Context:

• The “Indo-Pacific Regional Dialogue 2023” (IPRD 2023), the three-day annual apex-level regional strategic dialogue of the Indian Navy recently commenced in New Delhi, where the Indian Navy Chief reiterated that the fragile situation in the South China Sea poses a danger to order and discipline at sea.

The South China Sea Dispute and the Permanent Court of Arbitration (PCA):

• The Philippines had submitted a case of arbitration to the PCA in order to settle South China Sea disputes.
• Despite China’s formal withdrawal from the arbitration, the proceedings continued as the UNCLOS’ Annex VII stipulates that the absence of a party or the failure of a party to present its case shall not be a bar to the proceedings.
• Release of Award: On July 12, 2016, in accordance with UNCLOS Article 296 and Article 11 of Annex VII, the PCA denied China’s assertion in the South China Sea.
  • The Tribunal also found that “China has violated the Sovereign rights of the Philippines in its Exclusive Economic Zone (EEZ) by:
    • interfering with Philippines’ fishing and petroleum exploration.
    • constructing artificial islands.
    • failing to stop Chinese fishermen from fishing in the zone.

Strategic Importance of South China Sea (SCS)

• Global Shipping Lane: More than $3 trillion in trade passing through its waters annually.
• Fishing Ground: It is home to rich fishing grounds that provide for the livelihoods of millions.
• Energy Reserves: It has proved oil and gas reserves. 
• Energy Routes: Significant energy routes for East Asian countries to transport oil and natural gas. 

Also Read: Indo-Pacific Region

Strategic Importance of the South China Sea (SCS) for India

• Economic Significance:
  • Sea Lanes of Communication (SLOCs): Nearly 55% of India’s trade transits through it. 
  • Energy Resources: India seeks to explore the vast reserves of oil and natural gas.
  • Maritime Connectivity: The SCS is a key link in India’s Act East Policy. 
• Security Significance:
• • Freedom of Navigation: India is a staunch supporter of freedom of navigation.
  • Countering China’s Expansionism: India seeks to balance it by strengthening its own maritime capabilities and deepening its ties with regional partners.
  • Protecting Indian Ocean Interests: Maintaining a stable and rules-based order in the South China Sea is crucial for safeguarding India’s interests in the Indian Ocean region.
• Geopolitical Significance:
• • Emerging as a Regional Power: With a vested interest in shaping the Indo-Pacific order.
  • Strengthening Alliances: With the US, Japan, Australia, and ASEAN countries.
  • Promoting a Rules-Based Order: For the prevalence of international law and norms.

Other Recent Developments in the Region

• 10-Dash Line: China recently published a new standard map for 2023, often referred to as the 10-dash line,’ which extends its territorial claims far beyond its recognized EEZ.
• Building Artificial Islands: China continues the world’s largest island-building campaign, in complete disregard of international law.
• Gray Zone Activities: These are a form of slow-intensity conflict that China has increasingly employed over the last year to assert its territorial claims in the SCS.

Concerns with China’s Expansion

• Fishing ban: China arbitrarily imposed a ban since 1999.
• Legal actions: Article 22 of the Coast Guard Law, 2021 of China enables the China Coast Guard to use weapons that infringe on China’s sovereign rights and jurisdiction at sea.

Way Forward

• Need of diplomatic engagement and dialogues
• Participation in negotiations for a legally binding, comprehensive, and effective Code of Conduct.
• Maritime Cooperation by the Southeast Asian nations with SCS claims. 
• Defence Cooperation to counter China’s aggressiveness. 
• Economic Cooperation to explore the possibility of negotiating free trade agreements. Indo-Pacific Economic Framework would be key in this regard.
• Humanitarian Aid and relief packages will help in building mutual trust and friendship.
• Science and Technology have the potential to mutually benefit concerning countries.

Conclusion:

The South China Sea dispute, highlighted at the IPRD 2023, underscores the precarious situation, urging diplomatic solutions for stability and adherence to international law in the region.