The Shanghai Cooperation Organization (SCO) summit in Tianjin ended on September 1 with Beijing signaling a stronger push for a multipolar global order, even as U.S. President Donald Trump renewed attacks on India over trade.
The two-day meeting brought together leaders from over 20 countries, including China, India, and Russia, to deepen security and economic ties. Chinese President Xi Jinping called for a “more just and balanced international governance framework,” warning that the world faces a “new phase of turbulence” driven by protectionism and geopolitical rivalry.
Trump Calls U.S.-India Trade ‘One-Sided Disaster’
Hours after the summit closed, Trump blasted India in a Truth Social post, branding trade relations “a totally one-sided disaster!”
“The reason is that India has charged us, until now, such high tariffs, the most of any country, that our businesses are unable to sell into India,” Trump wrote. He said India had once offered to cut tariffs to zero but “it’s getting late” and should have done so “years ago.”
The comments come after the U.S. imposed 50% tariffs on Indian goods, including extra duties of 25% last month over India’s purchases of Russian oil. New Delhi has called the move “unfair and unjustified.”
Trump accused India of buying Russian oil and weapons while selling “massive amounts” of goods to the U.S. at preferential rates. WTO data shows India’s average tariff on U.S. imports was 6.2% in 2024, compared to 2.4% on Indian goods entering the U.S.
Relations have soured in recent months, reversing years of closer ties. India’s foreign ministry recently accused the West of hypocrisy, noting that countries criticizing India over Russia trade also maintain their own dealings with Moscow.
Modi, Xi Signal Thaw in Relations
At the SCO summit, Prime Minister Narendra Modi and President Xi Jinping met on Chinese soil for the first time in seven years. The two leaders pledged to ease tensions and boost cooperation, signaling a tentative thaw after years of border disputes and trade friction.
“Modi and Xi used all the diplomatic words available to signal a new commitment ... partially motivated by high Trump tariffs on both,” said Wendy Cutler, vice president at Asia Society Policy Institute.
Still, experts warn deep mistrust remains. India fears an influx of cheap Chinese imports, and Beijing’s close ties with Pakistan remain a major sticking point.
Xi, Putin, Modi Show Unity
One striking moment from the summit was an image of Xi, Modi, and Russian President Vladimir Putin holding hands, a symbolic show of solidarity as Washington accuses India and China of enabling Russia’s war in Ukraine.
For India, the meeting was a chance to signal strategic flexibility. “India is using this to tell Washington it has options—not just Beijing but also Moscow,” said Jeremy Chan, Eurasia Group analyst.
Putin, meanwhile, used the SCO to push back against isolation, presenting Russia as a key player in Asia despite Western sanctions.
China’s Agenda: AI and Finance
Beyond geopolitics, Beijing advanced three big initiatives:
AI Cooperation – The Tianjin Declaration outlined plans for joint AI development, stressing security and fairness. China proposed an AI collaboration hub and promoted open-source models for productivity.
SCO Development Bank - Members discussed creating a bank to reduce dollar reliance, echoing China’s earlier creation of the AIIB. Beijing pledged ¥2 billion ($280M) in aid and ¥10 billion ($1.4B) in loans over three years.
Security & Trade - Leaders reaffirmed commitments to energy security, connectivity, and counterterrorism, strengthening China’s image as an alternative to U.S.-led alliances.
U.S. Plays Down Impact
Treasury Secretary Scott Bessent dismissed the SCO summit as “performative,” but analysts disagree. “The improvement of relations with India is a big deal,” said Marko Papic of BCA Research. “It gives India access to critical IP for industrialization.”
Papic warned that Trump’s tariffs may accelerate multipolarity: “Over time, the U.S. is losing the propaganda war to cast China as the main troublemaker.”
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