In face of China’s rapid development, the Shanghai Cooperation Organization (SCO) shall further strengthen inter-member economic and trade cooperation by way of linking up with the Belt and Road, says a report released by renowned Chinese financial think tank - Chongyang Institute for Financial Studies at Renmin University of China (RDCY) Wednesday.
The report, named “‘Belt and Road’ and Shanghai Cooperation Organization: Relevance, Practice and Trend”, provides detailed analysis over SCO members co-building the “Belt and Road” and cooperation between SCO and the Belt and Road countries and regions in security, economy and trade.
Standing in the new era of the world, SCO is coming to a new historical location with Belt and Road linking the Eurasian continents given its tremendous relevance with the Belt and Road, said Liu Wei, head of Renmin University of China during the report release.
The report shows that the SCO members are in need of realizing the basic goals established in the memorandum of understanding (MOU) singed in 2001, according to which, SCO members promise to undertake economic cooperation, from facilitating trade and investment, reducing costs and eliminating obstacles and strive to gradually realize free flow of goods, services and technology by 2020.
To achieve the goals has close relation with Belt and Road construction, the report noted.
The report proposes four suggestions for the SCO members.
First of all, the SCO shall enhance the role of SCO interbank consortium and continue to push for establishing of the SCO development bank and special account, and make it effectively coordinate with the Silk Road Fund and other financial institutions.
Secondly, SCO members shall strengthen cooperation in open financing, give a full play to the respective advantage of each and boost regional economic development and integration, by setting up financial institutions in other’s country, aligning financial services, connecting capital market and financial facilities, functioning international financial centers, and launching exchanges and cooperation between financial regulators.
Thirdly, SCO members shall increase the use of Chinese currency in the cross-border trade and investment. It is one of the important goals for the regional economic cooperation of SCO.
Finally, the SCO member nations shall cooperate and found a perfect financial supervision mechanism.
The Belt and Road construction has produced great fruits in investment and trade facilitation, trade innovation and co-building of free trade zones based, which provides valuable experience for the SCO, the report added.
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