JIIA-RUSI-CSIS Joint Open Seminar on Maritime Security in the East and South China Seas

JIIA-RUSI-CSIS Joint Open Seminaron Maritime Security in the Eastand South China Seas

March 2016

The Japan Institute of International Affairs

JIIA-RUSI-CSIS Joint Open Seminar on
Maritime Security in the East and South China Seas

March 2016

PrefaceIn partnership with the Royal United Services Institute (RUSI) and the Center for
Strategic and International Studies (CSIS), the Japan Institute of International Affairs(JIIA) hosted a half-day seminar on the security challenges in the East and South China
Seas in London in March 2016.
Featuring overlapping maritime claims, disputes over international law, andsuspicions aroused by rising military expenditures and geopolitical tensions, theproblems in the East and South China Seas are multilayered and complex. China’s
challenge to Japanese administration over the Senkaku Islands remains outstanding, andTokyo and Beijing are yet to agree on a crisis management mechanism to mitigate
dangerous at-sea encounters. In the South China Sea, tensions have risen considerably
in recent months as Beijing has pursued a program of land reclamation in disputed
waters, and engaged in tough verbal sparring with Washington over the freedom of the
US Navy to operate in international waters.
This report consists of a summary of discussions among leading experts from theUK, Japan, the US, Vietnam, and the Philippines, and a collection of essays contributedby those panelists. I hope this report helps readers deepen their understanding of themaritime security challenges in Asian waters.

March 2016

Yoshiji NOGAMI
President
The Japan Institute of International Affairs

Contents◆Program◆Summary ........................................................................................................................................... 1
Opening Remarks
Reinhard Drifte (Associate Fellow, Royal United Services Institute (RUSI)) ............................ 1
Yoshiji Nogami (President, The Japan Institute of International Affairs (JIIA)) ......................... 1
CSIS-AMTI Presentation on the East and South China Seas
Zack Cooper (Fellow, Japan Chair, Center for Strategic and International Studies (CSIS)) ....... 2
Discussion .................................................................................................................................... 3
Panel One: Challenges in the South China Sea ................................................................................ 6
Discussion .................................................................................................................................. 11
Panel Two: Recent Developments in the East China Sea............................................................... 12
Discussion .................................................................................................................................. 15
Closing Remarks ............................................................................................................................ 18◆Essay ............................................................................................................................................... 19
Andrew Shearer .............................................................................................................................. 19
Yoji Koda ....................................................................................................................................... 23
Nguyen Thi Lan Anh...................................................................................................................... 27
Jay L. Batongbacal ......................................................................................................................... 30
Tetsuo Kotani ................................................................................................................................. 36
Zack Cooper ................................................................................................................................... 39
Theresa Fallon ................................................................................................................................ 42

Program
JIIA-RUSI-CSIS Joint Open Seminar on
Maritime Security in the East and South China Seas
14 March 2016
RUSI, 61 Whitehall, London SW1A 2ET

14:00

Opening Remarks
Professor Reinhard Drifte, Associate Fellow, RUSI
Ambassador Yoshiji Nogami, President and Director General, JIIA

14:10

CSIS-AMTI Presentation on the East and South China Seas

Chair:

Professor Reinhard Drifte, Associate Fellow, RUSI

Speaker:

Zack Cooper, Fellow, Japan Chair, CSIS

14:40

Panel One: Challenges in the South China Sea
This session will address the legal/military/strategic challenges in the South China Sea, suchas land reclamation, US freedom of navigation operations (FONOPs), and international
arbitration.

Chair:

Peter Roberts, Senior Research Fellow, Maritime Studies, RUSI

Speakers:

Andrew Shearer, Senior Research Fellow, Lowy Institute for International Studies
Vice Admiral (Retd.) Yoji Koda, Former Commander-in-Chief, Self Defense Fleet at
Yokusuka
Dr Nguyen Thi Lan Anh, Deputy Director-General, Institute for South China Sea
Studies, Diplomatic Academy of Vietnam
Professor Jay Batongbacal, Associate Professor, University of the Philippines Collegeof Law

Discussant:Edward Carr, Deputy Editor, The Economist

16:10

Break

16:30Panel Two: Recent Developments in the East China Sea
This session will address recent political and military developments in the East China Sea,such as Japan-China maritime consultations, Japan-China military communication
mechanism negotiations, and coast guard build-up.

