The International Crisis Group provides an in-depth report on the South China Sea and its regional responses, examining what the conflicts mean for each country involved, and what risks and factors are at play for all. The sea is also a shipping route and has major fishing grounds. An online resource for students, scholars and policy-makers interested in South China Sea regional development, environment, and security issues. The South China Sea is one of the most important economic and environmental regions in the world. As China builds islands in the middle of the South China Sea, once underwater reefs have become sandy islands with airfields, roads, buildings, and bases for missile systems. It was a fruitless exercise as neither side was able to extract any oil in the process. 1616 Rhode Island Avenue, NW Backgrounder It is also studded with numerous islets, atolls and reefs many of which are just awash at low tide. The region has also seen increased militarization in response to Chinas burgeoning power, raising the stakes of a potential armed conflict and making disputes more difficult to resolve. But skeptics worry that China is laying a debt trap for borrowing governments. Over the last 10 years, the conflict in the South China Sea has been constantly in the spotlight. Persistent building has caught the attention of the US. The Philippines has been on an upwards trajectory of development, and with that it has to maintain a reliable energy source. In these seemingly insignificant island chains and reefs, there are growing risks of military conflict between the world's two most powerful countries. The resources could have much more of an impact on poorer economies such as Vietnam, the Philippines, Malaysia and Taiwan. As China has grown more powerful economically and militarily, it has looked to assert its dominance in everything from trade to international institutions like the United Nations. The South China Sea Arbitration case decided on July 12, 2016 was an arbitration case brought against China for its effective control . The line, which is contested by the Philippines, Brunei, Malaysia, Taiwan, and Vietnam, encompasses virtually the entire South China Sea region and caused immediate controversy when China submitted a map to the UN in 2009 that included the demarcation. An important new book shows that China's aggressive behavior in the South China Sea is not only creating regional tensions but also destroying the ecosystem upon which hundreds of millions of people rely. Unlike the United States and EU, which are engaged in other regions of the world, the Southeast Asian countries are compelled to spend more protecting their most immediate interests. As defined by the International Union of Pure and Applied Chemistry, rare earth metals are a set of seventeen chemical elements in the periodic table, specifically the fifteen lanthanides plus scandium and yttrium. State-owned oil company China National Offshore Oil Corporation (CNOOC) says the South China Sea is one of its 'most important oil and gas producing areas due to its huge resource potential,' and that 'a number of important discoveries' have been made in the region so far. The conflict, fuelled by sovereignty disputes over the waters and islands of the South China Sea, has intensified in recent years, due in part to ever increasing competition for resources. The Chinese telecommunications company faces accusations that Beijing could use its 5G infrastructure for espionage. A U.S. Navy plane recently flying over the South China Sea reportedly received an ominous radio warning from China before the country scrambled a jet to track the U.S. aircraft. Renewing America, Backgrounder July 04, 2021. Credit: Official U.S. Navy page. by Lindsay Maizland He said the US, which has previously said it does not take sides in territorial disputes, rejected Beijing's claims to waters off Vietnam, Malaysia and Indonesia. We are making clear: Beijing's claims to offshore resources across most of the South China Sea are completely unlawful, as is its campaign of bullying to control them. Theres nothing like NATO in Asia, and thats whats worrisome, Rosenberg says. In response, China's Foreign Ministry called the US's plans 'provocative' behaviour and stated that it would "never allow any country to violate" its terrestrial waters or airspace. Author of. Vietnam's energy demand is growing by up to 14% per year, and cannot be sustained by its current coal and gas reserves, which are easily exploitable but running down. by Olivia Angelino, Thomas J. Bollyky, Elle Ruggiero and Isabella Turilli Though the availability of REMs in the South China Sea is still being determined, large deposits have recently been found just off Japans east coast, and China has previously used its virtual monopoly on the minerals to punish Japan in the Senkaku/Diaoyu island conflict. by Experts say the potential for an escalated conflict in the South China Seawhile seemingly distant for nowpresents an ongoing crisis for the region, as well as for U.S. interests in the area. ..Find out more, Innovating Out of the Climate Crisis: Carbon Emissions, As the private sector, federal regulators, and climate activists alike search for more tools to keep carbon out of the atmosphere, active carbon management approaches like carbon capture, utilization, and storage once seen as too costly, too risky, or both are gaining renewed attention. China has, so far, undertaken the militarization of the 1.35 million