Written by Lizzy Cohn
Over the last century, territorial claims in the South China Sea, specifically the Spratly Islands, have been widely disputed among many countries including China, the Philippines, Vietnam, and Japan. In addition to these islands being a prime location along the major commercial shipping routes to northeastern Asia, they are extremely rich in resources containing an estimated 17.7 billion tons of natural gas and oil as well as being one of the most abundant locations for fishing in the world (Guo, 2018). However, over the last decade, conflict over the sovereignty of these islands has escalated; China has threatened to occupy the Spratly Islands challenging the Philippines sovereignty in the region. Within the last decade, China has taken drastic measures to acquire total sovereignty in the South China Sea.
The South China Sea is home to diverse marine ecosystems and rich fishing grounds. The exploration of these fisheries has been a source of much contention. Competing claimant states including Malaysia, Taiwan, Vietnam, Indonesia, and most notably China have all laid conflicting claims to various islands and various zones in the region (Council on Foreign Relations, 2023). Back in 2012, China seized Scarborough Shoal (a small atoll located in the South China Sea) which the Philippines claimed it had full sovereignty over. The Shoal is widely contested because of its abundance of fish. China’s forced occupation of the atoll was a diplomatic breaking point that caused the Philippines to bring the case to the Permanent Court of Arbitration, an international forum for dispute resolutions among countries who have acceded to the Court’s founding treaties. (Petty, 2023). While the ruling determined that China’s claims were invalid, Beijing still maintains control of the atoll. Acquiring additional territory in the South China Sea will continue to support China’s domestic fishing industry as well as help it expand. In 2021 alone, China accounted for 35% of all fish and seafood production worldwide and generated more than 80 million U.S dollars in revenue (Statista, 2023). Additionally, China already accounts for a fifth of the entire world population so obtaining additional fisheries will help to feed China’s ever-growing population.
In addition to fish, oil and natural gas are also critical resources that China aims to control. Oil and natural gas are essential to fueling China’s ever-expanding manufacturing sector and consumer economy. China is expected to add 1.5 million barrels per day in additional refining capacity between 2022 and 2028, the most of any country in the world (Russel, 2023). In December of 2022, China’s oil exports reached an all time high of 77.7 trillion tons exported (S&P Global Imports, 2023). The added oil refining capacity will allow China to fulfill its domestic energy needs and become less dependent on other countries like Saudi Arabia and Russia.
While natural resources provide enough of an incentive for China to control the region, the ability to regulate some of the world’s most important shipping routes provides an even greater incentive. Gaining influence over key ports in the South China Sea allows China to project economic and strategic power. Developing and controlling infrastructure, such as ports and naval bases, will enhance China’s trade capabilities and overall economic strength. It is estimated that over 80% of world trade travels through the South China Sea, which is an estimated that about 5.3 trillion dollars worth of commercial goods (China Power, 2016). The Strait of Malacca is of special importance since it works as a crossroads between the Pacific to the Indian Ocean. Since roughly 40% of China’s exported goods transfer through the South China Sea, Beijing has an intense motivation to protect the movement of free trade.
In order to boost its sovereign claims, China is constructing man-made islands among the Spratly Islands in the South China Sea in order to increase its Exclusive Economic Zone (EEZ). These zones give countries exclusive rights to explore and exploit marine resources within a certain distance from their coastlines, providing economic benefits. According to the UN Law of the Seas, a country’s EEZ extends 200 miles off its coast thus building artificial islands would allow China to amass many more miles that would be under its sovereignty (Ellis, 2017). China has even gone a step further and militarized these islands to intimidate the Philippines and other nations from challenging its sovereignty. Last year, China militarized at least three of its newly crafted islands, arming them with “anti-ship and anti-aircraft missile systems” as well as fighter jets and a brand new radar system (The Guardian, 2022).
China has proven that it is not afraid to take aggressive action in order to grow its EEZs in the South China Sea to protect critical economic resources. This includes untapped natural gas and oil reserves as well as some of the most biodiverse fisheries in the world. In order to project economic and strategic strength, China is aggressively working to control key trade routes most notably the Strait of Malacca. With China’s continuously expanding demand for resources there is no reason to think China will stop its aggressive activity. Only time will tell whether China’s neighbors will be able to stop this expansion.
Bibliography:
Guo, R. (n.d.). Cross-border Resource Management (third edition). Elsevier.
Council on Foreign Relations. (n.d.). Territorial disputes in the South China Sea | global conflict tracker. Council on Foreign Relations. https://www.cfr.org/global-conflict-tracker/conflict/territorial-disputes-south-china-sea
Petty, M. (2023, September 27). What is Scarborough Shoal in the South China Sea and why are China and the Philippines disputing it?. Reuters. https://www.reuters.com/world/asia-pacific/what-is-risk-conflict-disputed-scarborough-shoal-2023-09-26/#:~:text=China%20seized%20the%20shoal%20in,in%20the%20South%20China%20Sea
Topic: Fishing industry in China. Statista. https://www.statista.com/topics/10103/fishing-industry-in-china/#topicOverview
U.S. Energy Information Administration – EIA – independent statistics and analysis. International – U.S. Energy Information Administration (EIA). (n.d.). https://www.eia.gov/international/analysis/regions-of-interest/South_China_Sea#:~:text=Reserves%20and%20resources,mostly%20reside%20in%20undisputed%20territory
Russell, C. (2023, June 14). China to become oil refining juggernaut, raising global risks. Reuters. https://www.reuters.com/markets/commodities/china-become-oil-refining-juggernaut-raising-global-risks-russell-2023-06-14/
Ellis, S. (2017, February 17). Why China is building islands in the South China sea. Vox. https://www.vox.com/videos/2017/2/17/14642818/china-south-china-sea-us-islands
Guardian News and Media. (2022, March 21). China has fully militarized three islands in South China Sea, US admiral says. The Guardian. https://www.theguardian.com/world/2022/mar/21/china-has-fully-militarized-three-islands-in-south-china-sea-us-admiral-says