Chair:

Professor Reinhard Drifte, Associate Fellow, RUSI

Speakers:

Tetsuo Kotani, Senior Fellow, JIIA
Zack Cooper, Fellow, Japan Chair, CSIS
Theresa Fallon, Senior Associate, European Institute for Asian Studies

Discussant:Dr Alessio Patalano, Senior Lecturer in War Studies, East Asian Warfare and Security,
King’s College London

17:40

Closing Remarks
Ambassador Yoshiji Nogami, President and Director General, JIIA

Summary
Opening Remarks
Reinhard Drifte (Associate Fellow, Royal United Services Institute (RUSI)):The subject of today’s seminar is maritime security in the East China Sea (ECS) and theSouth China Sea (SCS). This is highly topical and of great importance to policymakers
not only in Japan and the United States, but Europe as well.
In the ECS, the second and third largest economies in the world, Japan and China,
are confronting each other over issues of territorial borders and sovereignty. The UnitedStates is also involved, both to support its Japanese ally, and due to its rivalry with
China for primacy in Asia.
The situation in the SCS is even more complex. On one level there is a dispute
over islands and sea areas between China and five other littoral claimants, and also
overlapping disputes between those five littoral claimants, involving political, security,
economic, and environmental interests. On a second level the regional strategic interestsof the United States is also involved, as the United States seeks to maintain a regional
order based on non-coercive diplomacy, peaceful conflict resolution, and freedom ofnavigation (FON) and overflight in accordance with international law, against
challenges from China. On a third level, other countries, such as those in Europe orJapan, share similar interests to the United States.
There are many worrying similarities between the situations in the SCS and the
ECS. For Japan, the management of confrontation in the ECS has an impact on theperception of the management of disputes in the SCS. Japan is also promoting theresilience of the ASEAN littoral states.
Yoshiji Nogami (President, The Japan Institute of International Affairs (JIIA)):The current situations in the SCS and the ECS are often seen by countries in Europe andelsewhere as territorial disputes. While there are territorial roots to these situations,more fundamental issues are at stake. For countries in Northeast Asia, these situations
impact sea lines of communication (SLOCs), energy imports, and anti-access area
denial strategy (A2/AD). More fundamentally, these situations represent an attempt tochallenge the rule-based and open international system.

1

CSIS-AMTI Presentation on the East and South China Seas
Zack Cooper (Fellow, Japan Chair, Center for Strategic and International
Studies (CSIS)):The Asia Maritime Transparency Initiative was started by CSIS in 2014 to build sharedrecognition of maritime developments in Asia, by collecting and sharing satellite
imagery of maritime areas. Much reclamation is occurring that was not previously
known about. It is important to note that in the SCS, much reclamation by othercountries had already occurred prior to China’s activity two years ago. Nevertheless,
China has been by far the most active. There are a series of disputes and China is not the
only state with disputed territory.
Looking at the Spratly Islands, there are an incredible number of outposts in theregion by a variety of countries, almost all of which are on disputed territory. There arealso many different claim lines, making the situation very complex. The Chinese claims
differ from those of the other states in that they do not accord with the United Nations
Convention on the Law of the Sea (UNCLOS). It has not established coastal baselines
and is claiming the region, not specific territories.
China has engaged in significant and rapid reclamation work. For example, it hasestablished airfields on Fiery Cross Reef, Mischief Reef, and Subi Reef, as well as radar
facilities on Cuarteron Reef. These radar facilities, combined with existing facilities in
the Paracel Islands, would allow China to monitor almost the entirety of the SCS.
Regional and global states can respond in a number of ways. One step is topromote a binding code of conduct (COC) in the SCS, with or without China, and fully
implement the code for unplanned encounters at sea. Another measure is to continue
FON patrols. States should also deploy naval ships, as opposed to coast guard ships, ingray zones. Furthermore, states should continue to work together to build capacity inSoutheast Asia.
However, these efforts may not stop China’s reclamation. With regard to the navy
and coast guard, China has larger fleets and greater capacity than other states in theregion. China is also often turning former naval ships into coastguard ships. It is safe to
say that US efforts to halt China’s reclamation, construction and militarization on
disputed features have failed. Continued pressure and efforts would be positive but wemust realize that these efforts will also ultimately fail.
China’s constant actions have caused a kind of paralysis among decision-makers
in Washington, leading to a loss of strategic mindset. For example, there is much talk of
FON operations, but not everyone understands their purpose. The focus of these2operations should be shifted to deterring coercion, specifically deterring aggression
against ships and aircraft operating legally in international waters, including exclusive
economic zones (EEZs), and deterring seizure of disputed features held by otherclaimants. Operations in these two areas have the highest chance for success.
Discussion
Audience 1:
The Jiangwei-class frigates that have gone to the Chinese Coast Guard have been
largely disarmed. Also, China has only said that it claims all land features andassociated borders, which is not clearly defined.
Cooper:China is likely to establish an air defense identification zone (ADIZ) in the SCS, similar
to the ECS. I expect that before doing so, China will announce coastal baselines in the
Spratly Islands.
Audience 2:
How do you think deterrence can credibly work?
Cooper:There are areas where deterrence has been highly effective. For example, the Japan-US
alliance has helped deter activity in the ECS. China has also frequently pulled back inareas where they have received US pushback. Rather than deterrence having failed, it israther the case that we have not really tried deterrence. In many cases, the United States
did not have a deterrence framework in place before China took action.
Audience 3:
FON operations are supposed to be neutral actions designed to uphold the rule of law atsea. Is there a problem if you mix these up with a strategy of deliberately challenging
China’s moves in this area?
Cooper:That is indeed a challenge and is why these operations cannot be the only answer. FON
operations need to be clear in what they are contesting, and it is not clear that these havecontested any land reclamation to date.

