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                                                                                         Updated  February 2, 2021

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 makes no
territorial claim in the SCS and takes no 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.
U.S. officials saw the outposts as part of a possible Chinese
effort to dominate the SCS, with the goal of making China a
regional hegemon that can set the rules by which other
regional actors must operate. A longstanding goal of U.S.
strategy has been to prevent the emergence of such a
regional hegemon. At his January 2021 confirmation
hearing, Secretary of Defense Lloyd Austin asserted that
China is already a regional hegemon and seeks to become
a dominant world power. Observers have been alert to
other actions China might take to dominate 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


      - China's 'Nine-Dash Line
        land and shoal representations have been enlarged for
        u ppes:of visibiity.
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 sea 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.
(The estimate is based on a definition of the SCS's
geographic limits that includes the Taiwan Strait, the Gulf
of Tonkin, and the Natuna Sea.) China has never explained
definitively what the dashed 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. 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). Indonesia also 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.


https://crsreports.congress.gc

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