New images suggest China has built reinforced hangars on disputed islands

Chinese dredging vessels are purportedly seen in the waters around Mischief Reef in the disputed Spratly Islands in the South China Sea in this still image from video taken by a P-8A Poseidon surveillance aircraft provided by the United States Navy

WASHINGTON (Reuters) – Recent satellite photographs show China appears to have built reinforced aircraft hangars on its holdings in the disputed South China Sea, according to a Washington-based think tank.

Pictures taken in late July show the hangars constructed on Fiery Cross, Subi and Mischief Reefs in the Spratly islands, have room for any fighter jet in the Chinese air force, the Center for Strategic and International Studies (CSIS).

“Except for a brief visit by a military transport plane to Fiery Cross Reef earlier this year, there is no evidence that Beijing has deployed military aircraft to these outposts. But the rapid construction of reinforced hangars at all three features indicates that this is likely to change,” CSIS said in a report.

China claims most of the South China Sea, through which $5 trillion in ship-borne trade passes every year. The Philippines, Vietnam, Malaysia, Taiwan and Brunei have overlapping claims.

The images have emerged about a month after an international court in The Hague ruled against China’s sweeping claims in the resource-rich region, a ruling emphatically rejected by Beijing.

The United States has urged China and other claimants not to militarize their holdings in the South China Sea.

China has repeatedly denied doing so and has in turn criticized U.S. patrols and exercises for ramping up tensions.

“China has indisputable sovereignty over the Spratly islands and nearby waters,” China’s Defence Ministry said in a faxed response to a request for comment on Tuesday.

“China has said many times, construction on the Spratly islands and reefs is multipurpose, mixed, and with the exception of necessary military defensive requirements, are more for serving all forms of civil needs.”

Ties around the region have been strained in the lead-up to and since The Hague ruling.

China has sent bombers and fighter jets on combat patrols near the contested South China Sea islands, state media reported on Saturday, and Japan has complained about what it has said were multiple intrusions into its territorial waters around another group of islands in the East China Sea.

The hangars all show signs of structural strengthening, CSIS said.

“They are far thicker than you would build for any civilian purpose,” Gregory Poling, director of CSIS’s Asia Maritime Transparency Initiative, told the New York Times, which first reported on the new images. “They’re reinforced to take a strike.”

Other facilities including unidentified towers and hexagonal structures have also been built on the islets in recent months, CSIS said.

(Reporting by Eric Beech and Idrees Ali in Washington and Michael Martina in Beijing.; Editing by Lincoln Feast)

Japan urges China not to escalate East China Sea tension

Japan's Chief Cabinet Secretary Suga arrives at Prime Minister Shinzo Abe's official residence in Tokyo

By Kaori Kaneko

TOKYO (Reuters) – Japan said on Monday it would respond firmly after Chinese government vessels intruded into what Japan considers its territorial waters near disputed islands in the East China Sea 14 times at the weekend.

Ties between China and Japan, the world’s second and third largest economies, have for years been plagued by a dispute over the islands that Japan controls, and the waters around them.

The flurry of Chinese incursions into the waters follows a period of sustained pressure on China about its activities in the South China Sea, and a Chinese criticism of what it saw as Japanese interference in that dispute.

Chinese activity near the disputed East China Sea islands, known as the Senkaku in Japan and the Diaoyu in China, has heated up since Friday, Japanese officials said, prompting repeated Japanese protests, including three on Sunday alone.

Japan’s Chief Cabinet Secretary Yoshihide Suga said Japan would urge China not to escalate the East China Sea dispute, while also responding firmly and calmly.

Agencies including the coastguard would act closely together to deal with the situation, Suga said.

A Japanese government source, who asked not to be identified, said Japan’s coastguard had stepped up its patrols in the region at the weekend but declined to give further details.

About 230 Chinese fishing vessels were in the area on Saturday, Japan’s foreign ministry said.

China’s foreign ministry spokeswoman Hua Chunying said in a statement on Saturday that China had indisputable sovereignty over the islands and nearby waters.

In the South China Sea, Japan has no claims and China recently rejected warned Japan not to interfere.

The United States, its Southeast Asian allies and Japan have questioned Chinese land reclamation on disputed islands in the South China Sea, especially after an international court last month rejected China’s historic claims to most of that sea.