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Audience 4:
It seems that these territorial claims are driven by internal pressures within China andall the regional stakeholders.
Cooper:I am not a sinologist so I will refrain from commenting on China’s interest in gaining
greater sovereignty over the SCS. However, I would say that China’s actions follows along historical tradition of what great powers do when they rise. This is what rising
powers in general tend to do.
Audience 5:
The actions you recommended are aimed at preventing China from expanding its zoneof actual control, rather than getting China to roll back what it holds. Is it your view thatthe latter is not immediately likely?
Cooper:That is exactly correct. I cannot imagine the United States taking military action against
those features or diplomatic activities putting enough pressure on China for it to givethem up. In addition, more changes to the status quo that are not deterable right now
may happen in the next year, before we can respond, such as an ADIZ in the SCS.
Audience 6:
What diplomatic opportunities does the arbitration case between the Philippines andChina present to Europeans, given that the result will likely go against the nine-dashline?
Cooper:I think it is hugely important to reinforce the decision of the court, whatever it may be.
The point is to uphold the rules-based order. Regarding specific steps, I will leave thatup to the diplomatic experts serving on the panels. However, Washington could do more
to focus on the case and its significance.
Audience 1:
The Yellow Sea, the SCS, and the ECS are considered areas of vital national interest to
Beijing. The ECS is also considered an area of vital national interest for Japan and theUnited States agrees with Japan’s position. However, it is not clear that the United4States believes that the SCS is an area of vital national interest to itself. My question is,what does horizontal escalation entail?
Cooper:I am not recommending action and think there will be more policy debate about otheroptions for pushing back against Chinese coercion. I am not suggesting this, but let me
present one example. We know the company that moved an oil rig into waters that are
disputed with Vietnam. If it is doing things that are dangerous to international peace andorder, it should be adversely affected. The United States has taken a similar stance withregard to cyber theft. We may soon see policy debate about economic options
specifically targeting the businesspeople involved.
Audience 7:
Is there a better term than “land reclamation”? That sounds rather benign, when really
China is building military installations on disputed sandbars far from its territory. It isalso inaccurate in that there has been no land on these features in recent history. It isessentially island building.
Cooper:I have heard the term “land creation,” which is more accurate. We are very open tosuggestions.
Audience 8:
To what extent have runways on these features been put to use and military bases
established on these islands?
Cooper:I think that is currently happening. A recent statement by the Director of National
Intelligence in the United States refers specifically to military flights into these airfields,
particularly the Paracel Islands. However, we are still looking for evidence in the SCS
of fighters and other maritime patrol aircraft using these facilities.
Audience 9:
Code for unplanned encounters at sea (CUES) is a very crowded area in terms ofpotential military assets. What level needs to be put in place to manage these
unexpected incidents that could easily occur?

5

Cooper:
I have spoken to Admiral Harris of United States Pacific Command (PACOM) and hefeels confident that his interactions with the Chinese are positive in this area. Both sides
are doing a lot to try and manage unplanned encounters. However, these efforts cannot
just be bilateral nor just at the naval level. More needs to be done.
Nogami:
The Chinese claim is shifting. Initially China used the words “historical waters,” which
was originally used by Taiwan. Now they are using the words “blue territory.” We do
not know what the difference is. Normal claims have to be based on land features, but
their approach is to first set a line, and then start claiming the land features inside thelines. This is a twisting of established norms dating back centuries.
Panel One: Challenges in the South China Sea
Peter Roberts (Senior Research Fellow, RUSI/Chair):Much of this area is not new, but some new developments have emerged. In this session
we will look at the issue of the SCS from a variety of perspectives.
Andrew Shearer (Senior Research Fellow, Lowy Institute for International
Studies):
The SCS is geographically distant from Europe, which also has many other challenges
that it needs to urgently address. However, the impacts of the issues in the SCS extend
beyond the immediate claimants. This is a global security problem, not a regional one.
Therefore Europe needs to be more involved in finding a solution.
Countries in the region are responding in a strategic manner to developments.
The rhetoric is that these developments are unilateral and coercive, and risk changing
the status quo and compromising FON. There is also increased diplomatic coordination
by regional powers and efforts to develop the maritime capabilities of regionalcountries. US military posture and strategy is also changing, to boost deterrence andreinforce reassurance to allies in the region. Across the region, new strategic alignments
are emerging, while internal balancing is also occurring within countries.
The events in the SCS represent a deliberate strategy by Beijing leveraging all
aspects of China’s national power, including military, diplomatic and economic assets.
China’s motives are not clear. However, its aim is clearly to deny the United States andothers unfettered access to waters near China. This is close to complete. In the longer

