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(Ancient map proves Vietnam’s sovereignty over Hoang Sa, Truong Sa)

Activities of the Claimants

China

Legislative conference held in the China’s newly established city Sansha in South China Sea

A legislative conference opened Monday (24th July) morning in the China’s newly established city of Sansha in the South China Sea. Forty-five deputies to the municipal people's congress attended the first session of the first People's Congress held on Phu Lam (Woody) Island, the government seat of Sansha.

China eyes airstrip near Thi Tu Island

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China is reportedly planning to build its first airstrip adjacent to the Thi Tu Island, a territory in the hotly contested Spratlys Island. The construction of the airstrip at the Subi Reef has yet to start but Beijing is reportedly eyeing the back of a four-story building as location for the new airstrip. “As we have gathered, China is planning to replicate in Subi Reef what the Malaysians have done in their occupied Layang-Layang Reef,” Kalayaan Mayor Eugenio Bito-onon said. Layang-Layang is currently being marketed by the Malaysian government as one of its finest dive resorts in the region. From a reef, Malaysian developed the area into an island resort with an airport, a hotel and a naval detachment.

Chinese Foreign Ministry Spokesperson Hong Lei : “The UN Convention on the Law of the Sea is not the legal basis to determine the territorial sovereignty of the Huangyan Island (Scarborough Shoal)”

In response to the Philippine President's Speaking of the Huangyan Island incident, Chinese Foreign Ministry Spokesperson Hong Lei said:”The facts and truths about the Huangyan Island incident have been clear. The UN Convention on the Law of the Sea is not the legal basis to determine the territorial sovereignty of the Huangyan Island and cannot change the fact that the island belongs to China. Resolute in safeguarding its territorial sovereignty, China is also committed to handling the incident through bilateral consultation. The situation off the Huangyan Island tends to relax on the whole. We hope the Philippine side can do more for further relaxation of the situation and sound development of bilateral relations.”

China fishing fleet returning from South China Sea

A Chinese 30-boat fishing fleet casting nets in the South China Sea left Vanh Khan Reef on Wednesday (25th July) evening for Sanya Port in the southernmost province of Hainan, bringing a 13-day voyage to an end. The fleet is 615 nautical miles from Sanya and is expected to arrive at the city within four days.

Major officers in the China’s newly established city Sansha garrison appointed

Major officers in the Sansha military garrison have been appointed, with Senior Colonel Cai Xihong as the commander and Senior Colonel Liao Chaoyi as the political commissar, Chinese Defense Ministry spokesman Yang Yujun said on Thursday (26th July). Yang said the newly established military garrison is responsible for defense mobilization, militia reserves, the relationship between the garrison and local government as well as the city guard, support for the city's disaster rescue and relief work, and direct militia and reserve troops in the city of Sansha.

China National Offshore Oil Corporation, Shell sign deals for oil exploration in South China Sea

China National Offshore Oil Corporation (CNOOC), the Chinese largest offshore oil producer, on Wednesday (25th July) signed two production-sharing contracts with Royal Dutch Shell PLC to explore a pair of offshore oil blocks in the South China Sea. The blocks, 62/02 and 62/17, lie in the Yinggehai basin off China's Hainan island, according to the agreement. Shell will undertake 100 percent of the exploration costs in the blocks while CNOOC can take up to 51 percent of equity interest in any commercial oil and gas discovery in the blocks.

China launches its largest patrol vessel

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China launched its largest and most advanced patrol vessel Haixun01 on Saturday (28th July) in Wuhan, a city in central China's Hubei province. Haixun01 is the first Chinese patrol vessel to simultaneously incorporate marine inspection and rescue functions. The 5,418-tonnage Haixun01 is 128.6 meters in length. Its sailing speed is 37 km per hour and has a maximum sailing distance of 10,000 nautical miles (18,520 km) without refueling, said Tang Gongjie, general manager of Wuchang Shipbuilding Industry Company Ltd, the builder of the ship.

Chinese boats catch fish, get corals off Thi Tu Island

Under the protective watch of warships, Chinese fishing vessels anchored off Thi Tu Island in the disputed Spratly archipelago in the South China Sea operated at will on Thursday (26th July), catching fish but mainly collecting corals in large quantities.

