South China Sea has always been in the news due to the belligerence of China in its quest of expansionism. However, of late it has also been in news due to the new found courage of the littoral states in asserting their views. What is the strategic and economic importance of South China Sea that makes it such a hot spot?

The South China Sea is a part of the Pacific Ocean encompassing an area from Karimata and Malacca Straight to the Strait of Taiwan. The area consist of over 250 islands, atolls, shoals, reefs, and sand bars. These islands are mostly low & small and are very sparsely populated. The islands and surrounding seas have been subject to overlapping territorial claims by the littoral states viz China, Philippines, Malaysia, Brunei, Indonesia, Singapore and Vietnam.

Map of the Area

As is the case with most territorial disputes, the South China Sea dispute is not only complex but multi layered as well. The Geo strategic importance of the area as well as the presence of abundant natural resources and marine resources are the principal drivers for all littoral states to assert their sovereignty which has led to a situation of uneasy tension in the region. The South China Sea as of date has the maximum potential to witness an armed conflict.

Strategic importance of the South China Sea.

The South China Sea holds tremendous strategic importance for its location because:

 (a)   It is the connecting link between the Indian Ocean and the Pacific Ocean. (Strait of Malacca)

 (b)   It is a prominent shipping passage with $5.3 trillion worth of trade cruising through its waters every year which          accounts for nearly one-third of the total global maritime trade.

 (c)     The principal driver for all the littoral states is the availability of abundant natural gas, oil, mineral and marine life.      While U.S. has estimated 11 billion barrels of oil and 190 trillion cubic feet of natural gas in the South China Sea, a              Chinese government-owned oil major has put the figure closer to 125 billion barrels of oil and 500 trillion cubic feet of natural gas. According to the Philippines Department of Environment and Natural Resources, The South China Sea has one-third of the entire world’s marine biodiversity and also contains lucrative fisheries which is a food source to the South East Asian nations.

Who Claims What?

          a.    China: China claims all territory inside the nine dash line but also the entire South China Sea

          b.    Vietnam: Disputes China’s historical claim and says that they were ruling over both Spartley and Paracel Islands since            17^th century.

         c.     Phillipines: Wants Spartley islands as they are adjacent to them along with Scarborough Islands.

        d.      Malaysia: Claims territorial waters around its boundary in the South China Sea and some islands in the Spartley group.

        e.      Brunie : South China Sea near its boundary

China’s Nine dash Line

China is acting as the big bully in the region. Chinese scholars asserted in year 1947 that the “nine dashes” on the map are based on historical claims which are as old as 2000 to 4000 years. The contested area in the South China Sea includes the Paracel Islands, the Spratly Islands, and other areas including the Pratas Islands, the Macclesfield Bank and the Scarborough Shoal. The Permanent Court of Arbitration in The Hague in year 2016 had ruled that the nine dash line inscribed on a Chinese map in 1947 based on historical claims, parts of which are claimed by six countries had “no legal basis”. This ruling has been out rightly rejected by China.

The dashes as superimposed on the map represent a vast “U shaped” expanse of the South China Sea which at the farthest point of South of Mainland China is 1200 miles away and at other places is less than 200 miles from the coast of Malaysia, Philippines and Vietnam. It also includes parts of the continental shelf of Vietnam where India and Russia have been awarded oil concessions. The Chinese interpretation is that the nine dash discontinuous line represents the national border on the sea. It implies that the ocean, islands and reefs falling inside the dashes and implies that all belong to China who has total sovereign rights. As a concession, the Chinese government has maintained that the right to freedom of navigation and over flight in the South China Sea is a right which can be enjoyed by all countries in accordance with international law. However, Philippines, Vietnam, Malaysia, Brunei and Indonesia all have officially protested over the use of such a line.

