The Chinese citizen was travelling on Tuesday evening in northern Takhar province bordering Tajikistan when he was killed by "unknown armed men", provincial police spokesman Mohammad Akbar Haqqani told AFP.
He said the man was travelling "for an unknown reason" and without informing security officials, who typically accompany Chinese nationals on trips in the country.
A translator travelling with the man was unharmed, Haqqani added.
The Islamic State (IS) group's regional chapter claimed responsibility for the attack later Wednesday, according to jihadist monitor SITE.
"The IS issued a communique... reporting that fighters fired at a vehicle carrying a 'communist Chinese' in Takhar, a province in which the group was last active in 2022," the monitor said.
Interior ministry spokesman Abdul Mateen Qani confirmed the details of the killing and said the Chinese citizen was a business owner with a contract to mine in Afghanistan.
China's embassy in Kabul did not immediately respond to a request for comment by AFP.
The Taliban government are touting Afghanistan's vast natural resources, largely untapped during two decades of war, as a lifeline for the ravaged economy and a lucrative opportunity for foreign speculators.
Despite lingering security concerns, neighbouring China is emerging as a potential investment partner.
Chinese and Afghan officials gathered in Kabul on Tuesday for an event marking 70 years of diplomatic ties.
"I would like to assure my Chinese friends that there is peace and security in Afghanistan," deputy foreign minister Sher Mohammad Abbas Stanekzai told attendees.
"We invite Chinese businessmen and investors to come and invest in Afghanistan with confidence," he said.
Security has drastically improved in Afghanistan since foreign troops withdrew in 2021 and the Taliban ended their insurgency as they swept back to power.
But the regional chapter of IS regularly stages attacks on civilians, security forces, Taliban government officials and foreigners in Afghanistan.
At least five Chinese nationals were wounded when gunmen stormed a Kabul hotel popular with Beijing businessmen in a 2022 attack claimed by IS.
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