Vietnam

Vietnamese Foreign Ministry Spokesman Luong Thanh Nghi: “The Chinese establishment of the so-called "Sansha city” is null and void”

On July 19, 2012, the Chinese Central Military Commission decided to formally establish the  "military command" of the so-called "Sansha city", based on Phu Lam (Woody) Island in Hoang Sa archipelago, and on July 21, 2012, the Chinese side held an election for the first tenure of the people’s congress of the so called "Sansha city". In response to the above-said developments, Vietnamese Foreign Ministry Spokesman Luong Thanh Nghi stated:

"The Chinese establishment of the so-called "Sansha city” and its above-said moves seriously violate international laws and Viet Nam's sovereignty over Hoang Sa (Paracel) and Truong Sa (Spratly) archipelagoes, and are null and void. These activities go against the common perception of the leaders of the two countries, violate the agreement on the basic principles guiding settlement of maritime issues between Viet Nam and China signed October 2011; run counter to the spirit of the Declaration on the Conduct of Parties in the South China Sea signed in 2002 between ASEAN and China and complicate the situation in the East Sea. On July 24, 2012, Viet Nam's Foreign Ministry sent a note of protest to the Chinese Foreign Ministry."

Ancient map proves Vietnam’s sovereignty over Hoang Sa (Paracel Islands), Truong Sa (Spratly Islands)

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An old map published in 1904 under the Qing Dynasty provides yet more evidence against China ’s territorial claim of Hoang Sa and Truong Sa archipelagoes.  The map “Hoang Trieu Truc Tinh Dia Du Toan Do” is the property of Dr. Mai Hong, who used to work for the Han Nom Institute. He presented it to the Vietnam National Museum of History on July 25. The map measuring 115cm long and 140cm wide depicts Hainan island as the southernmost point in China ’s territory and there was no mention on whatsoever of Hoang Sa and Truong Sa archipelagoes.

The Philippines

Philippines checking Chinese garrison construction in Spratly Islands

The Philippine military on Tuesday (24th July) kept mum on China’s plan to build a garrison on a group of disputed islands in the South China Sea. Armed Forces of the Philippines spokesman Col. Arnulfo Burgos Jr., however, said they would continue to conduct surveillance reports in the area. Burgos said they would continue to coordinate with state agencies in monitoring the situation in the area.

Philippines protests China sea garrison plans

On July 25th,the Philippines summoned the Chinese ambassador to protest against China’s plans to establish a military garrison on the disputed Paracel Islands in the South China Sea. The Department of Philippine Foreign Affairs said it summoned Ambassador Ma Keqing to lodge the complaint, and also to object to the arrival of a military-escorted Chinese fishing fleet near the contested Spratly Islands. While the Philippines does not have territorial claims on the Paracels, Philippine Foreign Affairs department spokesman Raul Hernandez said the Chinese plan to administer both island groups (Spratly Islands and Paracel Islands) from Sansha was unacceptable.

Philippine President asks for solidarity from the country’s citizens

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On 23rd July, in the state of the Nation Address of the President of the Philippines to the Congress of the Philippines, President Aquino asked for solidarity from the country’s citizens to resolve territorial disputes in a peaceful way. “If someone entered your yard and told you he owned it, would you agree? Would it be right to give away that which is rightfully ours? And so I ask for solidarity from our people regarding this issue. Let us speak with one voice.” He pointed that as a sign of our goodwill, the Philippines replaced its navy cutter with a civilian boat as soon as it could. “I do not think it excessive to ask that our rights be respected,  just as we respect their rights as a fellow nation in a world we need to share.”

The US

The US Department of State concerned about the Chinese establishment of Sansha city

In respone to the question:”Do you have anything on the Chinese establishing this kind of faux town south of Hainan which a lot of people think is designed to just – well, that it’s going to raise the tensions over the existing – already existing maritime claims?”, Victoria Nuland , the spokesperson of the US Department of State said:“We’ve seen these reports regarding recent actions in the South China Sea. We remain concerned should there be any unilateral moves of this kind that would seem to prejudge an issue that we have said repeatedly can only be solved by negotiation, by dialogue, and by a collaborative diplomatic process among all of the claimants. And the Secretary herself, as you know when we were on our trip not too long ago throughout the region, regularly expressed concerns about any instances of economic coercion, military coercion, et cetera.”

US Senator John McCain:”China’s actions are not befitting a responsible great power.”

“The decision by China’s Central Military Commission to deploy troops to islands in the South China Sea, which are also claimed by Vietnam, is unnecessarily provocative. Similarly, China’s appointment of legislators to govern all of the islands and waters that China claims in the South China Sea only reinforces why many Asian countries are increasingly concerned about China’s expansive territorial claims, which have no basis in international law, and the possibility that China will attempt to impose those claims through intimidation and coercion. China’s actions in this case are disappointing and not befitting a responsible great power.”

