by: Byron Filog Allatog
The South China Sea (SCS) is a vital shipping lane surrounded by countries such as China, the Philippines, Malaysia, Vietnam, Indonesia, and Brunei. The area is rich in natural resources such as oil, gas, minerals, and fisheries, making it an essential economic asset for neighboring countries. However, territorial disputes have led to tensions between China and the Philippines, hampering its reliance on fisheries and trade routes for economic growth and development. The author suggests that the Philippines must assert its legally vested rights in the area to ensure economic growth and development, especially for its fishing industry and energy demands. Additionally, the author believes that the Philippines’ efforts to claim its rights contained in the EEZ would help establish a rules-based order in the SCS and the entire Indo-Pacific region through increased military spending on naval assets.
What benefits do the Philippines gain from opposing China in the SCS? The area is crucial to the Philippines as it gives abundant fish stocks, which benefited the country for generations. The region also holds untapped oil and gas reserves, estimated at up to 11 billion barrels of oil and 190 trillion cubic feet of natural gas, and prized mineral reserves such as copper, zinc, and iron, which could power the country’s manufacturing industries. Furthermore, the SCS has some of the world’s largest coral reef systems, which provide a diverse environment for marine life and tourism revenue for the country.
SCS is a source of livelihood for Philippine coastal communities. The area’s fishing industry is also critical, providing employment to over 1.5 million people and contributing more than 12% of the global fish catch. However, territorial disputes have negatively impacted the industry, reducing fishing activities due to intimidation and harassment by China. The presence of Chinese vessels in the SCS causes a monthly loss of 7.2 million kilograms of fish products, potentially costing P720 million, while the 2021 Chinese blockade resulted in 3.6 million kilograms of lost fish. Also, the Philippines has much to gain from exploiting the oil and gas reserves in the SCS to improve its energy security. Since the country relies heavily on imported oil, fluctuations in global oil prices can threaten its energy security. By developing its oil and gas reserves, the Philippines can reduce its dependence on imported oil on imported oil and establish a more stable energy source. Former Supreme Court Justice Antonio Carpio has emphasized that developing Reed Bank is urgent as Malampaya, which currently supplies 40% of Luzon’s energy, will run out of gas in 10 years. Failure to develop Reed Bank could lead to long periods of brownouts in the country, impacting its economy.
Finally, the Philippines heavily relies on trade routes passing through the SCS, which is among the world’s busiest waterways, with more than one-third of global shipping traffic. The area handles around 80% of international trade in terms of volume and 70% in terms of value, with about 60% of maritime trade passing through the South China Sea. According to UNCTD 2021, developing countries, including the Philippines, are the primary marine trading hubs, handling 55% of global exports and 61% of imports. The Port of Manila is an important port connecting the country to the worldwide import and export market, and it is one of the major ports and maritime infrastructure in the SCS. The port’s significance will boost the country’s economic growth. A single country’s control or blockade of the area is an economic loss for the Philippines. According to study findings, these perceived threats could trigger a quick arms race among the powerful nations involved.
Clearly, the ongoing dispute in the SCS is impacting its potential, as the Philippines and China claim territorial and sovereign rights over several regional features. Philippines’ claims are based on domestic and UNCLOS law, which grants countries exclusive economic zones extending 200 nautical miles from their coastlines. China, however, also claims sovereignty and “historic rights” over the area under its nine-dash-line theory, leading to tensions between the two countries. While the dispute resolution system under UNCLOS allows nations to define their privileges and obligations in the area and settle conflicts amicably, enforcing international law in the region remains challenging. Despite this, the Philippines has utilized this system (PCA) to protect its territorial interests; it is essential to note that China’s claim is unlawful while the Philippines’ claim is based on the rule of law.
Territorial disputes in the SCS have led to decreased investment and exploration, creating regional tensions and conflicts. China has militarized the area by constructing the Mischief Reef into a military garrison and implementing laws to expand military operations and grant authority to the coast guard in the use of force. The recent events have increased tensions in the maritime security environment, which could lead to unintentional conflicts.
The SCS stability is Indo-Pacific prosperity; the area is essential for maritime trade in the Indo-Pacific region, which links significant global economic hubs. US President Joe Biden emphasized the importance of a free and open Indo-Pacific for the future of nations and the world, with China claiming 80% of it is chaotic. The region includes countries in parts of the Americas, Asia, and Oceania, with a population of over 2.7 billion and a GDP of $31 trillion. The Indo-Pacific region plays a crucial role in global trade, with major trade routes connecting Asia to Africa, Europe, and the Middle East.
China’s ambiguous claims its nine-dash line and domestic legislation regulating activities in its waters beyond what’s allowed under UNCLOS have caused instability and loss of economic viability in the South China Sea. China’s Coast Guard Law of 2021, claiming the right to enforce its sovereignty and maritime claims by force, has made the situation more turbulent. This creates a problem as China seeks to lead the world order while disregarding the rules and laws it helped to craft and sign as a member state, as in the case of UNCLOS and PCA rulings. As a result, prosperity in the region will remain unstable, and economic viability for states with vested rights remains elusive due to the greed of one state.
The SCS is essential for the Philippines’ economy and security. It provides access to natural resources, trading routes, and maritime infrastructure. Economic push factors power military spending, which gives a possible balance to China’s aggressiveness in the waters. As a developing country, the Philippines must assert these rights based on UNCLOS law and PCA rulings to boost its economic development and power capabilities in a balanced interest for sustained stability in the SCS and, in turn, pushes for Indo-Pacific prosperity.
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DISCLAIMER:
The views expressed in this article are those of the author. They do not necessarily reflect the position of the Philippine National Police, the Armed Forces of the Philippines, or the Philippine Government.
CSOP101 is a professional learning site for community policing advocates, practitioners, and supporters in changing the policing landscape. It is likewise an issue-based, related to or addressing nation-building. The views expressed within individual blog posts (police blog and academic) are those of the author and do not reflect any official position or that of the author’s employers. Any concerns regarding this blog post or resources should be directed in the first instance to byron.allatog012@gmail.com.
