Weekly Bulletin 3/3-9/3

Activities of the Claimants

China

China conducts full-scale island assault exercise with massive amphibious transport vessels

For the first time, all of the PLA Navy’s three gigantic Type 071 Amphibious Transport Dock vessels were deployed last week in a large naval exercise in the tense South China Sea, simulating in full an island-taking assault. Also participating in the drill were PLAN’s destroyers, frigates, military helicopters and possibly submarines.

China's aircraft carrier leaves for tests, training

China's first aircraft carrier, the Liaoning, on March 2^nd left its homeport of Qingdao in east China's Shandong Province on tests and training missions. The journey is the first of its kind for Liaoning in 2014 and is part of its yearly tests and training schedule, according to sources with he People's Liberation Army Navy.

Peace can only be preserved with strength

A spokesperson for China's top legislature on March 4^th defended the country's defense policies, saying that peace can only be preserved with strength. Responding to a question concerning China's growing military power, Fu Ying, spokesperson for the second session of the 12th National People's Congress (NPC), said China as a major power is responsible for regional peace and security. But "based on our history and experience, we believe that peace can only be maintained by strength," she told a press conference. China' s military spending has long been cited as a cause for concern in western countries. At March 4^th press conference, Fu said China, whose defense policy is entirely defensive in nature, has never treated any country as an enemy or a threat. "For disputes which cannot be settled in the short term, we could always set them aside, or negotiate joint development plans," said Fu, who added that a country's military power should be viewed in terms of its future policy trends. However, China will "respond effectively" to provocations by those ready to sabotage regional security and order "for the sake of China' s own territorial sovereignty, as well as for the protection of regional order and peace," she said.

China's Xi ramps up military spending

China announced its biggest rise in military spending in three years on March 5^th. The government said it would increase the defense budget by 12.2 percent this year to 808.23 billion yuan ($131.57 billion), as China seeks to develop more high-tech weapons and to beef up coastal and air defenses. Speaking at the opening of China's annual session of parliament, Premier Li Keqiang said the government would "strengthen research on national defense and the development of new- and high-technology weapons and equipment" and "enhance border, coastal and air defenses".

China apprehending boats weekly in disputed South China Sea

Chinese patrols enforcing disputed new fishing rules in the South China Sea are apprehending foreign boats on a weekly basis, Communist Party officials said on March 6^th. In comments that provide the first window on how China is enforcing new rules criticized by Washington, the party secretary for Hainan Island said Chinese patrols attempted to peacefully negotiate with vessels that initially ignored warnings to leave Chinese waters. "First of all we would try to dissuade them, tell them to get out, this is our area, and then we negotiate and dissuade as much as possible," Luo Baoming, party secretary for Hainan province, said on March 6^th. Luo said that Chinese authorities were regularly dealing with fishing vessels entering their waters. Luo did not provide specific numbers but said: "There's something like this happening if not every day then at least once a week, and the majority are dealt with by negotiating and persuasion."

China to work with ASEAN on South China Sea issue

China's Foreign Ministry spokesman, Qin Gang, says China is willing to work with the members of ASEAN, to formulate a code of conduct for the South China Sea. Qin's comments come ahead of the 10^th meeting of the China, ASEAN working group on the implementation of a declaration to establish a code of conduct of ASEAN members in the South China Sea. The meeting will be held on March 18^th in Singapore. He said: "China is ready to work with ASEAN to develop a comprehensive and effective implementation of the declaration and push forward consultations on the code of conduct.” "We hope that all parties will help create a good environment for the implementation talks in order to safeguard the peace and stability of the South China Sea."

China vows to defend "every inch of territory"

China is determined to defend "every inch" of its territory and would like to handle its territorial and maritime disputes with others by peaceful means, Foreign Minister Wang Yi said on March 8^th. "We will not take anything that is not ours, but we will defend every inch of territory that belongs to us," Wang told a press conference on the sidelines of the annual session of the National People's Congress, China's top legislature. "We will never bully smaller countries, yet we will not accept unreasonable denounce from smaller countries," he said, responding to a question about China's neighborhood diplomacy policy.  Wang said that the general situation in China's neighborhood remains "stable and positive."

Chinese warships on way to rescue mission

Two warships of the Chinese navy, "Jinggangshan" and "Mianyang", are on their way to sea area where missing Malaysia Airline flight MH 370 may have crashed, navy sources said. The vessel "Jinggangshan", loaded with life-saving equipments, underwater detection facilities and supplies of water and food, set out from Zhanjiang city of south China's Guangdong Province at about 3:00 a.m. on March 9^th for search and rescue mission. Two helicopters, 30 medical personnel, ten divers and 52 marines are also on board. Another Chinese navy vessel "Mianyang" left for the possible crash site on March 8^th.

