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Activities of the Claimants

China

CNOOC, BP Sign Production Sharing Contract in South China Sea

China National Offshore Oil Corp, known as CNOOC Group, on July 16th signed a production-sharing contract or PSC with BP PLC (BP.LN) to develop a deepwater block in the South China Sea. The block, known as 54/11, is about 4,500 square kilometers in size and is as much as 1,300 meters deep. The block is located in the western part of the Pearl River Mouth Basin. Financial terms of the contract weren't available.

China refutes Philippines' South China Sea accusation

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China on July 16th hit back at the Philippines' condemnation towards it over the South China Sea issue and reiterated its objection against international arbitration on the matter. Chinese Foreign Ministry spokeswoman Hua Chunying said in a written statement that "We regret that the Philippines stated that it has become impossible for it to continue bilateral discussions with China, and are dissatisfied with its refusal to diplomatic negotiation and closure of the door to dialogue." Her comments came after the Philippine Foreign Ministry issued an eight-point statement on July 15th, saying that a Chinese statement on July 12th was baseless and China's hard line position made it impossible to continue negotiations and led the Philippines to finally resort to international arbitration.

Full statement

China illegally issues ID cards, resident permits

The so-called Sansha city in the South China Sea issued its first identity cards and resident permits on July 17th. 10 people were given IDs and another 68 received resident permits.

China's Sansha city dock begins operating

The first phase of a dock in the so-called Sansha City was put into use on July 18th after the project's completion. The dock has nine berths for unloading fish, ice and fuel supply, fishery administration and transport.

China hopes for joint efforts to maintain South China Sea peace

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Chinese Vice Foreign Minister Liu Zhenmin said on July 19th that China will continue its efforts to promote peace, cooperation, stability and development in the South China Sea region. Liu made the remarks while addressing the Second Workshop on Cooperation and Development in the South China Sea. "We expect that the countries concerned may show more political willingness, make joint efforts to safeguard peace and stability in the South China Sea and create a win-win situation," Liu said. Cooperation and development is the mainstream in the South China Sea situation, and China and other East Asian countries will work together to maintain peace and stability in the region, he added.

Vietnam

Hotline on Viet Nam's sea, islands

A free hotline has opened to enable people to provide information the sovereignty of Viet Nam's sea and islands. Jointly established by the Ministry of Foreign Affairs and the Ministry of Information and Communications, it is part of a Prime Ministerial directive on collecting, assessing, making public and using documents, maps and publications related to the ownership of the islands. The directive also offers rewards for individuals and collectives who find and present documents. The hotline number is 18001771.

Additional patrol aircraft arrives in Vietnam

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The Vietnam Marine Police received the third CASA-212-400 marine patrol aircraft number 8983 at the airport of Regiment 918 of the Air Defence and Air Force Service on July 16th in the presence of representatives of relevant agencies. CASA-212-400 is the fourth-generation multi-functioned military craft made by the Airbus Group with modern technical equipment for conducting sea patrols, parachuting, protecting continental shelves and detecting oil spills and forest fires, as well as controlling drug smuggling.

Vietnam protests to China over chasing in Hoang Sa

Responding to reporters’ question regarding the acts of a Chinese ship which chased and bullied two Vietnamese fishing vessels in the waters at Vietnam’s Hoang Sa (Paracel) archipelago on July 7th, the spokesman of Vietnam’s Foreign Affairs Ministry, Luong Thanh Nghi said on July 17th that these acts have violated Vietnam’s sovereignty over Hoang Sa archipelago, Vietnam’s sovereign rights and jurisdiction in the East Sea.  It runs counter to the spirit of humane treatment of fishermen, the stipulations of international law and the spirit of the agreement on basic principles guiding the settlement of marine issues between Vietnam and China, as well as the Declaration on the Conduct of Parties in the East Sea (DOC), he said. According to the spokesman, a representative of the Vietnamese Ministry of Foreign Affairs has met representatives from the Chinese Embassy in Hanoi to hand over a note protesting the act. The Vietnamese side requested that the Chinese side launch serious investigation and strictly deal with the aforesaid wrongdoing, as well as compensate the Vietnamese fishermen, and prevent the recurrence of similar incidents in the future.

Vietnam blasts China for issuing dwelling permits in illegal city

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Vietnam's foreign ministry has opposed China’s issuance of ID cards and residence permits to Chinese nationals living in a city it illegitimately established within Vietnam’s sovereign seawaters. Vietnam dismissed the residence documents issued to Chinese citizens in so-called Sansha City as valueless, spokesman Luong Thanh Nghi of the Ministry of Foreign Affairs said in a press briefing on July 18th. “The act violates Vietnam’s sovereignty over the Hoang Sa (Paracel) and Truong Sa (Spratly) archipelagos,” he said.

