It appears that the main Chinese energy focus is on Siberia, which has half of all the proven oil reserves of the former USSR, and 70 percent of total Russia’s coal reserves. The region is Russia’s largest producer of oil, the second for coal and a major center of metal industries. Some 140 out of some 200 largest enterprises in Siberia are weapon manufacturers, whose main customer is China.
 
China is also working with Uzbekistan to develop its gas fields in the Ferghana Valley and has invested in hydroelectric projects in Tajikistan and Kyrgyzstan. China is greatly interested in Central Asian markets for its products. An unstable Central Asia could result in a spillover of conflicts into its already restive Xinjiang province. It has sought to secure its borders by firming up its relations with Central Asian governments. It has invested resources and time in enlarging the scope of the SCO more than any other member.
 
The American presence in Central Asia is clearly a challenge and danger to China’s energy security and stability. But China itself is signing energy deals and agreements not only with Iran but in Africa and Latin America , traditionally US oil companies’ backyard . It even made a bid for US oil giant UNOCOL .( remember it , when Afghan Taliban government reneged on a deal with UNOCOL for energy transport from central Asia via Afghan territory to the Arabian Sea , relations between Talibans and UNOCOL and hence USA went from bad to worse and Talibans welcomed  Osama bin Laden. The rest is history.)

Andrei Grozin, director of the Central Asia section of the CIS [Commonwealth of Independent States] Institute, told the Russian newspaper Nezavisimaya Gazeta on July 4 that the SCO might “create a working, functioning structure to support stability and to preserve those political systems that have taken shape in the post-Soviet Asiatic states”.

Sergei Markedonov, a researcher at Russia’s Institute of Political and Military Analysis, told the Moscow-based RIA Novosti newspaper on July 13 that the recent political unrest in Central Asia [ encouraged by US financed institutions] showed that Russia, in cooperation with China, needed to function as “a regional policeman”.

Collective Security Treaty Organization to counter aggression and interference;

According to RIA Novosti of August 2 a press release by the CSTO based in Moscow has drawn up a draft protocol for providing military aid and equipment to member countries in emergency situations. CSTO includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. Member countries would now discuss the draft protocol for approval.

CSTO ‘s secretary general Nikolai Bordyuzha explained that the protocol would apply in situations which ‘include preparations for aggression and actual aggression as such, the plotting and carrying out of international terrorist attacks, and external threats to the security, sovereignty, or territorial integrity of one or more CSTO members.’ The protocol also lays down guidelines for the interaction between state and interstate CSTO bodies in such situations.

Bordyuzha said aid would be provided if requested by one or more parties and should be sent to the chairperson of the Collective Security Council, the supreme CSTO body comprising of heads of state. Requests should include a list of required military equipment, in addition to the amount of equipment and the terms of the requested aid. The aid could include military equipment free of charge or on privileged terms to maintain and restore the combat efficiency of CSTO armed forces.

Before the Russian Chinese Summit on 2nd July, on June 22-23, Moscow hosted a meeting of the heads of state of CSTO ( also members of Commonwealth of Independent States –CIS ) in conjunction with meetings of CSTO countries' ministers of foreign affairs, defense ministers, and secretaries of the national security councils. The meetings approved a framework plan on CSTO development in two stages -- through 2010 and beyond -- as well as plans to upgrade the Collective Rapid Deployment Forces in Central Asia and to create an inter-state commission for handling deliveries and servicing of military equipment at preferential prices. These measures on the agenda have been taken up in view of recent developments.

Coming in the wake of  the so called US franchised ‘Tulip’ revolution in Kyrgtzstan and failed uprising in Andijan in Uzbekistan , the summit decided to separate the CIS Joint Air Defense System (nominally of ten countries) from that of the CSTO's planned United Air Defense System (six member countries). While the Joint System lets forces function under national command, with periodic military exercises coordinated from Russia, with each member's airspace as distinct and sovereign, the proposed United System would place all forces under a single i.e.  Russian planning system and command. It transforms CSTO airspace as a single entity . Russian officials explained the separation because some CIS countries aspired joining NATO.

Russian Minister of Foreign Affairs Sergei Lavrov, Defense Minister Sergei Ivanov, Security  Council Secretary Igor Ivanov, and CSTO Secretary-General Nikolai Bordyuzha described the Andijan uprising unambiguously as an act of international terrorism and radical Islam against Uzbekistan.

Russian leaders and officials including President Putin criticized the failure of U.S.-led coalition in Afghanistan to suppress "terrorist training bases, including those supported by certain intelligence services" and for tolerating the booming export of Afghan heroin to Russia and Europe. It was said that the CSTO was prepared to help and assist Afghanistan, as well as setting up "a working group to coordinate with Afghan structures" and a joint anti-drug authority.