Why in the News?

Tensions between China and the Philippines have sharply escalated after a violent clash between their sailors in the South China Sea (SCS) last week. Currently, escalating tensions in the South China Sea are heightening global security concerns over this vital trade route.

How Important is the South China Sea for World Trade?

• About a third of global maritime trade passes through the 3.5 million square kilometre South China Sea annually, according to UNCTAD.
• Around 40% of petroleum products traded globally are delivered via the South China Sea every year.
• In 2016, an estimated $3.4 trillion to $3.6 trillion worth of goods and commodities travelled the seaway.
• Tens of thousands of cargo vessels move through the South China Sea every year, carrying around 40% of China’s, one-third of India’s and 20% of Japan’s trade with the rest of the world.
• The South China Sea is a vital crossroads for both intra-Asian trade as well as for commerce with the rest of the world, especially Europe, the Middle East and Africa.

What makes the South China Sea such a Controversial Issue?

• Beijing claims almost all of the South China Sea as its own, angering its neighbours who say China’s territorial ambitions cut into their exclusive economic zones.
• China ignored a 2016 ruling by an international arbitration court that Beijing has no legal or historical basis for its expansive claims under international law.
• The Chinese military has staged increasingly aggressive actions in the seaway recently, including clashes with Filipino ships, fueling fears of a full-scale conflict.
• Vietnam and the Philippines have filed claims with the UN for extended continental shelves in the South China Sea.
• Concerns that Beijing may use military force to bring Taiwan under its control have further raised tensions in the region.

Why is the South China Sea Contested?

• Availability of Natural gas and oil: The South China Sea is estimated to hold about 5.38 trillion cubic meters of proven and probable natural gas and 11 billion barrels of oil reserves.
• Rare earth elements: The disputed waters also contain large deposits of rare-earth minerals crucial to China’s technological ambitions, including electric vehicle batteries and advanced electronics.
  • Some estimates suggest the Pacific Ocean contains a thousand times more rare-earth minerals than the currently known land reserves, more than half of which are controlled by China.

Biggest Chokepoint in the South China Sea

• The Malacca Strait, which lies between Malaysia, Indonesia and Singapore, is considered the biggest chokepoint in the South China Sea.
• Last year, 23.7 million barrels of oil and petroleum products were moved through the strait per day, 13% higher than through the Strait of Hormuz.
• The Malacca Strait is just 64 kilometers wide at its narrowest point and is already vulnerable to congestion and collisions.
• Experts predict that if China invades Taiwan, the U.S. and its allies could blockade the Malacca Strait, limiting China’s access to oil and exports

What should India do? (Way forward)

• Enhance Strategic Partnerships: India should strengthen its maritime collaborations with key regional players like ASEAN nations, Japan, and Australia while deepening its involvement in forums such as the Quad to promote a rules-based order in the Indo-Pacific and ensure freedom of navigation in the South China Sea.
• Bolster Naval Capabilities: India should continue to modernize and expand its naval presence in the Indo-Pacific, focusing on securing critical sea lanes and chokepoints like the Malacca Strait to safeguard its trade routes and energy supplies in the event of escalating tensions.

Mains PYQ:

Q South China Sea has assumed great geopolitical significance in the present context. Comment.(2016)

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