South China Sea

South China Sea (SCS) is im­portant not just to its littoral coun­tries. It has been a transit point for trade since early medieval times, contains abundantly rich fisheries, and is a repository of mineral depo­sits and hydrocarbon reserves.

Importance of South China Sea

• Strategic Location: key commercial point connecting Asia with Europe and Africa
• One third of global shipping, or a total of US$3.37 trillion of international trade, passes through the South China Sea.
• around 80 percent of Beijing’s imports of oil reach through the South China Sea after passing the Strait of Malacca
• Up to 97% of India’s total International trade volume is sea borne, half of which passes through the strait of Malacca. In addition, ASEAN constitutes one of India’s largest trade partners. Any instability in the SCS would adversely affect the shipping lanes and have a knock-on effect on India’s economy
• Natural Resource: major reserves of natural resources, such as natural gas and oil
• Fisheries: 10% of the world’s fisheries, making it a key source of food for hundreds of millions of people.

Issues with South China Sea

• Territorial conflict: Philippines, Vietnam, China, Brunei, Taiwan and Malaysia hold different, sometimes overlapping, territorial claims
• China claims more than 80 per cent. China’s “nine-dash line” is a geographical marker used to assert its claim.
• China insists Chinese fishermen are free to conduct activities in their “traditional fishing ground,” which partly overlaps with Indonesia’s EEZ around the Natuna island group
• Vietnam claims sovereignty over the Paracel Islands and the Spratly Islands.
• Philippines asserts ownership of the Spratly archipelago and the Scarborough Shoal
• Brunei and Malaysia have claimed sovereignty over southern parts of the sea and some of Spratly Islands
• Violation of International rules: In 2016, China rejected UNCLOS Arbitral Tribunal ruling said that China cannot claim historic rights to resources in the waters within a “nine-dash line” encompassing much of the South China Sea if these waters are within the exclusive economic zone, or EEZ, of other coastal states.
• Arbitration was initiated by the Philippines and considered the legality of China's Nine-Dash Line, Chinese island construction within the Philippine Exclusive Economic Zone, and resource exploitation in disputed waters, among other issues
• Balance of Power: The SCS borders three U.S. treaty allies: Japan, South Korea, and the Philippines, current, emerging, or potential U.S. partner countries, such as Singapore, Vietnam, and Indonesia. China growing presence in SCS has visibly challenged the international system and US hegemony in the region
• Militarisation of South China Sea: Both China and US have escalated their military presence in SCS. provoked apprehensions among both littorals as well as countries external to the region, as all of them have an interest in ensuring that commercial and military access across the Pacific remains unimpeded.

Global Response

• ASEAN working with China on an official code of conduct to avoid clashes in the disputed waters.
• United States has stepped up its military activity and naval presence in the region in recent years, including freedom of navigation operations (FONOPs)
• India has favoured inclusivity and plurality. Institutions and orders need to be “consultative and non-prescriptive, respectful of the region’s preference for consensus-based approaches.

Way forward

• real challenge is in judging China’s legitimate interests, how far they must be accommodated, and where the line must be drawn.
• deterrence measures while providing sufficient encouragement so that china eventually recognises the framework of international law and order.
• stronger and more dynamic institutional mechanisms
• efforts towards ascertaining areas of common interests which offer scope for China to contribute constructively in order to draw it into the global rules-based order and leverage it in a beneficial role.
• India must continue to actively pursue its defence diplomacy out­ reach in the Indo­Pacific region

The Comprehensive Stra­tegic Partnerships that India has concluded with Australia, Japan, In­ donesia, the U.S., and Vietnam could be extended to Malaysia, the Philip­pines, Thailand, and Singapore.