square miles of South China Sea in two phases. China and Vietnam have managed to cooperate on a common fishery zone in the Tonkin Gulf, where the two countries have delineated claims and regulated fishing. This was only the most recent incident highlighting . The "nine-dash line" is a controversial demarcation line used by China for its claim to territories and waters in the South China Sea, most notably over the Scarborough Shoal and the Paracel and Spratly Islandsthe two most important disputed island groups. What's behind the South China Sea dispute? the Chinese embassy in Washington DC said the US state department "deliberately distorts the facts and international law including the United Nations Convention on the Law of the Sea". And the stakes in the region are incredibly high. Overfishing and destructive practices such as dynamite and cyanide fishing primarily contribute to this depletion. The sea covers approximately 3,700,000 km (1,350,000 . All the countries bordering directly on this sea - China, Vietnam, Taiwan, the Philippines, Malaysia, and Brunei - have claimed some or all of the tiny, but strategically located, Spratly Islets and some or all of the maritime space and its resources. According to studies made by the Filipino Department of Environment and Natural Resources, the South China Sea holds one third of the entire worlds marine biodiversity and provides about ten percent of the worlds catch. David Rosenbergs article [PDF] for the Harvard Asia Quarterly delves into what's at risk in the South China Sea, including the region's resources profiles, shipping lanes and fisheries. The varied estimates demonstrate that no consensus has been formed on the numbers. The first phase comprised of expanding into the region by the creation of "artificial islands.". It is unclear what new actions, if any, the US might take to back up its stance. Countries that have a major influence on and claims to the sea include China, Malaysia, the Philippines and Vietnam, although Thailand, Indonesia and Taiwan have some too. Today we are strengthening U.S. policy in a vital, contentious part of that region the South China Sea. The South China Sea has connecting channels. Natural gas might be the most abundant and sought-after hydrocarbon resource in the South China Sea. 1 / 15. Chinas colossal infrastructure investments may usher in a new era of trade and growth for economies in Asia and beyond. Official websites use .gov According to some estimates however, 40% of the stocks are collapsed or overexploited and 70% of the coral reefs are heavily depleted. January 3, 2023 1. However, oil development has remained a highly contentious issue, as both Vietnam and the Philippines have gone ahead with gas exploration projects [PDF] with foreign companies in disputed areas. Sign up to receive ShareAmerica updates. The conflict was enough for HNR to pull out, and also state that it was dissociating itself from assets in China altogether. In winter the general surface temperature is cooler, ranging from about 70 F (21 C) in the north to 81 F (27 C) in the south. These developments assume that there are reserves available. This is a huge sum, and if true, would be the equivalent of about 80 percent of the oil reserves of Saudi Arabia. Please select which sections you would like to print: General Manager, LaFond Oceanic Consultants, San Diego, California. "Some may assert that resolving the dispute in the South China Sea is not the business of the United States or any other country that is not a claimant to the islands and waters. What is known is most often contained in reports and workshop and conference documents that are not available to the wider scientific community. It is easily verifiable that China had continuous trade contact with what . By Zachary Haver. . He condemned Beijing's "campaign of bullying to control . It is south of China, east & south of Vietnam, west of the Philippines and north of the island of Borneo. All the countries bordering directly on this seaChina, Vietnam, Taiwan, the Philippines, Malaysia, and Bruneihave claimed some or all of the tiny, but strategically located, Spratly Islets and some or all of the maritime space and its resources. China and the Philippines have sparred for decades over sovereignty and natural resources in the South China Sea, which led to a landmark arbitration case in 2016 won by Manila. "No approaching any more or you will pay full responsibility," a voice from a Chinese air force ground station told a U.S. Navy P-8 flying outside of . An EEZ spans outward 200 nautical miles from the coast of the each states territorial sea, and may include the continental shelf beyond the 200-mile limit. They write new content and verify and edit content received from contributors. In 2013 the US Energy Information Administration estimated that the South China Sea contained resources equating to 11 billion barrels of oil and 190 trillion cubic feet of gas. It wants to control the South China Sea. China's . It is perhaps because of this that so little research has been undertaken on the South China Sea. According to reports, China is pressing for the termination of a Vietnamese offshore development with Rosneft Vietnam, a joint Russia-Vietnam venture that recently canceled its contract for London-based Noble Corp . Some of the tensions between the countries may cease if the consensus comes to accept that they do not stand to gain much in terms of energy from ownership of the Spratlys, but this argument has become a global issue about international law, not just oil and gas ownership. 