This article is an empirical analysis of China's use of the Shanghai Cooperation Organization (SCO) to engage in soft balancing behaviour against the United States. The author argues that China aims to expand its security and power in Central Asia primarily through the SCO. However, China's rise in the region is taking place within an international system, dominated by the United States. Perceiving a threat from the hegemon, China makes instrumental use of the SCO to soft balance US influence in the region. The author further identifies the major soft balancing tactics that China employs through the SCO, including pursuing collective action, promoting institutional norms and competing for supporters. The author concludes by stating that soft balancing is a natural strategic option for China given its current commitment to the concept of 'peaceful rise'. © 2013 Macmillan Publishers Ltd.