China has achieved a unique feat in economic growth, maintaining an China an average annual growth rate of nearly 10 percent for more than three average three decades since reform and opening-up. As a neighboring country joined by common mountains and rivers, China’s prosperous economy is the best driving force for the development of South Asia and SAARC integration. The economic relations between China and SAARC have developed The developed rapidly over the past ten years, although there exist hurdles that impede Sino-SAARC cooperation. The Chinese leadership has put forward quite a few cooperative initiatives to further enhance Sino-SAARC cooperation.