China has refused to recognize the court ruling. Japan called on China to adhere to it, saying it was binding. China warned Japan not to interfere.

The spike in tension over the East China Sea also follows a Chinese accusation that Japan’s new defense minister, Tomomi Inada, had recklessly misrepresented history after she declined to say after her appointment last week if Japanese troops had massacred civilians in China during World War Two.

The legacy of Japan’s wartime occupation of parts of China is another thorn in relations between the neighbors.

China, and other counties in Asia, in particular South Korea, feel that Japan has never properly atoned for its aggression before and during World War Two.

Relations between South Korea and China have also been strained in recent days by a decision by South Korea and the United States to deploy an advanced anti-missile defense system, to guard against North Korean attacks, that China fears could be used against its military.

South Korea’s presidential office on Sunday rebuked China over its criticism of South Korea’s decision to deploy the anti-missile defense, urging China instead to play a stronger role against North Korea’s provocations.

South Korea and the United States began discussions to deploy the Terminal High Altitude Area Defence (THAAD) unit in the South after the North’s fourth nuclear test in January and a long-range rocket launch in defiance of U.N. sanctions.

(Reporting by Kaori Kaneko, Nobuhiro Kubo, Tim Kelly and Kiyoshi Takenaka; writing by Linda Sieg; Editing by Paul Tait, Robert Birsel)

China says to hold drills with Russia in South China Sea

Chinese and Russian naval vessels

BEIJING (Reuters) – China and Russia will hold “routine” naval exercises in the South China Sea in September, China’s Defence Ministry said on Thursday, adding that the drills were aimed at strengthening their cooperation and were not aimed at any other country.

The exercises come at a time of heightened tension in the contested waters after an arbitration court in the Hague ruled this month that China did not have historic rights to the South China Sea and criticized its environmental destruction there.

China rejected the ruling and refused to participate in the case.

“This is a routine exercise between the two armed forces, aimed at strengthening the developing China-Russia strategic cooperative partnership,” China’s defense ministry spokesman Yang Yujun told a regular monthly news conference.

“The exercise is not directed against third parties.”

China and Russia are veto-wielding members of the U.N. Security Council, and have held similar views on many major issues such as the crisis in Syria, putting them at odds with the United States and Western Europe.

Last year, they held joint military drills in the Sea of Japan and the Mediterranean.

China claims most of the South China Sea, through which more than $5 trillion of trade moves annually. Brunei, Malaysia, the Philippines, Taiwan and Vietnam have rival claims.

China has repeatedly blamed the United States for stoking tension in the region through its military patrols, and of taking sides in the dispute.

The United States has sought to assert its right to freedom of navigation in the South China Sea with its patrols and denies taking sides in the territorial disputes.

Russia has been a strong backer of China’s stance on the arbitration case, that was brought by the Philippines.

Yang said China and Russia were comprehensive strategic partners and had already held many exercises this year.

“These drills deepen mutual trust and expand cooperation, raise the ability to jointly deal with security threats, and benefit the maintenance of regional and global peace and stability,” he said.

(Reporting by Ben Blanchard; Writing by John Ruwitch and Brenda Goh; Editing by Robert Birsel)

Exclusive: Top Obama aide to take call for South China Sea calm to Beijing

Chinese vessel in South China

By Matt Spetalnick and David Brunnstrom

WASHINGTON (Reuters) – U.S. National Security Adviser Susan Rice will urge Beijing next week to avoid escalation in the South China Sea when she makes the highest-level U.S. visit to China since an international court rejected its sweeping claims to the strategic waterway.

Even as Washington has sought to keep a lid on the situation, Rice – in an interview with Reuters – vowed that the U.S. military would continue to “sail and fly and operate” in the South China Sea, despite a Chinese warning that such patrols could end “in disaster.”

With less than six months remaining of President Barack Obama’s tenure, Rice’s broader mission in her July 24-27 trip is aimed at keeping overall ties between the world’s two largest economies, which she called “the most consequential relationship we have,” on track at a time of heightened tensions. “I’ll be there to advance our cooperation,” she said.

