BOFIT Viikkokatsaus / BOFIT Weekly Review 2016/28
It was the first time a court took a position on a territorial dispute in the South China Sea. China did not participate in the proceedings, claiming the arbitration panel lacked jurisdiction over the matter. China announced already before the ruling that it would not give credence to any ruling of the panel. It would rather like to seek to resolve differences on a bilateral basis. Besides the Philippines, Brunei, Malaysia, Taiwan and Vietnam also have territorial claims in the region that partly overlap China's. The South China Sea has some of the world’s busiest shipping routes, as well as significant fishing waters and large oil & gas potential.