Abstract

Pakistan and china have historical relationship, both states have strong economic, political, social and defence relations. Both countries were fully supported to their mutual relationships in their foreign policy. In Pakistan, there is massive Chinese investment (infrastructure, roads, highway, ports, and energy and communications sectors). Pakistan welcomed the Chinese investment for social and economic development. China has become Pakistan's largest trading partner in recent years. But Pak-China bilateral trade always remain in favour of China. This paper aims to examine and identify the trade possibilities and issues of imbalance in trade between China and Pakistan. Further, the paper suggests on how to enhance trading relationship between the two countries. For estimation of results Reveal Comparative Advantage (RCA) and Normalized Reveal Comparative Advantage (NRCA) index was used. This article throws light on SWOT analysis compared that’s performance of the country in trade to China and which are strengths, weaknesses, opportunities and threats that are being faced by this bilateral trade. Furthermore, this article is an attempt to explore new trends in Pakistan and China relationship.

Keywords

China-Pakistan, bilateral trade, RCA and NRCA index, SWOT analysis