The port on the Arabian Sea occupies a strategic location betweenSouth Asia, Central Asia and the Middle East. It lies near the Strait of Hormuz, gateway for about 20 percent of the world's oil.
China's interest is driven by concerns about energy security as it seeks to fuel its booming economy. It wants a place to anchor pipelines to secure oil and gas supplies from the Gulf. Beijing also believes that helping develop Pakistan will boost economic activity in its far western province of Xinjiang and dampen a simmering, low-intensity rebellion there.
Some experts view Gwadar as the westernmost link in the "string of pearls," a line of ports from China to the Gulf that could facilitate expansion of the Chinese Navy in the Indian Ocean. That has sparked concern in both the U.S. and India. http://news.yahoo.com/china-poised-control-strategic-pakistani-port-112018687--finance.html