At the Shanghai Cooperation Organization (SCO) summit in Tianjin, China unveiled a series of strategic initiatives aimed at boosting regional economic cooperation and promoting the use of its currency in international trade.
Electro-Yuan System for Energy Trade
China proposed an “electro-yuan” system—a digital version of the renminbi—to facilitate energy trade with Central Asian partners. This initiative aims to reduce reliance on the U.S. dollar and promote the renminbi as a regional settlement currency.
Commitments to Renewable Energy
President Xi Jinping highlighted China’s commitment to investing in renewable energy projects across SCO member states. The focus will be on developing solar and wind infrastructure to meet growing regional energy demands.
Proposal for SCO Development Bank
China also proposed the establishment of an SCO development bank to fund infrastructure and development projects. As part of this initiative, China pledged 2 billion yuan (approximately $280 million) in grants, alongside additional loans over the next three years.
Promoting Multipolar Global Governance
In his address, President Xi called for a more inclusive and equitable global governance system, emphasizing multipolarity and cooperation among SCO members.
China’s announcements at the SCO summit reflect its growing influence in Central Asia and its efforts to reshape regional trade and finance structures. The “electro-yuan” system marks a significant step toward reducing the region’s dependence on the U.S. dollar.