But the trip, due to be formally announced later on Friday, follows a July 12 ruling by the Permanent Court of Arbitration in The Hague that China has no historic title over the waters of the South China Sea. Beijing has angrily rejected the verdict and pledged to pursue claims that conflict with those of several smaller neighbors.

“I’ve been in communication with our Chinese counterparts over the last couple of weeks … We understand each other’s perspectives clearly,” Rice said when asked what message she would deliver to the Chinese. “We’ll urge restraint on all sides.”

Her trip, to include Beijing and Shanghai, will coincide with visits by U.S. Secretary of State John Kerry to Laos and the Philippines where he is expected to try to reassure Southeast Asian partners of Washington’s commitment.

The United States is also using quiet diplomacy to persuade claimants like the Philippines, Indonesia and Vietnam not to move aggressively to capitalize on The Hague ruling, U.S. officials have said.

TEST OF U.S. CREDIBILITY

How Washington handles the aftermath of the ruling is widely seen as a test of U.S. credibility in a region where it has been the dominant security presence since World War Two but is now struggling to contain an increasingly assertive China.

China has responded to the ruling with sharp rhetoric. But a senior official said, “So far there has not been precipitous action” and Washington was hoping confrontation could be avoided.

“We are not looking to do things that are escalatory,” another senior U.S. official said. “And at the same time we don’t expect that they (the Chinese) would deem it wise to do things that are escalatory.”

Despite that view, two Chinese civilian aircraft conducted test landings at two new military-length airstrips on reefs controlled by China in the Spratly Islands shortly after the arbitration ruling.

And signaling Beijing’s plans to further stake its claim to contested waters, a Chinese state-run newspaper said that up to eight Chinese ships will offer cruises to the South China Sea over the next five years.

China has blamed the United States for stirring up trouble in the South China Sea, a strategic waterway through which more than $5 trillion of trade moves annually.

Citing international rules, the United States has conducted freedom-of-navigation patrols close to Chinese-held islands where China has been bolstering its military presence.

Rice is expected to meet Chinese President Xi Jinping during her visit and her agenda will include North Korea, economic issues and human rights. She will also lay the groundwork for Obama’s talks with Xi at a G20 summit in China in September, U.S. officials said.

But with the South China Sea issue looming large, Rice, who has led U.S. policymaking on China, said the United States and China have “careful work to do to manage our differences.”

She also said the administration would not allow crises in other parts of the world, from Syria to Turkey to Ukraine, to distract from Obama’s signature policy of “rebalancing” toward Asia. “We don’t have the luxury as the world’s leading power to devote our attention to one region and ignore another,” she said.

(Reporting by Matt Spetalnick and David Brunnstrom; Additional reporting by Lesley Wroughton; Editing by Cynthia Osterman)

U.S. says its forces will keep operating in South China Sea

USS Boxer in East Sea

BEIJING (Reuters) – U.S. military forces will continue to operate in the South China Sea in accordance with international law, the U.S. Chief of Naval Operations John Richardson said on Wednesday during a visit to a Chinese naval base.

China has refused to recognize a ruling by an arbitration court in The Hague that invalidated its vast territorial claims in the South China Sea and did not take part in the proceedings brought by the Philippines.

China has repeatedly blamed the United States for stirring up trouble in the South China Sea, a strategic waterway through which more than $5 trillion of trade moves annually.

China, Brunei, Malaysia, the Philippines, Taiwan and Vietnam all have rival claims, of which China’s is the largest.

The United States has conducted freedom of navigation patrols close to Chinese-held islands, to Beijing’s anger, while China has been bolstering its military presence there.

Meeting Yuan Yubai, commander of the Chinese North Sea Fleet, Richardson “underscored the importance of lawful and safe operations in the South China and elsewhere professional navies operate”, the U.S. Navy said.

U.S. forces would keep sailing, flying and operating wherever international law allows, Richardson added.

“The U.S. Navy will continue to conduct routine and lawful operations around the world, including in the South China Sea, in order to protect the rights, freedoms and lawful uses of sea and airspace guaranteed to all. This will not change.”

Freedom of navigation patrols carried out by foreign navies in the South China Sea could end “in disaster”, a senior Chinese admiral said over the weekend.

State news agency Xinhua said on Wednesday that countries outside the region should stay out of the South China Sea issue lest they cause unwanted problems.

