According to the Taliban, China's nomination of Zhao Xing signals to other countries that they can begin diplomatic relations with the Taliban.
Analysts say it's part of China's strategy to increase its standing in the area.
On Wednesday, Taliban leaders hosted a grandiose welcome ceremony for Mr. Zhao at the presidential palace in Kabul.
Mohammad Hassan Akhund, the current acting prime minister, and Amir Khan Muttaqi, the current acting foreign minister, were reportedly present.
The Chinese foreign ministry has stated that China has a "clear and consistent" policy toward Afghanistan and that Beijing will "continue advancing dialogue and cooperation" with the country.
According to the statement, Mr. Zhao's nomination as Chinese ambassador to Afghanistan is part of the "normal rotation" of such officials.
After Wang Yu's term as ambassador ended last month, he was sworn in.
China was among the first countries to contact with the Taliban after the withdrawal of US-led foreign forces from Afghanistan in August 2021, despite the fact that the Taliban have not been formally recognized by any foreign government.
Due to its central location, Afghanistan is of great importance to Beijing's Belt and Road development program.
Beijing has already stated that it intends to invest in Afghanistan's natural resources, which are estimated to be worth $1 trillion, and Chinese officials have held high-level talks with the Taliban prior to the takeover in 2021. There are substantial amounts of copper, lithium, and gold there.
"By being the first to name an ambassador post-takeover, China aims to position itself as an influential actor in the region — a possible diplomatic flexing of muscles, especially when many Western countries are still hesitant to engage with the Taliban," said Farwa Aamer, Director of South Asia Initiatives at the Asia Society Policy Institute.
However, there are safety concerns because Afghanistan shares a border with China's unrest-prone Xinjiang region. Militant Uyghurs in Afghanistan have previously attacked Chinese infrastructure.
Ms. Aamer noted that China may be able to better manage its security concerns if it keeps its diplomatic connections with the Taliban open.
It was the first big energy extraction arrangement with a foreign corporation since the Taliban took power, and it was struck in January of this year with a Chinese firm.
This year, China, Pakistan, and Afghanistan reached an agreement to incorporate Afghanistan into the Beijing-backed China-Pakistan Economic Corridor.
At the time, the leaders of Pakistan and China expressed a desire to assist in Afghanistan's "rebuilding."
We will be keeping a close eye on Afghanistan's participation in the Belt and Road Initiative summit in October and the larger initiative moving forward.
The Taliban regime in Afghanistan has been accused of gross human rights abuses. Their reputation for repressing human rights, especially those of women, is widespread.