Territorial disputes in the South China Sea involve conflicting island and maritime claims in the South China Sea made by Brunei, Indonesia, Malaysia, the Philippines, the People's Republic of China (PRC), Taiwan (Republic of China/ROC), and Vietnam. The disputes involve the islands, reefs, banks, and other features of the region, including the Spratly Islands, Paracel Islands, Scarborough Shoal, and various boundaries in the Gulf of Tonkin. The waters near the Indonesian Natuna Islands, which some regard as geographically part of the South China Sea, are disputed as well.
An estimated US$3.36 trillion worth of global trade passes through the South China Sea annually,[1] which accounts for a third of the global maritime trade.[2] 80 percent of China's energy imports and 39.5 percent of China's total trade passes through the South China Sea.[1] Claimant states are interested in retaining or acquiring the rights to fishing stocks, the exploration and potential exploitation of crude oil and natural gas in the seabed of various parts of the South China Sea, and the strategic control of important shipping lanes. Maritime security is also an issue, as the ongoing disputes present challenges for shipping.[3]
According to researchers, claims to any of the features were not seriously made until the 19th or the early 20th century.[4][5] The Paracel Islands, currently occupied by China, are contested by Taiwan and Vietnam. The Spratly Islands are claimed by all three, where Vietnam occupies the greatest number of features and Taiwan occupies the largest, Taiping Island. Brunei, Malaysia, and the Philippines also claim some of the features in the island chain.[6] By the 1970s, the Philippines, Taiwan, and Vietnam had militarily occupied one or more of the Spratly Islands.[7] By 2015, the PRC had established 8 outposts, Malaysia 5, the Philippines 8, Taiwan 1, and Vietnam 48.[8]
For decades, the Philippines and Vietnam were the most active in building artificial islands in the area,[9][10] but from 2014 to 2016 China's construction activity outpaced them.[11] By 2023, China had reclaimed around five square miles with its artificial islands, at least one of which housed military equipment.[12][6]
China's actions in the South China Sea have been criticized as part of its "salami slicing"/"cabbage wrapping" strategies.[13][14] Since 2015, the United States and other states such as France and the United Kingdom have conducted freedom of navigation operations (FONOP) in the region.[15] A 2016 arbitration tribunal, without determining the sovereignty of any of the islands, concluded that China lacks historical titles to the maritime areas within the nine-dash line. The ruling was rejected by both the PRC and ROC.