While writing these lines, the annual 16th summit of the Heads of States of Shanghai Cooperation Organisation (SCO) is going to be held under the chairmanship of the People’s Republic of China from June 9-10 in Qingdao, a coastal city of East China’s Shandong Province. The rotating chair of the organisation was transferred to China in June 2017 during the SCO summit in Astana, Kazakhstan. China has led the SCO member states with extended flavour since the accession of Pakistan and India as SCO’s full-fledged members. Established in mid-2001, the body is a Eurasian economic, political and security organisation that has China, Russia, Pakistan, India, Kyrgyzstan, Uzbekistan, Tajikistan and Kazakhstan as permanent members. Participation of four observer states, six dialogue and guest partners further enhanced the strength of this crucial regional organisation. Since its establishment, Beijing has always pushed the regional body to concentrate on countering terrorist threats and boosting regional economic cooperation. With the modest success of early years, China has used the SCO as a convenient instrument, expanding its political, security and commercial influence in the Central Asian region, most importantly without challenging Russia’s influence in the area. Beijing’s initiative of Belt and Road and its flagship project CPEC illustrates that China has reorganised its strategy to extend its political, security, and economic influence up the entire Asia Pacific and the Middle East. Belt and Road would play a crucial role in making Beijing’s extended strategy a success, but it would be equally challenging for Beijing to achieve with the addition of Pakistan and India, as permanent members. Beijing’s strong strategic relations with Islamabad and strengthening economic and diplomatic ties with Delhi have made Beijing not only to implement its strategy of extending its circle of influence but also for overcoming growing uncertainty in the region due to Indo-Pak tensions. Besides, Indo-Pak relations, various other regional and international issues have remained crucial to the Beijing’s chairmanship. China has come up with an extensive strategy. This year also it has taken charge of the SCO with more rich ideas and concrete activities. Like in the past, Beijing’s strategy is aimed precisely at giving a qualitative desire to interact with the framework of the organisation and building new dynamics at a new stage of development. As for as security threats are concerned, currently, the organisation is facing many serious security challenges, which according to China are ‘three evils’ — terrorism, illegal drugs and human trafficking, and cross-border crime. Aside from “three evils”, China has focused on some other significant areas that have been hampering the modest growth of the SCO member states. China needs to consolidate solidarity and coordination among the member states, and for this, high-level of support and trust between nations and formation of common interest would be obligatory. The priority direction of cooperation has also remained on the trade and economic ties but also the implementation of infrastructure projects and production cooperation, which is included in the new Chinese agenda. SCO has become a paradigm of global and regional cooperation with great vitality and significant influence which serve as a model of efficient cooperation by paying equal attention simultaneously to economic development and security cooperation China has opted for solid efforts to tackle security-related challenges faced by all the member states. More importantly, it has maintained openness and inclusiveness which is the speciality of the SCO. China focused on possible economic cooperation in food security, water and energy, development of transport communications and transit potential production cooperation, security, economics, BRI, and geopolitical aspects, especially Afghanistan. In this regard, Beijing has outlined following five principles of peaceful coexistence: mutual non-interference in others internal affairs, equality and cooperation for mutual benefit and last but not least peaceful co-existence. Political mutual trust, judiciary relationship, ownership of peace and development are some other areas that demand Beijing attention. Peace and stability in Afghanistan are essential for establishing peace and prosperity in the region and the SCO member states under Beijing leadership has played key role in bringing peace in the war-torn country. However, intensification of cooperation is the key to resolve Afghan issue. The growing tension between the United States and Iran has remained another challenge for Beijing chairmanship following an independent policy of the SCO. US President Donald Trump wants a new agreement with Iran on nuclear non-proliferation with more and comprehensive restrictions, doubting fear of hidden nuclear weapons building. The Trump announcement has plunged Washington relations with European allies into deep uncertainty. They have committed to staying in the deal with Iran, raising the prospect of a diplomatic and economic clash as the US re-imposes stringent sanctions on Iran. The current development also raises the prospect of increasing US differences with Russia and China, which are supporters of the agreement. The Chinese leadership provided a great opportunity to use its instrument during one-year chairmanship to impart renewed momentum to the SCO, as the organisation enters its second and most crucial phase, citing the United States dislodgment of its agreement on nuclear non-proliferation with Iran. To conclude, the SCO has become a paradigm of global and regional cooperation with great vitality and significant influence which serve as a model of efficient cooperation by paying equal attention simultaneously to economic development and security cooperation. However, these features are equally challenging and demand a highly sophisticated approach the People’s Republic of China has adopted throughout the last year. The writer is Founder Director, Institute of Peace and Diplomatic Studies and Secretary General Shanghai Cooperation Organisation Friendship Forum Published in Daily Times, June 12th 2018.