CHINA-AFGHAN ECONOMIC RELATIONS AND CHALLENGES UNDER THE TALIBAN

Abstract

The new prevailed government was formed in Afghanistan after the United State’s withdrawal in 2021. Despite the fact that no one in the international community has recognized the new government, it has been engaged with several states, struggling for the recognition. China was among the first countries that no only welcomed the new government and pledged to work with them but provided economic assistance and aid to stabilize the internal situation in Afghanistan. Afterwards, it has been diplomatically, strategically and economically involved with prevailed government. This study attempts to explore and examine the economic engagement between China and Afghanistan since 2021. The study highlights the possible challenges that may hinder Chinese engagement in Afghanistan. The study explored that China has been involved in investment in industrial, commercial and mining sector of Afghanistan. Furthermore, the trade ratio has been increasingly positive as both countries are witnessing a positive growth their mutual trade. The study highlights possible security and political challenges such as terrorism and political stability in Afghanistan that may hinder Chinese investment and economic relationship between China and Afghanistan.