In this article, the writer emphasizes the growing significance of the Shanghai Cooperation Organisation (SCO) due to the global shifts triggered by the ongoing conflict in Ukraine. Initially, the economic interactions between countries heavily leaned towards Western businesses and financial systems. However, with the sanctions imposed in response to Russia’s invasion of Ukraine, the global economic landscape has been redefined.
China and India have become central figures in these changes. China’s exports to Russia have surged despite trade disruptions, implying a significant pivot towards non-Western economic partnerships. India, which once imported minimal Russian oil, is now markedly reliant on Russia for its crude imports.
This economic realignment leans heavily on the SCO, a geopolitical organization comprising major Eurasian nations like China, Russia, and India. The SCO is witnessing a dramatic increase in its share of global economic output, nearing the levels of advanced economies adjusted for purchasing power parity.
Another striking development is the warming of relations between China and India, historically adversarial nations. Both face the prospect of increased tariffs from the United States, which may drive India towards further aligning with China economically. This shift is nothing short of tectonic in global geopolitics and could have profound implications for international economic and political landscapes in the coming decades.
In summary, the repercussions of the Ukraine conflict extend beyond Europe’s borders, influencing economic strategies worldwide and spotlighting the increasing significance of the Shanghai Cooperation Organisation in reshaping the global economic framework.
Source: https://news.sky.com/story/the-russia-ukraine-war-has-reshaped-global-trade-and-forged-new-alliances-13420401
