China is emerging as a global economic power and planning to maintain and expand its influence in term of economic, political and strategic interests especially in the neighboring countries like India, Pakistan and Afghanistan. In order to fulfill its dream of economic supremacy and national interest, China has launched a series of developmental initiatives including development of infrastructure, trade and economic activities in the region especially Afghanistan. However, owing to the security conditions, presence of militant and terrorist tendencies, it is still challenging for China to come out as a strong political and economic force in Afghanistan. This article is planned to carry out a systematic reflection on the China’s political and economic interests in Afghanistan and analyze its investment in various developmental activities and projects. For this purpose, descriptive method was used in which secondary data was extracted from various academic sources including journals, books and reports. Findings of the study reveal that China has invested billions of dollars on various developmental projects including coal mine, exploration of oil and gas, telecommunication, railway lines and roads and economic assistance to Afghanistan. It is concluded from the study that China’s economic and strategic policies in Afghanistan will not only safeguard Chinese interest but it will also help Afghanistan to counter militancy and cross border infiltration through economic, business and trade in Afghanistan.