- South China Sea holds 11 billion barrels of untapped oil and 190 billion cubic feet of natural gas
- China claims 80% of the South China Sea
- The USA does not have any geographical advantage but invested $328 billion in ASEAN and provides security
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The dispute of the South China Sea is historical. But it grabbed public attention when India deployed its warship near the South China Sea to counter China amid rising border tensions between India and PLA. Indian warship is constantly maintaining contact with the American which is deployed on the other end of the South China Sea. Neighbors including the Philippines and Vietnam have also deployed their military ships to defend maritime territory. These developments are embarrassing for China.
But why China is so emotional while it comes to the South China Sea?
First, we have to understand the importance of the ‘Strait of Malacca'. The Strait of Malacca connects the South China Sea with the Indian ocean. Economies of Southeast Asian countries are highly dependent on the ports and free movement of goods through trade lanes in the sea. All the shipments, outgoing or incoming, pass through the Strait of Malacca. Countries like China, Brunei, Malaysia, Singapore, Vietnam, Taiwan, Korea, and Japan have their interest in the sea.
The red area in the above map is the Chinese claimed the area in the sea. It includes the Paracel Islands, the Spratly islands, and the Pratas Islands.
One-third of the world’s shipping passes through the South China Sea, carrying over $3 trillion in trade each year. Control of the sea could be lucrative as it is a busy shipping route and has large reserves of natural resources including fishing grounds, oil, natural gas, and minerals. It is estimated to hold 11 billion barrels of untapped oil and 190 trillion cubic feet of natural gas. All the regional counties want to explore these reserves for economic development.
China’s Move:
To claim more water, China started building artificial islands as it was the last country to do so, Vietnam, Taiwan, and the Philippines are also building islands. Possessing the South China Sea will give dominance to China not only in the region for trading and military deployment but also at the global level.
The USA does not have any geographical advantage, but the global leader provides security to small economies including the Philippines and Japan. Also, the US invested $328 billion in the ‘Association of the Southeast Asian Nations’ (ASEAN) in 2017. No group of nations has benefitted more from the presence of the US in the region than ASEAN. To maintain its dominance and to counter China, the USA and its allies’ timely conduct military exercises in the sea.
China vs. USA, India:
China is ASEAN’s third-largest investor ($150 billion) while a group of nations depends on the US for defense. During the US-China trade war and the Covid19 pandemic, China is presenting aggression and binary choice ASEAN to choose between China and the USA.
India’s role is very important to Southeast Asian counties as India’s presence is dominating in the region in terms of economy & trade and defense. ASEAN expects long-lasting commitments from India and wants involvement in Indio-Pacific affairs.
India has a historical right in the region as Srivijaya Empire was there around 10 to 11th Century. Nearly $200 billion of India’s trade passes through the South China Sea.
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Diplomat