Tribunal overwhelmingly rejects Beijing’s South China Sea claims

anti-China protest group over South China Sea

By Anthony Deutsch and Ben Blanchard

AMSTERDAM/BEIJING (Reuters) – An arbitration court ruled on Tuesday that China has no historic title over the waters of the South China Sea and has breached the Philippines’ sovereign rights with its actions, infuriating Beijing which dismissed the case as a farce.

A defiant China, which boycotted the hearings at the Permanent Court of Arbitration in The Hague, vowed again to ignore the ruling and said its armed forces would defend its sovereignty and maritime interests.

China’s state-run Xinhua news agency said shortly before the ruling was announced that a Chinese civilian aircraft had successfully tested two new airports in the disputed Spratly Islands.

And China’s Defence Ministry said a new guided missile destroyer was formally commissioned at a naval base on the southern island province of Hainan, which has responsibility for the South China Sea.

“This award represents a devastating legal blow to China’s jurisdictional claims in the South China Sea,” Ian Storey, of Singapore’s ISEAS Yusof Ishak Institute, told Reuters.

“China will respond with fury, certainly in terms of rhetoric and possibly through more aggressive actions at sea.”

The United States, which China has accused of fuelling tensions and militarizing the region with patrols and exercises, urged parties to comply with the legally binding ruling and avoid provocations.

“The decision today by the Tribunal in the Philippines-China arbitration is an important contribution to the shared goal of a peaceful resolution to disputes in the South China Sea,” State Department spokesman John Kirby said in a statement.

U.S. officials have previously said they feared China may respond to the ruling by declaring an air defense identification zone in the South China Sea, as it did in the East China Sea in 2013, or by stepping up its building and fortification of artificial islands.

China claims most of the energy-rich waters through which about $5 trillion in ship-borne trade passes every year. Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims.

Finding for the Philippines on a number of issues, the panel said there was no legal basis for China to claim historic rights to resources within its so-called nine-dash line, which covers almost 90 percent of the South China Sea.

It said China had interfered with traditional Philippine fishing rights at Scarborough Shoal and had breached the Philippines’ sovereign rights by exploring for oil and gas near the Reed Bank.

None of China’s reefs and holdings in the Spratly Islands entitled it to a 200-mile exclusive economic zone, it added.

“2,000 YEARS OF HISTORY”

China’s Foreign Ministry rejected the ruling, saying its people had more than 2,000 years of history in the South China Sea, that its islands did have exclusive economic zones and that it had announced to the world its “dotted line” map in 1948.

“China’s territorial sovereignty and maritime rights and interests in the South China Sea shall under no circumstances be affected by those awards,” it said.

However, the ministry also repeated that China respected and upheld the freedom of navigation and overflight and that China was ready to keep resolving the disputes peacefully through talks with states directly concerned.

In a statement shortly before the ruling, China’s Defence Ministry said its armed forces would “firmly safeguard national sovereignty, security and maritime interests and rights, firmly uphold regional peace and stability, and deal with all kinds of threats and challenges”

The judges acknowledged China’s refusal to participate, but said they sought to take account of China’s position from its statements and diplomatic correspondence.

“The award is a complete and total victory for the Philippines … a victory for international law and international relations,” said Paul Reichler, lead lawyer for the Philippines.

Vietnam said it welcomed the ruling.

Taiwan, which maintains that the island it occupies, Itu Aba, is legally the only island among hundreds of reefs, shoals and atolls scattered across the seas, said it did not accept the ruling, which seriously impaired Taiwan’s territorial rights.

“This is the worst scenario,” Taiwan Foreign Minister David Tawei Lee told reporters, promising unspecified “action” from Taipei.

GROUND-BREAKING RULING

The ruling is significant as it is the first time that a legal challenge has been brought in the dispute, which covers some of the world’s most promising oil and gas fields and vital fishing grounds. [http://bit.ly/29AlvXc]

It reflects the shifting balance of power in the 3.5 million sq km sea, where China has been expanding its presence by building artificial islands and dispatching patrol boats that keep Philippine fishing vessels away.

The Philippines said it was studying the ruling.

“We call on all those concerned to exercise restraint and sobriety,” Foreign Affairs Secretary Perfecto Yasay told a news conference. “The Philippines strongly affirms its respect for this milestone decision as an important contribution to the ongoing efforts in addressing disputes in the South China Sea.”

Japan said the ruling was legally binding and final.

Oil prices jumped following the findings, with Brent crude futures <LCOc1> up almost 3 percent at $47.87 per barrel at 1130 GMT (7:30 a.m. ET).

The court has no power of enforcement, but a victory for the Philippines could spur Taiwan, Vietnam, Malaysia and Brunei to file similar cases.

Ahead of the ruling, around 100 members of a Philippine nationalist group demonstrated outside the Chinese consulate in Manila, calling on Beijing to accept the decision and leave the Scarborough Shoal, a popular fishing zone off limits to Filipinos since 2012.

In China, social media users reacted with outrage at the ruling.

“It was ours in the past, is now and will remain so in the future,” wrote one user on microblogging site Weibo. “Those who encroach on our China’s territory will die no matter how far away they are.”

Spreading fast on social media in the Philippines was the use of the term “Chexit” – the public’s desire for Chinese vessels to leave the waters.

