American trade policy and the rise of the Shanghai Cooperation Organization

[flags shanghai cooperation organisation. 3D illustration]
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A push towards a new world order was on full display over the weekend during a meeting of the Shanghai Cooperation Organization in Tianjin. Taking the spotlight was a get-together between China's Xi Jinping and Russia's Vladimir Putin, whose ties have been growing significantly to counter the power and economic strength of the U.S. and its allies. Perhaps more importantly, India's Narendra Modi joined the leaders hand-in-hand at the summit, putting aside its border strains with China to signal "close cooperation" as trade tensions rise with the United States [https://seekingalpha.com/news/4490245-india-poised-to-increase-russian-energy-imports-defying-us-demands].

_Thought bubble:_ It's a big deal that is on the radar of the White House. President Trump's flagship diplomatic tool and projection of American might has been coercive trade policy, with tariffs and other restrictions being leveled on friends and foes alike. That may work well on countries that are dependent on the U.S. - whether economically, geopolitically or militarily - but for the others, the soft power drive can push them to alternative spheres of influence [https://seekingalpha.com/news/4490614-sanctioned-russian-lng-cargo-delivered-to-china-for-first-time-defying-us].

It's all the more important as Washington turns its attention to the Asia-Pacific region. In terms of size, the Shanghai Cooperation Organization is one of the world's largest regional organizations, covering nearly 60% of the area of Eurasia and about 25% of global GDP. "We must continue to take a clear stand against hegemonism and power politics, and practice true multilateralism," Xi told the gathering, calling on the SCO to "oppose the Cold War mentality, bloc confrontation and bullying practices."

OUTLOOK: Partnerships in areas like energy [https://seekingalpha.com/news/4490936-russias-gazprom-and-cnpc-sign-major-gas-deal-to-boost-supplies-to-china---report], as well as the establishment of an SCO Development Bank [https://seekingalpha.com/pr/20216516-chinas-xi-seeks-expanded-role-for-shanghai-cooperation-organization-at-tianjin-summit], will go a long way in uniting economies that represent nearly half the world's population. However, some limitations of the new axis were present, with the Indian delegation keeping their distance from Pakistani representatives and leaving the summit before the "Victory Day" event, which will mark 80 years since the defeat of Imperial Japan in WWII. The military parade aims to project China's growing global influence, with North Korea's Kim Jong Un and Iran's Masoud Pezeshkian also in attendance.

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