Tribunal rejects Beijing’s claims on South China Sea

The Permanent Court of Arbitration (PCA) in The Hague, Netherlands, has ruled that China’s claims of historical rights over South China Sea (SCS) has no legal basis. China has boycotted the hearings at the Permanent Court of Arbitration, saying it does not have jurisdiction to decide on the matter.

Source: Wall street journal

Background:

The case against China was initiated by the Philippines. The Philippines formally lodged its arbitration case under the United Nations’ 1982 Convention of the Law of the Sea, known as UNCLOS, in January 2013.

What did the arbitration panel rule?

The Hague-based PCA ruled that China has no legal basis to claim historical rights to islands in the SCS, and has violated Philippines’ sovereign rights. It said Beijing “had no historic rights to resources in the waters of the South China Sea” and that “such rights were extinguished to the extent they were incompatible with the exclusive economic zones provided for in the Convention.”

Why is South China Sea considered so important?

The SCS is a busy international waterway, being one of the main arteries of the global economy and trade. More than $5 trillion of world trade ships pass through the SCS every year. The SCS is also resource rich, with numerous offshore oil and gas blocks.

So what is the dispute about?

There are a few hundred small islands in the SCS, a part of the Pacific Ocean. Some of the main ones are Spratly Islands, Paracel Islands and Scarborough Shoal — the bone of contention between China and the Philippines. China claims most of these islands as its own. Vietnam, Malaysia, Brunei, the Philippines and Taiwan have rival claims. China has said it will not permit other nations to infringe on what it considers its sovereign rights in the strategically vital area.

Implications of this ruling:

The ruling stands to further ramp up tensions in the region, where China’s increased military assertiveness has spread concern among its smaller neighbours and is a point of confrontation with the United States. This victory for the Philippines could spur Taiwan, Vietnam, Malaysia and Brunei, which also have overlapping claims, to file similar cases.