(Additional reporting by Enrico Dela Cruz and Martin Petty in Manila, Megha Rajagopalan in Beijing, Tim Kelly in Tokyo, John Walcott and David Brunnstrom in Washington, JR Wu in Taipei and Greg Torode in Hong Kong.; Editing by Lincoln Feast and Nick Macfie)

China scrambles fighters as U.S. sails warship near Chinese claimed reef

Still image from a United States Navy video purportedly shows Chinese dredging vessels in the waters around Fiery Cross Reef in the disputed Spratly

By Michael Martina, Greg Torode and Ben Blanchard

BEIJING/HONG KONG (Reuters) – China scrambled fighter jets on Tuesday as a U.S. navy ship sailed close to a disputed reef in the South China Sea, a patrol China denounced as an illegal threat to peace which only went to show its defense installations in the area were necessary.

Guided missile destroyer the USS William P. Lawrence traveled within 12 nautical miles of Chinese-occupied Fiery Cross Reef, U.S. Defense Department spokesman, Bill Urban said.

The so-called freedom of navigation operation was undertaken to “challenge excessive maritime claims” by China, Taiwan, and Vietnam which were seeking to restrict navigation rights in the South China Sea, Urban said.

“These excessive maritime claims are inconsistent with international law as reflected in the Law of the Sea Convention in that they purport to restrict the navigation rights that the United States and all states are entitled to exercise,” Urban said in an emailed statement.

China and the United States have traded accusations of militarizing the South China Sea as China undertakes large-scale land reclamations and construction on disputed features while the United States has increased its patrols and exercises.

Facilities on Fiery Cross Reef include a 3,000-metre (10,000-foot) runway which the United States worries China will use it to press its extensive territorial claims at the expense of weaker rivals.

China’s Defence Ministry said two fighter jets were scrambled and three warships shadowed the U.S. ship, telling it to leave.

The U.S. patrol “again proves that China’s construction of defensive facilities on the relevant reefs in the Nansha Islands is completely reasonable and totally necessary”, it said, using China’s name for the Spratly Islands where much of its reclamation work is taking place.

Foreign Ministry spokesman Lu Kang said the U.S. ship illegally entered Chinese waters.

“This action by the U.S. side threatened China’s sovereignty and security interests, endangered the staff and facilities on the reef, and damaged regional peace and stability,” he told a daily news briefing.

SENSITIVE AREA

China claims most of the South China Sea, through which $5 trillion in ship-borne trade passes every year. The Philippines, Vietnam, Malaysia, Taiwan and Brunei have overlapping claims.

The Pentagon last month called on China to reaffirm it has no plans to deploy military aircraft in the Spratly Islands after China used a military plane to evacuate sick workers from Fiery Cross.

“Fiery Cross is sensitive because it is presumed to be the future hub of Chinese military operations in the South China Sea, given its already extensive infrastructure, including its large and deep port and 3000-metre runway,” said Ian Storey, a South China Sea expert at Singapore’s ISEAS Yusof Ishak Institute.

“The timing is interesting, too. It is a show of U.S. determination ahead of President Obama’s trip to Vietnam later this month.”

Speaking in Vietnam, Daniel Russel, assistant secretary of state for East Asia and the Pacific, said freedom of navigation operations were important for smaller nations.

“If the world’s most powerful navy cannot sail where international law permits, then what happens to the ships of navy of smaller countries?,” Russel told reporters before news of the operation was made public.

China has reacted with anger to previous U.S. freedom of navigation operations, including the overflight of fighter planes near the disputed Scarborough Shoal last month, and when long-range U.S. bombers flew near Chinese facilities under construction on Cuarteron Reef in the Spratlys last November.

U.S. naval officials believe China has plans to start reclamation and construction activities on Scarborough Shoal, which sits further north of the Spratlys within the Philippines claimed 200 nautical mile (370 km) exclusive economic zone.

A tough-talking city mayor, Rodrigo Duterte, looks set to become president of the Philippines after an election on Monday. He has proposed multilateral talks on the South China Sea.

A Chinese diplomat warned last week that criticism of China over the South China Sea would rebound like a coiled spring.

(Additional reporting by David Brunnstrom in Paris and My Pham in Hanoi; Writing by Ben Blanchard; Editing by Lincoln Feast, Robert Birsel)

China Condemns U.S. for Sailing Too Close to Man-Made Islands in South China Sea

The United States angered China on Tuesday by sailing a U.S. Navy guided-missile destroyer 12-nautical-miles from their man-made islands in the disputed South China Sea.

A U.S. defense official told Reuters that this was the first in a series of exercises that will test China’s territorial claims. While tensions are rising, the actions of the U.S. are intended to keep the freedom of navigation in one of the world’s busiest shipping lanes.

While the USS Lassen wasn’t met with any resistance, Chinese ships did follow the vessel throughout the South China Sea, and Chinese officials quickly and angrily responded.

“The actions of the U.S. warship have threatened China’s sovereignty and security interests, jeopardized the safety of personnel and facilities on the reefs, and damaged regional peace and stability,” China’s Foreign Ministry said in a statement on its website, according to NBC News.

The “U.S. side [should] think twice, not … take rash moves and stir up troubles,” China’s Foreign Minister Wang Yi warned in a separate statement.

China has reclaimed approximately 2,000 acres of the three main locations in the Spratly Islands located in the South China Sea over the past 18 months. Officials believe that China is building airstrips with the capability of handling bombers. Other countries fighting with China over the territorial claims of the South China Sea include Brunei, the Philippines, Malaysia, Taiwan, and Vietnam. The U.S. has not taken any sides in this dispute.