After Djibouti, China is planning to build its second foreign naval base in Pakistan, according to a South China Morning Post (SCMP) report.
The base is most likely to come up near Gwadar, according to Beijing-based military analyst Zhou Chenming.
"China needs to set up another base in Gwadar for its warships because Gwadar is now a civilian port," SCMP quoted Chenming as saying.
"It's a common practice to have separate facilities for warships and merchant's vessels because of their different operations. Merchant ships need a bigger port with a lot of space for warehouses and containers, but warships need a full range of maintenance and logistical support services," Chenming added.
Another source, which is close to the People's Liberation Army, has also confirmed the development.
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"Gwadar port can't provide specific services for warships ... Public order there is in a mess. It is not a good place to carry out military logistical support," the source told the SCMP.
The SCMP story came after a report, which appeared on the Washington-based website The Daily Caller, a few days ago indicated the same.
US Army Reserve colonel Lawrence Sellin (retired) had stated that a consensus was reached in one of the meetings between Chinese and Pakistani military officers that a military base would come up on the Jiwani peninsula near Gwadar and close to the Iranian border.