The Shanghai Cooperation Organization (SCO) Digital Economy Forum held in Tianjin, China, in July 2025 has marked the beginning of a new era in the Asian digital landscape. This four-day event brought together representatives from 38 countries, over 500 multinational technology companies, and as a member of the Nepalese delegation, I gained deep insights into the subject.
Key Events and Policy Decisions of the Forum
At the opening session of the Tianjin Forum, China’s Minister of Industry and Information Technology, Jin Zhuang, unveiled a detailed outline of the organization’s ambitious "Digital Silk Road" initiative. Under this project, a $14 billion investment over the next five years is planned to build foundational infrastructures such as artificial intelligence, 5G networks, and cloud computing across the Eurasian region. Following the inauguration, three major parallel activities defined the forum’s dynamism.
In the technology exhibition area, Kazakhstan’s “AI-based Agricultural System” attracted widespread attention. This system demonstrated the use of advanced sensors and drone technology to optimize water use and control diseases. India’s presentation of the blockchain-based health record system named “Medichain” also received an excellence award. This system’s ability to securely share patient data presents great potential for developing nations.
On the forum’s second day, the U.S. Department of State made a significant announcement restricting the supply of advanced AI chips from Nvidia to SCO member states. This decision created unexpected tension at the forum and exposed the reality of geopolitical interference in technology cooperation.
Strategic Cooperation in Confidential Meetings
During secret meetings at the forum, several important proposals for strategic cooperation surfaced. The Russian delegation proposed increased collaboration between India and China in the quantum communication sector. This opened new possibilities for strategic technological partnerships among the three countries. Concurrently, China proposed establishing a shared data storage solution for member states along with plans to implement a cybersecurity mechanism.
Another significant decision in security cooperation was the organization of a joint cybersecurity simulation exercise. The first phase of this exercise will be conducted in 2026 by a combined team from India, Pakistan, and China. This step has the potential to establish a new tradition of collective action against shared cyber threats.
Nepal’s Active Participation and Proposals
The Nepalese delegation presented three major proposals at the forum, putting the country’s digital ambitions on the international stage. The “Digital Himalaya” initiative aims to coordinate China’s cloud computing technology with India’s digital payment systems to promote e-commerce development in the Himalayan region. This is expected to significantly empower the economic status of Himalayan communities.
Nepal’s second proposal concerned establishing a regional cybersecurity training center in Kathmandu. This proposal supports creating a national cybersecurity laboratory with financial assistance from SCO member countries. The third important initiative was a digital skills development program intended to train Nepalese youth in technology according to international standards.
Nepal’s Digital Landscape: Current Status and Prospects
Nepal’s digital condition is well-positioned to benefit from SCO cooperation. Currently, about 41% of Nepal’s population uses digital payment systems. This provides easy opportunities to integrate with global systems such as China’s Alipay and India’s UPI. In e-governance, Nepal has made 28% of government services available online so far. There is much to learn in this area from Russia’s e-governance model.
However, Nepal remains weak in cybersecurity. Studies indicate that 52% of public and private institutions nationwide have inadequate cybersecurity arrangements. Kazakhstan’s developed cybersecurity protocols could be particularly useful for Nepal. Kazakhstan’s cybersecurity standards for the energy and financial sectors appear well-matched to Nepal’s needs.
Impact of India-Pakistan Tensions on Digital Cooperation
During the forum, tensions between India and Pakistan had a significant impact on digital cooperation proposals. When Pakistan proposed a shared cryptocurrency system, the Indian delegation rejected it as a “risk to cybersecurity.” This dispute highlighted how political differences within the organization can affect technology collaboration.
Similarly, China’s proposal for a shared data storage system was opposed by India. Indian delegates emphasized data sovereignty principles and called for stronger data localization policies. This poses a risk of increased data storage costs for small economies like Nepal.
Strategic Recommendations for Nepal
Based on the experience and observations from the SCO Digital Forum, several strategic suggestions for Nepal can be made. The most important is to develop a tri-dimensional technology cooperation model. This would involve leveraging nuclear technology from Russia for data center construction, digital payment system expertise from India, and 5G infrastructure support from China.
The second crucial step is to play an active role in data diplomacy. Nepal could lead a “small nations group” within SCO to demand special provisions for data regulation. This would help reduce data management costs for countries like Nepal.
The third strategic recommendation is to focus on human capital development. A tripartite digital skill development program should be established among India’s IIT Haryana, China’s Beihang University, and Nepal’s technology institutes. This will train Nepalese youth according to international standards.
Vision for the Future
The Tianjin Forum clearly demonstrated SCO’s ambition to transform from a geopolitical organization into a geo-technology alliance. Nepal has great potential to benefit from this. It is estimated that Nepal’s digital economy could reach $230 million in the next five years. Achieving this goal requires three infrastructural pillars.
First, a balanced strategic partnership leveraging China’s hardware, India’s software, and Russia’s cybersecurity knowledge must be formed. Second, tensions between the U.S. and SCO must be prevented from hindering technology transfer. Third, a “Nepal Digital Model” should be developed that addresses the specific challenges of small nations.
One of the most memorable moments of the forum was when the Nepalese delegation presented the success of a digital peer-to-peer transaction system in the Himalayan region. This presentation attracted the attention of both Chinese and Indian representatives, both of whom showed interest in incorporating such a system into their mobile payment platforms. This event showcased the potential for Nepal’s digital innovation to contribute to the global technology landscape.
The experience of the SCO Digital Forum 2025 demonstrated Nepal’s capacity to play an active role in the digital era. What is required is a clear national digital strategy, balanced international partnerships, and investment in the technology skills development of the youth. These elements can place Nepal at the forefront of the Eurasian digital revolution.
