Up to 90% of Australia’s fuel imports could be threatened if conflict escalates in the South China Sea

China’s sabre-rattling around Taiwan underlines the need for Australia to be prepared for conflict in the South China Sea.

With its growing navy and air force, and the bases it has built throughout the area, China is increasingly capable of disrupting shipping lanes crucial to Australia’s exports and imports.

Of particular concern is our reliance on liquid fuels imported via South China Sea shipping routes. This reliance has become more pronounced over the past few decades as all but two local refineries have closed. So even while we export crude oil, we import about 90% of refined fuels.

Our research team was commissioned by the Department of Defence to analyse threats to Australia’s maritime supply chains throughout the Indo-Pacific region (the South China Sea and East China Sea).