6term, China intends to assert control in those waters and push back against US
influence. In that sense it is a revisionist strategy. To that end, China has successfully
exploited gray zone areas, as well as other regional distractions.
China’s strategy is undermining the regional order. For 70 years, the region has
enjoyed peace and prosperity underpinned by the US alliance system, open economic
systems, and FON. These factors have been key to the Asian economic miracle andhave brought about benefits for all members of the region, including China. Now,
however, they are under strain.
The risk of miscalculation in the region is growing. The region has undergone
rapid military modernization, not only by China, but those responding to China. Thishas created a much more congested and contested region. A regional security
architecture is emerging, but is still relatively immature. Confidence-building measures
are lacking, while escalation dynamics are unpredictable.
The international order depends on stable regional orders, which makes thishighly relevant to Europe. We must therefore work together now to shape the rules andorder in Asia, and maintain a benign international order overall.
In terms of necessary measures, firstly, any response is premised on an
intensification of the US rebalance to Asia, not only militarily, but also the diplomaticand economic aspects. The security networks among US allies and partners need also to
be strengthened. India, in particular, must be encouraged to play a more active role. We
must also continue to build capacity. In addition, we must develop institutions andconfidence-building measures involving China where it is receptive. Where China is notreceptive, we must strengthen coordinated responses. Furthermore, we must be readyfor other eventualities, such as a Chinese ADIZ in the SCS, or the further seizure of
regional features.
Yoji Koda (Former Commander-in-Chief, Self Defense Fleet at Yokosuka):
While China’s actions in the SCS have been successful from an offensive standpoint,
strategically, they have been unsuccessful in holding its regional neighbors closer. Even
countries traditionally closer to China, such as Malaysia and Indonesia, are distancing
themselves somewhat. China is reclaiming and militarizing land in disputed waters,
which should be a matter under the jurisdiction of international law. However, China istreating this as a domestic affair, in which no countries can intervene. That is why USefforts to halt China have been unsuccessful.
These efforts by China are an attempt to establish A2/AD, which has been
traditionally focused to the east. However, China’s actions have pushed the United

7States and Australia closer together, meaning that it must now also pay attention to thesouth.
The United States, meanwhile, is rebalancing to Asia. The first phase involved
reaffirming the US alliances. The current second phase involves transferring its best
military equipment to the region. However, the enhanced and expanded US capability
will still likely not be enough to influence what China considers to be its own domestic
matter. Nevertheless, the US advantage is its improving relations with littoral states in
the region, and the maintenance of FON.
Japan is the biggest US ally, with large forces and broad capabilities. It is in full
support of US strategies and operations, and has enabled the United States to play a rolein maintaining global and regional stability. In the new guidelines for defense
cooperation, the two countries agreed to enhance operational postures, which will also
send a strong signal to Beijing.
Regarding FON, Beijing’s perspective is that the United States is an outsider andunqualified to intervene in any incident in the SCS. The UN Charter also does notguarantee the US right to action in this region. However, from the US perspective,
incidents in the SCS affect FON and therefore US national interest. This therefore gives
it the right to intervene. Beijing therefore strongly resists the concept of FON. As anally, Japan should strongly support the US position. However, Japan’s support to datehas only been vocal.
It is important to bring China into the international community and encourage it tounderstand international norms, and to achieve this, regional countries must all also
fully understand international norms. All seafaring nations in the region should also
conduct FON operations. Capacity-building and the establishment of informationsharing networks are also important. There is also an opportunity for regional countries
to take measures in key strategic sites such as Puerto Princesa, which surround China’s
reclaimed land features. The Scarborough Shoal is particularly important. China mustnot be allowed to establish a feature there, which would complete its strategic triangle.
Nguyen Thi Lan Anh (Deputy Director-General, Institute for South China Sea
Studies, Diplomatic Academy of Vietnam):
There are three main challenges in the SCS. These are how to maintain good order atsea, how to maintain peace and stability, and how to strengthen the role of the regional
security architectures.
First, good order at sea can only be built on international law. In contrast, China
has established a nine-dash line that covers the majority of the SCS, with no legal basis,

