Territorial disputes in the South China Sea
Encyclopedia
Territorial disputes in the South China Sea involve six sovereign states within the region, namely the: People's Republic of China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...

 Republic of China (Taiwan) Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...

 Vietnam
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...

 Malaysia Brunei
Brunei
Brunei , officially the State of Brunei Darussalam or the Nation of Brunei, the Abode of Peace , is a sovereign state located on the north coast of the island of Borneo, in Southeast Asia...



The Spratly and Paracel archipelago are two groups of uninhabited islands located within the South China Sea
South China Sea
The South China Sea is a marginal sea that is part of the Pacific Ocean, encompassing an area from the Singapore and Malacca Straits to the Strait of Taiwan of around...

, which are subject to a complex territorial dispute involving the surrounding countries. The interests of different nations include acquiring fishing areas around the two archipelagos, the exploitation of crude oil and natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...

 beneath the Spratly Islands, and the strategic control of a core position.
Along with territorial land claims on the islets, the disputes also involve the territorial waters of the various countries within the region. The nine-dotted line
Nine-dotted line
The nine-dotted line, U-shape line, or nine-dash map refers to the demarcation line used by the government of the People's Republic of China for its claim in the South China Sea, an area including the Paracel Islands and Spratly Islands disputed by the Philippines, China, Brunei, Malaysia, Taiwan...

 drawn by China which marks its claim covers around three-fourths of the total area of the South China Sea.

Background

The area is potentially rich in oil deposits. The Ministry of Geological Resources and Mining of the People's Republic of China estimated that the South China Sea may contain 17.7 billion tons of crude (compared to Kuwait
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...

 with 13 billion tons). In the years following the announcement by the ministry, the claims regarding the South China Sea islands intensified. However, other sources claim that the proven reserve of oil in the South China Sea may only be 7.5 billion barrels, or about 1.1 billion tons. The South China Sea is dubbed by China as the "second Persian Sea". The state-owned China Offshore Exploration Corp. planned to spend 200 billion RMB
Renminbi
The Renminbi is the official currency of the People's Republic of China . Renminbi is legal tender in mainland China, but not in Hong Kong or Macau. It is issued by the People's Bank of China, the monetary authority of the PRC...

 (US
United States dollar
The United States dollar , also referred to as the American dollar, is the official currency of the United States of America. It is divided into 100 smaller units called cents or pennies....

$30 billion) in the next 20 years to exploit oil in the region, with the estimated production of 25 million metric tons of crude oil and natural gas per annum, at a depth of 2000 meters within the next 5 years.

On March 11, 1976, the first Philippine oil company discovered an oil field off Palawan Island (island within the South China Sea belonging to the Philippines). These oil fields supply 15% of annual oil consumption in the Philippines.

However, none of the countries claiming the Spratly Islands have granted concession offshore to avoid provoking a crisis. In addition, since the territorial dispute is not yet resolved, international oil companies have not made commitments.

The abundant fishing opportunities within the region are another motivation for the claim. In 1988, the South China Sea is believed to have accounted for 8% of world fishing catches, a figure that has grown since then. There have been many clashes in the Philippines with foreign fishing vessels (including China) in the Philippine Exclusive Economic Zone
Exclusive Economic Zone
Under the law of the sea, an exclusive economic zone is a seazone over which a state has special rights over the exploration and use of marine resources, including production of energy from water and wind. It stretches from the seaward edge of the state's territorial sea out to 200 nautical...

. China believes that the value in fishing and oil from the sea has risen to a trillion dollars.

The area is also one of the busiest shipping routes in the world. In the 1980s, at least 270 merchant ships used the route each day. Currently, more than half the tonnage of oil transported by sea passes through it, a figure rising steadily with the growth of Chinese consumption of oil. This traffic is three times greater than that passing through the Suez Canal
Suez Canal
The Suez Canal , also known by the nickname "The Highway to India", is an artificial sea-level waterway in Egypt, connecting the Mediterranean Sea and the Red Sea. Opened in November 1869 after 10 years of construction work, it allows water transportation between Europe and Asia without navigation...

 and five times more than the Panama Canal
Panama Canal
The Panama Canal is a ship canal in Panama that joins the Atlantic Ocean and the Pacific Ocean and is a key conduit for international maritime trade. Built from 1904 to 1914, the canal has seen annual traffic rise from about 1,000 ships early on to 14,702 vessels measuring a total of 309.6...

.

2011 agreement

On 20 July 2011, the PRC, Brunei, Malaysia, the Philippines, the ROC and Vietnam agreed to a set of preliminary guidelines which would help resolve the dispute. The agreement was described by the PRC's assistant foreign minister, Liu Zhenmin, as "an important milestone document for cooperation among China and ASEAN countries". Some of the early drafts acknowledged aspects such as "marine environmental protection, scientific research, safety of navigation and communication, search and rescue and combating transnational crime", although the issue of oil and natural gas drilling remains unresolved.

