September's first week belonged to China as regional powers gathered for the SCO Summit on 1 September and two days later, Beijing staged its largest military parade to mark the 80th anniversary of WWII's end.

Composed of China, Russia, India, Pakistan, Iran, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan, the SCO is standing as the world’s largest regional organisation counting 42% of the global population.

Source: Visual Capitalist

During this summit, Chinese president Xi Jinping, called for “true multilateralism” consisting of a people-centred approach with concrete actions. In the continuity of these values, Beijing announced an ambitious financial commitment, pledging 2 billion yuan (US$280 million) in grants to SCO members over the course of this year, as well as an additional 10 billion yuan (US$1.4 billion) in loans distributed over the next three years. In parallel, a new decade-long strategy was introduced, accompanied by 24 agreements spanning security, economic cooperation in energy and the green industry as well as cultural exchange.

However, on the sidelines of the SCO summit and the Beijing military parade, XI met separately with Russian President Putin, Indian President Modi, and North-Korean Leader Kim for bilateral discussions.

In early September, Putin and Xi concluded deals of high strategic significance in response of the ongoing US and EU sanctions towards Russia due to their military conflict with Ukraine. This engagement consisted of a memorandum for the construction of the long-delayed Power of Siberia 2 gas pipeline, a big milestone for the two nation’s energy partnership. Thanks to this key energy partnership, China is securing the delivery of 50 billion cubic meters annually for 30 years and significantly expanding its existing energy routes. Furthermore, the two countries signed over 20 bilateral agreements covering AI, space exploration and lunar regolith monitoring projects, agriculture, along with the introduction of a visa-free travel regime for Russian citizens starting 15 September 2025.

While the Unted States’ sanctions and tariffs acted as a catalyst for Asia’s realignment and strengthening of regional alliances, the White House’s reaction was not long in the coming.

Starting with the Russian crude oil deal with India, President Trump announced an additional 25% tariff on Indian goods, doubling the total export tariff to 50%. The move was widely seen as an attempt to pressure New Delhi over its partnership with Moscow and signal growing friction between the US and India. The Trump administration floated the idea of raising tariffs to a staggering 500% on goods from countries importing Russian crude oil. However, the effectiveness of these measures and threats remain questionable as, instead of the attempted isolation of Russia, these tend to further distance Asia from the west, encouraging them to trade with one another and deepening their regional ties.

The proposed 500% tariffs could be implemented sooner than expected. The US, backed by more than 80 co-sponsors, is ready to move forward with the plan, alongside an additional ban on American investment in Russia’s energy sector. As of 8 September, the European Union has also entered discussions with Washington over new joint sanctions targeting Russian banks and oil trade. These talks follow Moscow’s 7 September airstrike on Ukraine, the largest since the start of the war, which has further eroded Western hopes for meaningful negotiations between Kyiv and Moscow.

President Trump’s latest move was to revoke Taiwan Semiconductor Manufacturing Company’s (TSMC) “Validated End-User” status, which had allowed shipments from its Nanjing facility without individual export licenses. This effectively curbs China’s access to advanced semiconductor technologies. In parallel, the US Commerce Department is preparing to impose strict new restrictions on Chinese exports of drones and medium-to-heavy vehicles.