“Western countries have a long history of failing to establish orderly rule over parts of the world. The Middle East is a classic example,” it said.

Richardson said he was supportive of the deepening of relations between the U.S. and Chinese navies.

“But I will be continuously reassessing my support conditioned on continued safe and professional interactions at sea. In this area we must judge each other by our deeds and actions, not just by our words,” he added.

The United States has complained that Chinese aircraft and ships have performed “unsafe” maneuvers while shadowing U.S. ships and planes, particularly in the South China Sea.

Speaking in Sydney on Wednesday, U.S. Vice President Joe Biden assured key ally Australia there would be no retreat from Washington’s pivot to the Asia-Pacific region, regardless of who wins November’s presidential election.

(Reporting by Ben Blanchard; Editing by Nick Macfie)

U.S. launches quiet diplomacy to ease South China Sea tensions

A ship of Chinese Coast Guard is seen near a ship of Vietnam Marine Guard in the South China Sea

By Lesley Wroughton and John Walcott

WASHINGTON (Reuters) – The United States is using quiet diplomacy to persuade the Philippines, Indonesia, Vietnam and other Asian nations not to move aggressively to capitalize on an international court ruling that denied China’s claims to the South China Sea, several U.S. administration officials said on Wednesday.

“What we want is to quiet things down so these issues can be addressed rationally instead of emotionally,” said one official, who spoke on the condition of anonymity to describe private diplomatic messages.

Some were sent through U.S. embassies abroad and foreign missions in Washington, while others were conveyed directly to top officials by Defense Secretary Ash Carter, Secretary of State John Kerry and other senior officials, the sources said.

“This is a blanket call for quiet, not some attempt to rally the region against China, which would play into a false narrative that the U.S. is leading a coalition to contain China,” the official added.

The effort to calm the waters following the court ruling in The Hague on Tuesday suffered a setback when Taiwan dispatched a warship to the area, with President Tsai Ing-wen telling sailors that their mission was to defend Taiwan’s maritime territory.

The court ruled that while China has no historic rights to the area within its self-declared nine-dash line, Taiwan has no right to Itu Aba, also called Taiping, the largest island in the Spratlys. Taipei administers Itu Aba but the tribunal called it a “rock”, according to the legal definition.

The U.S. officials said they hoped the U.S. diplomatic initiative would be more successful in Indonesia, which wants to send hundreds of fishermen to the Natuna Islands to assert its sovereignty over nearby areas of the South China Sea to which China says it also has claims, and in the Philippines, whose fishermen have been harassed by Chinese coast guard and naval vessels.

‘UNKNOWN QUANTITY’

One official said new Philippine President Rodrigo Duterte remains “somewhat of an unknown quantity” who has been alternately bellicose and accommodating toward China.

Philippine Defense Secretary Delfin Lorenzana said that ahead of the ruling he had spoken to Carter, who he said told him China had assured the United States it would exercise restraint, and that the U.S. government made the same assurance.

Carter had sought and been given the same assurance from the Philippines, Lorenzana added.

China, for its part, repeated pleas for talks between Beijing and Manila, with Foreign Minister Wang Yi saying the it is time to get things back on the “right track” after the “farce” of the case.

On Thursday, the official newspaper of China’s ruling Communist Party said China had shown it can fix territorial issues via talks, pointing to agreement reached with Vietnam over their maritime boundary in the Gulf of Tonkin and ongoing talks with South Korea.

“China is a faithful defender of the principle that countries large and small are equal and has consistently upheld using consultations to resolve border issues on the basis of sovereign equality and mutual respect,” the People’s Daily said in a commentary.

Meanwhile, two Chinese civilian aircraft landed on Wednesday at two new airports on reefs controlled by China in the Spratly Islands in the South China Sea, a move the State Department said would increase tensions rather than lower them.

“We don’t have a dog in this fight other than our belief … in freedom of navigation,” State Department spokesman Mark Toner told a briefing on Wednesday. “What we want to see in this very tense part of Asia, of the Pacific, rather, is a de-escalation of tensions and we want to see all claimants take a moment to look at how we can find a peaceful way forward.”

