Colonialism to Neo-Colonialism: The Chinese Use of Foreign Direct Investment and the Case of Pakistan

Abstract

The practice of neo-colonialism was initially introduced by the United States through the establishment of institutions like the Bretton Woods Institutions (IMF and World Bank) and continuing the legacy, China soon took over and had been using FDI to further its neo-colonial agenda in various parts of the world, including Pakistan. This research explores the history of colonization in the Sub-Continent and traces the origins of neo-colonization with a focus of the United States as a pioneer of the practice and China as the contemporary neo-colonizer. The research traces the transition from colonialism to neo-colonialism and examines the case of Pakistan as a victim of neo-colonialism, presenting the case based on evidence. The paper concludes that neo-colonialism is indeed colonialism with a changed outlook and proposes certain recommendations for Pakistan to minimize the impact of Chinese colonialism.