China’s active role in South Asia is based on a “win-win” approach which is also beneficial for the economic progress of the regional states. China’s rapid economic integration represents its intention to maintain peace and stability in its vicinity. To hold its presence in the Indian Ocean region it is developing strong economic and trade ties with South Asian states. This region has become a center of attention where the interests of major powers China, India and the United States intersects. The joint venture of “China-Pakistan Economic Corridor” strategically holds huge significance for China, Pakistan and major powers like India and the US being rival to China. This corridor will enhance the economic conditions of not only China and Pakistan but also the other developing and the landlocked states of CARs and Afghanistan.