CONTINGENCY PLANHowever, if that effort fails, and competition escalates into confrontation, U.S. air and naval forces are prepared to uphold freedom of maritime and air navigation in the disputed area, a defense official said on Wednesday.

Democrat Ben Cardin of Maryland, a senior member of the Senate Foreign Relations Committee, said confrontation is less likely if the Philippines, Indonesia, Vietnam and other countries work with the United States rather than on their own.

“I don’t think China wants a confrontation with the United States,” he told reporters. “They don’t mind a confrontation with a Vietnamese fishing boat, but they don’t want a confrontation with the United States.”

The court ruling is expected to dominate a meeting at the end of July in Laos of the 10-member Association of Southeast Asian Nations (ASEAN), which includes the Philippines, Malaysia, Indonesia, Myanmar, Vietnam and Thailand.

U.S. Secretary of State John Kerry, and his Chinese counterpart, Foreign Minister Wang, will attend the ministerial.

Sino-American relations suffered two fresh blows on Wednesday as a congressional committee found China’s government likely hacked computers at the U.S. Federal Deposit Insurance Corporation and the United States challenged China’s export duties on nine metals and minerals that are important to the aerospace, auto, electronics and chemical industries.

(Additional reporting by Patricia Zengerle and Yara Bayoumy, and Ben Blanchard in Beijing; Editing by Kieran Murray, Grant McCool and Lincoln Feast)

China vows to protect South China Sea sovereignty

Protesters throws flowers while chanting anti-Chinese slogans during a rally by different activist groups over the South China Sea disputes, along a bay in metro Manila

By Ben Blanchard and Martin Petty

BEIJING/MANILA (Reuters) – China vowed to take all necessary measures to protect its sovereignty over the South China Sea and said it had the right to set up an air defense zone, after rejecting an international tribunal’s ruling denying its claims to the energy-rich waters.

Chinese state media called the Permanent Court of Arbitration in the Hague a “puppet” of external forces after it ruled that China had breached the Philippines’ sovereign rights by endangering its ships and fishing and oil projects.

Beijing has repeatedly blamed the United States for stirring up trouble in the South China Sea, where its territorial claims overlap in parts with Vietnam, the Philippines, Malaysia, Brunei and Taiwan.

“China will take all necessary measures to protect its territorial sovereignty and maritime rights and interests,” the ruling Communist Party’s official People’s Daily said in a front page commentary on Wednesday.

The case, covering a region that is home to one of the world’s busiest trade routes, has been seen as a test of China’s rising power and its economic and strategic rivalry with the United States.

Underscoring China’s rebuffing of the ruling, state media said that two new airports in the Spratlys, on Mischief Reef and Subi Reef, both received test flights from civilian aircraft on Wednesday.

Beijing called the Philippines’ claims of sovereignty in the South China Sea “baseless” and an “act of bad faith”. In a government white paper published on Wednesday, China also said its fishing boats had been harassed and attacked by the Philippines around the disputed Spratly Islands.

“On whether China will set up an air defense zone over the South China Sea, what we have to make clear first is that China has the right to… But whether we need one in the South China Sea depends on the level of threats we face,” Vice Foreign Minister Liu Zhenmin told reporters in Beijing, adding that China hoped to return to bilateral talks with Manila.

“We hope that other countries don’t use this opportunity to threaten China, and hope that other countries can work hard with China, meet us halfway, and maintain the South China Sea’s peace and stability and not turn the South China Sea in a source of war.”

U.S. officials have previously said they feared China may respond to the ruling by declaring an air defense identification zone in the South China Sea, as it did in the East China Sea in 2013, or by stepping up its building and fortification of artificial islands.

China’s Liu also took aim at the judges on the tribunal, saying that as not one of them was Asian they could not possibly understand the issue and it was unfair of them to try.

COMPLICATED, UNCLEAR

The Philippines reacted cautiously to the ruling late on Tuesday, calling for “restraint and sobriety”, but the mood at President Rodrigo Duterte’s cabinet meeting on Wednesday was “upbeat”, presidential spokesperson Ernesto Abella said.

Philippine Defence Secretary Delfin Lorenzana said he had spoken to U.S. counterpart Ash Carter ahead of the ruling who told him China had assured the United States it would exercise restraint, and the U.S. made the same assurance. Carter had sought and been given the same assurance from the Philippines, Lorenzana added.

