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Spratly Islands |
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Spratly Islands |
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Occupied by China (PRC)
Occupied by Malaysia
Occupied by the Philippines
Occupied by Taiwan (ROC)
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Territorial disputes in the South China Sea involve six sovereign states within the region, namely the:
The Spratly and Paracel archipelago are two groups of uninhabited islands located within the South China Sea, 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 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 drawn by China which marks its claim covers around three-fourths of the total area of the South China Sea.
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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 with 13 billion tons). In the years following the announcement by the ministry, the claims regarding the South China Sea islands intensified.[1] 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.[2] The South China Sea is dubbed by China as the "second Persian Sea"[3]. The state-owned China Offshore Exploration Corp. planned to spend 200 billion RMB (US$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.[4]
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. 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 and five times more than the Panama Canal.
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.[5] 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".[5] 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.
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.[6][7] A spokesperson for the Indian 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."[8]
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 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[9] 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.”[10][11]
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.”[12] The Indo-Vietnamese deal was also denounced by the Chinese state-run newspaper Global Times.[13][14]
In October 2011, China's Global Times newspaper, published by Communist Party organ People's Daily editorialized on South China Sea territorial disputes under the banner “Don't take peaceful approach for granted”. The article referenced recent incidents involving Philippines and South Korea detaining Chinese fishing boats in the region.[15]
“ | If these countries don't want to change their ways with China, they will need to prepare for the sounds of cannons. We need to be ready for that, as it may be the only way for the disputes in the sea to be resolved. | ” |
—Global Times (China), 25 October 2011 |
Responding to questions about whether this reflected official policy, a Chinese Foreign Ministry spokeswoman stated the country's commitment “to resolving the maritime dispute through peaceful means.”[16]
“ | “China’s systematic action is aimed at turning the undisputed area belonging to Vietnam into an area under dispute in order to materialize China’s nine-dotted line claim in the East Sea. This is unacceptable” | ” |
—Vietnamese spokeswoman Pham Phuong Nga, following the June 9th incident |