Full statement

The Philippines

Bilateral talks with China becoming impossible

“Accept that we own the entire South China Sea before we talk”, that was gist of “the Chinese unequivocal message” on the territorial dispute with the Philippines over the South China Sea despite several attempts at negotiations, Philippine Department of Foreign Affairs spokesman Assistant Secretary Raul Hernandez told reporters July 15th. “It has, therefore, become impossible to continue bilateral discussion on disputes in the WPS with China on the basis of this rigid position,” Hernandez said. “This led us to finally resort to arbitration under Annex VII of the United Nations Convention on the Laws of the Seas (UNCLOS),” he said.

Philippine Arbitral Proceedings Against China Now Officially Under Way

The Philippine Department of Foreign Affairs and the Office of the Solicitor General (OSG) jointly announce that the Arbitral Tribunal that has been appointed to hear the case brought by the Philippines against the People's Republic of China under Annex VII of the UN Convention on the Law of the Sea was formally constituted and held its first meeting on July 11th at The Hague. At their first meeting on July 11th, the President and Members of the Tribunal designated The Hague as the seat of the arbitration and the Permanent Court of Arbitration as the Registry for the proceedings. The Parties had previously been requested to submit their views on these two matters, and the Philippines consented to both. Also at the July 11th meeting, the Arbitral Tribunal approved a draft set of Rules of Procedure to govern the proceedings, and sent it to the Parties for their comments, which were requested by 5th August 2013. This request also called for the Parties to propose a schedule for the submission of their written pleadings.

Philippines urges China: Be a 'responsible nation'

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In a statement, Philippine Department of Foreign Affairs spokesperson Raul Hernandez said China has no choice but to follow the rule of law since the international arbitration for the case filed by the Philippines against China on the territorial dispute is now underway. “To be accepted as a responsible nation, China has no choice. It must show to the international community its respect for the rule of law, including the mechanism of arbitration which is being pursued by the Philippines to clearly define respective maritime entitlements in the South China Sea," Hernandez said. He also said China can end the ongoing sea dispute by "defining what the core issue is."

Philippines maintains 'legal basis' to bring territorial row with China to UN tribunal

At a press briefing, Philippine presidential spokesman Edwin Lacierda welcomed the formal convening of the UN tribunal that will look into the complaint filed by the Philippines against China's territorial claim on the entire South China Sea. "We have always maintained that we have legal basis to bring the case before the arbitral tribunal. Certainly, this is a step that we welcome and we hope that this will be resolved in an expeditious manner," Lacierda said.

Groups plan worldwide protest vs Chinese territorial incursions

A newly formed coalition of various Filipino groups plans a series of demonstrations in Philippibes and in a number of major cities around the world on July 24th to protest Chinese incursions into parts of the South China Sea. “We protest the belligerent and blatant disregard of international laws in the West Philippine Sea (South China Sea),” said Rafael Alunan III, a former interior and local government secretary and one of the convenors of the West Philippine Sea coalition. “We ask China to respect the rule of law and be a good neighbor.”

Philippines disowns anti-China rallies to be held worldwide

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The Philippine government said it has nothing to do with the planned one-day global action on July 24th by Filipinos around the world to protest against Chinese incursions in the South China Sea, but will not try to stop it either. “Filipinos have all the right to express and voice out in a peaceful manner their positions and sentiments on the issue of the West Philippine Sea,” said Philippine Assistant Secretary Raul Hernandez, the Philippine Department Foreign Affairs spokesperson.

The U.S.

US naval commander warns Asia on use of force to settle disputes

A top United States naval commander warned on July 16th that growing economic power might tempt some Asian countries to settle disputes by force - remarks widely seen as directed at China. "Economic power is being converted to military power in many parts of the region, which may increase the temptation to use coercion or force in an attempt to resolve differences between nations," Swift said at the Lowy Institute for International Policy in Sydney.

US Vice President: Asia-Pacific Rebalance Promotes Prosperity, Security

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Emphasizing that economic development and peace and stability are intertwined, U.S. Vice President Joe Biden said on July 18th the goal of the increased U.S. focus and engagement in the Asia-Pacific region is to make it not only more secure, but more prosperous as well. Biden spoke to a Center for American Progress forum at George Washington University before leaving next week for economic and strategy discussions in India and Singapore. Recognizing maritime disputes in the South China Sea, Biden urged China and the Association of South East Asian Nations to work more closely toward a code of conduct that establishes universally acceptable standards of international behavior. “That means no intimidation, no coercion, no aggression and a commitment from all parties to reduce the risk of mistakes and miscalculation,” he said. “It is in everyone’s interest that there be freedom of navigation, unimpeded lawful commerce, respect for international laws and norms and a peaceful resolution of territorial disputes.”