US Senator Webb: “China’s Military and Governmental Expansion into South China Sea may be a violation of International Law.”

Senator Jim Webb, chair of the Senate Foreign Relations East Asian and Pacific Affairs Subcommittee, said China’s recent actions to unilaterally assert control of disputed territories in the South China Sea may be a violation of international law. “China has refused to resolve these issues in a multilateral forum, they claim that these issues will only be resolved bilaterally, one nation to another. Why? Because they can dominate any nation in this region.  This is a violation, I think quite arguably, of international law.  It is contrary to China’s own statements about their willingness to work with ASEAN to try to develop some sort of Code of Conduct.”

Regional Snapshots

Viet Nam-Indonesia committee meets on bilateral ties

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Vietnamese Foreign Minister Pham Binh Minh and his Indonesian counterpart, Marty Natalegawa, co-chaired the meeting, which aimed to realise an agreement between the two Governments stated in the Viet Nam-Indonesia Action Programme for the 2012-2015 period. The ministers spent time discussing cooperation between the two countries at regional and international forums, particularly in the framework of ASEAN. They also debated regional issues of common concern, including the East Sea (South China Sea) issue, stressing the maintenance of peace, stability, maritime security and safety in the East Sea, the respect for international laws and the 1982 UN Convention on the Law of the Sea (UNCLOS), the full implementation of the Declaration on Conduct of the Parties (DOC) and advancing towards a Code of Conduct (COC) in the East Sea (South China Sea).

Philippine Senate ratifies defense agreement with Australia

Voting 17-1, the Philippine Senate finally ratified yesterday (24th July) the Status of Visiting Forces Agreement (SOVFA) between the Philippines and Australia. “Australia is a key ally in this part of the region. SOVFA is mutually beneficial for both countries’ armed forces. SOVFA will further strengthen bilateral ties as we upgrade our soldiers’ knowledge and skills particularly in the conduct of humanitarian and disaster response,” Col. Arnulfo Marcelo Burgos Jr., spokesman of the Armed Forces of the Philippines said.

Vietnam, Russia issue joint statement

Vietnamese State President Truong Tan Sang and his Russian counterpart Vladimir Putin on Friday 928th July) issued a joint statement after their talks in Sochi city, Russia. The statement says the Vietnam-Russia strategic partnership, established in 2001, has been ceaselessly consolidated and enhanced in all fields. Both countries agreed to further lift up the bilateral ties. The two sides said territorial disputes and other disputes in the Asian-Pacific space should to be solved only by peaceful measures without the use of force or the threat to use force, based on the existing international law, particularly the UN Charter and the 1982 UN Convention on the Law of the Sea.

Commentaries & Analyses

China’s carrot-and-stick policy on the South China Sea issue

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The Chinese government is taking a dual approach to consolidating its territorial claims in the South China Sea. A recent softening of the country's diplomatic line amid a simultaneous deployment of military assets reveals a nuanced carrot-and-stick approach. The announcement by the Chinese military of plans to station a permanent military presence in the South China Sea has raised the stakes. China's Central Military Commission approved the deployment of a division-level military garrison to "Sansha City". This strengthening of an assertive military and political stance came amid a significant softening of China's diplomatic tone on the regional dispute. The Chinese Foreign Ministry was quick to express approval of a recent ASEAN six-point statement on the South China Sea. China has previously attempted to resolve its disputes with other claimants in the South China Sea on a purely bilateral basis, knowing full well it has massive leverage over its smaller neighbors. For the Foreign Ministry to rapidly assent to addressing the issue in a communal ASEAN context reveals an important shift in diplomatic strategy. The fact that this relaxing of the diplomatic tract came simultaneously with increased military deployment is indicative of China's dual strategy. China can neither afford to appear weak, nor to appear as an aggressive regional hegemon.

Behind the scenes of ASEAN's breakdown

Indonesia's Foreign Minister Marty Natalegawa recently conducted an intense round of shuttle diplomacy, visiting Cambodia, Vietnam, the Philippines, Singapore and Malaysia in order to secure agreement on the Association of Southeast Asian Nations' (ASEAN) Six-Point Principles on the South China Sea. When asked by the Australian Broadcasting Corporation to sum up the results of his efforts he replied it was "back to business as usual". His efforts also helped to dispel the perception outside of Southeast Asia that there was disunity among ASEAN members on how to deal with the South China Sea issue. More importantly, Indonesia's intervention served notice to Cambodia that as ASEAN's chair for 2012 it could not unilaterally control ASEAN's agenda. Natalegawa's intervention was unprecedented in taking a leadership role that normally would fall to the ASEAN chair and signaled that Indonesia is willing to play a more proactive role in regional affairs. There could, however, be another meaning behind Natalegawa's expression that ASEAN is "back to business as usual". This second meaning could be a vague reference to China's renewed assertiveness in seeking to exercise its jurisdiction over the South China Sea. Business as usual, in the other sense, thus could mean that while ASEAN negotiates a COC with Beijing, China can be expected to simultaneously continue to apply pressure and intimidation on both the Philippines and Vietnam and seek other ways to sow discord among the grouping's 10 members.

