Editor's note: Liu Xu is the deputy director of the Institute for Russian, East European and Central Asian Studies, Renmin University of China. The article reflects the author's opinions and not necessarily the views of CGTN.

The Shanghai Cooperation Organization (SCO) is the first intergovernmental organization initiated by China. Since it was established 23 years ago, the SCO has become one of the most influential international organizations in the world. As of June 2024, SCO consisted of nine member states, three observer states and 14 dialogue partners. At the 24th Meeting of the Council of Heads of State, Belarus officially became the 10th member state. The SCO member states cover about three-fifths of the Eurasian continent, with a combined population of about a half of the world's total, making it the world's largest and most populous comprehensive regional cooperative organization.

Economic cooperation has always been an important element of SCO cooperation. Since the establishment of the SCO, the member states have been actively integrating into global trade cooperation, and although the trade value has fluctuated in some years due to the impact of the global economic situation, an overall trend of steady growth has been observed. 

"The Report on Trade Development over 20 Years since the Establishment of the Shanghai Cooperation Organisation (SCO)", released in 2022, shows that the total trade value of SCO member states increased from $667.09 billion in 2001 to $6.06 trillion in 2020, representing nearly a 10-fold increase over 20 years. SCO's share of total global trade value grew from 5.4 percent in 2001 to 17.5 percent in 2020, and the influence of SCO member states on global trade has continued to increase. 

Central Asia is the traditional geographical area of the SCO. China's cooperation with the five Central Asian countries has been deepening, and the trade volume has been growing rapidly. China is already the top trading partner and a major source of investment for the five Central Asian countries. Data shows that China's trade volume with the five Central Asian countries reached $89.4 billion in 2023, up 27 percent year on year, hitting another record high. 

Energy and infrastructure cooperation is the most important element of SCO economic and trade cooperation. Large-scale crude oil and natural gas pipeline networks have been established among member states, creating complementary advantages and win-win situations. China has also become one of the most important energy partners of SCO member states. Infrastructure construction, represented by railways, is also in full swing. The improvement of railway infrastructure has boosted the development of the China-Europe Rail Express (CERE). Since the first CERE train left the country through Alashankou terminal in 2011, the number of CERE passing through the ports has achieved 13 years of growth, reaching 21 countries and cities. As of April 2024, the Alashankou terminal had operated more than 36,000 train trips, along 118 routes, carrying more than 200 types of goods. More foreign commodities are also entering the Chinese market via the railway. On June 6, a signing ceremony of the intergovernmental agreement on the China-Kyrgyzstan-Uzbekistan railway project was held in Beijing. The China-Kyrgyzstan-Uzbekistan railway is a strategic project for China's connectivity with Central Asia, and the signing of the agreement marks the fast-tracking of SCO economic cooperation. In addition, member states' demands for cooperation in clean energy, energy conservation and environmental protection, technological innovation, digital innovation and other areas are on the rise. These areas are becoming new growth points for SCO countries' economic and trade cooperation.

However, SCO economic and trade cooperation still faces challenges. The first is geopolitical influence. Sanctions imposed by Western countries on some of the member countries hinder economic cooperation of the SCO. Some experts said that SCO economic and trade cooperation has lagged far behind security and political cooperation. The unfavorable geopolitical environment is an important reason for the situation. Secondly, there is an imbalance in economic development among member states. This leads to diversity and differences in demands for economic cooperation. Balancing the interests of different member states and coordinating the joint development of multilateral and bilateral cooperation are important issues for the future of SCO economic cooperation.