Sky News economic analyst and editor Ed Conway warns that the Western world is drastically underestimating how significant the Eurasian alliance Shanghai Cooperation Organisation (SCO) is becoming.
According to Conway, the Ukraine war and Western sanctions against Russia have accelerated a historic power shift where China, Russia and India are now forming an increasingly strong counterweight to the G7 countries.
While G7 countries’ exports to Russia have collapsed to almost zero, China’s exports have instead increased dramatically. India has gone from barely importing Russian oil to relying on the country for the majority of its crude oil imports. British analyst Ed Conway argues that the consequences of the Ukraine war extend far beyond Europe’s borders.
“The vast majority of policymakers in Westminster, let alone elsewhere around the UK, have never heard of the Shanghai Cooperation Organisation”, Conway writes in his analysis from the summit in Tianjin, China this week.
He believes this grouping of ten Eurasian states – led by China, Russia and India – deserves significantly more attention in Europe.
The analyst identifies February 2022 as a watershed moment. Before the war, G7 countries exported roughly as much to Russia as China did, and Europe was then the largest importer of Russian oil. Today, the figures show a completely different reality. While Western sanctions have decimated G7 trade with Russia, China’s exports have instead exploded.
“Exports of Chinese transportation equipment are up nearly 500%”, Conway notes.
A future without the US?
In parallel, India has undergone a dramatic change in its energy purchases. The country has gone from importing “next to no Russian oil to relying on the country for the majority of its crude imports”.
This development has led the US to consider drastic measures. Conway points to how Washington has threatened to impose “secondary tariffs” against India, which would double the tariff level on Indian goods to 50 percent – “one of the highest levels in the world”.
“The upshot of Ukraine, in other words, isn’t just misery and war in Europe. It’s a sharp divergence in economic strategies around the world”, he states.
The analyst identifies a deeper structural change taking place. Asian nations have begun to “envisage something they had never quite imagined before: an economic future that doesn’t depend on the American financial infrastructure”.
Putin, Modi and Xi Jinping during the SCO summit this week. Photo: Kremlin/CC BY 4.0
“Once sworn rivals”
Conway explains that Asian countries have traditionally been the largest buyers of US government bonds, partly to secure dollars for oil purchases. But since the war in Ukraine escalated, Russia has begun selling oil without pricing it in dollars, while many Asian nations have reduced their purchases of US government bonds.
“Part of the explanation for the recent rise in US and UK government bond yields is that there is simply less demand for them from foreign investors than there used to be”, he notes.
A particularly concerning trend for Western leaders is the growing economic weight of SCO countries, and Conway points out that when adjusted for purchasing power, these nations’ share of global GDP is now approaching the combined share of advanced economies.
But perhaps the most surprising development is the rapprochement between China and India, which for long periods have had a very strained, and at times almost openly hostile relationship.
“Something that would have seemed completely implausible only a few years ago”, Conway writes, is that these “once sworn rivals” are now approaching economic reconciliation.
As India now faces harsh US tariffs, the country hardly sees any risk in approaching China through this rare journey to strengthen relations with Beijing, according to the analyst.
Had a fruitful meeting with President Xi Jinping in Tianjin on the sidelines of the SCO Summit. We reviewed the positive momentum in India-China relations since our last meeting in Kazan. We agreed on the importance of maintaining peace and tranquility in border areas and… pic.twitter.com/HBYS5lhe9d
Conway calls the development “a seismic moment in geopolitics” and concludes his analysis with a warning:
“For a long time, the world’s two most populous nations were at loggerheads. Now they are increasingly moving in lockstep with each other. That is a consequence few would have guessed at when Russia invaded Ukraine. Yet it could be of enormous importance for geopolitics in future decades”, he states.
The economic analyst’s conclusion is clear: the Ukraine war and sanctions against Russia have had an unexpected effect. Instead of isolating Russia, it has welded together Asia’s superpowers and accelerated the West’s economic decline.
The SCO was founded in 2001 and has ten member countries: China, Russia, India, Pakistan, Iran, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Belarus. The organization started as a security policy cooperation but now also encompasses economic and political issues.
