Insight: Stakes are high in the South China Sea. Rich in natural resources, a key trade route and a key strategic and military position, it is no wonder that multiple countries are deeply involved in geographical ownership disputes -- including mainland China, Taiwan, the Philippines and Vietnam. A recent conflict between Chinese and Philippine soldiers in the Second Thomas Shoal has led the two countries to try to reach a consensus of ‘do’s and don’ts’ while resupplying their respective bases. Yet tensions are running high once more with China accusing the Philippines of going back on its word to allow prior notification and on-site confirmation.
Impact: While the South China Sea is economically critical for several Southeast Asian countries, it is just as important for China as a crucial buffer zone against external threats. The US and key regional allies including the Philippines, Japan and Australia have all condemned China’s expansion tactics in the region, while Beijing is worried about being encircled and contained. The US has already promised Manila $500 million to boost its military capabilities, and the Philippines has announced plans to develop an airport on a neighbouring island. The key is for all sides is to balance securing their strategic interests against escalating further conflict