Oriented on making people closer

In light of global economic instability and sanctions, industrial cooperation within the Shanghai Cooperation Organisation (SCO) is gaining particular importance. By uniting countries with immense human potential and natural resources, the SCO aims to create sustainable production chains, strengthen technological independence, and reduce reliance on external markets. This is especially critical amid disruptions to global supply chains and intensifying competition for technology and resources.

Statistical Indicators and Industrial Potential

As of 2025, SCO member states collectively account for approximately 47% of the world's population (3.6 billion people), with over 60% of that population being of working age. This represents a powerful resource for industrial development. In 2024, the combined GDP of SCO countries reached 30% of the world's total, and foreign trade turnover has grown more than 100-fold since 2001. Exports accounted for about 20% of global exports, with China ($3.5 trillion), India ($442 billion), and Russia ($386 billion) as the leading contributors. Investments in joint industrial projects have exceeded $120 billion, which has helped introduce innovations, localize production, and develop regional value-added chains.

Key Industrial Drivers of SCO Countries:

• China is a global leader in electronics, mechanical engineering, and chemical production, with its industry making up over 28% of the world's total.

• Russia, with its vast resources, plays a significant role in global metallurgy, the oil and gas sector, and the defense industry, providing about 12% of the world's natural resource exports.

• India is showing considerable growth in pharmaceuticals, information technology, and the textile industry, increasing exports in these sectors by 15–20% annually.

• Iran, one of the largest oil and gas exporters, is actively developing its petrochemical industry, which accounts for approximately 15% of its GDP.

• Belarus is known for its mechanical engineering complex and the production of tractors, trucks, and agricultural machinery, with annual exports totaling around $3.5 billion.

• Central Asian countries (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan) are actively developing their mining and processing industries. Kazakhstan is a major exporter of uranium and copper, while Turkmenistan is a key gas exporter.

Initiatives and Successful Projects

Since 2022, SCO countries have been actively promoting industrial cooperation initiatives, embedding them in their final documents.

• Samarkand Summit (2022): The Program for Stimulating Industrial Cooperation was adopted.

• Bishkek Summit (2023): An initiative to create joint platforms for exchanging technologies and best practices was approved, and the importance of developing cross-border industrial complexes was emphasized.

• Astana Summit (2024): The idea of establishing a joint investment fund to finance industrial projects, especially in mechanical engineering, electronics, and chemicals, was supported.

Examples of Joint Projects:

• Russian-Chinese cooperation: In the energy sector, this includes the construction of the Amur Gas Processing Plant. In technology, joint technology parks like the “Changchun Sino-Russian Science and Technology Park” and the “China–Russia Innovation Park” have been established. In pharmaceuticals, a joint International Institute of Biomedicine and Pharmacy was created in Guangzhou.

• Russian-Indian cooperation: The joint production of the Sputnik V vaccine has been one of the largest biotechnology projects.

• Chinese-Belarusian project: The "Great Stone" Industrial Park is one of the most successful examples of cooperation, with China having invested nearly $1.3 billion.

• Investments in Central Asia: China is investing in industrial zones and logistics hubs, such as the "Khorgos Eastern Gate" industrial park in Kazakhstan and the "Jizzakh" park in Uzbekistan, where the BYD Uzbekistan plant was built. Russia is diversifying its cooperation by investing in the agricultural and automotive sectors, while India is advancing pharmaceutical cooperation, opening IT centers, and providing educational scholarships.

Challenges and Prospects

Despite these successes, industrial cooperation within the SCO faces several challenges:

For continued effective development, a systemic approach is needed, which includes harmonizing standards, developing financial instruments, and deepening logistical integration. The countries of Central Asia, with their significant resources and developing infrastructure, could become a key industrial hub for the organization.

The upcoming SCO Heads of State meeting in Tianjin in early September 2025, as noted by Shavkat Alimbekov, a leading researcher at the International Institute of Central Asia, should set further priorities and define concrete mechanisms for strengthening industrial cooperation and developing an innovative economy in Eurasia.

ORIENT

Photo: e-cis.info