8and overlaps with legitimate territorial boundaries. Maritime territorial disputes are notuncommon and can be solved through legal means, provided they have the same legal
basis. However, that is not the case with the nine-dash line, nor is the legal rationale
forthcoming from China.
Second, China has a history of the illegal use of force in the SCS dating back to
1974. The most recent cases by China to violate the peace and security of the SCS
include the establishment of missile and radar facilities on the reclaimed islands, which
is widely recognized, and attacks on commercial entities, which are not widely
recognized. In addition, while territorial disputes should be resolved via legal means,
restrictions mean that such negotiations are often deadlocked, forcing countries in theregion to participate in arms races, raising the risk for mishap.
Third, the process for the conclusion of a COC was initiated in the 1990s.
However, rather than a binding force COC, only a declaration on the conduct of parties(DOC) has been achieved. This is still merely a political statement and China’s actionsin the SCS prove that it does not hold much weight. A binding force COC is needed but
even the DOC has yet to be fully implemented.
The situation in the SCS is not merely a regional issue but has global implications.
It is a test case for whether one country can use force to bypass the international order.
This must not be allowed to happen, and Europe has a role to play in sharing its own
experience and expertise.
Jay Batongbacal (Associate Professor, University of the Philippines College of
Law):
The Philippines is currently in the spotlight for filing a case against China. China’s
recent actions show that it claims all the territory within the nine-dash line in the SCS.
In filing its case, the Philippines is trying to erase those lines and force China to
conform to international law. The Philippines’ strategy is to minimize the value of thecontested islands themselves.
One of the near-term challenges that the Philippines faces is the upcoming
presidential elections and how it coincides with the timing of the case ruling. The
biggest concern would be an incident in the contested area during the new president’s
transition period. China has already taken provocative actions in this area. Maritime
awareness must be enhanced to mitigate the vulnerability during this period. US FON
operations have benefited the Philippines in terms of surveillance and information, as
well as the presence of the US units. However, they also run the risk of being viewed by
China as a provocation. Real-time information sharing is the only way to prevent a

9crisis ahead of time.
In the medium-term, even if China does not militarize the land features it hascreated in the SCS, it will result in excessive appropriation of the SCS and mass-scale
over-exploitation of coral and fisheries. China is also already establishing military
exclusion zones, even if it has not announced them. In addition, the features China hascreated will congest maritime space, especially with its law enforcement vessels andparamilitary fishing crews.
In the long-term, China’s actions represent worrying trends of nationalism,
revisionism, and irredentism. China’s rhetoric on the SCS is also disquieting andencourages behavior that is irrational from a non-Chinese perspective.
Finally, the arbitration case between the Philippines and China could result in alegal reconfiguration of SCS claims and set a precedent. The problem is that China islikely to resist any unfavorable decision, based not only on its political position, but also
its nationalist, revisionist, and irredentist position. The case will not touch on thesovereignty of the islands, which forms the foundation of the SCS disputes. The
disputes will therefore continue. Following the ruling, the trajectory of the disputes will
depend on the claimants’ self-restraint, communications, maritime awareness, andwillingness to explore fair and acceptable compromises. This is obviously much easier
said than done, and where non-claimant members of the international community canplay a role.
Edward Carr (Deputy Editor, The Economist):
What is significant about China’s actions in the SCS is not that they are occurring, butthat the scale and speed with which they are occurring. More importantly, there is asense of strategic intent, as can be seen from the careful planning and investment ofhuge resources. Any response must also have a similar sense of strategic intent.
These actions firstly impact resources, such as fisheries and oil. More
importantly, these islands have huge strategic utility. Finally, even more broadly, thismatter pertains to how the world deals with China. Will China rise within global rules orwill it break and rewrite them? China’s actions in the SCS are clearly rewriting the rules
legally and strategically.
Countries can respond in a number of ways. The first is legal, as demonstrated
by the Philippines’ case against China or the exercise of FON operations. There is also
the diplomatic response such as the strengthening of alliances. Finally, there is also themilitary response, which we should all be worried about.
I would also like to share three observations. Firstly, this is a regional issue that10

requires a better-coordinated regional response. India would be hugely important for
asserting a regional response. However, it is not clear whether a well-coordinatedregional response can realistically be achieved. Secondly, the US rebalancing has
sometimes antagonized China, while also not giving enough reassurance to regional
states. Thirdly, any response should raise the cost of China operating outside the global
system, and reward it for working within the system.
Discussion
Audience 10:
Admiral Harris commented that the development of military capabilities on China’s
fabricated islands are substantially altering the operational landscape in the SCS. Whatis your take of their impact on the escalation ladder?
Audience 4:
From an environmental perspective this looks like a global emergency requiring a
global response.
Audience 11:
First, paranoia about China’s intentions are reminiscent of the start of World War I.
Second, perhaps China’s motives are defensive.
Koda:
The United States has virtually no presence in the SCS and is therefore hindered interms of carrying out real operations. I believe Admiral Harris’ comments allude to the
US intention to correct this imbalance.
The issue of environmental destruction has largely been ignored until recently. A
coordinated response is needed.
Shearer:
The idea of the United States fighting its way back into the SCS is a very troubling one.
Nguyen:This is indeed a global environmental emergency. Environmental protection is an areathat can foster international cooperation. However, one issue is that the fisheries issue
has become politicized. Access to the sites is also controlled by China.

