Tag Archives: The South China Sea

Philippine President Rodrigo Duterte said “it will be bloody” if the the South China Sea dispute with China escalates

The tension in the South China Sea is very high, and the main reason for that is the CCP. They claim it`s their territory. China`s claim to the sea is based both on the law of the Sea Convention and its so-called «nine-dash» line.

This line extends for 2,000 kilometers from the Chinese mainland, encompassing over half of the sea. This consept is important: it means that by definition, the South China Sea is a shared maritime space.

But why is South China Sea so dangerous? The area is poorly charted, making it exceptionally dangerous to navigate. The major Singapore-to-Hong-Kong routes go well to the west and east of the area, and this is one of the reasons why the South China Sea is so important for the U.S, but also for the Global UK.

Hear the war drum beats and watch the video

Maintaining freedom of navigation is a fundamental interest of the U.S. Unhindered navigation by all ships and aircraft in the South China Sea is essential for the peace and prosperity of the entire Asia-Pasific region, including the United States.

Since the two-day clash of arms between China and the former Republic of Vietnam (South) in January 1974, the Paracels have been firmly in Chinese control, while the Philippines, Taiwan, and Vietnam are each holding a part of the Spratlies.

This is a dangerous global conflict, and China`s sweeping claims of soverignty over the sea, and the sea`s estimated 11 billion barrels of untapped oil and 190 trillion cubic feet of natural gas, have antogonized competing claimants Brunei, Indonesia, Malaysia, the Philippines, Taiwan and Vietnam.

Philippine President Rodrigo Duterte is warning; if the the South China Sea dispute with China escalates, «it will be bloody.»

President Duterte has said he is prepared to send military ships to «stake a claim» over oil and mineral resources in the South China Sea, while noting that challenging Beijing in the disputed waters will only lead to violence.

«If we go there to assert our jurisdiction, it will be bloody,» Duterte said in a televised briefing, his first remarks after hundreds of Chinese vessels were spotted at a disputed reef in March.

Not only the U.S marines are one the way to the South China Sea. So are Britain, with a huge naval force. The war-drums is also a wake-up call for Australia.

The largest naval flotilla assembled by Britain in recent years will set sail in May on a months long voyage through tha Pacific, the country`s Defence Ministry said.

«When our Carrier Strike Group (CSG) sets sail next month, it will be flying the flag for Global Britain, projecting our influence, signaling our power, engaging with our friends and reaffirming our commitment to addressing the security challenges of today and tomorrow,» UK Defence Secretary Ben Wallace said on Monday.

«The UK is not stepping back but sailing forth to play an active role in shaping the international system of the 21 century,» Mr Wallace said.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shinybull.com. The author has made every effort to ensure the accuracy of the information provided; however, neither Shinybull.com nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities, or other financial instruments. Shinybull.com and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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60% of the United States Naval Forces will be stationed in the Asia-Pacific by 2020

The South China Sea is very important and it has always been that. It is a marginal sea that is part of the Pacific Ocean, encompassing an area from the Singapore and Malacca Straits to the Strait of Taiwan of around 3,500,000 square kilometers.

The areas importance largely results from one-third of the worlds shipping sailing through its waters and that it is believed to hold huge oil and gas reserves beneath its seabed. The South China Sea is important for three main reasons:

  1. Oil, gas, fish and minerals
  2. Shipping
  3. A valuable buffer for China`s defense

The big question is; who is owning the sea? China are ignoring its neighbours, claiming that The South China Sea belongs to China, but other countries doesn`t agree with that, and here starts the tension.

 

Karta_CN_SouthChinaSea

 

The South China Sea is located;

  • South of mainland China, including the island of Taiwan, in the east;
  • east of Vietnam and Cambodia;
  • west of the Philippines;
  • east of the Malay peninsula and Sumatra, up to the Strait of Malacca in the west and
  • north of the Bangka-Belitung Island and Borneo

China and Vietnam have both been vigorous in prosecuting their claims. China (various governments) and South Vietnam each controlled part of the Parcel Island before 1974, so this conflict is not something new.

In July 2010, US Secretary of State Hillary Clinton called for the Peoples Republic of China to resolve the territorial dispute. China responded by demanding the US keep out of the issue. This came at a time when both countries have been engaging in naval exercises in a show of force to the opposing side, which increased tension in the region.

The United States have so far a lot of provocative acts, and Chinese Navy chief Admiral Wu Shengli warned that these kind of acts can be a minor incident that sparks war. The Communist media recently said;

«If the United States’ bottom line is that China is to halt activities, then a US-China war is inevitable in the South China Sea. We do not want a military conflict with the Unites States, but if it were to come, we have to accept it.»

Last word is not said in this conflict, and Vice President Joe Biden said in a speech at the U.S Naval Academy:

«In the disputed waters of the South China Sea, the United States does not privilege the claims of one nation over another, but we do unapologetically stand up for the equitable and peaceful resolution of disputes and for the freedom of navigation, and today these principles are being tested by Chinese activities in the South China Sea.

