The two countries are participating in “Peace Mission 2007,” sponsored by the Shanghai Cooperation Organization to fight the “three evil forces” of terrorism, separatism and extremism, reported Xinhua, China (OTCBB:XHUA)’s official news agency.

SCO military exercises involving 6,500 troops and 80 aircraft were underway Saturday in the Chebarkul range near the Ural Mountain city of Chelyabinsk in Russia.

The exercises aren't meant to build a military alliance but to protect the interests of the group’s members, China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan, Xinhua reported.

The SCO was formed in 2001 to strengthen security and stability among the group’s members and improve their joint anti-terrorism capabilities.