Chinese Foreign policy is of vital importance in the South Asian region which in turn carries highly significant prominence in defining the course of events that affect the contours of international political order. The strategic importance of the region centers on the fact that it is the gateway to the Indian Ocean which is known as the energy jugular of global trade.The changing political dynamics of South Asia particularly in relation with Pakistan and India, the two major nuclear capable actors, are also significant. In order to assess the foreign policy of China with two regional rivals a constructivist analysis is undertaken based on a rational actor model. A comparative rational analysis based on the five principles of coexistence i.e., respect for territorial integrity and sovereignty, mutual non-aggression, noninterference in each other‘s domestic affairs, equality and mutual cooperation is formulated along with strategic and economic policies of China towards India and Pakistan. This dissertation also analyzes the foreign policy of these actors namely China, Pakistan and India, to asses paradigm shifts in policy from 2000 to 2014. The thesis highlights changing trends on various economic and military levels to understand foreign policy.