DO THE CHINESE INVESTMENT UNDER THE INITIATIVE OF ONE BELT AND ONE ROAD CHANGE THE ECONOMIC ENVIRONMENT OF PAKISTAN?

Abstract

Under the globalization strategy, to ensure national economic development, it is necessary to actively construct overseas economic and trade cooperation and implement "bringing in and going out". At present, China's economy has entered a new stage of development. It has the largest foreign exchange reserve in the world and has strong manufacturing power. As a result, its international status and international discourse power have been greatly enhanced, and China has gradually developed into a major country and power in the world. However, it should be noted that most industries in China are still at the low end of the global industrial chain, with serious excess capacity, insufficient domestic demand and a lagging economic development model. Pakistan has always maintained good diplomatic relations with China. Under the initiative of "One Belt and One Road", Pakistan has become a comprehensive strategic partner of China and opened the "China and Pakistan Economic Corridor", a flagship project of "One Belt and One Road". Through such infrastructural projects, Pakistan has received an abundant inflow of FDI. However, the environment for Chinese FDI in Pakistan is confronting with various challenges. This paper intends to investigate China's direct investment environment in Pakistan through SWOT analysis.