China put forward the proposal of setting up a SCO free trade zone in 2003, but received no active response from other member states. The member states of SCO ought to further deepen their political-economic cooperation in order to deal with threats and challenges posed by the changing situation of world and the region. The free trade zone represents the overall trend of the global economic cooperation and development, and accords with the new needs for economic growth of SCO member states. It is the belief of the author that a SCO free trade zone will not produce any impact on the CIS Free Trade Zone or Russia-Belarus-Kazakhstan United Economic Space, but will rather have a mutually complementary and beneficial effect with them. The conditions are now ripe for establishing a SCO free trade zone through which China will be able to provide other SCO member states a broader space of economic development. <<