Chinese objection to Indian naval presence and oil exploration

On July 22, 2011, the INS Airavat, an Indian amphibious assault vessel on a friendly visit to Vietnam, was reportedly contacted 45 nautical miles from the Vietnamese coast in the disputed South China Sea. The ship was contacted on open radio channel by a party identifying itself as the Chinese Navy and stating that the ship was entering Chinese waters. A spokesperson for the Indian Navy
Indian Navy
The Indian Navy is the naval branch of the armed forces of India. The President of India serves as the Commander-in-Chief of the Navy. The Chief of Naval Staff , usually a four-star officer in the rank of Admiral, commands the Navy...

 explained that as no ship or aircraft was visible, the INS Airavat proceeded on her onward journey as scheduled. The Indian Navy further clarified that "[t]here was no confrontation involving the INS Airavat. India supports freedom of navigation in international waters, including in the South China Sea, and the right of passage in accordance with accepted principles of international law. These principles should be respected by all."

In September 2011, shortly after China and Vietnam signed an agreement seeking to contain a dispute over the South China Sea, India's state-run explorer, Oil and Natural Gas Corporation (ONGC) said that its overseas investment arm ONGC Videsh Limited had signed a three-year agreement with PetroVietnam
Petrovietnam
PetroVietnam is the trading name of Vietnam Oil and Gas Group . PetroVietnam has developed rapidly since it was established in 1977, and its activities, through its various companies and wholly owned subsidiaries, now cover all the operations from oil and gas exploration and production to...

 for developing long-term cooperation in the oil sector and that it had accepted Vietnam's offer of exploration in certain specified blocks in the South China Sea In response, Chinese Foreign Ministry spokesperson Jiang Yu, without referring to India by name, stated as follows:
“China enjoys indisputable sovereignty over the South China Sea and the island. China's stand is based on historical facts and international law. China's sovereign rights and positions are formed in the course of history and this position has been held by Chinese Government for long. On the basis of this China is ready to engage in peaceful negotiations and friendly consultations to peacefully solve the disputes over territorial sovereignty and maritime rights so as to positively contribute to peace and tranquillity in the South China Sea area. We hope that the relevant countries respect China's position and refrain from taking unilateral action to complicate and expand the issue. We hope they will respect and support countries in the region to solve the bilateral disputes through bilateral channels. As for oil and gas exploration activities, our consistent position is that we are opposed to any country engaging in oil and gas exploration and development activities in waters under China's jurisdiction. We hope the foreign countries do not get involved in South China Sea dispute.”
An Indian foreign ministry spokesman responded, “The Chinese had concerns, but we are going by what the Vietnamese authorities have told us and [we] have conveyed this to the Chinese.” The Indo-Vietnamese deal was also denounced by the Chinese state-run newspaper Global Times
Global Times
The Global Times is a daily Chinese tabloid under the auspices of the official Chinese Communist Party newspaper, the People's Daily, focusing on international issues...

.

Retrenchment

In October 2011, China's Global Times
Global Times
The Global Times is a daily Chinese tabloid under the auspices of the official Chinese Communist Party newspaper, the People's Daily, focusing on international issues...

newspaper, published by Communist Party organ People's Daily
People's Daily
The People's Daily is a daily newspaper in the People's Republic of China. The paper is an organ of the Central Committee of the Communist Party of China , published worldwide with a circulation of 3 to 4 million. In addition to its main Chinese-language edition, it has editions in English,...

editorialized on South China Sea territorial disputes under the banner “Don't take peaceful approach for granted”. The article referenced recent incidents involving Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...

 and South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

 detaining Chinese fishing boats in the region.
Responding to questions about whether this reflected official policy, a Chinese Foreign Ministry
Ministry of Foreign Affairs of the People's Republic of China
The Ministry of Foreign Affairs of the People's Republic of China is an executive agency responsible for foreign relations between the People's Republic of China and other countries in the world. The agency is led by the Foreign Minister. The current minister is Yang Jiechi...

 spokeswoman stated the country's commitment “to resolving the maritime
Maritime
Maritime is primarily an adjective that describes objects or activities related to the sea.Maritime or Maritimes as a noun may also refer to:-Geography:...

dispute through peaceful means.”

2005


2011

  • 26 May: The clash involved the Vietnamese Binh Minh 02 oil and gas survey ship and three Chinese maritime patrol vessels occurred 120km (80 miles) off the south-central coast of Vietnam and some 600km south of China's Hainan island. Vietnam says the Chinese boats deliberately cut the survey ship's cables in Vietnamese waters. China denies the allegation. The event stirred up unprecedented anti-China protests in Hanoi and Ho Chi Minh city.


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