You have to take China out early. If you don't do that then you can't do much of anything else. I usually detach brigades in China that use fuel, and I keep moving forward as much as possible. Time is your enemy in China so sitting still too much will kill you because the last thing you want is to give China time to build a lot of divisions. The Chinese army isn't much early on, they have a low tech level and horrible org, so as bad off as you may think your army is the Chinese are even worse off.
You can conserve some fuel by not making extensive use of your Navy and Air Force. You really don't need to worry too much about the Chinese navy, and use your Air Force when you absolutely have to and park them the rest of the time.
For resources, I usually take Singapore and then Sumatra, and of course Indochina. I will take other provinces but those are for military use, large naval and air bases in forward areas. Taking Austrailia later on is a very good way to keep the USA away from your holdings, as has been mentioned before.
You'll have some choices to make later in the game, but to get there you have to take China out first, so just focus early on on pushing forward in China.