【Ｓｏｕｔｈ　Ｃｈｉｎａ　Ｓｅａ　Ｃｈａｌｌｅｎｇｅ】 South China Sea

　　China’s attempts to solve disputes with ASEAN over the South China Sea help regional peace
　　
　　
　　MARINE INVESTIGATION: Chinese scientists drop a submarine seismograph into the South China Sea in the search for geological information
　　
　　China’s marine economy and security are currently faced with new challenges, requiring careful handling, especially in disputes with ASEAN countries and in promoting common development of the South China Sea. The outcome of how this is dealt with could undoubtedly pave the way for solutions to other oceanic disputes.
　　The South China Sea is located south of the Chinese mainland, with the Philippines to the east, Indochina Peninsula to the west, and Kalimantan and Sumatra islands of Indonesia to the south. Dongsha Qundao Archipelago, Xisha Qundao Archipelago, Zhongsha Qundao Archipelago and Nansha Qundao Archipelago are scattered in the vast sea.
　　At present, Dongsha, Zhongsha and Xisha Qundao are under the jurisdiction of the Chinese Government. Though the sovereignty of Nansha belongs to China, neighboring countries such as Viet nam, the Philippines, Brunei and Malaysia have claimed sovereignty to all or parts of Nansha since the 1960s.
　　Of Nansha’s 189 islands, reefs, hidden shoals and sands that already have names, 29 islands and reefs belong to Viet Nam, nine to the Philippines and five to Malaysia. At the end of the 1980s and the beginning of the 1990s, these countries started to build airstrips, fishing ports, lighthouses and sightseeing spots on these islands and reefs. They also began developing the petroleum and gas resources in cooperation with foreign oil companies.
　　A number of countries have reaped important economic benefits in the South China Sea in the past decade, and some have even gone from being oil and gas importers to exporters. By the end of the 1990s, these countries had drilled over 1,000 oil wells in Nansha and discovered 101 oil fields and 79 gas fields. In 1999, some 40.43 million tons petroleum and 31 billion cubic meters of natural gas were produced, 2.5 and 7 times the respective total offshore petroleum and gas production of China in the same year.
　　Currently, the west of Nansha is controlled by Viet Nam, the northeast by the Philippines and southwest by Malaysia. Though Indonesia and Brunei occupy no islands and reefs, Indonesia’s exclusive economic zone extends 50,000 square kilometers into China’s traditional boundary, and Brunei claims sovereignty over Nansha’s Nantong Reef.
　　These countries claim most part of the South China Sea through the construction of exclusive economic zones and continental shelves. Meanwhile, their claims overlap with the marine area alleged to be China’s.
　　Confronting the complex situation, the then China’s leader Deng Xiaoping proposed the plan of “shelving disputes and developing together” in 1984. Based on Deng’s proposal, China formally put forward its ideas over the South China Sea in 1990, expecting to settle the disputes with ASEAN countries in the way of peaceful negotiation and common development.
　　As a major country in the dispute, China’s restraint, instead of resorting to the use of threats or force, created a favorable environment for its reform and opening campaign, as well as for the peace, stability and development of the entire east Asia region. It should be a feasible solution in accord with practice. But despite this approach ASEAN countries continued to develop their occupied islands, so as to establish their sovereignty over the South China Sea with accomplished facts.
　　
　　
　　COMMON DEVELOPMENT: Scientists from China and Germany discharge submarine exploration equipment from a ship in the South China Sea
　　After more than 10 years of efforts, along with the buildup of China’s economic and national strength, as well as its persevering policy of “friendly relationship and partnership with neighbors” and “building an amicable, tranquil and prosperous neighborhood,” China finally won the trust of ASEAN countries with its sincerity, patience and restraint. The relationship between China and ASEAN countries developed from ordinary dialogue to strategic partnership. Its proposal of “shelving disputes and developing together” also received some response.
　　In 2002, China and ASEAN signed a Declaration on the Conduct of Parties in the South China Sea, laying an important political foundation for peace and stability, as well as practical cooperation, in the South China Sea. In November 2004, China and the Philippines signed an agreement over oil and gas exploration in disputed areas. In March 2005, three oil companies from China, the Philippines and Viet nam signed an agreement on united oceanic earthquake work in Manila. These are important measures necessary to implement the Declaration on the Conduct of Parties in the South China Sea.
　　The initiating of common development in the South China Sea is undoubtedly a good first step. But problems left over by history can’t be solved overnight. The disputes not only involve important economic benefits, but also the strategic interests of relative countries. It will take time to fundamentally resolve the disputes.
　　So far, there have been some major changes in the new situation. First, disputes over the South China Sea have become clashes among strategic partners. Between 1999 and 2000, China signed a framework document on bilateral relationships in the 21st century with all ASEAN countries. In November 2002, the two sides signed a Declaration on the Conduct of Parties in the South China Sea and basically settled the biggest dispute over regional security. In October 2003, China joined ASEAN’s political agreement--Treaty of Amity and Agreement--as a major country outside ASEAN. This was the first time that China had established a strategic partnership with a region.
　　The establishment of the partnership indicates that China is willing to be ASEAN’s good neighbor and partner. Meanwhile, it means the parties involved in the disputes have now become strategic partners. The change brings more restrictions in solving disputes and raises more demands. It requires more consideration of mutual political interests and long-term strategic rights when solving important disputes involving marine rights. It needs more “win-win” solutions based on negotiations, and feasible measures to promote common development.
　　Solving the disputes inside the framework of strategic partnership is of great importance to safeguard China’s core interests. Along with the changes in Taiwan’s political situation, the danger of “Taiwan independence” is escalating, posing grave challenges to safeguard China’s unification. Although leaders of Taiwan’s Nationalist Party and People First Party visited the Chinese mainland in 2005 and eased tension across the strait, the Taiwan authorities haven’t responded to the situation.
　　Against this background, the Taiwan authorities see ASEAN countries as the key part of their diplomatic efforts. So it’s particularly important for China to strengthen its partnership with ASEAN countries and settle the disputes over the South China Sea with an eye on safeguarding its core interests.
　　The settling of disputes needs to be subordinated to the interests of overall regional economic cooperation.
　　The rich oil and gas resources in the South China Sea are the main reason leading to disputes. Needless to say, China has the same important economic stakes in the region. To China, a country striving toward industrialization, the resources of the South China Sea play an important role. Meanwhile, China has important common interests with ASEAN countries in terms of regional economic cooperation, so it has to choose the more important of the two aspects.
　　The economic cooperation between China and the ASEAN is making rapid progress. The China-ASEAN Free Trade Area was launched this year and is expected to be completed in 2010. With its $2-trillion gross domestic product and $1.2-trillion trade volume, the area will become the world’s third largest free trade zone after North America and Europe.
　　According to statistics of China’s Ministry of Commerce, the trade volume between China and ASEAN surpassed $100 billion in 2004, and ASEAN has become China’s fifth largest trade partner for 11 successive years and rose to the fourth largest in 2005, showing that both sides have made a lot of progress in the sectors of bilateral trade and investment.
　　This huge trade volume means millions of job opportunities for the two sides. The potential of economic cooperation is enormous as both are mutually complementary. ASEAN countries’ petroleum, gas, rubber, timber and its products, mineral products, palm oil and fruits can make inroads into Chinese markets, and China’s cheap and quality commodities are sure to win favor with ASEAN’s 500 million people.
　　Therefore, China should promote common development of the South China Sea from the overall interests of state and regional economic cooperation.

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