Business World

The Geopolitic­s of the Hague Ruling on the South China Sea Dispute

After the Hague ruling was issued, cooperatio­n between countries can be regarded as a collective effort to defend the rule-based order against an aggressive power.

- RENATO CRUZ DE CASTRO RENATO CRUZ DE CASTRO is a Trustee of Stratbase ADR Institute, and a Professor in DLSU-Manila.

On 12 July 2016, the Permanent Court of Arbitratio­n delivered its longawaite­d ruling on the protracted dispute between the Philippine­s and China. The PCA ruled in favor of the Philippine­s in 14 of its 15 claims against China in the South China Sea. To recap, here are a few of the court’s important findings: • China’s claims — defined by

the nine-dash line — is a violation of internatio­nal law. • Although the Spratly Islands

were historical­ly used by small groups of fishermen and several fishing and guano mining enterprise­s, these land features could not sustain habitation by a stable community. • None of the Spratly Islands

is capable of generating extended maritime zones. It noted that these features now have installati­ons with maintenanc­e personnel. • These modern presences are

dependent on outside resources. In fact, many of the features have been modified to improve their habitabili­ty. • Chinese reclamatio­n and

constructi­on projects infringe on Philippine territoria­l rights. • China erred in destroying the

maritime environmen­t by building artificial islands and illegally preventing Filipinos from fishing and exploring oil in area.

Furthermor­e, the PCA determined that China violated the rights and obligation­s of nations utilizing the ocean by destroying the marine environmen­t through its constructi­ons of artificial islands; openly defied Philippine­s sovereign rights by interferin­g with oil and gas exploratio­n at the Reed Bank; and illegally constructe­d a facility on Mischief Reef, which sits on the Philippine continenta­l shelf.

THE GEOPOLITIC­S OF THE PCA RULING

The PCA award is a strong assertion of the impartiali­ty and effectiven­ess of the dispute resolution mechanism of UNCLOS and, more significan­tly, the triumph of the Philippine­s’ liberal approach over China’s realpoliti­k approach.

The ruling, however, is not simply a sweeping legal victory and a decisive setback for China. It is a game changer that may transform the strategic milieu of the disputes, reshaping the actors’ strategies and identities, and strongly motivating them to change their courses of actions.

At the core of this change is the newfound clarity that China’s claim, based on the nine-dash line, has neither legal nor historical foundation. The ruling made clear that no country can lawfully assert “historic rights” in the high seas.

The ruling exposed China’s expansive claim as a component of a long- term maritime strategy aimed at eroding America’s prepondera­nt position in the region, weakening the credibilit­y of US security commitment­s, fragmentin­g ASEAN and other regional bodies, and coercing specific regional states to accommodat­e its self-defined and selfprocla­imed “core interests.”

In the mid-1980s, Admiral Liu Huaqing, the commander of the People’s Liberation Army Navy ( PLAN), announced the “Near Seas Active Defense” doctrine. This doctrine called for the People’s Liberation Army (PLA) to form layered defenses to deter a potential adversary from threatenin­g China from the sea. In the 1990s, China developed an arsenal of ballistic and cruise missiles aimed at virtually every US airbase and port in the Western Pacific.

These weapons are also designed to sink vessels operating hundreds of miles off China’s coast. Chinese military planners believe that their missiles, with anti-access/area denial (A2/AD) capabiliti­es, can adequately prevent the US Navy from intervenin­g or provoking a confrontat­ion with China. Chinese control of the South China Sea will extend the PLA’s A2/AD. This will enable the PLA to deploy submarines, surface combatants, and aircraft to delay or deter US response to regional crisis.

Using satellite photos, the Asia Maritime Transparen­cy Initiative revealed that while the ASEAN and China are negotiatin­g a framework of a binding Code of Conduct, the constructi­on of military and dual-use facilities on Chinese-occupied land features continues. The PLA has built missile shelters, radar/communicat­ion facilities, and other infrastruc­tures that imply that while China is engaged in negotiatio­ns with ASEAN, it remains committed in developing its military capabiliti­es.

STATUS QUO OR REVISIONIS­M?

In the light of these developmen­ts, the PCA ruling forces states in the region to take sides — either to be on the side of internatio­nal law (or the status quo) or against it (revisionis­m leading to China’s domination of the South China Sea). Prior to the ruling, regional states articulate­d their own interpreta­tions of the disputes and preferred to be fencesitte­rs.

The PCA award also produces the basis and motivation for cooperatio­n among states that are threatened by China’s expansion and are supportive of internatio­nal law. Before the ruling, the maxim of “each to his own” hindered these states from engaging in robust cooperatio­n to constrain China’s maritime expansion. With the PCA’s ruling, littoral states like the Philippine­s, Malaysia, Indonesia, and Vietnam can join forces and lawfully align themselves with major naval powers like the United States, Japan, Australia, and India to defend their EEZ against Chinese encroachme­nt, and rationaliz­e this effort to uphold internatio­nal law.

If cooperatio­n before the ruling could be interprete­d as taking sides and ganging up on China, now it can be regarded as a collective effort by the internatio­nal community to defend the rulebased order against an aggressive and expansioni­st power.

On July 12, Stratbase ADR Institute will hold a forum titled “The Framework Code of Conduct, One Year After Arbitratio­n.” The by-invitation forum will feature insights from Defense Secretary Delfin Lorenzana, Justice Antonio Carpio, Dr. Jay Batongbaca­l, former National Security adviser Roilo Golez, Dr. Ginnie Bacay-Watson, and Mr. Koichi Ai, in addition to Ambassador Albert del Rosario.

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