SOUTH CHINA SEA A BLUE GOLD FOR THE WORLD ECONOMY AND A PERSISTENT GEOPOLITICAL FLASHPOINT

Abstract

South China Sea, a vast expanse of water, holds paramount economic significance for the world countries due to its abundant natural resources and reservoirs. It contains an estimated 11 billion barrels of untapped oils and 190 trillion cubic feet of natural gas. The amount of trade that passes through its waterways to the booming population centres is worth $3.37 trillion annually, making it the busiest maritime trade route in the world. The Sea also holds geo-strategic and military prominence for the surrounding countries.

Nevertheless, it is a longstanding hotspot of geopolitical tensions and economic interests. Numerous countries are involved in the conflict, and at the top of the list is China, which claims nearly the entire Sea. China bases its claim on the historical bedrock of the famous Nine-Dash Line. Similarly, Vietnam asserts its claim on historical and inheritance grounds. Brunei, Malaysia, Taiwan and Philippines claim portions of the Sea based on the United Nations Conventions on the Law of the Sea (UNCLOS).

The U.S. is also deliberately involving itself, under the umbrella of the United Nations. Its main stance is that all parties should abide by UNCLOS. China is strictly against the U.S involvement in the South China Sea affairs, arguing that Washington is inserting itself to keep a vigilant eye on China’s economic and naval policies.

The matter is further complicated by overlapping claims, the portion claimed by the Philippines is also claimed by China, the portion claimed by Vietnam overlaps with China’s claims, and same applies to other claimant states. No party appears to compromise.