The Political Economy of China’s Rising Role in the Shanghai Cooperation Organization (SCO): Leading with Balance

Abstract The Shanghai Cooperation Organization (SCO) has become the most important vehicle for Chinese cooperation with Central Asian member states and Russia. China seeks to play an active role and exert strong influence in the SCO for both economic reasons and strategic considerations. China aims to resolve territorial and border issues with Central Asian states, maintain stability in Xinjiang, develop the economy of western areas, and ensure energy security by playing a leading role in the SCO. Analyzing China’s role in the SCO and the related opportunities and challenges is the primary goal of this paper. The Chinese government uses economic cooperation to exert influence within the SCO. However, the Chinese government must still overcome numerous challenges, including reconciling mistrust and conflict among SCO member states, reducing Russian suspicion of Chinese intention, response to transformation of the SCO, and dilemmas regarding regional instability.