Who owns the South China Sea? | CNBC Explains

Summary

The South China Sea is a highly disputed region with countries like China, Vietnam, Malaysia, and the Philippines claiming parts of its waters. The area is strategically important for global trade, with $5.3 trillion worth of goods passing through annually. Additionally, it holds vast reserves of oil and natural gas, making it even more desirable. China’s controversial nine-dash line claims nearly all of the sea, a stance rejected by international law. Despite an international tribunal ruling against China, the country has continued to assert its dominance by building artificial islands, escalating tensions in the region.

Takeaways

• 😀 The South China Sea is one of the most disputed bodies of water in the world due to territorial claims from multiple countries.
• 😀 China claims nearly all of the South China Sea, including areas within 200 miles of other countries like Malaysia, the Philippines, and Vietnam.
• 😀 China has built artificial islands with military facilities in the South China Sea, escalating tensions in the region.
• 😀 In 2017 alone, China’s construction projects in the South China Sea covered 72 acres of new islands.
• 😀 The South China Sea is a crucial shipping passage, with $5.3 trillion worth of trade passing through it every year, representing nearly one-third of global maritime trade.
• 😀 The South China Sea is also rich in natural resources, including billions of barrels of oil and trillions of cubic feet of natural gas.
• 😀 The U.S. estimates the South China Sea holds 11 billion barrels of oil and 190 trillion cubic feet of natural gas, while China estimates the figures are much higher.
• 😀 According to international law, countries have the right to claim territorial waters up to 12 nautical miles from their coast and an exclusive economic zone up to 200 nautical miles.
• 😀 China’s government claims a special right to the South China Sea based on the 'nine-dash line,' which has been part of Chinese maps for around 70 years.
• 😀 An international tribunal in 2016 ruled against China’s claims, stating there was no legal basis for the nine-dash line, but China continues to assert its territorial rights and expand its military presence in the region.

Q & A

What is the South China Sea dispute primarily about?

The South China Sea dispute is primarily about territorial claims over the waters, including disputes over ownership of land, fishing rights, and control of oil and natural gas resources beneath the sea.

Which countries claim territory in the South China Sea?

Several countries claim parts of the South China Sea, including China, the Philippines, Malaysia, Brunei, Vietnam, and Taiwan.

Why is China’s claim to the South China Sea considered controversial?

China's claim is controversial because it asserts control over nearly all of the South China Sea, based on the 'nine-dash line' on historical maps, which conflicts with the claims of neighboring countries and the 2016 ruling by an international tribunal.

What is the nine-dash line?

The nine-dash line is a historical boundary used by China to claim nearly all of the South China Sea. It originally appeared as an eleven-dash line on a map about 70 years ago and is contested by several other countries in the region.

What significant construction has China undertaken in the South China Sea?

China has built man-made islands with military facilities in the South China Sea, expanding its territorial presence. In 2017 alone, China constructed 72 acres of new land.

Why is the South China Sea considered an economically significant region?

The South China Sea is economically significant because it is a major global shipping route, with over $5.3 trillion worth of trade passing through its waters every year, accounting for nearly one-third of all global maritime trade.

What natural resources are believed to be beneath the South China Sea?

The South China Sea is believed to hold large reserves of oil and natural gas, with estimates ranging from 11 billion barrels of oil and 190 trillion cubic feet of natural gas to 125 billion barrels of oil and 500 trillion cubic feet of natural gas in undiscovered areas.

What is the legal basis for countries' territorial claims in the South China Sea?

International law allows countries to claim up to 12 nautical miles of territory from their coast and a 200-nautical-mile exclusive economic zone (EEZ) for activities like fishing and mining. Most countries around the South China Sea follow this principle, except for China, which claims nearly the entire area.

What was the outcome of the 2016 international tribunal ruling on the South China Sea?

In 2016, an international tribunal ruled that China’s claim to the South China Sea based on the nine-dash line has no legal basis. However, China dismissed the ruling and continued to build artificial islands in the contested waters.

How have the United States and its allies responded to China’s actions in the South China Sea?

The United States and its allies in the region are concerned about China’s military buildup in the South China Sea and have hoped for U.S. involvement. However, China has warned that any increased U.S. naval presence will prompt a stronger Chinese response in the area.