
Trade wars in South china sea
Introduction to South China sea
South China sea is situated in the Western Pacific Ocean. It is bounded in the north by South China itself hence it got the name, in the west there is Indochinese Peninsula, from the eastern side it is surrounded bu Taiwan and in the northwestern Philippines and it consisted with an area of 3,500,000 square km. South China sea is an advantageous ocean from economic and geostrategic importance. China is a permanent player in that area, and it has strengthened more due to the increase in China’s military power.
Importance of South China sea for trade
The conference on the Trade and Development in United Nations estimated that around 80% of the world trade by volume and by the value it is 70% of the world trade is transported through the South China sea. And it results from about 40 % of the world shipping through this sea.
The ocean is specifically critical for China, Taiwan, Japan, and South Korea. The region around the South China Sea has proven oil reserves which are estimated at about 7.7 billion barrels, and in all, it is about 28 barrels. The total natural gas reserves are estimated at about 266 trillion cubic feet. The resources were in high demand in 1970 because countries started to claim islands and some of the zones in the south china sea.
China and its dominance in South China sea
Domination as China is the second-largest economy in the world with over 60% of its trades through the sea, China’s economic stability relies upon the South China sea. The sea had proved it’s essential to the largest economies in the world. But the data about the volume and value of goods passing through this route is questionable.
From 2010 the reports are constantly saying that $ 5.3 trillion worth of goods transported through the way with a share of $ 1.2 trillion of US, despite a lot of world trade changes in these past years.
So, to attain an accurate estimation, a data set was constructed by China which uses common shipping routes, automatic identification system data, and bilateral trade flows. And in 2016, the reports found that 2016 the estimated exports through the ocean were $3.37 trillion. The south china sea has a significant significance on world trades as it is a passage for 60% of China’s businesses, 42% of Japan’s, and the US is less reliant, but it is just over 14%.

Nearly $ 200billion worth of Indian goods travel through this sea, and many citizens study, work and invest in the ASEAN (Association of Southeast Asian Nations). And it makes the south china sea a necessity from an Indian point of view. Access to the central water bodies and oceans in South Asia is an essential consideration for Indian policymakers.
The south china sea was like money in the pocket for china from the very starting when it started to rise up to the global level. Beijing has controls on the critical islands of this sea, and it is always in a position of complete strength in this area. China has claimed about it, and it started building island and naval patrols for the upper hand.
Beijing has unilaterally put a nine-dash line that stretches to the hundreds of miles in south and east. in 2009, china declared the South China Sea as its territorial waters. South china sea works as the natural shield for china in terms of security because, in case of the first strike against it, it provides second-strike nuclear submarines.
Some of the latest reports say that China launched its missile in the South China sea, resulting from a military exercise in these waters. The tensions between China and both Philippines and Vietnam were cooled in 2018, and china was increasing its military activity in the south china sea, and they conducted naval maneuvers and exercises in the disputed waters. The United States has stepped into the disputed waters setting up its military activity and maritime presence.
China is claiming the sea for a very long time because of its oil reserves and military advantage. China wanted no one to disturb the area because of the international law that foreign militarizes and armies cannot do any kind of intelligence gathering activities in the area.
But United states says that according to the UN convention of the sea law, they have the freedom of navigation through the exclusive economic zone in the ocean. In recent years satellite images show that China has increased the efforts to claim the land by increasing its size. China has constructed ports, and many military installations have been done in the area, and airstrips are also made.
For political security and economic interests in the south china sea, the United States has challenged the claims of china over the south china sea by extending its support to the southeast Asian partners. Japan had also done something against china when they got to know about the assertive presence of dishes in the region, and they have sold military ships and equipment to the Philippines and Vietnam to improve their military advantage and security.
International Trade in South China sea can be improved
So, the south china sea is definitely a priority for each country with vast trade worldwide, and they definitely want to claim as much land as they can in disputed water. China has already made its place, and now they are increasing it day by day. The United States is trying to neglect China’s claims, and they are going with the freedom of navigation.
It is definitely a significant matter to be resolved in the UN because control over the traveling path of over 40% of the world trade is a huge thing to fight for. India also has its own fights against it because, on the one hand, India is clashing with China over the border conflict, and on the other hand, they are fighting with this, but yes, it is more important for the nearby countries of south china sea because it gives a military advantage to the country who has control over it.
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