The member countries represent over 40 percent of the world's population and when adjusted for purchasing power, SCO countries account for nearly half of global GDP. The organization's secretariat is located in Beijing and the chairmanship rotates between member countries.
G7 (Group of Seven)
The G7 consists of the USA, Japan, Germany, the United Kingdom, France, Italy and Canada. The group was formed in the 1970s as a forum for economic coordination between industrialized liberal democracies. The G7 countries account for approximately 30 percent of global GDP and have long played a central role in the international financial system.
The EU participates in G7 meetings as an observer. Since 2022, the G7 has coordinated economic sanctions against Russia following the war in Ukraine.
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Chinese President Xi Jinping launched a frontal attack against Western “hegemony and power politics” when he opened the Shanghai Cooperation Organization (SCO) summit in Tianjin, China.
Before 20 world leaders, he demanded a new world order free from Western dominance and called for a multipolar world with a more equal distribution of power.
At Monday’s opening speech before more than 20 world leaders, including Russia’s Vladimir Putin and India’s Narendra Modi, Xi Jinping urged member countries to continue resisting what he described as bullying behavior within the international system.
— The global situation remains volatile and turbulent. We must reject bullying, oppose external interference, and safeguard the legitimate development rights of all countries, Xi warned.
The Chinese leader invoked what he called the “Shanghai Spirit” – principles that according to Xi are based on mutual trust, mutual benefit, equality, consultation and respect for different civilizations. He also praised the progress SCO has made since its founding in 2001 and presented new priorities for the organization.
— We should advocate an equal and orderly multipolar world and a universally beneficial and inclusive economic globalization, and make the global governance system more just and equitable, the Chinese president continued.
At the #SCO Tianjin Summit, President Xi Jinping proposed the Global Governance Initiative (GGI), highlighting five principles:
adhering to sovereign equality
abiding by international rule of law
practicing multilateralism
advocating the people-centered approach
and… pic.twitter.com/frNLeexGPI
He emphasized that members must “oppose the Cold War mentality, bloc confrontation, and bullying practices” – terms that Beijing often uses to criticize US and Western policies.
— We uphold justice and fairness, and oppose hegemony and power politics. Constructive participation in international affairs must be based on respect, not domination, he continued.
Summit amid tariff crisis
Xi described all SCO members as “friends and partners” and called for forms of cooperation that benefit all parties while respecting national differences. He also called for strengthened cultural and social exchange between peoples, evidence-based decision-making within the organization and improved strategic communication.
— Joint cooperation makes it possible for all cultures to flourish in prosperity and harmony, he assured.
The statements come after China’s sharp condemnation of Trump’s recently imposed tariffs against several countries, including India.
Had an excellent meeting with President Putin on the sidelines of the SCO Summit in Tianjin. Discussed ways to deepen bilateral cooperation in all sectors, including trade, fertilisers, space, security and culture. We exchanged views on regional and global developments, including… pic.twitter.com/DhTyqOysbf
The US and China currently have a fragile ceasefire in the tariff conflict after Trump postponed the reintroduction of high tariffs against Beijing by 90 days. Last week, however, Trump threatened 200-percent tariffs if China restricts exports of rare earth magnets to the US.
Xi also emphasized the need for strengthened multilateralism and that the UN’s role as well as the global trade system must be preserved.
Growing economic influence
The SCO countries’ combined GDP approaches €27 trillion and the organization’s global influence is expanding at a corresponding pace, noted the Chinese leader who also established that members today work together to handle challenges within security, environmental issues and innovation.
China’s trade with the organization’s member states has exceeded €2.1 trillion, and Xi particularly highlighted projects within Beijing’s Belt and Road Initiative and how Chinese investments in member countries have already passed $84 billion.
During the summit, which gathered representatives from over 20 nations in Asia, Europe and the Middle East as well as from the UN and ASEAN, China presented several concrete proposals. They called for rapid creation of an SCO development bank and a new regional center for various types of security challenges. Additionally, Xi Jinping announced 100 small-scale livelihood projects to be implemented in member states.
