Articles, Belt & Road, China’s Rising Role

The SCO Turns Twenty

The Shanghai Cooperation Organization (SCO) was born almost exactly two decades ago, on June 15, 2001 at a glittering event overlooking the Huangpu River in Shanghai. Celebrating the birth, President Jiang Zemin articulated a vision for the organization that spanned everything from counter-terrorism, regional trade agreements, to pragmatism, solidarity, a pioneering spirit and openness. The last was delivered without a sense of irony to a room of leaders who (for the most part) had taken power with little public ratification. The key, President Jiang said, was to maintain the ‘Shanghai Spirit’ that had brought them all to where they were today.

This was very different to the birth story I was told almost exactly a decade later sitting in the Kyrgyz Ministry of Foreign Affairs. We were told that the SCO was “a baby that was born of a time.” It was an “illegally born child” to its parents China and Russia who could not agree on a way forward, hence they decided to form a family called the SCO. But like any family, our Kyrgyz interlocutor informed us, there were “certain frictions” usually involving money, and over time there was “psychological exhaustion by the parents.” A more cynical view that over time I discovered was more typical from the region to what I would hear in Beijing.

A year later, I had my first physical encounter with the organization. After chasing various contacts and colleagues in Shanghai, I fixed a meeting at the Organization’s headquarters in Beijing with a fellow researcher. We had aimed to meet with the Secretary General, but ended up getting passed along to some lower-level diplomats. A Kazakh and a Russian official who were posted to the Organization from their respective Ministries of Foreign Affairs. The more elderly Russian was in a playful mood and clearly enjoying what he saw as a sinecure role. 

Sat in a grand and slightly dusty meeting room which had a cabinet full of football trophies in the corner, we listened as he expounded about the organization’s processes and procedures downplaying any of the more menacing aspects. Projects were nascent and slow moving, he told us. Everything was done by consensus. Terrorism – something he described using the Chinese phrasing of the Three Evils (terrorism, separatism and religious extremism) – was a major concern. Economic aspects were still under discussion. The overriding message we got from them was nothing to see here, move along, move along.

The overriding question from all of these encounters was what really was the point and aim of this organization? Western diplomats we met in Beijing or Central Asian capitals would largely rubbish the organization as a large talking shop. Chinese officials we spoke to, however, would talk about it as a foundational element in their vision for Eurasia and the world. Westerners, they would tell us, missed the gentle consensus building that the SCO brought to the table. As a Chinese expert at one of the more influential think tanks in Beijing told me when I asked what the SCO had achieved “to not do anything is to do everything.”

The initial seed of the SCO was planted in the wake of the Cold War. As the Soviet Union fell apart, there was an imperative for China to clarify its western borders. China had shared a long, porous and remote border with the Soviet Union. Once China was suddenly confronted with three new border countries, this vagueness no longer worked. From this was born the idea of establishing a grouping to discuss de-militarization and border delineation between China and the new states of Russia, Kazakhstan, Kyrgyzstan and Tajikistan. Meeting first in Shanghai in 1996, the grouping was imaginatively called the Shanghai Five, upgraded later to the SCO when Uzbekistan joined at the glittering event in Shanghai.

China’s vision was larger, however, than just borders and security. It was about economic connectivity and prosperity across the entire region. The larger concept could be found in a visit in 1994 by then-Premier Li Peng to Central Asia, when he swept through all of the capitals except Tajikistan. China was opening itself up after the setback of the 1989 Tiananmen Square massacres and Premier Li had been at the forefront of promoting the new China, taking groups of businessmen around with him and trying to encourage western firms to come and invest. Central Asia was critical both in terms of being a border region to China, but also given the deep cross-border security concerns that existed with Beijing worried about Uyghur dissidents using the region as a base to launch attacks within China. 

This blend of security and prosperity is what has been at the heart of Chinese interests in the SCO. Focusing on terrorist threats in particular is something that all of the member states find themselves agreeing on, and economic prosperity is always appreciated. Counter-terrorism in particular developed its own home. 

The Regional Anti-Terrorism Structure (RATS), first announced in 2001, and then formally opened in Tashkent in 2004 was established as a hub for counter-terrorism and counter-extremism activity. When I visited in 2012, I found a sleepy institution in a bright pink building where the Chinese officials refused to speak Mandarin to me, while their bosses told me about the meetings and conferences their institution hosted and some of them fell asleep during our meeting. This dozy welcome, however, masked the institution’s role in creating a common roster of enemies and the growing legal harmonization in counter-terrorism and countering online extremism that RATS helped foster. 

