SCO Summit in Bishkek Signals Strong Momentum for Regional Trade and Economic Cooperation

The Shanghai Cooperation Organization (SCO) summit in Bishkek sends warm signals for trade and economy: fragrance brands eye Central Asia and the new consumer belt of China-Russia-Mongolia.

From August 30 to September 1, the 2026 SCO summit was held in Bishkek, the capital of Kyrgyzstan. The Chinese president attended the summit and held bilateral talks with the presidents of Kyrgyzstan, Uzbekistan, Mongolia, and Russia. All meetings emphasized "expanding trade and investment, diversifying trade products, advancing the China-Kyrgyzstan-Uzbekistan railway and cross-border payments, and deepening cultural exchanges," paving an invisible channel for high-value-added consumer goods like fragrances from the shores of the East China Sea all the way to the Tianshan Mountains and the Volga River.

Trade foundation: expanding SCO markets opens fast track for non-resource exports

According to customs and trade promotion council data, in the first seven months of 2026, China's total import and export volume with other SCO member states reached 2.42 trillion yuan, up 14.9% year-on-year. Exports grew by 13.9% during the same period, with "chemicals and daily chemical products" emerging as a key driver of non-resource-based exports beyond machinery and electronics.

Fragrance is a microcosm of this trend: in the first half of 2026, China’s export value of perfumes and floral waters reached 2.502 billion yuan, surging 31.05% year-on-year—far outpacing overall export growth.

Three focal points from the leaders’ meetings correspond to three opportunities for fragrance brands going global:

• China-Kyrgyzstan and China-Uzbekistan talks → China-Kyrgyzstan-Uzbekistan railway + cultural centers: Discussions highlighted “high-quality construction of the China-Kyrgyzstan-Uzbekistan railway,” “establishing mutual cultural centers,” and “expanding educational poverty alleviation and people-to-people exchanges.” The railway could turn Bishkek, Tashkent, and Almaty into regional distribution hubs; cultural centers will provide offline narratives for “Oriental scents”—tea, cassia, agarwood are no longer just label slogans but experiential olfactory cultures.
• China-Mongolia talks → border tax-free zones and tourism retail: Although Mongolia isn’t a traditional fragrance market, mid-to-high-end malls, airport duty-free shops, and tourism retail in Ulaanbaatar have shown strong growth over recent years. Enhanced cooperation between China and Mongolia on border crossings and cultural tourism benefits travel-sized perfumes and gift sets.
• China-Russia talks → RMB settlement and localized operations: As Russia continues reducing its reliance on SWIFT, the maturity of cross-border RMB settlements reduces cash flow friction for Chinese fragrance brands opening stores on platforms like Wildberries and Ozon. Russian consumers show higher acceptance of “oriental woody notes” and “tea-infused scents” than Western Europe, aligning well with existing brand narratives such as Guan Xia, Wen Xian, and MeltSeason.