China‟s investment in Gwadar port and the KKH is aimed at establishing
shortest and viable energy and trade corridor from its Western province of Xinjiang
to world markets via Gwadar. Gwadar port has bright prospects to develop Xinjiang
province as all trade and oil supply to China would be routed through a shortest and
viable trade and energy corridor linking these two provinces with Central Asia,
Persian Gulf, Africa. To expand traffic flow and fuel consumption, China
has planned to invest US $730 billion in the transport sector in the west China and
US $88 billion in Xinjiang. China‟s investment in the
construction of the corridor will be a great assistance for Pakistan on these fronts.
Moreover, China‟s close association with Middle East and Africa and the proximity
of Pakistan‟s Gwadar port to the energy hubs, the CPEC emerges as a future
primary oil supply route to China. The existing Karakoram Highway other infrastructure
between Pakistan and China would help China expand its trade with Iran, Middle
East, Central Asia and Africa as the corridor will decrease the sea distance up to
almost 10,000 km. China‟s plan of establishing oil and
gas pipeline with an oil refinery at Gwadar port would also facilitate China‟s energy
supply from Persian Gulf and Africa to Western China.