Lowy Institute for International Policy | South China Sea: Conflicting
Claims and Tensions
Overview The South China Sea is a critical commercial gateway for a
significant portion of the world’s merchant shipping, and hence is
an important economic and strategic sub-region of the Indo-Pacific. It
is also the site of several complex territorial disputes that have
been the cause of conflict and tension within the region and
throughout the Indo-Pacific. Geography Geographically, the South
China Sea plays a significant role in the geopolitics of the
Indo-Pacific. The South China Sea is bordered by China, Malaysia,
Brunei, Singapore, Vietnam, the Philippines and Taiwan. Their
significant economic growth over the last 20 years, as well as
activity in other Asian economies including Japan and South Korea, has
contributed to a large portion of the world’s commercial merchant
shipping passing through these waters, from which it continues on
through the Malacca, Sunda and Lombak Straits. The South China Sea
also contains rich fishing grounds and is reported to hold significant
reserves of undiscovered oil and gas, which have in part driven many
of the territorial disputes that characterise the region. The major
island and reef formations in the South China Sea are the Spratly
Islands, Paracel Islands, Pratas Islands, Natuna Islands and the
Scarborough Reef. Territorial Disputes The defining characteristic
of the South China Sea and a significant source of tensions in the
region are the competing legal claims of territorial sovereignty over
its islands. The United Nations Convention on the Law of the Sea
(UNCLOS), which was concluded in 1982 and came into force in 1994, was
meant to establish a series of legal measures and laws on the economic
rights of nations based on their territorial waters and continental
baselines. This is encompassed in the Exclusive Economic Zone (EEZ), a
200 nautical mile area that extends from the baseline of the coastal
nation and gives the nation sole natural resource exploitation rights
within the zone. While UNCLOS has been signed and ratified by nearly
all the coastal countries in the South China Sea, legal and
territorial disputes still persist, primarily over the Spratly and
Paracel Islands as well as the Scarborough Shoal. In terms of the
Spratlys, more than 60 geographic features have been reportedly
occupied by claimants, which consist of Taiwan, Vietnam, the
Philippines, China and Malaysia. The Paracel Islands are the subject
of overlapping claims from China, Vietnam and Taiwan. In 1974 South
Vietnamese troops were driven from the Paracels by Chinese forces in a
battle that resulted in their occupation by China. A further clash
between Vietnamese and Chinese forces occurred in 1988, with reports
of significant Vietnamese casualties. Another major dispute is over
the Scarborough Shoal, which is claimed by China, the Philippines and
Taiwan. China makes the largest claim in the South China Sea, and
bases it on the ‘nine-dash line’ map that was published by the
Chinese Ministry of the Interior in 1947. The map served as the basis
for the Declaration on China’s Territorial Sea, which was made by
the Chinese Government in 1958 and laid territorial claim to a
majority of the islands in the South China Sea. Additionally, in 2009
China submitted a diplomatic note to the United Nations
Secretary-General, asserting its sovereignty over islands in the South
China Sea which was presented with a map of the ‘nine-dash line’.
The legality of the nine-dash line map, which China charges is based
on historical evidence, is disputed by other South China Sea
territorial claimants and under the UNCLOS Treaty. This situation
continues in 2014, with China’s new map of mid-2014 showing a
controversial ten-dash line encompassing the South China Sea and
Taiwan. In May 2014 tensions were brought to a fore, when China began
drilling operations with the mobile oil rig Haiyang Shiyou 981 near
the Paracel Islands. The oil rig, owned by the Chinese state-owned
China National Offshore Oil Corporation (CNOOC), was sent to a
location 120 nautical miles from the Vietnamese coast and 17 nautical
miles from Triton Island, part of the Paracel Islands formation. CNOOC
announced that drilling would take place until mid-August 2014 and
China’s Maritime Safety Authority announced an exclusion zone around
the platform for any vessels unrelated to its operations. The rig was
escorted by 40 Chinese maritime vessels as well as Chinese naval
assets. The drilling operation was vehemently protested by the
Vietnamese Government and a fleet of coast guard and maritime patrol
vessels were sent to intercept the rig and its supporting vessels. A
stand-off ensued, with multiple collisions between Vietnamese and
Chinese vessels, one of which resulted in the sinking of a Vietnamese
fishing boat. The drilling operation also sparked riots throughout
Vietnam, the worst occurring in industrial parks in the central and
south of the country. A number of people were killed, factories were
destroyed and over 1000 protesters were arrested by Vietnamese
authorities. The riots also resulted in thousands of Chinese citizens
being evacuated from Vietnam over the following days. The oil rig
dispute has coincided with further tensions between China and the
Philippines over the Spratly Islands, which both China and the
Philippines have corresponding sovereignty claims. These tensions have
been fanned by China conducting ‘island building’ on submerged
reefs in the Spratly Island chain and the Philippines launching a
legal case with the UN’s Permanent Court of Arbitration (the
International Tribunal on the Law of the Sea) on its territorial
dispute with China over the islands. Both nations have protested the
other's actions, with China claiming it will not submit itself to
international arbitration over the issues, and the Philippine
government calling for a halt to all construction in the South China
Sea. Satellite imagery of runway construction on the artificial
islands has lead to fears they will be militarised. While tensions in
the South China Sea are continuing to evolve, there are several
processes and dialogues underway in an effort to build confidence
within the region and establish a common code of conduct. In 2002,
ASEAN and China issued a joint ‘Declaration on the Conduct of
Parties in the South China Sea’, which affirmed the signatories'
commitment to international law and the freedom of navigation in the
South China Sea. The Declaration also called for the adoption of a
code of conduct for the South China Sea, to be negotiated by the
parties subsequently. It is unclear how the possible negotiation of a
code of conduct will be affected by international legal action that
has been taken by the Philippines against China, or how ASEAN will
respond to China’s recent policies in the South China Sea. However,
as a basis for a code to be negotiated, confidence between the
maritime powers in the South China Sea will first need to be
established. In Crisis and Confidence: Major Powers and Maritime
Security in Indo-Pacific Asia, Lowy Institute researchers argued that
this can be done by strengthening the infrastructure of maritime
communications and operations through military dialogues, real-time
communication channels and formalised ‘rules of the road.’ What
the Lowy Institute does The Lowy Institute has a strong record of
analysis, commentary and research on issues pertaining to the South
China Sea, particularly concerning territorial disputes and maritime
security. This research has largely been conducted through both
the International Security and East Asia Programs. The Institute is
currently undertaking a comprehensive research, outreach and
publication project that focuses on unravelling the evolving maritime
dynamics of the region and exploring the prospects for creating
effective confidence building measures. This two-year project is
generously supported by the John D. and Catherine T. MacArthur
Foundation. The Lowy Institute also holds a number of events and
debates relating to the dispute in the South China Sea. Earlier this
year, Nonresident Fellows Bonnie S. Glaser and Linda Jakobson
discussed the intentions behind China's maritime actions. This was
followed by a discussion on Chinese foreign policy Glaser and
Fairfax's Asia Pacific Editor John Garnaut. The Lowy Institute also
conducts polling on Australian attitudes towards countries involved in
the dispute. In 2014, Australian sentiment towards China was the
warmest since 2006, and when asked who Australia's best friend in
Asia is, Australians were split on China and Japan, with a
statistically equivalent 31% choosing the former and 28% choosing
the latter. However, 48% of Australians also considered it very likely
or somewhat likely that China would pose a military threat to
Australia in the next twenty years. View site in full screen