11

It is difficult for individual countries to stand up against China because of its
economic and commercial strength. However, a collective response can help share any
cost China may impose.
Batongbacal:
We are facing a global environmental crisis. We are seeing deliberate coral destruction
on a massive scale in the SCS, a key area for the world’s marine biodiversity.
Panel Two: Recent Developments in the East China Sea
Drifte (RUSI/Chair):
Following on from the SCS, in this session we will discuss the recent developments inthe ECS.
Tetsuo Kotani (Senior Fellow, JIIA):
Similar to the SCS, China is also trying to establish a new “normal” in the ECS. The
fundamental problem in the SCS and ECS is that there is no consensus on the legal
foundation for the maritime boundaries in Asia. For Japan, the United States, and theUnited Kingdom, the San Francisco Peace Treaty forms the legal basis. However, China
is not a party to this treaty and its actions pose a challenge to the system based on thistreaty.
The Senkaku Islands became Japanese territory in 1895, having previously
constituted no man’s land. They were placed under US trusteeship following World War
II and were later returned to Japan under the 1972 US-Japan Okinawa Reversion Treaty.
China first made claims to their sovereignty in 1971, based on historical possession
during the Ming Dynasty. China’s claims have no legal foundation. China has now
sought to physically challenge Japan’s administration of the Senkaku Islands on arepeated basis. To deal with this challenge, the Japanese government purchased theownership of the islands in 2012. However, Chinese intrusions into the surrounding
territorial waters increased dramatically afterwards. They have recently declined, but a
Chinese paramilitary presence remains.
China’s presence is not only a challenge to the San Francisco Peace Treatybased order, but also part of China’s growing A2/AD strategy. China denies the conceptof A2/AD, using the term “counter-intervention.” However, both terms refer to the samething.
China has also expanded its activities into Japanese territorial airspace, including12

the establishment of an ADIZ in the ECS. Chinese flight patterns indicate the limitationsof its coastal radar system, particularly to the eastern part of the ADIZ. However, China
has begun unilateral development of seabed resources in the ECS, which could be used
for military purposes, such as the installation of radar facilities. Nevertheless, China
would still have difficulty in air power projection because of the lack of air facilities
along the Chinese coastline. China can reclaim land in the shallow waters of the SCS
and build air bases there, but no such waters exist in the ECS. One option is to take oneof the 17 islands in Japan’s southwestern island chain equipped with air strips.
To address the frequent encounters between Japanese and Chinese surface ships,
Japan is seeking a maritime and air communication mechanism for crisis management.
A structure has been agreed, but the geographical coverage has not. China wants it tocover the 12 nautical miles from the Senkaku Islands to justify its presence and has beenusing the crisis management mechanism for political purposes. Japan and China also
hold high-level consultations on maritime affairs, involving all maritime agencies.
Several rounds of talks have been held, but this has yet to serve any confidence-building
function.
Japan needs to increase its own defense capabilities. To that end it has introduced
the concept of the dynamic joint force, aimed at defending the southwestern island
chain from China. Japan and the United States have also sought to strengthen their
alliance. Efforts have also been made to counter China’s gray-zone coercion, but more
effective deterrence measures are needed.
Zack Cooper (Fellow, Japan Chair, CSIS):
I would like to share a few historical observations. First, the primary actors in the ECS
over the past 180 years have been the United States, Japan, or the United Kingdom.
Second, the choice the United States has to make currently in the ECS is very similar to
Britain’s response to Germany’s naval challenge in the North Sea in the early 1900s.
Third, there is too much focus on power projection when discussing these issues. We
must not forget about the other naval factors that cannot be seen.
Looking to the future, first I predict that if Chinese economic power continues togrow, ECS tensions will rise. Second, Japan’s coast guard will not be sufficient to deter
increased Chinese assertiveness. Third, as the United States rebalances to Asia, theUnited Kingdom will have to bear more of the security burden in Europe.
As for policy prescriptions, first, combined US-Japan planning on gray-zone
contingencies is essential. Second, the United States and Japan will have to use
asymmetric responses against Chinese coercion. Finally, the United Kingdom and other13