Indian Prime Minister Narendra Modi met with Chinese President Xi Jinping in connection with the SCO summit in Tianjin, China. Photo: MEAphotogalleryCC BY-NC-ND 4.0
Xi also promised additional investments in education and training of scientific and technical skills to support future growth within the region.
— The organization has set a model for a new type of international relations, he said and promised to work to lift SCO to new heights.
The summit in Tianjin shows according to analysts how China is systematically building alternatives that can challenge Western institutions, and analysts point out that SCO’s growing economic weight gives Xi’s vision of a multipolar world increasingly greater impact.
The Shanghai Cooperation Organisation (SCO) is an economic and security alliance founded in 2001. The organization encompasses over 20 nations from Asia, Europe and the Middle East, including the major powers China, Russia and India. The combined GDP of SCO countries approaches $30 trillion, making the organization one of the world's largest economic blocs.
Originally, the SCO focused on security issues and counter-terrorism in Central Asia, but has expanded to include economic cooperation, trade and cultural exchange. China views the organization as a counterweight to Western alliances such as the G7 and NATO, and under Xi Jinping's leadership, the SCO has increasingly positioned itself as a platform for a "multipolar world order" free from Western dominance.
In just a few years, El Salvador defeated the brutal gang crime that had plagued the country for decades. President Nayib Bukele has been accused of being “undemocratic” by his globalist opponents, but among Salvadorans themselves he has achieved near-heroic status and is now spearheading a Bitcoin revolution.
El Salvador, literally “the Savior” or in other words “the land of the Savior”, formally became an independent country in 1842. The liberation of the Latin American country came after a civil war in the relatively newly formed country of the Central American Federation, which in 1823 had freed itself from the Mexican Empire, a Mexico that just two years earlier, in 1821, had proclaimed its independence from the Spanish crown.
The article was originally published in The Nordic Times on February 2, 2025.
Despite its name, the tiny nation would have to wait patiently for its salvation. El Salvador would come to be dominated by corrupt forces and has been known more than any other in modern times as part of Central America’s so-called “banana republics”, not only because of the presence of US-based corporate giants where the country went so far as to adopt the US dollar as its own currency, but also because El Salvador has long been known as a particular den of brutal and literally devil-worshipping criminal gangs, such as MS-13 and Barrio 18, which still have a strong presence even in the organized crime world.
Before that, the country was mainly associated with the protracted civil war that raged there for 13 long years between 1979 and 1992 in one of the many Cold War proxy conflicts between pro-American and pro-Soviet forces in the country.
Two years after theoutbreak ofthe Salvadoran civil war, Nayib Bukele was born in 1981 in the capital, San Salvador. His father, Armando Bukele Kattán, was a prominent Palestinian businessman and Muslim leader who arranged for his first-born son to study law at the Central American University in El Salvador. Nayib never completed his degree, however, and instead went into business. According to him, this experience would allow him to develop two skills that he later described as crucial to his political career – communicating and leading with clarity.
Bukeles’ political career began in earnest in 2012 when he was elected mayor of Nuevo Cuscatlán, a small municipality outside the capital San Salvador. His successes there – including economic reforms and social programs – led him to become mayor of the capital San Salvador in 2015. During this time, he distinguished himself as a simultaneously pragmatic, outspoken and visionary leader.
Despite the enormous risks involved in challenging the political establishment, which was completely infested by the tentacles of gang crime, Bukele came to increasingly openly criticize them for destroying the country and for betraying their voters.
Bukele meets the people.
In 2017, Bukele was expelled from his then-party, the FMLN, following internal conflicts, and founded his own party, Nuevas Ideas, which would become the platform for his daring campaign to run for president on a message of renewal and modernization. Despite difficult obstacles put in his way by political opponents, Bukele eventually won the 2019 elections by a historic margin, becoming the first president since 1992 not to belong to the two dominant parties, the socialist-oriented FMLN or the more bourgeois-conservative ARENA.