Grading the U.S. Rebalance

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To give the U.S. strategy true substance, officials have sought to impart new energy into the five existing formal U.S. bilateral defense alliances in Asia, namely those with Australia, Japan, South Korea, the Philippines, and Thailand. The US wants to expand defense cooperation with other Asian partners, and the focus of this effort has been in Southeast Asia, which complements the large-fixed U.S. bases in northeast Asia and also provides for superior access to the vital shipping lanes that pass through Southeast Asia. The Obama administration has focused its partnership outreach on ASEAN, both collectively and with key ASEAN members such as the Philippines, Vietnam… Also, the Obama administration anticipates that China’s continued rise is likely, but it’s trying to channel this ascent in mutually beneficial directions by inducing Beijing to accept U.S.-backed regional security and economic goals and procedures. More fundamentally than all these considerations, though, it’s unclear whether the U.S. Congress will provide adequate funding to support these Asian initiatives, and the focus on sustaining U.S. military power in the region threatens to leave the State Department and the other non-military U.S. government agencies vulnerable to cutbacks.

Is China Losing the Diplomatic Plot?

After 30 years of geopolitical competence, the Chinese seem to be on the verge of losing it just when they need it most. China has begun to make serious mistakes, But all of these mistakes pale in comparison with what China did to the Association of Southeast Asian Nations in July. For the first time in 45 years, the ASEAN Ministerial Meeting (AMM) failed to agree to a joint communiqué, ostensibly because ASEAN’s current chair, Cambodia, did not want the communiqué to refer to bilateral disputes in the South China Sea. The whole world, including most ASEAN countries, perceived Cambodia’s stance as the result of enormous Chinese pressure. China’s victory proved to be Pyrrhic. It won the battle of the comminiqué, but it may have lost 20 years of painstakingly accumulated goodwill. More importantly, China’s previous leaders had calculated that a strong and unified ASEAN provided a valuable buffer against any possible US containment strategy. Now, by dividing ASEAN, China has provided America with its best possible geopolitical opportunity in the region. The “nine-dotted line” that China has drawn over the South China Sea may prove to be nothing but a big geopolitical millstone around China’s neck. It was unwise to attach the map in a note verbale responding to a joint submission by Vietnam and Malaysia to the United Nations Commission on the Limits of the Continental Shelf in May 2009. This was the first time that China had included the map in an official communication to the UN, and it caused great concern among some ASEAN members. Having tabled the nine-dotted line at the UN, China walked into a no-win situation, owing to the difficulty of defending the map under international law.

China's Blue-Water Ambitions

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As China develops complex economic and strategic interests in Africa and the Middle East, freedom of navigation through the Indian Ocean and much of the Pacific will concern Beijing mightily. But for the near future, blue-water ambitions are likely to remain unfulfilled. A refurbished Soviet-era aircraft carrier, ASBMs and a few unstealthy nuclear submarines won’t allow the People’s Liberation Army Navy (PLAN) to conduct complex operations far from its shores, even if China’s sailors can master their new boats. Ostensibly, a stronger navy should allow Beijing to throw its weight around with greater ease. But if Chinese naval modernization is spurring others in the region to do the same—and if some of its more powerful neighbors look more than capable of playing catch-up—it is difficult to decipher what advantage the PLAN hopes to wield in the long term. Hegemony in the Pacific and Indian Oceans seems unlikely. Anything less could leave Beijing more isolated and vulnerable in a powerful, distrustful backyard.

What’s at stake in the South China Sea?