2014 The United States and the Philippines sign an enhanced defense pact, strengthening the U.S.-Filipino relationship. It is unknown why they are so different, but it could be so that China . "Joint development" arrangements, whereby claimants agree to set aside territorial claims "without prejudice" for future resolution and jointly develop energy resources . However, Yann-Huei says China is unlikely to instigate an interruption in traffic because its business, exploration, and importation rely entirely on freedom of navigation as well. Arguments over who owns what in the South China Sea region have been going on for centuries. NOTE: Some content may not be available in all languages. . February 13, 2023 In a radio communication, the pilots were warned to leave the area "immediately" in order to "avoid any misunderstanding". According to its 2011 annual report, CNOOC produced an average of 193,000 barrels per day in the South China Sea for that year. More than half of the world's fishing vessels are in the South China Sea, and millions of people depend on these waters for their food and livelihoods. Malaysia is a fast-growing developing nation, and it has come a long way to develop its economy since gaining independence in 1957. More than half of the worlds fishing vessels are in the South China Sea, and millions of people depend on these waters for their food and livelihoods. Obviously that body of water and its land features are not coterminous with Southeast Asia, nor with East . Here is a spectrum of scenarios for the South China Sea in 2021, ranging from the worst to the best - and including the most likely. A new contest has begun in the South China Sea, where fishing vessels and warships increasingly rely on electronics, satellites and wartime strategies to stake . Summer typhoons are frequent. How Much Aid Has the U.S. More recently, on December 4, 2012, Vietnam accused a Chinese fishing boat of cutting a seismic cable attached to a Vietnamese vessel exploring for oil and gas near the Gulf of Tonkin, an act seemingly designed to prevent Hanoi from pursuing energy deposits. In terms of natural resources, the South China Sea has 11 billion barrels of oil, around 190 trillion feet of natural gas, 40 percent of global liquified natural gas (LNG), and 12 percent of the . total gas resources (as opposed to proved reserves) in the South China Sea would be almost 900 trillion cubic feet (Tcf). 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The region is home to a wealth of natural resources, fisheries, trade routes, and military bases, all of which are at stake in the increasingly frequent diplomatic standoffs. The South China Sea is an area that has abundant natural resources, especially energy resources. China's pursuit of offshore resources in parts of the South China Sea is "completely unlawful", US Secretary of State Mike Pompeo has said. Member, Commission for Developing Countries, International Association for the Physical Sciences of the Ocean. You are also agreeing to our. Although largely uninhabited, two island chains in the area may have reserves of natural resources around them. June 17, 2022. Tensions are so high the maritime territory is "at risk of becoming Asia's Palestine" according to Surin Pitsuwan, the outgoing Secretary-General of the ten-member Association of Southeast Asian Nations (ASEAN). In summer, monsoonal winds blow predominantly from the southwest; in winter, winds blow from the northeast. The U.S. Energy Information Agency estimates that the South China Sea holds about 190 trillion cubic feet of natural gas and 11 billion barrels of oil in proved and probable reserves, most of which lie along the margins of the South China Sea rather than under disputed islets and reefs. Oil and gas news, data and in-depth articles on offshore projects, exploration and decommissioning and the trends driving technology and innovation, "South China Sea is one of the most important oil and gas producing areas due to its huge resource potential. Competitive tensions escalated when Indias state-run Oil and Natural Gas Corp announced it had partnered with PetroVietnam for developing oil in the disputed waters. The Sovereignty Disputes China asserts "indisputable sovereignty over the islands in the South China Sea and the adjacent waters" without defining the scope of its "adjacent waters" claim. The Philippines also embarked on a modernization program costing roughly $1 billion that will rely heavily on U.S. sales of cutters and potentially fighter jets. On December 5, a Chinese warship nearly collided with the USS Cowpens, a guided-missile cruiser operating lawfully in the South China Sea (SCS). We will defend freedom of the seas and skies.. The seas major feature is a deep rhombus-shaped basin in the eastern part, with reef-studded shoals rising up steeply within the basin to the south (Reed and Tizard banks and the Nanshan Island area) and northwest (Paracel Islands and Macclesfield banks). South China Sea is an arm of western Pacific Ocean in Southeast Asia. July 12, 2021, 3:08 AM PDT. Advertisement. February 8, 2023, Backgrounder Their militaries are engaging in nearly continuous and . But the South China Sea has been dangerously overfished. no reliable estimates have been on these areas either. Four years after an international tribunal in The Hague ruled that China's claims in the region