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                                                                                       Updated December  22, 2020

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


Overview
Multiple Asian governments assert sovereignty over rocks,
reefs, and other geographic features in the heavily
trafficked South China Sea (SCS), with the People's
Republic of China (PRC or China) arguably making the
most assertive claims. The United States has no territorial
claim in the SCS and does not take a position on
sovereignty over 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 disagree
over what rights international law grants foreign militaries
to fly, sail, and operate in a country's territorial sea or
Exclusive Economic Zone  (EEZ).

Since 2013, the sovereignty disputes and the U.S.-China
dispute over freedom of the seas for military ships and
aircraft have converged in the controversy over military
outposts China has built on disputed features in the SCS. Of
particular concern to the U.S. military is the possibility that
the outposts may be part of a Chinese 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.
strategy has been to prevent the emergence of such a
regional hegemon. 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 geographic feature, such as Scarborough
Shoal, or declaring an Air Defense Identification Zone
(ADIZ)  over parts of the SCS.


Figure I. The South  China Sea


     Sournase: Cnegash Lnphc
       SIsland and shoal representations have been enlarged for
       the purposes of visibility.
Source: CRS graphic.


Key   Facts
The SCS  is one of the world's most heavily trafficked
waterways. An estimated $3.4 trillion in ship-borne
commerce  transits the SCS each year, including energy
supplies to U.S. treaty 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 also contains significant fish
stocks, coral and other undersea resources.

The   Sovereignty Disputes
China asserts indisputable sovereignty over the islands in
the South China Sea and the adjacent waters without
defining the scope of its adjacent waters claim. On maps,
China depicts its claims with a nine-dash line that, if
connected, would enclose an area covering approximately
62%  of the sea, according to the U.S. Department of State.
China 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
theoretical 200-nautical-mile (nm) EEZs that five Southeast
Asian nations-Brunei, Indonesia, Malaysia, the
Philippines, and Vietnam-could claim from their mainland
coasts under the 1994 United Nations Convention on the
Law  of the Sea (UNCLOS). In addition, Indonesia disputes
China's assertions of maritime rights near its coast.

Dispute over Freedom of the Seas
A dispute over how to interpret UNCLOS lies at the heart
of tensions between China and the United States over the
activities of U.S. military vessels and planes in and over the
South China Sea and other waters off China's coast. The
United States and most other countries interpret UNCLOS
as giving coastal states the right to regulate economic
activities within their EEZs, but not the right to regulate
navigation and overflight through the EEZ, including by
military ships and aircraft. China and some fellow SCS
claimants hold that UNCLOS  allows them to regulate both
economic  activity and foreign militaries' navigation and
overflight through their EEZs.

In recent years, the U.S. Navy and Air Force have stepped
up the pace and public profile of their activities in the South
China Sea. The U.S. Navy conducts Freedom of Navigation


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