Regional Snapshots

Singapore, US hold maritime drill exercise in South China Sea

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Singapore and the US are holding the annual maritime drill Exercise CARAT - short for Singapore-US Cooperation Afloat Readiness and Training - from 15th to 26th July in the South China Sea. The Singapore Ministry of Defence (MINDEF) said Exercise CARAT 2013 will focus on sharpening conventional maritime warfare capabilities such as anti-air, anti-surface and anti-submarine capabilities, as well as maritime air operations. MINDEF said the drill will involve a total of 1,400 personnel from both countries, five ships, a submarine, a naval helicopter and seven aircraft from the RSN and RSAF as well as three ships, a submarine, a naval helicopter and an aircraft from the USN.

Manila, Washington widen talks for military deal

Washington and Manila have expanded talks on military cooperation to include possible U.S. funding to build facilities and the storage of U.S. humanitarian relief supplies, the Philippine envoy to the United States said on July 16th. The wider scope of the talks for joint use of civilian and military facilities signals rapidly warming security ties between the allies as the Philippines looks to the U.S. administration to help counter a newly assertive China.

Commentaries & Analyses

ASEAN: between China and America

By Heng Sarith

 

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The rise of China and US strategic rebalancing present challenges for ASEAN, and it can respond in four very different ways. First, ASEAN may exercise balance of power and could become an object of great power competition. Some countries are seeking more robust economic and strategic relationships with the United States as an option to hedge against China’s threat. Howerver, the game of balance of power would have adverse consequence, such as rifts in ASEAN’s solidarity, if it is exercised carelessly. ASEAN has long been considered neutral — it is not dominated by a great power. Since its establishment in 1967, ASEAN’s neutrality has given it strategic success. Second, the sceptics of East Asian regionalism fear that China will eventually dominate East Asia through a China-led ‘East Asian Community’, even though Japan originally proposed this initiative. In this scenario, ASEAN countries would move closer to China with regional economic integration and mega-regional infrastructure projects, such as the Singapore–Kunming Rail Link, bilateral assistance packages, FTA frameworks, and the Regional Comprehensive Economic Partnership (RCEP). In contrast, the third scenario would see the United States extend its security umbrella and lead the region economically through multilateral forums. In this particular scenario, ASEAN nations would sign up to US-led multilateral forums, such as the Trans-Pacific Partnership (TPP) and Expanded Economic Engagement (E3) initiatives, in order to diversify their export markets and increase US FDI flow to the region. Fourth, ASEAN enthusiasts would prefer to safeguard ‘ASEAN centrality’ in order to balance itself between China and the United States. ASEAN knows that being too close to China or the United States is harmful to its unity. It can maintain centrality by using the ‘ASEAN way’ of consultation and consensus to accommodate all the voices and needs of its members. ASEAN should choose this last option. Safeguarding ASEAN centrality is the most acceptable strategic choice. Doing so will advance its strategic position and help maintain regional peace, stability and prosperity. The first step toward achieving this policy is to focus on ASEAN community building and to build a regional initiative on dispute settlements. ASEAN has to strengthen itself and find the right distance between the two great regional powers.

ASEAN needs 'more effective' code with China on sea row

By Dario Agnote

ASEAN and China need to forge a more effective and credible code of conduct that clearly identifies "concrete conflict prevention measures" to keep rival claimants from flexing their military muscles and occupying more disputed features in the South China Sea, diplomats and analyst said. "How to make the agreement more effective is very important," Eileen Baviera, a professor on Chinese studies and international relations at the Asian Center of the University of the Philippines, said. So far, Baviera said in an interview, "The existing agreements (on the sea disputes) have not really been very effective." "I think very clearly you need to have some concrete conflict prevention measures, a military tight agreement, on how to behave when you see each other's navies in the ocean." She said a proposed code "must be able to help guide the different countries on what is acceptable behavior." "It's difficult if each country has its own rules of engagement or follows its own guidelines. That's what brings us into confrontation with each other. I think a code of conduct, more than anything else, should have conflict prevention measures," Baviera said. Indonesian Foreign Minister Marty Natalegawa said unity among the members of the Association of Southeast Asian Nations is vital in negotiating a legally binding code of conduct with China. "We need to remain united. That will always be ASEAN's strength," he said in an interview in Bandar Seri Begawan. "As long as ASEAN is united then we will be all right. But as soon as we begin to have an a la carte ASEAN outlook, picking and choosing the piece that we like, that's when things will become more problematic."

