The University of Sydney's United States Studies Centre's new report Averting Crisis, said: 'China's growing arsenal of accurate long-range missiles poses a major threat to almost all American, allied and partner bases, airstrips, ports and military installations in the Western Pacific.
Following ten years of 'delayed and unpredictable funding' the U.S. military lost its standing in the Western Pacific, giving China a firmer holding ground.
The Sydney-based body has suggested that ever advancing China now has the edge over the U.S. and would be able to overcome them within hours of conflict.
'As these facilities could be rendered useless by precision strikes in the opening hours of a conflict, the PLA missile threat challenges America's ability to freely operate its forces from forward locations throughout the region.'
In order to avoid this crisis America would need to undergo several expensive changes including advancing their military assets and enhancing their posture arrangements.
The reports call for targeted funding in the north of the country as a way to combat China's military expansion.
After Australia were warned its northern borders are exposed to attack amid an increasingly aggressive Chinese military presence in the Pacific, the country has been warned to prepare for 'high-end' conflict.
The Australian Strategic Policy Institute and the United States Studies Centre both issued assessments that a shortage of personnel and equipment in the Northern Territory is an urgent concern.
The American ally has been warned by the report to 'increase stockpiles, create sovereign capabilities in the storage and production of precision munitions, fuel and other material needed' for an attack.
The two countries are currently at odds over a number of issues, including a ban on Huawei Technologies Co. from bidding for 5G contracts from the Australian government.