Since its creation in 1987,the South Asian Association for Regional Cooperation (SAARC) has struggled to establish itself as a meaningful actor in the politico-economic sphere of the South Asian region.During this time,it has consistently been plagued by such factors as a highly bureaucratic and poorly structured administration,parochial and exclusive policy-making processes,an historical inheritance of suspicion and hostility between states,and a lack of commitment on the part of its members,with particular regard to the regional giant,India.The confluence of such undesirable circumstances has severely hampered the organisation's effectiveness and limited its progress.Despite a few small successes,the majority of SAARC activity remains trapped in the stagnant space between idea and action.Nevertheless,in recent years,a number of new opportunities have emerged which,if suitably harnessed,could provide SAARC with a much-needed leg up out of impotence.Key among these is the interest displayed of late by China in becoming more closely integrated with the organisation.Given China's growing preponderance in the global economy,its involvement with SAARC has enormous potential benefits for the latter party.This paper will discuss the nature and scope of China's current engagement with SAARC.It will then consider the range of economic benefits which would accrue to the organisation as a result of deeper integration with China,as well as the many challenges which threaten to impede the realisation of such strengthened ties.