Its waters and seabed are subject to six opposing territorial claims – by China, Taiwan, Vietnam, Malaysia, Brunei and the Philippines – but these confrontations are generally not regarded as seriously as the Taiwan Straits and the Korean peninsula standoffs. But the South China Sea is more unpredictable, and certainly warrants much closer and more sustained attention by strategists and policy-makers. It is in the South China Sea that the components of Asia’s changing power dynamics are most concentrated and on display: China’s growing strategic heft and paranoid sense of entitlement; its Southeast Asian neighbours’ hopes and misgivings about China’s regional dominance; and the United States’ compulsion to meet China’s strategic challenge. The South China Sea is the flashpoint in the Pacific where conflict is most likely to break out through miscalculation. There are four reasons why finding solutions to the South China Sea disputes should be given the highest priority by strategic policy-makers. i) For China, it’s about security – and respect; ii) For Southeast Asia – avoiding the bad old days; iii) For the United States, it’s about credibility – within limits; iv) Solutions are part of the problem. 

China’s Coercive Economic Diplomacy

For more than a decade, China has pursued a strategy in Southeast Asia that relied heavily on economic carrots to increase the stake of the Southeast Asian countries in maintaining good relations with China. The China-ASEAN FTA, Chinese foreign direct investment, foreign assistance, and trade have all been used to encourage countries to consider Beijing’s interests when formulating policies and eschew actions that China would view as objectionable. In the past few years, however, China has directly used economic relations to compel target countries to alter their policies.  And this growing trend is worrisome. China has become a critically needed engine of growth for the global economy.  In addition, China’s economic largesse has provided benefits to many countries around the world.  It is increasingly clear, however, that economic cooperation with China has inherent risks. Countries should be mindful of Beijing’s increasing propensity to use economic means to compel target nations to alter their policies in line with Chinese interests.  Excessive dependence on China may increase countries’ vulnerability to such pressure.

Sinking feeling in the South China Sea

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Taking all the recent developments happened in the South China Sea into account, it would take an optimistic person to bet that things will cool off in the sea in the near future. It does not appear that ASEAN will come up with a consensus on how to address the issue of disputes in the sea with China anytime soon. As for the US, it will continue to issue reminders that it has a strategic interest in the South China Sea and reiterate its desire to see freedom of navigation to be preserved and a peaceful solution to disputes is reached in the sea. Vietnam and Philippines are expected to continue on the tangent of not mincing words in facing China's conduct in the sea. These, combined with the prospect of China continuing to avoid discussing disputes over the sea multilaterally and vehemently rejecting US involvement in the matter, do not inspire confidence that there will be a sharp change of positions among the key protagonists. Until there emerge "game changers" that drive the principal actors to take different approaches, it will be difficult to imagine the situation to change for the better in the foreseeable future. One just hopes that all parties will take serious stock of the situation and not further aggravate it.

Is ASEAN becoming a big-power battleground?

The South China Sea disputes were supposed to be and could have been an opportunity for China to solve problems diplomatically and build confidence with its neighbours as well as a chance for Asean to demonstrate its ability to work together on security issues. Both opportunities were lost, as was the hope for stabilisation of the region. The outcome was also an indication that Asean's navigation between China and the United States will be fraught with difficulties. Indeed, the elephant in the room was the China-US rivalry. There is now little doubt that the two are engaged in a struggle for the 'hearts and minds' of Southeast Asia. It is true that just before the Asean foreign ministers meeting, the US stated its position on the issues and essentially encouraged Asean to stand up to China. Much to China's chagrin, the US administration also increased its activity behind the scenes, pressing regional countries on the issue and trying to influence the content of the COC. Despite these setbacks and the proliferation of mistrust, it is likely that Asean will limp forward to the November meetings with some type of interim modus operandi. There is too much at stake not to do so - like Asean centrality in the region and its fundamental unity on security issues - and thus its credibility and political power.

Geopolitics and geoeconomics in Southeast Asia: What is the Indonesia’s position?

Geopolitics and geoeconomics in Southeast Asia are changing faster than ever across the whole region, while the global importance of internal Southeast Asia affairs continues to expand. The South China Sea has become an important issue for Indonesia because there are now so many territorial disputes between China and ASEAN countries. With regard to the geopolitics of Southeast Asia, if Indonesian influence is brought to bear, then perhaps China can be convinced to respect the Treaty of Amity and Cooperation (TAC) and the Code of Conduct in the South China Sea? Indonesia could propose joint sovereignty of disputed sea areas to China, the Philippines, Vietnam, Malaysia and Brunei Darussalam with the backing of the US and other ASEAN countries. If needs must, Indonesia could impose and police such an arrangement. Under our (Indonesia’s) leadership, ASEAN and China can create a joint security commission to monitor collective arrangements in the South China Sea. With strong, impartial leadership, China, the Philippines, and other concerned nations may work together to secure and develop the South China Sea without the current atmosphere of fear, distrust and threats.

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