Chinese expert proposes search & rescue facilities on South China Sea

China should build search and rescue (SAR) transport facilities like airports and ports on the South China Sea in response to marine and air accidents, a political advisor said on March 9^th, in light of an ongoing multinational search for a missing airplane. Yin Zhuo, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) and an information technology expert, said China's SAR capacity on the South China Sea is far from what is needed for dealing with emergencies like shipwrecks and air crashes. "It is imperative to build SAR ports and airports on the South China Sea," Yin said. Yin noted that aircraft sent by China's maritime SAR center are capable only of relatively short flights, and there is quite a long distance between where they take off and the far-away waters on the South China Sea.

Vietnam

Vietnam appreciates Indonesia six-point initiative

On March 4^th, Vietnamese Prime Minister Nguyen Tan Dung held a meeting with Indonesian Speaker of People’s Consultative Assembly Sidarto Danusubroto in Hanoi. In the meeting, PM Dung expressed his delight at the development of the bilateral strategic partnership, and he said he hopes the two sides will exert more effort to realise the signed agreements for mutual growth. Regarding East Sea (South China Sea) issues, he highly valued Indonesia six-point initiative on the matter. He said he hopes all involving parties will implement the Declaration on the Conduct of Parties in the East Sea (DOC) in a strict manner, leading to the introduction of a Code of Conduct in the East Sea (COC) for peace, stability, cooperation and development in the region. For his part, Danusubroto agreed and added that all issues must be settled through peaceful methods and dialogue to foster stability.

The Philippines

Fishermen can still go to Scarborough Shoal

The Philippine government is making sure Filipino fishermen are not deprived of access to Scarborough Shoal’s rich resources despite threats of being driven away even during inclement weather by intruding Chinese vessels. Presidential spokesman Edwin Lacierda said the Filipino fishermen are free to go to the area not just for fish but also for other marine resources they are allowed to collect. In a press briefing, Lacierda said the Bureau of Fisheries and Aquatic Resources (BFAR) would continue to assist fishermen.

China water cannon use vs PH fishers angers activists

Filipino activists protested in front of the Chinese consular office in Manila on March 3^rd, condemning Chinese vessels' use of water cannon on Filipino fishermen on January 27^th. "We believe it is a clear act of aggression from an outright intruder. It is already bad that China is again infringing on Philippine sovereignty. But what makes this incident more despicable and revolting is that, they're not only infringing on Philippine sovereignty, they're also committing acts of violence and harassment against Filipino fishermen, that were only undertaking fishing activities, within their right as Filipino nationals," said Emman Hizon, secretary-general of left-leaning group Akbayan (Arm To Rest On). 

PH to upgrade navy base facing disputed South China Sea

The Philippines is to upgrade a navy base facing disputed South China Sea waters to serve the extra ships being acquired to protect its territory, the military said March 6^th. Navy spokesman Lieutenant-Commander Gregory Fabic said the military would build a 500-million-peso ($11.2 million) port at Ulugan Bay, the Philippine military base nearest to the Spratly Islands. "It is being programmed for capability upgrade... we need to develop it to house the big vessels of the navy," he told reporters.

PH has right to defend its territory like China

The Philippines also has the right to defend every inch of its territory, President Benigno Aquino’s spokesman said on March 9^th, after China made a similar warning. Spokesman Herminio Coloma’s remarks came after China’s foreign minister Wang Yi said on March 8^th said his country would vigorously defend its sovereignty against “unreasonable demands from smaller countries.” “It is the right of every country to defend its national territory. That is also the principle we are following,” Coloma told reporters, commenting on the Chinese minister’s remarks.

U.S. concerns about Chinese lack of transparency

On March 4^th, in the testimony before the Subcommittee on East-Asian and Pacific Affairs, Senate Foreign Relations Committee, David Helvey, U.S. deputy assistant secretary of defense for East Asia, told that the Pentagon was seeking to build "healthy" ties with China's military, but said Beijing needed to be more open about its armed forces buildup. "We remain concerned about a lack of transparency regarding China's growing military and its increasingly assertive behaviour in the maritime domain," Helvey said.

Regional Snapshots

ASEAN defense chiefs reiterate call for COC in South China Sea

Military chiefs of the Association of Southeast Asian Nations on March 5^th jointly reiterated the importance of having a legally binding Code of Conduct to ease tensions in the South China Sea. The military chiefs gathering for the three-day informal meeting starting March 4^th in Myanmar's administrative capital Naypyitaw said in a joint statement that "the early conclusion of the Code of Conduct in the South China Sea is crucial to maritime security and to a stable security environment in the region." Speaking to reporters at a press briefing Wednesday at the venue, the host to the event, Myanmar Commander-in-Chief Senior Gen. Min Aung Hling stressed the importance of peaceful means in resolving the dispute. "The Myanmar military believes that the South China Sea dispute should be settled peacefully, only among the countries that are involved with the matter, in a bilateral or in a multilateral manner," he said. "We would always welcome and support every friendly and peaceful effort to resolve the issue with means acceptable to the nations involved," he added.