US interest in South China Sea

U.S. interests in the South China Sea fall into three broad categories - Economic interests tied to the sea-lanes, Defence ties with allies and other security partners, and Implications for the global balance of power and influence. In each of these arenas, a successful Chinese effort to seize control of the South China Sea will have a profound impact.

         a.     Sea-Lanes. The sea-lanes that pass through the South China Sea are the busiest and the most important maritime                 waterways in the world.  In 2016, one-third of the global shipping trade worth an estimated f $3.4 trillion passed through                 the South China Sea. This included nearly 40 percent of China’s total trade and 90 percent of petroleum imports by China,             Japan, and South Korea. Besides it also accounts for approx 6 percent of the total U.S. trade. These sea-lanes are                         absolutely vital military artery because the U.S. Seventh Fleet regularly transits between the Pacific and Indian Oceans                   (including the Bay of Bengal).

         b.     Defence Ties. America has formal defence/security alliances with five Asian countries namely Japan, South Korea,               Philippines, Thailand, and Australia.  In addition, the United States has affirmed some responsibility for the defence of                     Taiwan and also has close security ties with Singapore and New Zealand.  There are also a variety of formal security                       cooperation agreements with Vietnam, Indonesia, and Malaysia.  Cobra Gold, a military exercise hosted by Thailand and                led by the United States, is the largest annual multilateral military exercise in Asia.  Therefore, the United States maintained            a dense network of security links and obligations throughout East and Southeast Asia which are sustained by regular                      contact with the Seventh Fleet as it transits the region via the South China Sea.

          c.     Balance of Power. The most important and least tangible stake in the South China Sea concerns the preservation of              a regional “rules-based” order supported by U.S. power. This order embodies certain foundational political principles i.e.                  respect for international law, preservation of the real sovereign independence of regional states, a refusal to legitimate                    unilateral territorial expansion, and the unconditional acceptance of the sea-lanes as available to all. Conservation values -            protection of marine habitat against wanton, unnecessary despoliation are also essential. This concept of regional order                  links tightly to a broader set of interests, values, and institutions embodied in the post-World War II international system, a              system that reflects U.S. values, U.S. leadership and is consonant with U.S. interests.

           India’s interest

     The ongoing dispute in the South China Sea (SCS) have been regarded as one of the most enduring and complicated regional conflicts in the Asia-Pacific. The disputes involve China along with several states in the region and encompass issues such as overlapping territorial claims and access to critical resources like energy and fisheries. Within this turbulent environment, India has been expanding its influence through its Look East Policy (LEP). This has not been taken well by China, who has for years tried to curb New Delhi’s growing involvement in the South China Sea Region. India’s decision to involve itself in such a complex environment, even at the risk of provoking its giant neighbour, demonstrates the significance it places on the region and its sea lanes.

The region’s economic importance automatically translates into national security interests for New Delhi. With half of its maritime trade passing through the Malacca Straits, any instability in the South China Sea would adversely affect the shipping lanes and cripple India’s economy. Similarly, should a potentially hostile power come to control this region, it could threaten India’s access to this vital waterway. New Delhi’s involvement in the South China Sea thus focuses on three objectives i.e. to ensure peace and stability in the region and keep the vital sea lanes open, maintain cordial relations with regional powers  and lastly  to ensure no potentially aggressive external power dominates the region.Through the LEP, New Delhi has pursued these objectives by seeking to intensify its engagement with ASEAN states. Besides increased economic engagement, strategic cooperation has been expanded through joint naval exercises, generous lines of credit, military training, and sales of military hardware with regional states. Moreover, the enhanced presence of Indian military assets in the area not only served to protect the sea lanes, but also provided ‘domain awareness’ of potential regional developments while checkmating China’s growing influence in the region.  It is imperative from India’s point of view that the South China Sea does not turn into a ‘Chinese lake.’India has no option but to continue to strengthen its ties with the region and play a part in managing its turbulent waters. Further, The Indo-Pacific trilateral with India, Japan and United States further revitalises India’s presence in the region. Thus the adoption of the Indo-Pacific region into the strategic framework has cumulatively summed up the relevance of South China Sea for India.an countries. Thus India is welcomed as an external balancer along with the United States.

          Conclusion

The present status is that the US has position edits two aircraft carriers USS Nimitz and USS Ronald Reagan  which performed operations and exercises in the South China Sea "to support a free and open Indo-Pacific", in the disputed South China Sea. China on its part is also carrying out manoeuvres in the region which have been criticised by the Pentagon and neighbouring states. The standoff continues with China being isolated globally.