China Joins SCO as Full Member... Expectations for Expansion of Influence

Research on Separate Single Settlement Currency Among SCO Members to Counter US Dollar
State Media Claims SCO Is a Different Cooperative Organization from NATO

[Asia Economy Beijing=Special Correspondent Jo Young-shin] China's state-run Global Times reported that a formal memorandum of obligation signing ceremony for Iran's full membership will be held at the Shanghai Cooperation Organization (SCO) summit scheduled to take place in Samarkand, Uzbekistan, from September 15 to 16. It added that after the signing ceremony, Iran will obtain full membership status in the SCO as of April 2023.

[Image source=Yonhap News]

The Global Times attributed significance to the fact that Iran, which has long been subject to U.S. sanctions, will formally join the SCO, which accounts for 40% of the world's population and 28% of the global gross domestic product (GDP), providing Iran with an opportunity to overcome geopolitical and economic difficulties.

In addition to the SCO, Iran has also submitted an application to join BRICS (Brazil, Russia, India, China, South Africa).

The SCO was originally created as a dialogue channel to resolve border issues. After the dissolution of the Soviet Union, in 1996, under the leadership of President Jiang Zemin, China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan formed an organization called the "Shanghai Five." Later, Uzbekistan (in 2001), India (in 2015), and Pakistan (in 2015) joined. With Iran's accession, the number of member countries will increase to nine. It is also reported that Belarus, a pro-Russian country, has submitted a formal membership application.

Originally organized to address border issues, the SCO currently has a character opposing the North Atlantic Treaty Organization (NATO). In this context, Iran's formal membership poses a considerable burden to the U.S. and other Western camps. Moreover, countries such as Afghanistan, Azerbaijan, Armenia, Nepal, and Syria, which maintain distance from the U.S., are seeking to join, increasing the likelihood of further expansion of the SCO's influence.

The Global Times reported that Iran stated that the U.S. dollar is being weaponized and proposed the creation of a new single currency for trade transactions among SCO member countries when applying for SCO membership.

Zhao Huilong, a researcher at the Chinese Academy of Social Sciences, explained, "Financial cooperation is an important area of SCO collaboration," adding, "Research may proceed on expanding local currency settlements and currency swap scales, as well as establishing an independent payment system."

The Global Times, citing experts, noted that emerging economies and developing countries suffering from U.S. hegemony and unilateralism are showing great interest in the SCO, creating an atmosphere anticipating the expansion of SCO influence. At the same time, it emphasized that the SCO is entirely different in nature from NATO and the Quad.

The media outlet claimed that all SCO and BRICS member countries are cooperative organizations that do not target specific forces such as military alliances, and argued that Western claims labeling the SCO and BRICS as anti-Western alliances are baseless conjectures.

This content was produced with the assistance of AI translation services.