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                                                                                                February 23, 2017

South China Sea Disputes: Background and U.S. Policy


Tensions in the South China Sea (SCS) have become a
pressing challenge for U.S. policymakers in recent years,
raising questions for Congress about U.S. goals and strategy
in the Asia-Pacific region. The heavily trafficked SCS is
home to sovereignty disputes among Brunei, the People's
Republic of China (PRC), Malaysia, the Philippines,
Taiwan, and Vietnam. (Japan has other disputes with China
and Taiwan in the East China Sea.) The United States has
no territorial claim in the South China Sea and does not
take a position on the sovereignty of any of the geographic
features in the SCS, but has urged that disputes be settled
without coercion and on the basis of international law.
Separate from the sovereignty disputes, the United States
and China have a long-simmering disagreement over the
right of foreign militaries to operate in waters near China,
including in the South China Sea. The disagreement has led
to incidents between Chinese and U.S. ships and aircraft in
international waters and airspace.

Since 2013, the sovereignty disputes and the U.S.-China
dispute over freedom of the seas for military ships and
aircraft have both been at play in the controversy over
China's moves to build artificial islands with military
installations on disputed features in the SCS' Spratly
Islands. Of particular concern to the U.S. military is the
possibility that China's island building may be part of an
effort to dominate the South China Sea, with the ultimate
goal of making China a regional hegemon that can set the
rules by which other regional actors must operate. A long-
standing goal of U.S. grand strategy has been to prevent the
emergence of a regional hegemon in Eurasia. U.S. and
regional observers have been alert to other actions China
might take to achieve dominance in the SCS, including
initiating reclamation on another SCS landmass, such as
Scarborough Shoal, or declaring an Air Defense
Identification Zone (ADIZ) over parts of the SCS.

President Trump's first statements as president on Asian
maritime disputes and the South China Sea came in a
February 10, 2017, joint statement with visiting Japanese
Prime Minister Shinzo Abe. The two leaders said their
countries are committed to maintaining a maritime order
based on international law, including freedom of navigation
and overflight and other lawful uses of the sea. They said
their countries oppose any attempt to assert maritime
claims through the use of intimidation, coercion or force,
and called on countries concerned to avoid actions that
would escalate tensions in the South China Sea, including
the militarization of outposts, and to act in accordance with
international law.

Key Facts,
The SCS is one of the world's most heavily trafficked
waterways. An estimated $5.3 trillion in ship-borne


commerce transits the SCS each year, including energy
supplies to U.S. allies Japan and South Korea. According to
the U.S. Energy Information Administration, the SCS
contains about 11 billion barrels of oil rated as proved or
probable reserves-a level similar to the amount of proved
oil reserves in Mexico-and 190 trillion cubic feet of
natural gas. The SCS is also among the largest sources of
fish for the countries surrounding it, and it contains
significant coral and other undersea resources.

Figure I. The South China Sea
             : : : : : : : : : : : : : : : : : : : : : : : : : : : : : : :.  : : :: : :: :: : :: :: : :: : : : :  :+ . : :   : : : : : : : : : :


Source: CRS graphic
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Beijing states that it has indisputable sovereignty over the
South China Sea islands and their adjacent waters, without
defining adjacent waters. On maps, China depicts its
claims with a nine-dash line that, if connected, would
enclose an area covering approximately 90% of the sea.
Beijing has never explained definitively what the line
signifies. In the northern part of the sea, China, Taiwan, and
Vietnam contest sovereignty of the Paracel Islands; China
has occupied them since 1974. In the southern part of the
sea, China, Taiwan, and Vietnam claim all of the
approximately 200 Spratly Islands, while Brunei, Malaysia,
and the Philippines, a U.S. treaty ally, claim some of them.
Vietnam controls the greatest number of Spratly features. In
the eastern part of the sea, China, Taiwan, and the
Philippines all claim Scarborough Shoal; China has
controlled it since 2012. China's nine-dash line and
Taiwan's similar eleven-dash line overlap with the 200-
nautical-mile (nm) Exclusive Economic Zones (EEZs) that
five Southeast Asian nations-Brunei, Indonesia, Malaysia,
the Philippines, and Vietnam-claim under the 1994 United
Nations Convention on the Law of the Sea (UNCLOS).


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