US allies will have to work to actively deter Chinese revisionism.
Theresa Fallon (Senior Associate, European Institute for Asian Studies):
China’s defense plans have been constantly changing, evolving from coastal defense
and inshore defense, to offshore defense and open seas defense. Despite the slowing of
the economy, China’s stock of new-type frigates and destroyers is rising, and we will
likely see a greater level of Chinese shipbuilding than in the past. It is clear that China’semphasis now is on maritime modernization. The reason is likely the importance China
places on near-seas active defense and far-seas operations.
Japan has shown a great deal of restraint when dealing with China in the ECS.
The increased presence of Chinese ships and aircraft in the region means that there is alack of an adequate crisis management mechanism. One of the issues preventing theestablishment of such a mechanism is the need to involve a whole hierarchy of officials
who would have to decide in advance the official message and response to any situation.
China issued its first whitepaper on military strategy in 2015 and there was very lowtransparency of China’s decision-making process.
In 2013 China established the Central National Security Commission (CNSC).
In China, domestic affairs have long been viewed as more important than international
affairs, and the CNSC was established to overcome this. After two years, the CNSC
appears to be focused on preventing terrorism, separatism, and domestic unrest. Xi
chairs the CNSC informally, and given his many other responsibilities is likely unable
to operate it effectively. This also makes it difficult for officials who lead similarorganizations in other countries to communicate with the CNSC. The fundamental
internal coordination obstacles to timely and effective crisis management appear to belargely unaddressed.
China’s national humiliation narrative drives much of its actions and relations
with Japan. There is a very strong sense of nationalism in China, and Japan serves as anoutlet for China to divert attention away from domestic tensions. A recent survey also
shows that a record number of Japanese do not feel friendly towards China.
There are nevertheless reasons for optimism. Japan is still one of the favorite
places for Chinese to visit on holiday. Prime Minister Abe is also reaching out toregional partners and seeking to engage India. The Japanese Emperor and Empress arealso made their first official visit to Southeast Asia.
However, there are those who theorize that China is entering a period of decline.
It has to deal with increased challenges posed by North Korea, while Sino-Japaneserelations are a long-term tension in the region. China is also dealing with domestic labor14unrest. Managing the high expectations of the population, which have been backed bycontinuous growth for so long, is a major challenge.
Dr. Patalano (Senior Lecturer, King’s College London):There are three different stories in the ECS, which are structural, systemic, and national.
From a structural perspective, bilaterally the emergence of China and Japan as major
powers alongside each other in East Asia has never before occurred. A key question iswhether they can co-exist. There is also broader impact on China, Japan, and the UnitedStates. This has implications for the US-Japan alliance and the SCS.
From a systemic point of view, the ECS is a maritime system. The ECS meansthat Japan and China do not have a land boundary, but a maritime boundary. This
impacts their economic, political, strategic interactions.
From a national perspective, there is the tension between the two different
domestic narratives of Japan and China and the impact that the audiences at thedomestic level have on the overall national story. This impacts operational capability
through increased activity and actors in the ECS. In addition, how the governments
portray their ability to protect territorial sovereignty affects how their ability to govern
is perceived by their citizens.
Discussion
Audience 1:
Domestic issues are the number one priority in Beijing. Please define “the rules-based
liberal international order,” which was mentioned several times today.
Audience 12:
What role should the United Kingdom play? Looking at the United Kingdom’s special
relationship with the United States and its historical footprints in East Asia, is there
anything unique about the UK role compared to other European powers?
Audience 5:
Mr. Cooper posited that if China’s economic growth continues, it will heighten regional
tensions. What will happen if this growth does not continue or slows significantly?
Audience 4:
National narratives have the power for myth-making. We also underestimate the15

importance of the culture of saving face in Japan and China. Is there some way to
invoke the international arena to broker some kind of non-confrontational dialogue
between the two countries?
Fallon:The United Kingdom is an amazing convener for dialogue on these issues. Looking at
Europe, if the European Union were able to speak with one voice it would have much
more power. The fact that the European Union did not attend the arbitration tribunal isconcerning and sent a negative message. It should at the very least have attended as anobserver to support the rule of law.
Cooper:
The problem for Japan and the United States to define “the rules-based liberalinternational order” is that China will likely not accept whatever definition is presented.
Those interests will in many ways conflict with those of China. Nevertheless, Europe,
has a huge role to play in defining this order. The United Kingdom is a partner to all thestates involved in the ECS and has a critical role to play in setting the ground rules. It
cannot only be the countries involved in the dispute that are trying to set the rules.
Drifte:I would like to add that the United Kingdom will send 12 Eurofighters to Japan this year
for the first UK-Japan joint exercise.
Patalano:
Europe does not have the military muscle to be a presence in the Asia-Pacific. However,politically, Europe can contribute to reinforcing the shared values and international
order. Looking at bilateral relationships, in terms of defense cooperation, the UK-Japan
relationship is one of the fastest-growing between Europe and East Asia. NATO-Japan
cooperation is also worth exploring. One important question to ask is where Europe andEast Asia have shared strategic interests and can act together.
Audience 13:
It was posited to me that China does not have a history of being an aggressor andtherefore can be expected to act peacefully. Is this true?

