China Pledges $2 Billion and AI Support at SCO Summit

At the 2025 Shanghai Cooperation Organisation (SCO) Summit, China made a series of ambitious pledges to promote regional development, technological innovation, and educational collaboration. Announced by Chinese Ambassador to India Xu Feihong, these initiatives include a $2 billion grant, expanded scholarships, AI development programs, and livelihood projects for SCO member states.

Major Announcements from China

1. $2 Billion Grant and Loans

China committed to,

• Provide RMB 2 billion (approx. $274 million) in grants to SCO member countries by the end of 2025
• Issue RMB 10 billion (approx. $1.37 billion) in loans to SCO Interbank Consortium members over the next three years
• This move is aimed at stimulating economic growth and infrastructure development within the bloc.

2. 100 “Small and Beautiful” Projects

China will implement 100 local livelihood projects tailored to the specific needs of SCO countries. These will focus on,

• Health, sanitation, and community welfare
• Education and basic amenities
• Capacity building at the grassroots level

Educational and Human Resource Initiatives

3. Scholarships and PhD Programs

Starting 2026, China will,

• Double SCO-specific scholarships for students
• Launch the SCO Innovative PhD Programme to foster academic and scientific collaboration
• These initiatives aim to nurture high-caliber talent across SCO nations in science, technology, and public policy.

4. Luban Workshops and HR Training

In the next five years, China will establish,

• 10 Luban Workshops in SCO countries
• Offer 10,000 training opportunities in vocational and technical skills
• Luban Workshops are renowned for their focus on skills development in advanced manufacturing and technology.

Artificial Intelligence and Strategic Tech Cooperation

A major highlight of the Summit was the Tianjin Declaration, where SCO members including India, reaffirmed their commitment to,

• Develop AI technologies responsibly
• Promote security, transparency, inclusiveness, and fairness in AI
• Support the AI Development Cooperation Roadmap (Chengdu, June 2025)
• China showcased its AI capabilities by deploying a humanoid robot named Xiao, which assisted attendees and media, highlighting real-world applications of AI in events and administration.

President Xi Jinping, in his keynote, emphasized that AI, energy, digital economy, and innovation are central to the SCO’s future. He called for a shared vision of development and technological progress.

India’s Role at the Summit

India joined other members in endorsing AI cooperation and emphasized the need for,

• Ethical and people-centered AI development
• Collaboration in emerging technologies and digital infrastructure
• Equitable access to AI tools for all developing nations

India’s involvement reinforces its growing focus on strategic tech diplomacy in multilateral platforms.

Important Takeaways For Exams

• Host Country: China hosted the 2025 SCO Summit.
• Tianjin Declaration (adopted by all members, including India)
• Commitment to responsible AI development
• Emphasis on security, inclusiveness, fairness, and transparency