Chinese investment in Afghanistan: Opportunities and challenges

Abstract

Afghanistan, long marked by conflict and political instability, stands at a pivotal juncture. Although risks persist—such as security concerns, political uncertainty, and economic fragility—Afghanistan also presents investment opportunities in mining, agriculture, and infrastructure. Despite these opportunities, Afghanistan continues to face obstacles to investment. The most pressing challenges include security risks, international sanctions and financial isolation, weak legal and regulatory frameworks, and ongoing concerns regarding human rights and governance. By reviewing literature and using secondary data, this article examines case studies of Chinese investment in Afghanistan. It assesses both the benefits and difficulties of operating in a high-risk environment and proposes recommendations for responsible and strategic engagement. This article highlights the paradoxes of conducting business in a dangerous environment through personal narratives that contrast optimism with instability, ideology with pragmatism, and opportunity with exploitation. The experiences of three investors—Ji Yang, Zang Mingkuan, and Yang Sen—demonstrate both the aspirations and the challenges of investing in Afghanistan, while also reflecting broader Chinese ambitions and anxieties in a shifting global context.