ABSTRACT
The South China Sea is one of the world’s most important waterways and one of the most contested. The semi-enclosed sea is bordered by Brunei, China, Indonesia, Malaysia, the Philippines, Taiwan, and Vietnam. Lying at the heart of Southeast Asia, its economic importance cannot be overstated. It is one of the busiest trading routes on the planet. The western gateway to the sea is the Strait of Malacca, through which 60,000 ships pass each year-four times more than the Panama Canal-carrying one-third of global trade and 15 million barrels of oil a day. That is just 2 million fewer barrels than the world’s busiest energy transit route, the Strait of Hormuz. 1
The importance of the South China Sea as a vital transport route for energy will only grow. China’s daily oil imports are projected to increase from less than 5 million barrels a day in 2010 to more than 12 million in 2035. 2 For the nations of Southeast Asia, meanwhile, oil imports will increase from less than 3 million barrels a day in 2010 to nearly 6 million in 2035. 3
Free and safe transit across the South China Sea is the lifeblood of East Asia, where the South China Sea ties together the region’s vital supply chains and provides the most direct route for energy and mineral resources coming from Africa and the Middle East. The South China Sea is also crucial for U.S. trade across the Asia Pacifi c. In addition to trade, the South China Sea holds vast economic potential.
