South China Sea

China’s increasing assertiveness in the South China Sea has raised tensions over competing territorial claims and maritime rights. In July 2016, an International Tribunal on the Law of the Sea found in favour of the Philippines on fourteen of fifteen points in its dispute with China, ruling that Beijing’s “nine-dash line” claim is inconsistent with international law. China rejected the decision, but subsequently its relations with the Philippines have warmed. Tensions between littoral states and China remain, however, as do disagreements between Beijing and Washington over freedom of navigation and trade. The risk of clashes is real. Crisis Group seeks to reduce friction and promote shared stewardship of the sea and its natural resources.

CrisisWatch South China Sea

Improved Situation

Philippines and China signed temporary pact to mitigate growing tensions amid strengthening security ties between Manila and allies.

Temporary agreement reached with Beijing to stem maritime tensions. Manila and Beijing 21 July reached deal to “deescalate situation in South China Sea”. Philippine Foreign Ministry said agreement would not compromise geopolitical positions of either side, but neither party released official text. Deal comes at time of increasing confrontation between sides about territorial delineation, particularly around Second Thomas Shoal. Notably, Manila 9 July deployed BRP Jose Rizal Sabina Shoal after sightings of Chinese vessels near region to mark show of force for sovereignty rights but may fall short because Manila lacks ability to maintain naval presence across contested waters. Shortly after, Russian and Chinese navies 16 July carried out live-fire exercises in South China Sea to strengthen bilateral capacity of responding to “maritime security threats”. Beijing and Manila subsequently disagreed publicly about details of 21 July agreement, with Philippine Foreign Ministry 22 July denying it includes prior notification and “on-site verification” as China’s Foreign Ministry asserted earlier same day. Philippine forces 27 July resupplied BRP Sierra Madre.

Philippines deepened defence cooperation with U.S. and Japan. U.S. Department of Defence 11 July stated Washington is set to approve General Security of Military Information Agreement with Manila to facilitate timely exchange of classified information. U.S. military chair of Joint Chiefs of Staff 16 July inspected selected U.S. military bases, prerequisite for approving new intelligence sharing framework. U.S. and Philippines 21 July completed Marine Aviation Support Activity where U.S. Marines dropped guided bombs on targets near Western Luzon. U.S. 30 July announced $500mn in foreign military aid to Manila during high-level visit. Meanwhile, Japan and Philippines 8 July held “2+2” foreign and defence meeting in Manila to discuss regional security matters, signed Reciprocal Access Agreement that would allow respective militaries to visit each other’s soil, as part of efforts to counter China’s growing aggression in region. 

Tensions between Vietnam and China persisted. Vietnam 17 July submitted claim to UN to extend its continental shelf in South China Sea, prompting strong opposition from China. 

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