“They can kill anybody”
However, the difficulties were not over despite the electoral victory of the Salvadoran president, with his opponents sparing no means to stop him. They still controlled the Supreme Court and 90% of the legislature.
– I had to veto everything, and they override my vetoes. And they enact, they approved over 70 laws that I veto, Bukele explains in an interview with American journalist Tucker Carlson.
The only solution Bukele saw was to also win a majority in the country’s Congress, which he would also succeed in doing. Today, only the electoral court, controlled by the liberal opposition, tried unsuccessfully to have the president impeached and jailed, which Bukele himself believes failed only because of the establishment’s fear of a large-scale popular revolt if he were to be removed from office.
Bukele tells Carlson that his first priority was to fulfill his election promise to tackle organized crime once and for all.
– You can’t do anything unless you have peace. And once you achieve peace, then you can struggle for the other things, like infrastructure, wealth, well being, quality of life. So we had to start with peace. And in the case of El Salvador, we were literally the murder capital of the world, says Bukele.
Bukele salutes the Salvadoran army.
One of the first things he did was to double the number of soldiers in the country’s army, equip them with modern equipment and then systematically deploy them to fight organized crime with a determination that had previously been lacking. The gangs, understandably, did not appreciate this and tried to fight back – including a murder wave that killed 87 people in the small country in just three days.
– They can kill anybody. And if the state goes after them, the state has no intention of killing or harming anybody but the gang members. So you have 70,000 objectives, which were the 70,000 gang members, but they have 6 million possible targets (the population of the country). So it was almost an impossible task, said the president.
El Salvador’s new high-security prison CECOT, Centro de Confinamiento del Terrorismo – or “terrorist prison” in English, houses the most serious gang members with a capacity for 40,000 prisoners. Life in the prison is extremely strict, with the only leisure time consisting of simple exercise and services by priests.
Even independent analysts point out that El Salvador is a very different country today than it was when Mr. Bukeles took office and that, according to the country’s official statistics, it has become the least crime-ridden of the American continents, including Canada and the United States.
– We’re safer than any other country in the western hemisphere. If I would have said that five years ago, they would say that I was crazy, right?
Mr. Bukele himself stresses that his government has not had access to any magic recipes, but that it has been able to solve the problem of gang crime because it had the political will and determination to actually do it.
– There’s always going to be crime, people breaking laws, but violent crime, people murdering and raping each other, is a voluntary decision that a government makes. Why would a government choose to have that? he asks.
Massive popular support
Politically, Bukeles’ El Salvador has also broken the mold on covid policy, with the government choosing to encourage healthy eating and exercise, rather than forcing the controversial covid vaccines on the population with covid passes. It was also one of the few countries to offer the drug hydroxychloroquine as an alternative treatment for COVID-19, something that Bukele pointed out was used by most world leaders themselves.
The focus of Bukele’s policies has been to push for economic reforms and, as part of this, he has made El Salvador the first country in the world to accept Bitcoin as legal tender – meaning that it will be accepted as valid payment for all forms of debt and transactions. Enthusiasts of the new crypto-economy are now gathering in El Salvador, which many believe could become a new “tiger economy” in the Americas.
In the Western media, Bukele has been portrayed as something of a “dictator” who has rejected “human rights” in the context of mass arrests of suspected gang members and periods of prolonged military surveillance of specific areas of the country. Both domestic and international critics have accused the president of trying to centralize power, create a police state and undermine so-called democratic institutions and principles.
When he was re-elected in 2024 in a spectacular landslide with 84.6% of the vote, he responded to these criticisms in his much-publicized acceptance speech to the population by putting their rights before those of organized criminals.
– We are the safest country in the American continent. And what did they tell us? “You’re violating human rights”. Whose human rights? The rights of honest people? No. Perhaps we have prioritized the rights of the honest people over the criminals’ rights. That is all we have done, and that’s what you say is a human rights violation, Bukele declared.