“The ruling can serve as a foundation on which we can start the process of negotiations which hopefully will eventually lead to the peaceful settlement of the maritime dispute in the South China Sea,” Charles Jose, a spokesman for the Philippines’ Department of Foreign Affairs, said.

One of the lawyers who argued the Philippines’ case said how and when the country would enforce the tribunal’s ruling was complicated.

“There’s no timeline for this game. It might have an extended period of gestation,” said Florin Ternal Hilbay, a former solicitor general. “I would assume our diplomats have read the decision and understand the complexities and consequences of enforcing the decision.”

Global intelligence firm Stratfor said fishermen from China or the Philippines were the greatest potential disruptors in the region, beyond the easy control of law enforcement.

“The greatest struggle for both countries will be to rein them in, preferably before they get to sea, lest they disrupt the delicate peace,” Stratfor said in a note.

In moves likely to antagonize Beijing, the coastguards of Japan and the Philippines took part in simulated rescue and medical response exercises off Manila Bay on Wednesday, part of what the two countries have called efforts to improve maritime security and combat crime and piracy.

Japan and China are involved in a separate territorial dispute in the East China Sea and Beijing has warned Tokyo against meddling in the South China Sea dispute.

PIVOT PRESSURE

Beijing’s ambassador to the United States earlier blamed the rise in tension in the region on the United States’ “pivot” toward Asia in the past few years. Cui Tiankai said the arbitration case “will probably open the door of abusing arbitration procedures.

“It will certainly undermine and weaken the motivation of states to engage in negotiations and consultations for solving their disputes,” Cui said at a forum of the Center for Strategic and International Studies (CSIS) in Washington. “It will certainly intensify conflict and even confrontation.”

South Korea on Wednesday announced the planned location of a U.S. THAAD anti-missile defense unit against North Korea’s missile and nuclear threats, a system that has angered China and prompted a North Korean warning of retaliation.

President Barack Obama’s top Asia policy adviser, Daniel Kritenbrink, said the United States had no interest in stirring tensions in the South China Sea as a pretext for involvement in the region.

“We have an enduring interest in seeing territorial and maritime disputes in the Asia Pacific, including in the South China Sea, resolved peacefully, without coercion and in a manner that is consistent with international law,” Kritenbrink said at the same forum.

Taiwan President Tsai Ing-wen boarded a navy frigate in southern Taiwan ahead of its departure for the South China Sea early on Wednesday, a regular patrol pushed forward due to the Hague decision, which Taipei rejected.

“This patrol mission is to show the determination of the Taiwan people to defend our national interest,” Tsai said from the warship.

China considers self-ruled Taiwan a breakaway province to be united with the mainland eventually, and by force if necessary.

(Additional reporting by Manuel Mogato in Manila, John Walcott and David Brunnstrom in Washington, Engen Tham in Shanghai and JR Wu in Tapei.; Editing by Lincoln Feast and Nick Macfie)

Tribunal overwhelmingly rejects Beijing’s South China Sea claims

anti-China protest group over South China Sea

By Anthony Deutsch and Ben Blanchard

AMSTERDAM/BEIJING (Reuters) – An arbitration court ruled on Tuesday that China has no historic title over the waters of the South China Sea and has breached the Philippines’ sovereign rights with its actions, infuriating Beijing which dismissed the case as a farce.

A defiant China, which boycotted the hearings at the Permanent Court of Arbitration in The Hague, vowed again to ignore the ruling and said its armed forces would defend its sovereignty and maritime interests.

China’s state-run Xinhua news agency said shortly before the ruling was announced that a Chinese civilian aircraft had successfully tested two new airports in the disputed Spratly Islands.

And China’s Defence Ministry said a new guided missile destroyer was formally commissioned at a naval base on the southern island province of Hainan, which has responsibility for the South China Sea.

“This award represents a devastating legal blow to China’s jurisdictional claims in the South China Sea,” Ian Storey, of Singapore’s ISEAS Yusof Ishak Institute, told Reuters.

“China will respond with fury, certainly in terms of rhetoric and possibly through more aggressive actions at sea.”