had no legal basis, the US has for the first time officially made its stance clear. Hover over a block to see the block name, and click it for more information including resource type, operator, and production status. In a statement on Monday, Mr Pompeo denounced China's claims on the disputed Spratly Islands in the South China Sea, saying Beijing had "no legal grounds to unilaterally impose its will on the region". But the South China Sea has been dangerously overfished. We share the Philippines' concerns regarding the PRC's provocative actions interfering with Philippine sovereign rights within the Philippine exclusive economic zone near . by Jonathan Masters, James McBride and Noah Berman stocks, coral, and other undersea resources. In less than two years, China has turned seven reefs . All of these claims have serious weaknesses under the principles of . Surrounding countries however have emerging energy markets, which could derive greater benefit from exploiting the Spratlys for oil and gas. The wet summer season causes the Mekong to triple its annual average flow, and it causes an even greater relative change in the flow of the Red River. Its actual behavior says what it wants. ASEAN countries have contested this boundary, but China has insisted on the historical legitimacy of the line based on survey expeditions, fishing activities, and naval patrols dating as far back as the fifteenth century, putting it at odds with the boundaries UNCLOS has enforced for the region since 1994. Read about our approach to external linking. Along the eastern side of the basin, the continental shelf falls off sharply near the Philippine islands of Luzon and Palawan and forms the Palawan Trough near the latter island. with Ivan Kanapathy, Bonny Lin and Stephen S. Roach, In June 2011, Vietnam accused a Chinese fishing boat of, from an oil exploration vessel inside its EEZ. Natural resources are also abundant here. The US Energy Information Agency estimates there are some 11 billion barrels of oil and 190 trillion . February 22, 2023, Article Yet another Chinese report estimates 225 billion barrels of oil equivalent in the Spratly Islands alone. Source: Swire Institute of Marine Science and Department of Ecology and Biodiversity, University of Hong Kong: ftp://ftp.fisheries.ubc.ca/l.teh/destructive%20fishing/South%20china%20sea.pdf. REUTERS/Erik De Castro Reuters. From China's perspective, challenger countries illegally inhabit islands to grab the oil and gas reserves surrounding them. On the bottom of the shelf is a network of submerged river valleys that converge into the Sunda Depression and then into the China Sea Basin. In December 2012, Chinas National Energy Administration named the disputed waters as the main offshore site for natural gas production, and a major Chinese energy company has already begun drilling in deep water off the southern coast. US Defence Secretary Ashton Carter says the US will "fly, sail and operate wherever international law allows" noting that South China Sea is no exception, which China has seen as a threat. Disputes have hindered the local offshore oil industry and deterred investors, and are now set to increase diplomatic tensions between China and the US. Total fish stocks have been depleted by 70 to 95 percent since the 1950s. This is a very important issue, and has become the main concern of Japan, the United States and even right now the European Union, says Dr. Yann-Huei Song, a fellow at Academia Sinica in Taiwan. TheSouth China Seais one of the most important economic and environmental regions in the world. The Chinese jet flew alongside the U.S. Navy plane for over an hour. While Vietnam is in the early stages of developing its energy trading market, the country could stand to gain a lot from claiming more reserves from the South China Sea than it currently has access to. Jan 28, 2022 Kent Harrington. CNOOC has the most experience with offshore oil production and has invested the most into the sea. International Union of Pure and Applied Chemistry, have recently been found just off Japans east coast, China has previously used its virtual monopoly on the minerals to punish Japan, the South China Sea holds one third of the entire worlds marine biodiversity. Weekly. Months earlier, China landed bombers in the disputed territory to take part in drills on islands and reefs. Get the AMTI Brief, our monthly feature on political, military, and environmental developments in the South and East China Seas and the claimants bordering them. July 13, 2020. But Beijing largely views U.N.-backed codes of maritime governance as incompatible with domestic laws, and has continued dredging projects on seven disputed . However, many believe there to be a significant hydrocarbon prize in the region. Beijing claims the Spratly Islands to be its 'indisputable sovereign territory'; something unsurprisingly disputed by the surrounding countries Vietnam, the Philippines, Malaysia and Taiwan. by Noah Berman, Lindsay Maizland and Andrew Chatzky There are roughly half a billion people who live within 100 miles of the South China Sea coastline, and the volume of shipping through its waters has skyrocketed as China and ASEAN nations increase international trade and oil imports. Even if there were vast extractable oil and gas reserves, there would still be the problem of obstructive disagreements over ownership. The South China Sea is a strategically important sea. 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