India-ASEAN dialogue values partnership

India will continue to further boost coordination between its research institutes and those from ASEAN to promote the two sides’ economic growth and stability and ensure peace. Indian Minister of External Affairs Salman Khurshid made the pledge at the 6th India-ASEAN Delhi Dialogue opened in New Delhi on March 6^th. The event saw the presence of a Vietnamese delegation led by Deputy Foreign Minister Pham Quang Vinh. Addressing the event, Minister Khurshid emphasised the importance of the dialogue to strengthening India and ASEAN’s efforts to move forward an open, comprehensive, and constant dialogue.

Fourth Philippines-United States Bilateral Strategic Dialogue

The Republic of the Philippines and the United States of America held their fourth Bilateral Strategic Dialogue (BSD) on March 6^th-7^th, 2014, in Washington, D.C. The Dialogue continued the two allies’ close consultation and exchange of views on a broad range of bilateral, regional, and global issues that reflect common values, mutual respect, and converging interests. During the Dialogue, the Philippines and the United States reaffirmed their commitment to the 1951 Mutual Defense Treaty, discussed actions that would further invigorate and expand their partnership in the spirit of the November 2011 Manila Declaration, and decided to expand cooperation in the areas of maritime domain awareness, disaster response preparedness, law enforcement, and nonproliferation. Regarding the South China Sea issue, the two sides expressed concern over recent developments in the South China Sea, and emphasized the importance of upholding peace and stability, respect for international law, unimpeded lawful commerce, and freedom of navigation and overflight.

Singaporean naval ship anchors at Da Nang port

Singapore’s naval ship RSS Resolution with 250 crew members aboard anchored at Tien Sa port in the central city of Da Nang on March 4^th. The visit is expected to further consolidate the friendship between Vietnam and Singapore in general and the two armies in particularly, especially in the context that they are speeding up cooperative activities within the framework of their strategic partnership signed in September last year.

US senior official visits Vietnam

US’ Under Secretary of State for Political Affairs Wendy Sherman paid a working visit to Vietnam on March 4^th to discuss ways to further foster cooperation between the two countries in the coming time. During his stay, the US official met some senior Vietnamese leaders, including Politburo member and Hanoi municipal Party Committee Secretary Pham Quang Nghi, Deputy Prime Minister Vu Duc Dam, head of the Party Central Committee’s Commission for External Relations Hoang Binh Quan, and leaders of Ministries of Foreign Affairs, Defence and Public Security. During the meetings, the two sides expressed their delight at the growing bilateral ties, especially since Vietnam and the US set up their comprehensive partnership in 2013. Regaridng the East Sea issue, the two sides affirmed that they will continue working closely to make contributions to the maintenance of peace, stability and cooperation in the East Sea, ensuring the maritime freedom, safety and security. Both the Vietnamese and the US sides agreed that all disputes in the East Sea must be settled through peaceful methods in respect for international law, especially the 1982 Convention on the Law of the Sea. They also agreed on the importance of strict implementation of the Declaration on the Conduct of Parties in the East Sea (DOC), heading to the formation of a Code of Conduct in the East Sea at an early date. 

Philex Petroleum: Still Keen on CNOOC Partnership for South China Sea Prospect

Philex Petroleum Corp. (PXP.PH) continues to be keen to partner China National Offshore Oil Corp., or CNOOC, over the possible joint development of natural gas deposits in an offshore prospect in the Philippines, which is also claimed by China. Philex Petroleum Chairman Manuel Pangilinan told reporters March 4^th that his group hasn't meet CNOOC representatives since their meeting in Hong Kong in the first quarter of last year. "But we've made known to CNOOC that we're ready to talk to them again," added Mr. Pangilinan, who is also managing director of Hong Kong-based investment firm First Pacific Co. Philex Petroleum is the controlling shareholder of London-based Forum Energy, which operates the natural gas prospects in the Co Rong Bank of the South China Sea. Forum Energy had called off in October 2012 the planned survey of the sea floor to determine the potential gas reserves of Co Rong Bank, citing harassment by Chinese navy vessels months earlier. After Philex Petroleum made a request in 2012 to the Chinese government to consider a joint exploration of the disputed territory, Beijing nominated CNOOC to be the partner for the project.