ASEAN-China Relations: Realities and Prospects

22. South China Sea: Turning Suspicion into Mutual Understanding and Cooperation

South China Sea: Turning Suspicion into Mutual Understanding and Cooperation 329 22 South China Sea: Turning Suspicion into Mutual Understanding and Cooperation Gao Zhiguo INTRODUCTION As one of the major marginal seas in the world, the South China Sea (SCS) is defined by the International Hydrographic Bureau as the semi-enclosed body of water, situated from three degrees south latitude between South Sumatra and Kalimantan (Kalimantan Straits), and to the Strait of Taiwan from the northern tip of Taiwan to the mainland coast of China, and stretching in a southwest to northeast direction. The South China Sea is a semi-enclosed sea bordered by the ASEAN member states (Brunei Darussalam, Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam) and China (including Taiwan). For the purpose of discussion, the South China Sea also includes the adjoining Gulf of Thailand and the Gulf of Beibu (Tonkin). This chapter aims to examine the recent relationship and cooperation between ASEAN and China in the South China Seas (SCS). To this end, it will proceed in four steps: First, the chapter begins with a brief introduction to the SCS and its importance. Second, it recalls the recent developments and 22 ASEAN-China Relations Ch 22 5/8/05, 9:07 AM 329 330 Gao Zhiguo their implications. Third, the chapter proceeds to examine the cooperative activities in terms of confidence-building. Finally, it attempts to sum up some of the major findings and offer some policy recommendations where possible. IMPORTANCE OF THE SOUTH CHINA SEA The total area of the waters of Southeast Asia is about 8.9 million square kilometres, accounting for 2.5 per cent of the world’s ocean waters, out of which, the SCS, including the Gulf of Thailand, has a total area of about 3.5 million square kilometres. The significance of the South China Sea is characterized by its environmental and ecological value, living and nonliving natural resources, and geopolitical and strategic position. It is the world’s most diverse shallow-water marine area. Such richness in flora and fauna contributes to the area’s high natural rates of primary and secondary production.1 First, the coastal sub-regions of the nations bordering the SCS are home to 270 million people, or 5 per cent of the world’s population. The population in the region is predicted to increase from 475 million in 1993 to 726 million by the year 2025.2 In Southeast Asia, more than 70 per cent of the population live in coastal areas, and their dependency on the SCS for resources and transportation is high. Second, the SCS is a unique and integral eco-system and a repository for valuable natural resources. Fifty-one mangrove and over 450 coral species are recorded from the Philippines, compared with only five mangrove species and some thirty-five coral species found in the Atlantic. Fisheries in the Southeast Asian region represent 23 per cent of the total catch in Asia, and about 10 per cent of the total world’s catch in 1992. Captured fisheries from the South China Sea contribute 10 per cent of the world’s landed catch at around 5×106 tonnes year.1 The SCS is the main source of protein for the 500 million people who live in the coastal zone of the sea. Third, it has the world’s busiest international shipping lanes. More than half of the world’s supertanker traffic passes through the SCS waters. Over half of the world’s merchant fleets (by tonnage) sail through the South China Sea every year, thus making its sea lanes one of the world’s busiest international sea lanes. Fourth, the SCS is also an arena for competing national claims for jurisdiction as well as security interests. In addition to the traditional issues of political stability and economic development in the region, it is today central to environmental sustainability and food security for rapidly expanding populations of the coastal and archipelago communities. 22 ASEAN-China Relations Ch 22 5/8/05, 9:07 AM 330 South China Sea: Turning Suspicion into Mutual Understanding and Cooperation 331 Fifth, oil and gas are perhaps the most important and attractive natural resources in the SCS. According to a 1995 study by Russia’s Research Institute of Geology of Foreign Countries, the equivalent of six billion barrels of oil may be located in the Spratly Islands area alone, of which 70 per cent...