China’s Xi Jinping Advocates for a Greater Role for the Shanghai Cooperation Organization, Including a Development Bank Initiative

September 1, 2025

Beijing – In a meaningful move demonstrating strengthening ties, Chinese President Xi Jinping has affirmed China‘s unwavering support for Brazil’s sovereignty, notably in the face of increasing external pressures. This assurance came during a detailed, hour-long telephone conversation with Brazilian President Luiz Inácio Lula da Silva on Monday evening, August 11th, 2025, according to sources familiar with the discussion.

Escalating Tensions adn US Influence

The conversation took place against a backdrop of heightened geopolitical tension, with Brazil experiencing what officials describe as increased interference attempts from the United States. The nature of these alleged attempts remains largely undisclosed, but sources suggest they involve political and economic pressures aimed at influencing Brazilian policy decisions. President Xi’s pledge is widely interpreted as a direct response to these perceived challenges.

Analysts note that this progress underscores a broader trend of China seeking to expand its influence in Latin America,positioning itself as a key partner for nations seeking to diversify their alliances and reduce dependence on customary powers. This is particularly relevant in a global landscape marked by increasing multipolarity.

Strengthening Sino-Brazilian Relations

Beyond the issue of sovereignty, the two leaders discussed deepening economic cooperation and accelerating the establishment of a new development bank under the auspices of the Shanghai Cooperation Organisation (SCO). This initiative aims to provide option financing options for development projects in member states, reducing reliance on institutions like the World Bank and the International Monetary Fund.The SCO, comprising China, Russia, India, Pakistan, and several Central Asian countries, is increasingly viewed as a counterweight to Western-led financial institutions.

Did You Know? The Shanghai Cooperation Organisation (SCO) represents approximately 40% of the world’s population and accounts for over 30% of global GDP.

The commitment from China signals a deepening strategic alignment between the two nations. Brazil, under President Lula da Silva, has actively pursued a foreign policy of non-alignment, seeking to forge strong relationships with a variety of international partners, including China. This stance contrasts with previous administrations that were more closely aligned with the United States.

Here’s a fast comparison of the SCO and other major development banks:

Institution	Founded	Key Shareholders	Focus
SCO Development Bank (Proposed)	In Development	China, Russia, India	infrastructure, Connectivity, Lasting Development
World Bank	1944	United States, Japan, Germany	Poverty Reduction, Development
IMF	1944	United States, European Countries	Financial Stability, Global Monetary Cooperation

The SCO Development Bank: A new Financial Architecture?

The proposed SCO development bank is intended to complement existing financial institutions, offering an alternative source of funding for projects that may not meet the criteria of traditional lenders. Experts suggest this could be particularly beneficial for infrastructure projects in developing countries, fostering economic growth and regional connectivity.

Pro Tip: Understanding the SCO’s evolving role is crucial for assessing the shifting dynamics of global power and financial influence.

The conversation between Presidents Xi and Lula da Silva signals a significant moment in the evolving geopolitical landscape, and points to a potential reshaping of global alliances as nations navigate an increasingly complex world. The full extent of the support this will bring remains to be seen, but it represents a clear endorsement of Brazil’s self-reliant foreign policy.

What impact will China’s support have on Brazil’s relationship with the United States? And how will the new SCO development bank compete with established financial institutions?

Understanding the Importance of Sovereignty in International Relations

National sovereignty, the principle that a state has supreme authority within its own borders, remains a cornerstone of international law. However, in an increasingly interconnected world, the exercise of sovereignty is often subject to external pressures and competing interests. The recent exchange between China and Brazil highlights the ongoing tension between the desire for national independence and the realities of global interdependence.

The concept of sovereignty has evolved over time, with debates surrounding humanitarian intervention and the responsibility to protect civilian populations frequently enough challenging traditional notions of non-interference.Still, safeguarding national sovereignty remains a key priority for many nations, particularly in regions facing external interference or geopolitical competition.

Frequently Asked Questions about China’s Support for Brazil

• What is the main reason for China’s support of Brazil? China’s support aims to bolster brazil’s sovereignty amid perceived external pressures,particularly from the United States.
• What is the Shanghai Cooperation Organisation (SCO)? The SCO is a Eurasian political, economic, and security organization comprised of China, Russia, India, Pakistan, and several Central Asian countries.
• What are the goals of the proposed SCO development bank? The bank seeks to provide alternative financing for development projects, reducing reliance on traditional Western-led institutions.
• How does this affect Brazil’s relationship with the US? This strengthening relationship with China could potentially lead to shifting dynamics in Brazil’s relationship with the United States.
• is this a new trend in global politics? Yes, it reflects a broader trend of countries seeking to diversify their alliances and reduce dependence on traditional powers.
• What specific forms will China’s support for Brazil take? Support will likely involve economic cooperation and acceleration of the SCO development bank’s creation.
• What was the duration of the conversation between the two Presidents? The telephone conversation between Presidents Xi and Lula da Silva lasted approximately one hour.

