As China’s economy and international prominence continues to grow, Beijing is now, more than ever, developing its inner and Western provinces, including Xinjiang. Its interests in Xinjiang extend to the greater South and Central Asian region as China continues to form diplomatic alliances and economic ties with its bordering neighbors. In particular, China’s move to the west and the recent designation of Kashgar as a Special Economic Zone has been an important factor for Beijing’s deepening relations with Pakistan, it’s gateway not only to South Asia but also to the greater Central Asian region. This paper will examine the steps China is taking to establish Xinjiang as a major trade and transport hub in the “New Central Asia,” and how the city of Kashgar is being developed to facilitate significant transnational trade and development with Pakistan. It will also examine China’s recent investments and development projects in Pakistan and how its neighbor in South Asia is now one of its most important allies in the region. It will posit that China’s thirst for energy resources, namely oil and natural gas from Central Asia and the Middle East, has prompted Beijing to place more emphasis on maintaining and deepening relations with Pakistan. Moreover, this paper will assess how Sino- Pakistani relations in the 21st are affecting China’s relations with India, especially in regards to Christopher Pehrson’s “String of Pearls” concept. This thesis will focus on two major case studies: the establishment of Kashgar as an SEZ and the development of the Gwadar Port in Southern Pakistan, and will show that in many regards, both projects are facing the same development problems.