The United States, which China has accused of fuelling tensions and militarizing the region with patrols and exercises, urged parties to comply with the legally binding ruling and avoid provocations.

“The decision today by the Tribunal in the Philippines-China arbitration is an important contribution to the shared goal of a peaceful resolution to disputes in the South China Sea,” State Department spokesman John Kirby said in a statement.

U.S. officials have previously said they feared China may respond to the ruling by declaring an air defense identification zone in the South China Sea, as it did in the East China Sea in 2013, or by stepping up its building and fortification of artificial islands.

China claims most of the energy-rich waters through which about $5 trillion in ship-borne trade passes every year. Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims.

Finding for the Philippines on a number of issues, the panel said there was no legal basis for China to claim historic rights to resources within its so-called nine-dash line, which covers almost 90 percent of the South China Sea.

It said China had interfered with traditional Philippine fishing rights at Scarborough Shoal and had breached the Philippines’ sovereign rights by exploring for oil and gas near the Reed Bank.

None of China’s reefs and holdings in the Spratly Islands entitled it to a 200-mile exclusive economic zone, it added.

“2,000 YEARS OF HISTORY”

China’s Foreign Ministry rejected the ruling, saying its people had more than 2,000 years of history in the South China Sea, that its islands did have exclusive economic zones and that it had announced to the world its “dotted line” map in 1948.

“China’s territorial sovereignty and maritime rights and interests in the South China Sea shall under no circumstances be affected by those awards,” it said.

However, the ministry also repeated that China respected and upheld the freedom of navigation and overflight and that China was ready to keep resolving the disputes peacefully through talks with states directly concerned.

In a statement shortly before the ruling, China’s Defence Ministry said its armed forces would “firmly safeguard national sovereignty, security and maritime interests and rights, firmly uphold regional peace and stability, and deal with all kinds of threats and challenges”

The judges acknowledged China’s refusal to participate, but said they sought to take account of China’s position from its statements and diplomatic correspondence.

“The award is a complete and total victory for the Philippines … a victory for international law and international relations,” said Paul Reichler, lead lawyer for the Philippines.

Vietnam said it welcomed the ruling.

Taiwan, which maintains that the island it occupies, Itu Aba, is legally the only island among hundreds of reefs, shoals and atolls scattered across the seas, said it did not accept the ruling, which seriously impaired Taiwan’s territorial rights.

“This is the worst scenario,” Taiwan Foreign Minister David Tawei Lee told reporters, promising unspecified “action” from Taipei.

GROUND-BREAKING RULING

The ruling is significant as it is the first time that a legal challenge has been brought in the dispute, which covers some of the world’s most promising oil and gas fields and vital fishing grounds. [http://bit.ly/29AlvXc]

It reflects the shifting balance of power in the 3.5 million sq km sea, where China has been expanding its presence by building artificial islands and dispatching patrol boats that keep Philippine fishing vessels away.

The Philippines said it was studying the ruling.

“We call on all those concerned to exercise restraint and sobriety,” Foreign Affairs Secretary Perfecto Yasay told a news conference. “The Philippines strongly affirms its respect for this milestone decision as an important contribution to the ongoing efforts in addressing disputes in the South China Sea.”

Japan said the ruling was legally binding and final.

Oil prices jumped following the findings, with Brent crude futures <LCOc1> up almost 3 percent at $47.87 per barrel at 1130 GMT (7:30 a.m. ET).

The court has no power of enforcement, but a victory for the Philippines could spur Taiwan, Vietnam, Malaysia and Brunei to file similar cases.

Ahead of the ruling, around 100 members of a Philippine nationalist group demonstrated outside the Chinese consulate in Manila, calling on Beijing to accept the decision and leave the Scarborough Shoal, a popular fishing zone off limits to Filipinos since 2012.

In China, social media users reacted with outrage at the ruling.

“It was ours in the past, is now and will remain so in the future,” wrote one user on microblogging site Weibo. “Those who encroach on our China’s territory will die no matter how far away they are.”

Spreading fast on social media in the Philippines was the use of the term “Chexit” – the public’s desire for Chinese vessels to leave the waters.