Bukele with his wife Gabriela Roberta Rodríguez de Bukele. Photo: Casa Presidencial El Salvador
In an ironic response to similar epithets directed at him, he has referred to himself on Twitter/X as the “World’s coolest dictator”. The President has also become known for his extensive use of social media, particularly X, which he uses to communicate directly with the people, and sometimes to consult with the public on his decision-making.
This digital presence has made him very popular also among younger generations, who often see him as a modern leader of a very different type than the political establishment that ruled the country in the past.
The warning to the West
Bukele expresses personal criticism of the soft approach to criminals in the West, of which he considers El Salvador to be a part, pointing out that they are often seen as individuals with rights that need to be protected – even if they are violent killers and organized gang members. This attitude, according to Bukele, ultimately leads to a point where civilization itself begins to crumble.
– So western civilization reached the peak. We can all agree that we’re in the decline. So that is happening because we’re not maintaining, we’re not giving the correct maintenance to the civilization, he says, explaining that we are no longer striving to do things as well and grandly as possible.
– Democracy works, but if you don’t maintain it, it will fall like the wall.So what we have right now is a huge erosion of Western civilization, Bukele concludes.
He points out that governments today seem mostly interested in appeasing individual constituencies to get their votes – for example, by giving them large sums of money or other generous promises, and that they no longer seem to care about what is good for the nation as a whole.
– You cannot go on. I mean, it’s like obvious. It’s like somebody eats too much, right? I mean, you can be a little fat, right? It’s fine. But then if somebody’s morbidly fat, somebody will come and say, okay, you mean you have to stop, right? Because, you know, your heart would. Your heart can’t take it anymore.
US taxpayers should know that their government is using their money to fund communist movements against a democratic elected (and with a 90% approval rating) government in El Salvador.
One focus for the outspoken president, now that the gangs have been defeated, is to attract investors and tourists to the country – rather than being a haven for murderers and violent criminals. “There is enough money when no one steals“ is one of many similar quotes that sum up Bukele’s vision for the country’s future and have made him so popular with his own people.
Bukele often posts pictures showing how the country’s military and police fight organized crime. Photo: Nayib Bukele/FB
Many also argue that the success is an expression of the rise of a new generation of national populist leaders in a near-global revolt against the globalist “rainbow empire” characterized by gender ideology, demographic upheaval, coddling of violent criminals, and a huge gap between the political establishment and the population at large.
The Salvadoran president has also not been shy about explicitly criticizing influential globalists such as George Soros and others who he says have pushed for these kinds of developments in the West, and still have too much power over politics in many countries.
In his victory speech to the people in 2024, Bukele also articulated the importance for small nations to be alert to the actors of global politics, with El Salvador being just one example of many nations that have suffered in the wake of various factions of globalist-oriented actors and great powers.
– The civil war in El Salvador, which officially left over 85,000 Salvadorans dead, and displaced over 1 million people, was sponsored by two separate powers. There was a conflict between the West and the Soviet Union, and they wanted to fight, but not on their own soil. They didn’t want to provide the cannon fodder. So they decided to fight in other places around the world, and one of those places that they chose to fight was here in El Salvador. They tricked us. They told us to kill each other and we did as they said.
Bukele concluded by adding his view that there are now powerful players on the global stage who fear the example El Salvador has already shown.
– We will continue to do the impossible, and El Salvador will continue to set an example for the world.
Chinese President Xi Jinping has called for stronger cooperation with India, describing the relationship as a “Dragon-Elephant tango”.
The statement was made on the occasion of the 75th anniversary of the countries’ diplomatic ties – which is seen as a possible turning point after years of tension.
As two of the world’s oldest continuous civilizations, China and India share a long history as neighbours and, as the world’s two most populous countries, are today key players in the BRICS cooperation. However, relations have been marked by tensions. In 2020, a clash in the Galwan Valley along the disputed border in the Himalayas led to the death of soldiers from both sides.
However, after extensive negotiations, last October China and India announced an agreement to defuse tensions in the conflict areas and to work towards normalizing relations. At the same time, Xi signaled his ambition to put past conflicts behind him.
