China's Foreign Direct Investment (FDI) in the Development of South Asian Countries

Abstract

This research paper survey the impact of China’s Foreign Direct Investment (FDI) on the development and growth of South Asian countries with its own government. South Asia, that contains Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka, has noticed a significant rush of China’s Foreign Direct Investment (FDI) in recent years. China’s FDI in the domain has happened generally condensed on framework advancement, energy, and transport projects, proposed at boosting economic growth and territorial integration. The paper resolves the magnitude on which China’s FDI has donated to the economic growth of South Asian countries with its own government, stress particular projects and actions undertaken in each country. China’s FDI in South Asia has happened stable, accompanying investments in distinctions projects such as the China Pakistan Economic Corridor (CPEC), the Bangladesh-China-India-Myanmar (BCIM) Economic Corridor, the Nepal-China Railway Project, and the Sri Lanka-China Hambantota Port Project, with others. In India, China has provided in distinction territories, consisting of technology and renewable energy. In Afghanistan, China has adopted in excavating and energy projects. In Bhutan, China has established in hydropower projects. In Maldives, China has established in touristry and framework advancement. (Asian Development Bank, 2020)The paper decides that China’s FDI has had a certain impact on the economic growth of South Asian countries with its own government, advancing economic growth, generating employment opportunities, and developing territorial integration. However, the paper further highlights the need for South Asian countries with its own government to be guarded and guarantee that China’s FDI is aligned with their national interests and happening preferences.