when US President Donald Trump has levied 50 per cent tariffs on Indian goods. According to market experts, the summit is a good news for investors amid Trump’s tariff row.
What PM Modi Said
- Prime Minister Narendra Modi on Monday (Sept 1), while addressing the Shanghai Cooperation Organisation (SCO) summit in Tianjin, highlighted terrorism as the gravest threat to regional peace.
- He further redefined the grouping’s focus, noting that its foundation rests on three key pillars – “security, connectivity, and opportunity.”
- Urging zero tolerance for cross-border terrorism, separatism, and extremism, Modi called on member states to adopt a comprehensive SCO-wide framework to curb terror financing and radicalisation, drawing on India’s successful de-radicalisation initiatives.
- He also flagged emerging threats, including cyber-terrorism and unmanned systems, stressing that regional security strategies must evolve to meet new challenges. Acknowledging the SCO’s role in fostering stability, Modi praised the work of the Regional Anti-Terrorist Structure (Rats) and highlighted ongoing efforts to strengthen economic connectivity and cultural exchange across the region.
- “India has taken the lead in the fight against terror outfits like Al-Qaeda and its associates, and we oppose any kind of terror-financing. We have recently seen the brutal Pahalgam terror attack. I thank all the friendly nations who stood with us.”, PM Modi said while addressing the summit.
What Chinese President Xi Jinping Said
- Chinese President Xi Jinping on Monday urged members of the Shanghai Cooperation Organization to strengthen artificial intelligence cooperation, while rejecting what he called a “Cold War mentality.”
- Xi was speaking at the largest-ever summit of the SCO to date, with more than 20 foreign leaders gathered in Tianjin, including Russian President Vladimir Putin and Indian Prime Minister Narendra Modi.
- The meeting comes as China seeks to cast itself as a global peacemaker, against a backdrop of persistent trade tensions with the United States, Russia’s war in Ukraine and the Israel-Hamas conflict.
- Xi said China has invested $84 billion in other SCO countries and pledged support for 10,000 students to join Beijing’s “Luban” vocational education program. He added that the SCO gathering presents an opportunity to chart a new phase of high-quality development and cooperation.
- Ahead of his remarks, Xi briefly gathered with Modi and Putin during a photo session with all SCO members.
- Xi is expected to meet with Putin this week, with the Russian leader scheduled to stay in China for a military parade in Beijing to commemorate 80 years since the end of World War II.
- Over the weekend, Xi met with at least 10 visiting leaders, including Turkey’s President Recep Tayyip Erdogan and Cambodia’s Prime Minister Hun Manet. On Saturday, he met Modi, with both sides affirming the importance of being partners, not rivals, according to official readouts.
- “A stable relationship and cooperation between India and China and their 2.8 billion peoples on the basis of mutual respect, mutual interest and mutual sensitivity are necessary for the growth and development of the two countries,” India’s Ministry of Foreign Affairs said in a statement following the meeting.
How SCO Summit 2025 Can Benefit India
- The summit, which unites India, China, Russia, and other participating nations, showcases solidarity and collective strength against US tariffs widely regarded as unfair across Asia. For India, it highlights a shift away from depending on concessions from the US and towards exploring regional solutions.
- The cancellation of a planned US delegation’s visit to India only reinforces this changing dynamic,” said Gaurav Goel, Founder & Director at Fynocrat Technologies.
- Goel further highlighted that both China and Russia are now opening their economies further to India, helping redirect trade flows and reduce the sting of US tariffs. India’s decision to cautiously improve ties with China, despite past tensions, reflects a pragmatic choice to prioritize economic security and regional cooperation over rivalry, he added.
- Apart from trade, the summit also fosters wider cooperation in sectors like energy, infrastructure, and payments. While these initiatives may not yield instant benefits, they help build long-term resilience by lowering reliance on US-dominated systems and enhancing regional self-sufficiency.
- “The SCO Summit may not directly undo Trump’s tariffs, but it is more than a diplomatic gathering. It marks a strategic pivot where India, China, and Russia show readiness to chart their own economic path, building resilience, deepening partnerships, and signaling that US trade pressure will not dictate their future,” Goel said.
