South China Seas:
Nearly three-quarters of China’s crude oil imports come from the Middle East and Africa. These supplies must at present pass through the bottleneck of the Strait of Malacca, and the contested South China Sea. The United States is very publicly repositioning the majority of its fleet to the Pacific, and tensions are mounting between China and its neighbors over sovereignty over the waters of the East China and South China Sea, where the extent of oil and gas reserves is still being estimated but could be considerable. Beijing fears that any armed confrontation in the maritime region could threaten supplies of imported energy.
How is this going to affect Indian-Chinese trade? Who knows? Apparently, once that gets solved, Chinese and Indians doing business with each other might become a game-changer:
Maybe, if it can actually be pulled off successfully. Russel Peters thinks it’s pretty challenging though: