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How China is Quietly Reshaping the Global Order While the US Falters

The Shanghai Cooperation Organization is expanding its geopolitical footprint across Eurasia, drawing nearly half the world's population into a security and economic bloc that explicitly positions itself against Western-led institutions, according to a report by Alexander Görlach published…

How China is Quietly Reshaping the Global Order While the US Falters

The Shanghai Cooperation Organization is expanding its geopolitical footprint across Eurasia, drawing nearly half the world’s population into a security and economic bloc that explicitly positions itself against Western-led institutions, according to a report by Alexander Görlach published on September 2, 2026. Founded originally in June 2001 to manage regional border stability and combat separatism following the Soviet collapse, the bloc has evolved under Chinese leadership into a primary vehicle for Beijing’s foreign policy goals.

The Expansion of the Shanghai Cooperation Organization

Originally established by China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan, the Shanghai Cooperation Organization has steadily broadened its membership. India and Pakistan joined the bloc in 2015, followed by Iran in 2023 and Belarus in 2024. The organization also maintains 15 partner states, including Saudi Arabia, Turkey, Qatar, and the United Arab Emirates. Together, these member and partner nations represent roughly 47 percent of the global population and account for approximately 27 percent of the nominal global gross domestic product, according to data cited in the reporting.

According to the analysis by Alexander Görlach, none of the in the SCO represented countries qualify as a full democracy under the index published by The Economist, with most functioning as authoritarian or hybrid regimes. Chinese President Xi Jinping utilizes the framework to project influence, holding leadership summits such as the gathering in Bishkek, Kyrgyzstan, while Western democracies experience friction and division, notably among G20 finance ministers meeting in Asheville, North Carolina.

Western Divisions Contrast with Bloc Cohesion

While the Shanghai Cooperation Organization projects an image of coordinated non-democratic governance, Western nations face internal disputes over trade policies and international conflicts. According to the September 2026 report, European officials have criticized the inclusion of the Russian finance minister at G20 discussions amid the ongoing war in Ukraine, while U.S. trade policies have strained relations with traditional partners like Canada. This diplomatic friction has accelerated the shift of regional powers toward Beijing’s orbit, as nations seek economic integration and security alternatives.

At the same time, the bloc exhibits clear internal limitations regarding transparency and state control. While independent media coverage emerged following a disaster in Nepal, state-controlled information channels in neighboring China tightly manage reporting on domestic crises to maintain strict political stability. Furthermore, economic dependencies within the bloc allow Beijing to exert significant leverage over partner nations, reducing regional players like Russia to junior partners in trade and security matters.

China's Strategy to Reshape the Global Order
About the author: Marcus Liu - Business Editor

MBA and ex‑B bureau chief specializing in global finance and fintech. Marcus speaks Mandarin, Japanese, and English, and has interviewed CEOs from the Fortune 50 to Y‑Combinator unicorns. Marcus Liu delivers sharp analysis on markets, startups, and corporate strategy for investors and entrepreneurs alike.