After a long wait the Permanent Court of Arbitration (PCA) has delivered its ruling on China’s territorial claims in the South China Sea. The PCA has ruled that there is no legal basis to the claims and no evidence that China had exercised exclusive control over the South China Sea (SCS) waters or resources. From an international law vantage point, the ruling invalidates China’s nine-dash line, the geographic boundary line that Beijing affixed to its SCS claims back in 1949. The PCA announced that it has also found that China violated the sovereign rights of the Philippines’ in the SCS by interfering with its fishing and petroleum exploration.
As expected, Beijing has labeled the ruling as ‘ill-founded’ and claimed that China will not be bound by it. “China’s territorial sovereignty and marine rights in the South China Sea will not be affected by the so-called Philippines South China Sea ruling in any way,” Chinese President Xi Jinping has stated.
The reaction from other nations in the region has been more measured. Japanese Foreign Minister Fumio Kishida called the decision ‘legally binding’ and urged all parties to comply. Vietnam is pleased with the PCA’s decision and has publicly said so, while also reasserting its own territorial claims. Manila has been strangely quiet, with the Philippine government welcoming the decision as ‘significant’ while also urging ‘all those concerned’ to ‘exercise restraint and sobriety.’ Many Filipinos believe that President Duterte may have received assurances of Chinese investment in exchange for a muted response from Manila.
The United States has reacted by urging all parties to avoid inflammatory and provocative statements or action to the ruling.
The predominant question at the moment is: How will China respond? Despite Beijing’s lack of interest in the PCA’s decision, the ruling is seen as humiliating and a loss of face. China lost on every point in the ruling and it will be difficult, if not impossible for China to do nothing. In September, the G20 summit meeting will be held in China. Does Beijing have the composure to wait until after the summit before taking action in the SCS?