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The study is an attempt to understand Chinese rapid economic growth and its impact on China – Pakistan relations from 2001 to 2014. The incidents of 9/11 had severe impact on global economic scenario resulting in global recession. Ironically, by the end of 2001 the major growth polls of the world slipped into recession, it caused serious damage to the economies of the developing countries particularly Pakistan as it was a front line state in war against terror. As a result of recession, imports and exports, industrial production, tax revenue and foreign direct investment were badly affected in Pakistan which resulted in huge economic loss - approximately US$ 67 billion. Due to emergence of terrorism since 9/11, foreign direct investment in Pakistan declined and thus, a large amount of Chinese Foreign direct investment was directed towards Latin America and Africa which affected the economy of Pakistan. The present study highlights core areas of economic cooperation between China and Pakistan, which can further strengthen Pakistan’s economy, resulting in a win – win situation in trade between the two countries. The research adopts and follows the theories of Liberalism and highlights the Flying Geese model in the economic and trade affairs between the two countries. Further, the study seeks to find out possible ways to overcome the weak areas of trade between China and Pakistan for better economic relations between both the countries, in which Pakistan could also gain more benefit. The study provides a baseline to the policy makers in Pakistan to overcome the weaknesses due to which Pakistani exports could not find a suitable place in the Chinese market.
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