Beijing – China’s Ministry of Commerce announced that trade between China and member countries of the Shanghai Cooperation Organization (SCO) has reached an impressive $293.18 billion from January to July 2025, signaling a new chapter in regional economic cooperation.
According to Chinese media reports, the trade relationship between China and SCO nations has been growing at a record pace, setting new benchmarks in bilateral and multilateral engagement. Over the past five years, China’s trade volume with SCO countries has surpassed $300 billion, $400 billion, and $500 billion, with the figure reaching $512.4 billion in 2024.
The rapid expansion underscores China’s commitment to regional connectivity, infrastructure development, digital innovation, and sustainable growth within the SCO framework.
Background: The Shanghai Cooperation Organization and Its Economic Role
The Shanghai Cooperation Organization (SCO), established in 2001, is one of the world’s largest intergovernmental organizations in terms of geographic coverage and population. Its member states include China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, India, Pakistan, and Iran (which became a full member in 2023).
The SCO was originally founded to address security, political, and regional stability issues, but in recent years, its scope has expanded to include economic cooperation, trade, energy security, and digital transformation. With nearly half of the world’s population and enormous resource potential, the SCO is increasingly being described as a new engine of global growth.
For China, the SCO provides a crucial platform to advance its Belt and Road Initiative (BRI), deepen energy cooperation, expand digital trade, and promote green development projects across Eurasia.
China-SCO Trade Growth: Breaking Records Year After Year
The figures released by the Ministry of Commerce highlight a steady and robust growth trajectory in China-SCO trade:
- 2019: Trade surpassed $300 billion.
- 2020–2022: Trade volumes crossed the $400 billion threshold.
- 2024: A historic peak of $512.4 billion was recorded.
- 2025 (January–July): Trade already stands at $293.18 billion, with expectations to surpass 2024’s record by year-end.
This consistent growth reflects not only China’s manufacturing strength and import demand but also the expanding role of SCO economies in regional and global supply chains.
E-Commerce: Driving Cross-Border Trade
One of the standout features of the China-SCO trade relationship in recent years has been the explosive growth of e-commerce.
According to official data, China’s e-commerce imports from SCO member countries rose by 34% year-on-year in 2024. More high-quality specialty products from countries like Kazakhstan, Russia, Uzbekistan, and Pakistan are entering the Chinese market through digital trade platforms.
Products such as:
- Agricultural goods (wheat, fruits, nuts, and dairy from Central Asia and Russia)
- Handicrafts and textiles (from Pakistan, Uzbekistan, and India)
- Cosmetics and natural products (from Russia and Iran)
are increasingly finding a market in China. This digital integration is not only expanding trade volumes but also empowering small and medium enterprises (SMEs) in SCO countries to access China’s vast consumer base.
Investment Growth: Beyond Traditional Sectors
China’s trade engagement with SCO nations is not limited to goods and services. It is also marked by significant foreign direct investment (FDI).
As of July 2025, China’s direct investment in SCO member states across multiple industries has exceeded $40 billion.
Traditionally, Chinese investments focused on:
- Energy (oil and gas pipelines, refineries, and exploration projects)
- Minerals (copper, rare earth metals, coal, and uranium)
- Infrastructure (roads, railways, bridges, and power plants)
However, in recent years, China has strategically diversified into emerging industries such as:
- Digital economy (cloud computing, artificial intelligence, fintech collaborations)
- Green development (solar farms, wind energy projects, and clean water initiatives)
- Logistics and smart infrastructure (integrating digital technology into transport corridors)
This shift reflects China’s broader global development agenda and its commitment to building a more sustainable and technologically advanced Eurasian economic zone.
The Belt and Road Initiative and SCO Synergy
China’s Belt and Road Initiative (BRI) has been a cornerstone of SCO economic cooperation. Many SCO member countries are key nodes along the Silk Road Economic Belt, one of the two main components of the BRI.
Major projects include:
- The China-Kyrgyzstan-Uzbekistan Railway, enhancing connectivity in Central Asia.
- The China-Pakistan Economic Corridor (CPEC), linking China to the Arabian Sea through Gwadar Port.
- Energy pipelines from Russia and Central Asia, ensuring energy security for China while boosting revenues for exporting countries.
- Digital Silk Road initiatives, including 5G infrastructure and cross-border e-commerce platforms.
The SCO thus functions as both a political alliance and an economic integration mechanism, reinforcing China’s leadership role in Eurasian development.
Green Development and the Digital Economy: New Frontiers
China has emphasized two major priorities in its SCO engagement: green development and the digital economy.
- Green Development: China is investing in solar, wind, and hydro projects in Central Asia and South Asia. Joint efforts are being made to combat climate change, reduce carbon emissions, and protect natural ecosystems.
- Digital Economy: From blockchain-based trade finance to cross-border e-commerce hubs, China and SCO countries are building a digital infrastructure that will transform how businesses interact across borders.
These initiatives align with China’s global ambition to be a leader in green energy and digital innovation, positioning the SCO as a future-oriented economic bloc.
Geopolitical Implications of Expanding Trade
China’s growing trade dominance within the SCO also carries significant geopolitical weight.
- Counterbalance to Western Influence: As trade with SCO nations expands, China reduces its reliance on Western markets while offering SCO countries an alternative to US- and EU-dominated financial systems.
- Strengthening Eurasian Ties: Increased trade fosters greater political alignment among member states, particularly in strategic sectors like energy and digital technology.
- Russia-China Cooperation: Despite global tensions, Russia remains a key SCO partner for China, particularly in energy and military cooperation.
- India and Pakistan Factor: With both countries as SCO members, economic engagement may serve as a confidence-building measure, though political differences persist.
Challenges to SCO Economic Integration
Despite impressive progress, several challenges remain:
- Political tensions between certain SCO members (e.g., India and Pakistan) sometimes hinder deeper cooperation.
- Infrastructure gaps in Central Asia make trade logistics costly and slow.
- Currency risks and reliance on the US dollar in cross-border trade increase financial vulnerabilities.
- Global geopolitical uncertainty, including sanctions on Russia and Western restrictions on Chinese companies, could disrupt growth.
China and SCO nations are actively working to address these issues through currency swap agreements, infrastructure investment, and enhanced regional dialogue mechanisms.
Future Outlook: Toward $600 Billion Trade?
Given the pace of growth, experts predict that China-SCO trade could surpass $600 billion by 2026, making the SCO one of China’s most important economic partnerships.
The expansion of e-commerce, the integration of digital infrastructure, and the rise of green investment projects will likely be the main drivers of this growth. Moreover, as new members and observers strengthen ties with the SCO, the organization’s influence is expected to expand even further.
Conclusion: A Transforming Regional Economy
The announcement that China’s trade with SCO nations has reached $293.18 billion in just seven months of 2025 reflects more than economic statistics—it signifies a transformation in Eurasian cooperation.
From traditional energy and infrastructure projects to cutting-edge digital and green sectors, the partnership is evolving to meet the demands of the 21st-century economy.
For China, the SCO is not only a platform for economic growth but also a strategic tool to enhance regional stability, political influence, and global leadership. For SCO countries, the relationship provides investment, market access, and technological innovation.
As China and its SCO partners continue to deepen cooperation, the organization is poised to become a cornerstone of global economic integration, reshaping the balance of power across Eurasia and beyond.
