extra terrestrial
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SCO is not going to be a regional union like ASEAN or Eurasion Union (led by Russia). As soon as China becomes a peer power to the US in 15-20 years, they will be ready to end their policy of Nonintervention:
Can Nonintervention-ist East Asian states reign in an Intervention-ist India?
and start a NATO like military alliance in Asia, using the SCO as the starting platform. We will be in the first batch to join this alliance.
As for the dispute resolution regarding Rohingya refugees between Bangladesh and Myanmar, it has to be done under the supervision of China, ASEAN and OIC, long before that time. Although Myanmar is currently being wooed by the US and India is helping that effort, I believe Myanmar will not burn its bridges with China, it cannot afford to. So in the long term both Myanmar and Bangladesh will turn out to be in the China led camp, and it will be good to resolve our differences sooner than later. For Bangladesh to pick a fight with Myanmar will always help anti-China interest and I don't think we should support India backed Awami Leagues tendency to promote this kind of anti-China and pro-India interest for the long term interest of our nation.
China indeed can play an influential role in resolving the dispute between Bangladesh and Myanmar, but what I'm saying is that before having such an institution like you proposed, the member states must have their disputes resolved. If not, then there should be a room for resolving the dispute within SCO's scope. Besides, it's not only Bangladesh and Myanmar, there are major issues between China and Japan, the two Koreas and so on. If these issues remain unresolved, it would make no sense to expect the member states to cooperate with each other in such sensitive issues like defence and national security.