What you need to know about the South China Sea

by Claire Sams

The South China Sea sees legal, economic, political and geostrategic concerns combine.

The result is an area of the world littered with rocks, atolls, small island chains and the potential for a showdown.

What’s happened recently?

On 13th July, Secretary of State Mike Pompeo released a statement accusing China of a “campaign of bullying” and calling its claims in the South China Sea “unlawful.”

Later that month, in a statement to the United Nations, Australia said it “rejects any claims by China that are inconsistent with [UNCLOS].”

Canberra also said it would not start freedom of navigation operations that pass within twelve nautical miles of disputed territory, despite American pressure.

While Australian naval vessels already undertake regular naval presence patrols, exercises and port calls, they have never been sent within twelve nautical miles of disputed territory.

Additionally, Chinese and Australian diplomats have clashed on Twitter and Chinese long–range bombers recently held drills in the region.

What is the South China Sea and why is it so important?

Many claims in the South China Sea overlap, complicating the question over maritime rights further (source: graphic by Mark Stehle/Sydney Morning Herald, with data from Asia Maritime Transparency Initiative)

The South China Sea is located off Southeast Asia, spanning an area over twice the size of the Gulf of Mexico.

Boarded by many countries, including Indonesia, China, the Philippines and Vietnam, the region has long been controversial.

That’s because it’s not empty ocean–there are extensive geostrategic and economic opportunities for whatever nation can take control.

For example, according to a 2019 American State Department estimate, also holds US$2.5 trillion in untapped oil and gas reserves.

What does international law have to say?

The 1982 UN Convention on the Law of the Sea (or UNCLOS) established Exclusive Economic Zones (or EEZ).

A 200 nautical mile area that extends from the coastline, the EEZ gives countries exclusive rights over any natural resources within their EEZ.

While UNCLOS has been signed and ratified by most countries bordering the South China Sea, China pushes for a lion’s share of the region.

So what does China claim?

China claims most of the South China Sea under the so–called ‘nine–dash’ line it drew in 1947 after Japan’s surrender.

With this ‘nine–dash’ line, which extends two thousand kilometres from the mainland, China would hold 90% of the South China Sea–and large parts of the EEZ of many countries.

Beijing says it has historical justifications for the claim, but these have been disputed.

What does the South China Sea mean for Australia?

Professor Laurenceson says the Australia-China relationship has trade as a key element (source: University of Technology Sydney)

Professor James Laurenceson, economist and Director of the Australia-China Relations Institute, notes that all of Australia’s major export markets are in Northeast Asia, with large amounts of Australian trade passing through the South China Sea.

Mr. Laurenceson argues that while there is some truth to the belief Australia has a “key national interest in making sure those waters remain open,” he warns against using overestimating it.

He says that given China’s reliance on Australian trade, Beijing would be unlikely to react punitively to Australia’s announcement.

“So, if you stop trade, yes, that’s will hurt Australia; but the truth is that it will hurt China as well.”

He says that Australia’s status as a small nation would see it struggle in a world where “might makes right.”

“We rely on international rules and norms to protect our interests, so I think the Australian government contributing to upholding those rules and norms in the South China Sea makes good sense.”

(Professor Laurenceson discusses Australia’s trade relationship with China and how trade may respond China from reacting punitively to Australia over the South China Sea)