Abstract

Before 18th century China along with India had 50% share of world economy. It is believed that China will emerge as largest world economy till 2030. Domestic circumstances and public opinion always effected the foreign policies of countries and also are major drivers of foreign attitude of China. South Asia occupies an important place in foreign policy of China which includes Nepal, Bhutan, India and Pakistan having common border with it. India is big South Asian giant and dominating power of the region. Furthermore, South Asian region is also known as Indian backyard and Chinese foreign policy towards the sub region revolves around the India - China relationship. During the initial years of post-cold war era, Chinese export of South Asian states increased from 71,910 million US dollars to 182,917 million US dollars from 1991 to 1997 and import expanded from 63791 million US dollars to 142,189 million US dollars within same span of time.

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