– The development of China-India relations demonstrates that it is the right choice for China and India to be partners of mutual achievement and realize the ‘Dragon-Elephant Tango’, which fully serves the fundamental interests of both countries and their peoples, Xi Jinping said in his statement.
A clear rapprochement is now also expected to be driven by Trump’s new tariffs, with India opening up to increased trade inflows with China as a countermeasure.
– We are willing to work with the Indian side to strengthen practical cooperation in trade and other areas, and to import more Indian products that are well-suited to the Chinese market. We also welcome more Indian enterprises to cross the Himalayas and seek opportunities for cooperation in China, China’s ambassador to India, Xu Feihong, told the Global Times.
Great pleasure to join Foreign Secretary @VikramMisri and friends from all walks of life to commemorate the 75th anniversary of the establishment of #China-India diplomatic relations.
I firmly believe that under the strategic guidance of two leaders and with the joint efforts of… pic.twitter.com/mLaBUKqiim
Indian President Droupadi Murmu also underlines his view that a “stable, predictable and friendly” bilateral relationship between the two nations would benefit both countries and the world.
In an analysis published on RT, Ivan Zuenko, senior research director at MGIMO University, argues that the two superpowers actually have great respect for each other's integrity and independence.
In some Washington circles, Moscow is seen as a potential “junior partner” that can be drawn away from Beijing’s influence. Western discourse has long painted Russia as a junior partner – even a vassal state – in relation to China.
In recent decades, ties between the two powers have strengthened markedly, especially after Western countries, seeking to isolate Russia during the Ukraine conflict, cut off economic and cultural contacts. As a result, Beijing’s role as both an economic and political ally of Moscow has increased. While differences in population size and economic capacity may seem crucial, the complex dynamics between the countries cannot be reduced to mere statistics. Russia has significant military and strategic advantages, making a subordinate position difficult to imagine.
The American view
According to US officials, including Secretary of State Marco Rubio, Russia has become increasingly dependent on China – a dependence that they say risks undermining Moscow’s strategic autonomy. Some in the US interpret this as a sign that a future coalition between Moscow and Beijing could threaten Washington’s interests. Comparisons are drawn with the Nixon-era attempts to exploit the geopolitical situation in the 1970s, when a US initiative helped to open China to the West and thus strengthen the US position against the Soviet Union.
However, the historical parallel is flawed: in the 1970s, China and the Soviet Union were already in a sharp confrontation, and the current situation is characterized by the fact that neither Russia nor China is interested in distancing themselves from the United States. Instead, through its dual containment strategy, the US sees both China and Russia as potential threats – a view that many argue is more a result of US elite discourse than an objective assessment of reality.
China’s perspective
China wants to avoid a bipolar world confrontation and sees the United States’ intense efforts to contain it as a legacy of an outdated “Cold War mentality”. For Beijing, the national agenda is primarily about socio-economic development, where foreign policy is seen as a tool rather than an end in itself. In this context, Russia is not seen as a submissive partner, but as a strategic player with significant military and geopolitical resources.
By leveraging Russia’s energy and transit capabilities, China can secure key raw materials while maintaining good relations with other global players, including the United States and Western countries. Too close a relationship with Moscow would risk jeopardizing these relations, which China is prepared to avoid. Beijing’s strategy is therefore characterized by maintaining a balanced relationship with Russia – a cooperation based on mutual benefit rather than hierarchical subordination.
Conclusion
Reducing the Russia-China relationship to a simple narrative of Western dependence and subservience misses the complex reality. Both Moscow and Beijing cherish their strategic autonomy and prefer pragmatic cooperation to a relationship characterized by hierarchy. The US fear of Russia falling under China’s influence rather reflects its own desire to redefine the global balance of power.
If the US could let go of its need to act as the world’s moral compass, and instead focus on raising the living standards of its citizens, a more nuanced understanding of international relations could emerge – one in which major powers cooperate on equal terms without imposing roles of subordination or superiority on each other.
A longer analysis article by Zuenko has been published on RT.