U.S foreign policy is rebalancing toward the vast potential of the Asia-Pacific region, but we cant succeed if you dont show up. That`s why 60% of the United States Naval Forces will be stationed in the Asia-Pacific by 2020.

I repeat what Vice President Joe Biden said: 60% of the United States Naval Forces will be stationed in the Asia-Pacific by 2020. This is a conflict that will continue in years to come, and it is a dangerous conflict.

A war between the United States and China will be catastrophic for them both. First of all, Chia is a huge supplier for American merchants. A strong dollar against a cheap Yuan is profitable for Americans, but a war can change that.

China has been steadily accumulating US treasury securities for decades. Additionally, trade data from the US Census Bureau shows that China has been running a big trade surplus with the US since 1985.

This means that China sells more goods and services to the US, than the US sells to China.

Will China try to «buy out» the US markets through its debt accumulation?

The war with China right now is not a currency war. Nor is it a trade war. No, it is a real military war which is not hypothetical anymore. It`s real.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Investments in the South China Sea are at risk

There is a lot of fish, oil and gas in The South China Sea, but who are the real owner of the sea?

China has claimed for years that about 90% of the South China Sea is their own territory. A document from 1940 stated that the sea is China`s. China and The Association of Southeast Asian Nations (ASEAN) agreed to start negotiating with each other before any move in 2001.

China want the territory and have started to build islands on the sea and claiming them as their own. They can do that because they have one simple strategy; ignore the law. People with Asian trade interest doesn`t like that. Neither do Indonesia, Brunei, Philippines, Malaysia and Vietnam.

Investors in that area should consider to get out as soon as possible.

 

SouthChinaSea

(Picture: South China Sea)
The South China Sea is a marginal sea that is part of the Pacific Ocean, encompassing an area from the Singapore and Malacca Straits to the Strait of Taiwan of around 3,500,000 square kilometers (1,400,000 sq mi).

The area`s importance largely results from one-third of the world`s shipping transiting through its waters, and that it is believed to hold oil and gas reserves beneath its seabed. The sea and its mostly uninhabited islands are subject to competing claims of sovereignty by several countries.

South China Sea is the dominant term used in English for the sea, and the name in most European languages is equivalent, but it is sometimes called by different names in China`s neighboring countries, often reflecting historical claims to hegemony over the sea.

The English name is a result of early European interest in the sea as a route from Europe and South Asia to the trading opportunities of China. In the sixteenth century Portuguese sailors called it the China Sea (Mar da China).

The majority of the sea came under Japanese naval control during World War II following the military acquisition of many surrounding South East Asian territories in 1941.

The South China Sea contains over 250 small islands, atolls, cays, shoals, reefs and sandbars. The region has proven oil reserves of around 1,2 km3 (7,7 billion barrels) with an estimate of 4,5 km 3 (28 billion barrels) in total.

Natural gas reserves are estimated to total around 7,500 km3 (266 trillion cubic feet). A 2013 report by the U.S Energy Information Administration raised the total estimated oil reserves to 11 billion barrels. In 2014 China began to drill for oil in waters disputed with Vietnam.

Several countries have made competing territorial claims over the South China Sea. Such disputes have been regarded as Asia`s most potentially dangerous point of conflict.

Both, People`s Republic of China (PRC) and the Republic of China (ROC, commonly known as Taiwan) claim almost the entire body as their own, demarcating their claims within what is known as the nine-dotted line, which claims overlap with virtually every other country in the region.

 

Spratly_with_flags

(Picture: Map of various coutries occupying the Spratly Islands)

 

China and Vietnam have both been vigorous in prosecuting their claims. China (various governments) and South Vietnam each controlled part of the Paracel Island before 1974. A brief conflict in 1974 resulted in 17 soldiers being killed, and China has controlled the whole of Paracel since then. Seventy Vietnamese sailors were killed just south of Chigua Reef in March 1988.

In July 2010, US Secretary of State Hillary Clinton called for the Peoples Republic of China to resolve the territorial dispute. China responded by demanding the US keep out of the issue. In January 2013, The Philippines government said it will take China to a UN tribunal under the auspices of the United Nations Convention on the Law of the Sea, to challenge its claims in the South China Sea.

In May 2014, China established an oil rig near the Paracel Islands, leading to multiple incidents between Vietnamese and Chinese ships. Now, China has started building two military air strips on Subi Reef and Fiery Cross Reef.

«China has convinced itself that it is the rightful owner of almost the entire sea» author Bill Hayton said, which is the author of the book The South China Sea.

China want to be the owners of the islands because that will be the first step of owning 1,4 million square miles of sea, which is full of fish, oil and gas. The value of the natural resources in the sea gives the potential for disagreement and a conflict over territory in the South China Sea.

International Law under the United Nations Convention of the Law of the Sea, says a country can only own an area of a sea if it owns the land adjacent to it. A country that owns an island can claims 12 nautical miles of seabed around it, and has the rights to the resources (but not the territory) up to 200 nautical miles around it.

The Bush administration didn`t do much, but Obama was forced to take a stronger stance on the contested territory last friday. The Pentagon is discussing sending warships in the region.

Investments in the South China Sea are at risk.

 


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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication. UA-63539824-1.

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