Share your thoughts in the comments below and let us know what you think about this developing story!

How might the SCO advancement bank challenge the existing dominance of the World Bank and IMF in global finance?

China’s Xi Jinping Advocates for a Greater Role for the Shanghai Cooperation Institution, Including a Development Bank Initiative

The SCO’s Expanding Influence: A New global architecture?

The Shanghai Cooperation Organisation (SCO), initially focused on regional security, is undergoing a significant conversion under the leadership of China’s Xi Jinping. Increasingly, Beijing is pushing for the SCO to evolve into a more prominent global force, notably through the establishment of a dedicated development bank. This initiative aims to rival existing institutions like the world Bank and the International Monetary Fund (IMF), offering choice financing options to member states and fostering greater economic independence. The recent pledge of support from Xi Jinping to Brazil’s Lula da Silva, guaranteeing support for Brazilian sovereignty amidst perceived US interference (as reported on august 12, 2025 by Revista Forum), underscores the SCO’s growing geopolitical relevance and China’s commitment to bolstering alliances outside customary Western spheres of influence.

The SCO Development Bank: A Counterweight to Western Finance?

The proposed SCO development bank isn’t a new concept, but Xi Jinping’s renewed advocacy has injected fresh momentum into the project. Key features under discussion include:

funding Sources: Initial capital is expected to come from contributions by member states, wiht China likely to be the largest stakeholder. Exploring alternative funding mechanisms, such as issuing bonds in local currencies, is also being considered.

Focus Areas: Infrastructure projects are a primary target, aligning with China’s Belt and Road Initiative (BRI). Other areas of focus include energy security, digital connectivity, and sustainable development.

Governance Structure: A key point of contention is the governance structure. While China favors a system reflecting its economic weight,other members – including Russia,India,and the Central Asian states – are pushing for a more equitable distribution of power.

Loan Conditions: The SCO bank is expected to offer loans with more flexible conditions than those typically imposed by the World Bank and IMF, potentially avoiding stringent austerity measures. This is a major draw for developing nations.

Geopolitical implications: shifting Power Dynamics

China’s push for a stronger SCO and its development bank reflects a broader strategy to reshape the global order. Several geopolitical factors are at play:

Reducing Reliance on the US Dollar: The SCO bank could facilitate trade and investment in local currencies, diminishing the dominance of the US dollar in international finance.This aligns with China’s long-term goal of promoting the Renminbi as a global currency.

expanding China’s Influence: A more powerful SCO allows China to extend its influence across Eurasia and beyond, fostering closer economic and political ties with key regional players.

Countering Western Sanctions: The SCO bank could provide a financial lifeline to countries targeted by Western sanctions, offering an alternative source of funding and mitigating the impact of restrictive measures.

Strengthening Multipolarity: The SCO’s rise contributes to a more multipolar world order, challenging the traditional dominance of the United states and its allies.

Membership Expansion and Future Prospects

the SCO has been actively expanding its membership. Iran became a full member in July 2023, and belarus officially joined in 2024. Several other countries, including Saudi Arabia, Egypt, and the United Arab Emirates, are currently candidate members. This expansion significantly broadens the SCO’s economic and political reach.

SCO Membership Timeline:

1. 2001: Founding members – China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Uzbekistan.

2. 2014: India and Pakistan join.

3. 2023: Iran becomes a full member.

4. 2024: Belarus joins as a full member.

Potential New Members: Saudi Arabia, Egypt, UAE, Qatar, and others are actively seeking membership.

Case Study: China’s Belt and Road Initiative and SCO Synergy

The SCO development bank is designed to complement China’s Belt and Road Initiative (BRI). The BRI provides the infrastructure projects, while the SCO bank could provide the financing. This synergy could accelerate infrastructure development across Eurasia, boosting trade and economic growth. For example, the China-Pakistan Economic Corridor (CPEC), a flagship BRI project, could benefit from funding from the SCO bank, further strengthening economic ties between the two countries.

Challenges and Obstacles

Despite the momentum, several challenges remain:

Internal Disagreements: Divergent interests among member states, particularly between China and India, could hinder the development bank’s progress.

Financial Capacity: Raising sufficient capital to compete with established institutions like the World bank will be a significant challenge.

* Geopolitical Resistance: The United States and its allies are likely to view the SCO’s rise with skepticism and may attempt to counter its influence.