The Shanghai Cooperation Organization was founded June 14, 2001 by leaders of Kazakhstan, Kyrgyzstan, Russia, China, Tajikistan and Uzbekistan.
Goals of this organization included solution of border conflicts and avoiding military conflicts. Meanwhile the war against militant islamism and terrorism started to play an important role. Most observers believe that one of the purposes of the SCO was to serve as a counterbalance to the United States and in particular to avoid conflicts that would allow the United States to intervene in areas near both Russia and China.
The SCO revealed itself to be rather ineffective after the September 11, 2001 Terrorist Attack. The SCO was unable to develop a coordinated policy against terrorism and was also unable to deal as a collective body with the United States. Starting in 2003, there was an effort, particularly by China to refocus the SCO on economic issues, and China has proposed that the SCO become a free trade area.