Founded at the beginning of the new century, the Shanghai Cooperation Organisation (SCO) is a regional organisation in Central Asia, with members including China, Russia, and the four smaller Central Asian States, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. It is generally believed that the SCO was initiated and led by China. This indeed marks a remarkable shift of Chinese foreign policy simply because China’s active involvement in the SCO process breaks away from its long tradition of bilateral diplomacy. The Chinese participation and, in fact, leadership in the SCO has drawn wide attention from academics and policy analysts alike. The chapter focuses on the leadership role of China in the SCO by detailing the specific practice that China has adopted in the process, including its use of structural power, negotiating skills and intellectual innovations. It is concluded that the leading role of China in the SCO is substantial, but sometimes awkward. The Chinese practice through the SCO is in conformity with its overall foreign strategy. The Chinese policies in the process are adaptable due to the changeable circumstances and complicated relationship among the SCO members.