(Additional reporting by Enrico Dela Cruz and Martin Petty in Manila, Megha Rajagopalan in Beijing, Tim Kelly in Tokyo, John Walcott and David Brunnstrom in Washington, JR Wu in Taipei and Greg Torode in Hong Kong.; Editing by Lincoln Feast and Nick Macfie)

U.S. Destroyers sail close to Chinese held South China Sea

A machine gun is mounted on U.S. Destroyer USS Momsen (DDG92) as it docks in the Indian Ocean in

By Greg Torode

HONG KONG (Reuters) – U.S. destroyers have sailed close to Chinese-held reefs and islands in the disputed South China Sea in recent weeks, U.S. naval officials said on Thursday, patrols likely to fuel tension ahead of landmark ruling over Beijing’s maritime claims.

The destroyers Stethem, Spruance and Momsen have been patrolling near Chinese-held features in the Spratlys archipelago and the Scarborough Shoal, which is near the Philippines, the officials said. The patrols were first reported by the Washington-based Navy Times newspaper.

Pressure has been rising in the region ahead of a July 12 ruling by an arbitration court hearing the dispute between China and the Philippines over the South China Sea in the Dutch city of The Hague.

China has refused to participate in the case and vowed to ignore the rulings which the United States insists are binding and an important test of Beijing’s willingness to adhere to international law.

While not close enough to be within 12 nautical miles – a so-called freedom of navigation operation that would require high level approval – the destroyers operated within 14 to 20 nautical miles of the Chinese-occupied features, the Navy Times reported.

The USS Ronald Reagan and its escort ships have also been patrolling the South China Sea since last week.

Pacific Fleet spokesman Lieutenant Clint Ramsden said he could not go into operational or tactical details but that the patrols were part of a “routine presence”.

“All of these patrols are conducted in accordance with international law and all are consistent with routine Pacific Fleet presence throughout the Western Pacific.”

U.S. navy officials said Chinese naval ships, and sometimes fishing vessels, frequently track U.S. ships in the South China Sea but it is not yet known if the presence of the destroyers attracted particular attention.

Manila is challenging the legality of Beijing’s actions and claims in the South China Sea – the first legal case involving the South China Sea.

With legal experts expecting the ruling to go Manila’s way, at least in part, U.S. and other regional naval officials are bracing for tension in the weeks and months after the ruling.

(Editing by Lincoln Feast)

China brushes off doubts over support on South China Sea, says it is growing

South China Sea

BEIJING (Reuters) – China’s Foreign Ministry on Thursday brushed off doubts about how many countries have offered support for its position in a case brought by the Philippines over Chinese claims in the South China Sea, saying the number of nations was growing daily.

China has stepped up its rhetoric ahead of an expected ruling by the Permanent Court of Arbitration in the Hague on the Philippine case. China refuses to recognize the case and says all disputes should be resolved through bilateral talks.

China says more than 40 countries have offered support for its position, the most recent being Zimbabwe and Sri Lanka.

But only eight countries have come out in public support, including land-locked nations such as Niger and Afghanistan, says Washington’s Center for Strategic and International Studies.

On Wednesday, a senior U.S. official voiced scepticism at China’s claim that dozens of countries were backing its position, saying it was not clear even about what those countries may have agreed to.

Chinese Foreign Ministry spokeswoman Hua Chunying said public reports showed at least 47 countries offering support, though the figure was not complete as some nations’ backing had not been publicly reported.

“The number of people supporting China rises by the day, so I have no way of giving you a precise figure,” she told a daily news briefing, adding that the actual number was not the most important thing.

“As long as you have an objective and impartial position, as long as you understand the main points of the history of the South China Sea and the essence of the so-called ‘arbitration case’, any unbiased country, organization or person will unhesitatingly chose China’s just position,” she said.

China claims almost all of the energy-rich South China Sea, through which more than $5 trillion of maritime trade passes each year. Brunei, Malaysia, the Philippines, Taiwan and Vietnam have overlapping claims.

The Philippines is contesting China’s claim to an area shown on its maps as a nine-dash line stretching deep into the maritime heart of Southeast Asia, covering hundreds of disputed islands and reefs and encompassing a vital global trade route.

The consensus among officials and analysts is that the ruling will go largely against Beijing.

(Reporting by Ben Blanchard; Editing by Clarence Fernandez)

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