China is building a new deep-water submarine port at Qingdao, Shandong Province, along the northern coast, according to the Chinese newspaper Qingdao Zaobao.

China surprised U.S. intelligence several months ago by showcasing a new class of attack submarines at the Wuhan shipyard. The submarine has been dubbed the Yuan-class submarine.

The disclosure highlighted a failure of U.S. intelligence, which until that time believed that it had adequately monitored China's naval buildup.

China believes that submarines and guided missile warships will be the centerpiece of its military buildup, along with large numbers of ballistic and cruise missiles. Beijing wants the port to be part of its maritime strategy for controlling waters near its coast.

According to the report, the port also will be used for underwater research, specifically the search for oil and gas resources needed by China.