On September 11th and 12th the SCO held its 14th annual summit in 
Dushanbe, Tajikistan’s capital. It agreed to adopt procedures for 
expansion, first for those countries that are already observers. India 
and Pakistan are likely to join in the next year. Iran is at present 
disqualified because it is under UN sanctions. Another observer, 
Mongolia, is a democracy and has long had qualms about joining what 
looks like a club for authoritarians. Afghanistan, the final observer, 
has other priorities.
 In August the SCO held its largest joint military exercises yet, an 
anti-terrorist drill in Inner Mongolia in China involving more than 
7,000 personnel. The SCO’s boosters, however, insist it is not an 
alliance, like NATO, but a “partnership”, with no adversary in mind. 
That is not entirely true. It has always been explicitly directed 
against three enemies, even if they are only abstract nouns: the “three 
evil forces” of terrorism, separatism and extremism. China, in Xinjiang;
 Russia, in Chechnya; the Central Asian members, in the Ferghana Valley 
and on their borders with Afghanistan. All SCO members face a threat 
from Islamist extremism.
China itself is building all sorts of institutions: the SCO, CICA, the 
“BRICS” (grouping China with Brazil, Russia, India and South Africa), a 
Trilateral Commission (at present languishing) with South Korea and 
Japan and a Regional Comprehensive Economic Partnership. Their shared 
characteristics are that China has a big and sometimes dominant role and
 that the United States is not a member—and indeed was rebuffed when it 
sought to join the SCO as an observer. China is not just challenging the
 existing world order. Slowly, messily and, apparently with no clear end
 in view, it is building a new one. 
http://www.economist.com/news/asia/21618866-china-trying-build-new-world-order-starting-asia-pax-sinica
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