Over the past 12 years, since the establishment of the Shanghai Cooperation Organization in 2001, SCO member states have made every effort to maintain steady development in economic and trade ties, and to expand areas of cooperation. Pragmatic cooperation among the member states has reached a new level, characterized by the following features.

First, trade exchanges among member states have seen steady development and have become a new driving force boosting growth in the foreign trade of member states. In the context of a world economic slowdown and shrinking international markets, trade volumes between China and Russia, and between China and other SCO member states, have increased by 9.1 percent to 123.7 billion U.S. dollars and by 5.5 percent to 116.2 billion U.S. dollars respectively.

Second, based on the program on mutual trade and economic cooperation of the SCO member states signed in 2003, trade and economic cooperation have been significantly expanded. By the end of 2012, Chinese direct investment in the other SCO member states had reached 8.7 billion U.S. dollars, and more than 20 billion U.S. dollars had been provided in preferential export credit. As well as direct investment and medium and long-term loans, equity and external assistance are also growing in popularity.

Third, cooperation in financial sectors has been strengthened steadily, playing an important role in promoting economic and trade cooperation. For example, China has signed a currency settlement agreement with Russia, Kyrgyzstan and Kazakhstan, and China Construction Bank has opened a branch in Moscow to handle RMB business. In order to further strengthen financial cooperation and provide financial support for large projects, an SCO development fund and an SCO development bank will be set up.

Fourth, the economic zone has become a new form of economic cooperation, following the creation of the first such park by China and Russia. In December 2011, China and Kazakhstan established the Horgos international border cooperation center - the first cross-border cooperation center within the SCO; in March 2013, the China-Uzbekistan economic zone was established in Uzbekistan. More agricultural cooperation demonstration zones will be built in countries including Kyrgyzstan and Tajikistan.


Over the past ten years, there has been close cooperation between the SCO member states in trade or investment. If they can further deepen cooperation, it will provide a broader space for the development of their economies. This is not only in line with the historical trend, but also in line with economic interests of each country.

Therefore, the SCO member states should push the process of trade and investment liberalization and facilitation, and reduce and eventually eliminate tariffs and non-tariff barriers to create a more open and liberal trade and investment environment.

At the same time, the SCO member states should speed up the interconnection of communication and transport, and sign agreements on encouraging and protecting investment to provide legal basis for cooperation and create conditions for building the "Silk Road economic zone".

In a word, the SCO member states should join together to face challenges and make trade and economy cooperation an effective way to boost growth and benefit peoples.

Edited and translated by Liang Jun