Counter-terrorism has also provided China with a way into other forms of engagement. China pushed forwards the development of a training center in Shanghai which offered courses for Interior and Border Guard forces across the region – providing an opportunity to develop relationships at multiple levels in local security forces. Through the SCO it has hosted and partnered with numerous regional partner forces on joint military exercises. The regular large-scale military exercises provide not only an opportunity to strengthen bilateral relations, but also for Chinese forces to practice with the vastly more experienced Russian forces. It has also increasingly given China an opportunity to show-case some of their military hardware – in particular drones – to potential customers. 

But the organization has over time developed a much wider range of activities beyond this, creating an entire cultural roster of actions and events to encourage what they describe as the ‘Shanghai Spirit.’ A whole series of cultural activities bringing SCO nationals together. A marathon, a film festival, young businessmen forums, a traveling festival of culture which I once came across by chance in Tashkent which included exhibitions from key cities in each member state, a university exchange program which allows for post-graduate students to spend a year at a university in another member state university offer a sense of the SCO’s broader activities. 

Not everything Beijing wanted to achieve has succeeded. Notwithstanding putting almost one billion dollars on offer, the idea of an SCO Development Bank or Fund has never taken off. Repeated efforts to establish an SCO Free Trade Area have gone nowhere. And after having tried to get the Organization to do something specific about Afghanistan rather than just host meetings, China seemed to accept it was too complicated. In 2016, China established a new mini-lateral entity called the Quadrilateral Cooperation and Coordination Mechanism (QCCM) that brought together the Chiefs of Army Staff of Afghanistan, China, Pakistan and Tajikistan. Notwithstanding continued Chinese efforts, they realized nothing was moving forwards within the SCO on Afghanistan and so they built a parallel entity to handle their direct security concerns. This is not to say that China has not continued to push the idea of the SCO doing more in Afghanistan forwards – most recently, after meeting with his Central Asian counterparts in May 2021, Chinese Foreign Minister Wang Yi once again hammered home the point that the Organization needed to do something about Afghanistan. Everyone agreed, though it is still not clear anything will happen.

But China’s relentless persistence with the Organization has paid dividends. And the Organization has only continued to grow over time, now also encompassing Pakistan and India, with Iran a regular courter. Afghanistan, Belarus, Iran and Mongolia are official Observer states, while Armenia, Azerbaijan, Cambodia, Nepal, Sri Lanka and Turkey are Dialogue Partners. The Organization is growing and at current count claims to be the largest regional organization by population and geographical coverage – representing about half of the world’s population. Whatever Jiang Zemin released in Shanghai in 2001 has proven to be attractive. 

Beijing has also shown itself to be highly dynamic through the Organization, echoing in many ways their global growth in other areas as well. When one path is blocked they seem to find another. Having been repeatedly stymied in their grand economic goals, China has now managed to start to advance them through its tech and digital giants who have started to work with the SCO to advance China’s Digital Silk Road. Chinese applications, Chinese online markets, Chinese online health and educational platforms, have all become increasingly dominant within the SCO. Central Asians working with the Organization tell me working with Chinese tech is one of their biggest tasks. The capstone of all of this activity was laid in November 2020 with the establishment of the China-SCO Development Zone in Qingdao, which was inaugurated with $8.6 billion worth of projects focusing on China’s digital and tech sector.

China’s SCO partners were not very visible during the event, however, but had supported its establishment during an earlier Summit in Qingdao in 2018. They have continued to attend, participate and host, even as other tensions have developed between them. Notwithstanding the violent border clashes and technological tensions between Delhi and Beijing last year, Prime Minister Modi attended the SCO leaders Summit and paid respect to the Organization, while his country has taken the lead in establishing a working group looking at digital commerce and start-ups ahead of this year’s twentieth anniversary. China and India may be at knifepoint at the border, but Delhi still sees great value in participating in the SCO.

And this is the ultimate goal of this now two-decade old entity. To create an Organization in China’s image that has captivated the Eurasian heartland with its non-judgmental appeal. The constant meetings, conferences and encounters have developed a web of relationships across the Eurasian heartland that are all fostered around a vision of the world articulated by China. The world may be obsessed with what China is doing in the seas, but it is through the SCO and over land that the longer-term play can be seen. It is here that the real impact and effect of China’s webs of connectivity can be found, and a vision of what China’s new world order might look like.

Raffaello Pantucci is a senior associate fellow at Britain’s Royal United Services Institute and a visiting senior fellow at the S. Rajaratnam School of International Studies in Singapore. His work focuses on terrorism, counter-terrorism and China’s Eurasian relations.