Khan's experience in business got him the attention of local authorities who sought his help to organize the annual Qinghai International Carpet Exhibition.
In 2009, he invited about 150 exhibitors from Pakistan, Iran and India to participate in the exhibition.
Khan was given the Friendship Award by the central government in 2007 in recognition of his work. The award is the highest honor China gives foreigners who have made significant contribution to the country's social and economic development.
In February, he also received the International Cooperation Award for Science and Technology by the provincial government.
Khan says the province's tough weather made his life hard in the first few years, but now he has grown used to it. Besides, he is able to communicate in simple Chinese and knows some of the Qinghai dialect.
"China is my second home. I am half Chinese," says Khan, who travels through the country on work.
He visits his family in Pakistan every year.
Khan's deep affection for China has prompted him to learn more about the local economy and society. He believes woolen textiles are vital to the development of Qinghai, where the weather is cold and most areas are not suitable for growing crops.
But he cautions that large-scale mechanized production could threaten the livelihood of traditional craftsmen in Qinghai.
It is important to develop local ethnic craft industries like carpet making, says Khan.
Contact the writer at liuxiangrui@chinadaily.com.cn