This note explores Pakistan’s opportunities to benefit from increased trade with China in the context of the China Pakistan economic corridor (CPEC). While China-Pakistan bilateral trade flows have increased dramatically over the last 15 years, there is potential for further benefits to Pakistan in terms of increased demand for Pakistani exports and increased supplies of inputs that can improve efficiency and reduce the costs to Pakistani firms. This study provides recommendations for maximizing trade benefits under CPEC, particularly through policy improvements that increase the feasibility or profitability of private and public investments. This note is structured as follows: Chapter 2 provides an overview of Pakistan’s external trade performance; Chapter 3 discusses trade flows between Pakistan and China; Chapter 4 analyzes the impact of growing China-Pakistan trade relations on Pakistan’s global trade competitiveness; Chapter 5 presents the results of interviews with business representatives and government officials from Pakistan and China on investment and trade; and the final chapter provides policy recommendations.