South China Sea disputes: How can China reassure its neighbours?

By Huy Duong

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China’s South China Sea claims are igniting much regional tension, and there are repeated calls for China to clarify these claims. In response to this, it has been suggested by some scholars that China reassure its South China Sea neighbours and the world by issuing statements, considered below, with the aim of abating some of the tension without reducing the extent of its maritime claims. First, China could argue that its claims are consistent with Article 57 of the UN Convention on the Law of the Sea (UNCLOS), which allows states to have an exclusive economic zone (EEZ) of up to 200 nautical miles. But in the presence of overlapping entitlements with the surrounding territories, the Paracels and Spratlys would not be allocated EEZs that extend the full 200 nautical miles nor to anywhere near the U-shaped line Beijing claims — an understanding reinforced by the International Court of Justice in Nicaragua v Colombia. Second, China could assert that the U-shaped line dates back to 1947, conferring on China historical rights over the waters within that line which are not superseded by UNCLOS. But this statement is misleading. China has never actually declared that it claims all the waters within the U-shaped line, so no rights over those waters could ever have emanated from that line. If today China declares that it claims all these waters then it would be for the first time, and the earliest date for that claim would be today. The fact that the U-shaped line was drawn in 1947 does not mean the claim goes back to 1947. Third, China could urge that the relevant parties to the disputes put aside the disputes and pursue joint development. Although this would be an ostensibly pragmatic way forward, it would also be unlikely to succeed. The reality is that China has made expansive claims to create arbitrary areas of overlapping claims; to then demand that other nations share resources within these areas with China would be very poorly received by other nations. Finally, China could reassure its neighbours that it respects freedom of navigation in the South China Sea. This might be said to reassure the United States, which has a strong interest in keeping these sea lanes open. However, such a statement would be little more than rhetoric — affirming only that China respects freedom of navigation according to its own definition, which is different from that of the United States and the majority of countries. Nations are reassured by the reasonable stance and behaviour of others, not rhetoric. Laying poorly clarified claims to most of the waters in the South China Sea, and attempting to coerce others to submit to these claims, is by no means reasonable. The only way China can reassure its neighbours is to bring its claims into conformity with UNCLOS and international law. China should be prepared to negotiate in good faith the limits of the disputed areas and, if this fails, settle its claim through an international court or tribunal.

Asean appears more united on South China Sea issues

Around this time last year, the Association of Southeast Asian Nations reeled from an unexpected scandal: the failure for the first time to issue a joint communique after a leaders' summit. China had pressured host Cambodia, its close ally, not to allow any mention of the South China Sea disputes in the traditional closing statement; both the Philippines and Vietnam vigourously objected, but in the end Cambodia chose to side, not with its ASEAN partners, but with China. Chinese overreach had immediate regional consequences. Beijing's aggressive conduct in the South China Sea attracted renewed international attention. Cambodia felt the urgent need to repair its relations with neighbouring Vietnam, one of the claimant countries. Not least, the largest ASEAN member, Indonesia, began a form of shuttle diplomacy, with support from Singapore, to try to repair the unexpected damage to ASEAN unity. This Indonesian initiative, during the ASEAN summit hosted by Brunei, has effectively strengthened Asean's resolve to commit China to a binding "code of conduct", one which will govern maritime disputes as well as maritime cooperation in the region. "We have to have the code of conduct," Indonesian Foreign Minister Marty Natalegawa said in Bandar Seri Begawan. "Otherwise, uncertainty will prevail." With new Chinese Foreign Minister Wang Yi taking part in ASEAN exchanges for the first time, the association reached an agreement with Beijing to begin official consultations on the code of conduct, to lead to formal talks in September. It may be that Cambodia has realised that its membership in ASEAN loses much of its potency if it is perceived as a Chinese proxy; it may be that Sultan Bolkiah of Brunei has put his entire weight behind the Indonesian initiative; it may be that Chinese assertiveness in advancing its claims to almost the entire South China Sea, and the refusal of both the Philippines and Vietnam to back down, has had the effect of strengthening ASEAN conviction about its "centrality in the evolving regional architecture" - in the words of the communique. Whatever the reason, China has finally heard from ASEAN again on the vexing issue of competing maritime claims in the South China Sea. That is no small thing.