16

Audience 2:
In discussions on the ECS, the prospect of military conflict was not mentioned once. In
discussions on the SCS however, all speakers who mentioned military conflict were
worried it might occur. Does this not send an odd signal to China?
Audience 14:
From a global perspective the comparison of the United States and China now to Britain
and Germany in the lead-up to World War I makes sense. However, from a regional
perspective, Britain had national interests tied to the European continent, whereas theUnited States does not have national interests on the Asian continent. From a regional
perspective, the issues in the ECS and SCS are that of territorial disputes. What role canthe United States play on this level?
Kotani:
China has certainly been an aggressor in the past, for example with regard to Vietnam.
However, China does not consider itself to be an aggressor or invader, but views its
actions as retaking its former possessions. Objectively, however, China is infringing on
the rights of other countries. Britain is responsible for the maritime conflicts in East
Asia. The reason China is outside the San Francisco Peace Treaty-based system isbecause when the treaty was being signed, the United States and the United Kingdom
could not agree on whether Beijing or Taipei should represent China.
Cooper:I agree that there are different views of the status quo and that China believes that it isupholding the existing status quo, rather than undermining it. We are therefore in aworld of compellence, rather than deterrence. We also know from history that rising
powers tend to act more assertively than they were before they became rising powers.
As for the US role in Asia, certainly more could be done, but engagement is
growing. There are in fact US interests at risk in Asia, and it feels that it is an Asian
country due to longstanding ties with many countries in Asia.
Fallon:China’s activities in the SCS serve as an emergency valve for releasing pressure fromdomestic economic issues. With regard to national narratives, the implementation of
patriotic education in Hong Kong despite public protests is a worrying development.

17

Closing Remarks
Yoshiji Nogami (President, JIIA):
I would like to thank all the audience members, panelists, and organizers for making
this meeting possible. I think we have been able to cover the multifold challenges of the
SCS and the ECS. Everyone wants to settle these issues peacefully. However, one major
cause for concern is that in recent documents published by China, any reference to “thepeaceful rise of China” is no longer included. We must therefore continue to stress theimportance of the peaceful settlement of disputes, while also being prepared.

18

EssayAndrew Shearer
Challenges in the South China Sea
The South China Sea is far from the UK and Europe and preoccupations closer to home
– Brexit; the Middle East conflagration, the ISIL threat and the refugee exodus;
Russia’s renewed assertiveness and adventurism. Policymakers in European capitals
have a lot on their plate.
Nonetheless, what is happening in the South China Sea is not just an obscureterritorial dispute over a few remote shoals and atolls. Massive land reclamation to
construct military facilities, the installation of modern weapons and increasingly
aggressive patrolling by paramilitary and naval forces is raising the risk of
miscalculation and even of military confrontation, as Australia’s recent Defence White
Paper noted. Moreover, it is undermining not only the regional order in Asia but
fundamental international rules and norms such as freedom of navigation and theresolution of international disputes without resort to coercion and force.
These principles – buttressed by the US alliance system in Asia and its forward
military presence – have underpinned more than half a century of relative peace andprosperity in the region. They facilitated the Asian economic miracle and the rise of
China. Their importance extends well beyond Asia, however, because the rules thathave supported stability in the Pacific are also integral to the rules-based global orderand therefore to security and economic growth in Europe. The South China Sea
situation should therefore be seen as a global security challenge, not just a regional
problem. And the UK and Europe have interests at stake that require more than anarrowly commercial engagement in the region.
China’s large-scale land reclamation activities and deployment of modern radarand missile systems – seemingly at odds with President Xi Jinping’s September 2015
pledge not to militarise artificial islands in the South China Sea – are already generating
responses.
Countries in Asia, as well as the United States, are ratcheting up their rhetorical
opposition to unilateral attempts to change the status quo, coercion and actions thatjeopardise freedom of navigation as the region has known it for the past 70 years.

19

Increasingly they are coordinating their positions and in the East Asian Summit andother regional forums. The United States, Japan and Australia are stepping up efforts tobuild the maritime capacity of Southeast Asian states such as the Philippines andMalaysia. The United States has conducted two high-profile freedom of navigation
operations in the South China Sea and is encouraging other countries in the region toundertake their own patrols. Through the rebalance to Asia, changes to US militaryforce posture in the region and the development of new capabilities under its ‘third
offset’ strategy, the United States is moving to bolster the deteriorating balance ofmaritime power in the Western Pacific.
Nor is the US rebalance to Asia some unilateral, unwanted outside intervention.
Far from it: countries throughout the region have been calling for greater US
engagement. Traditionally non-aligned states such as India and Indonesia – and even aformer adversary like Vietnam – have been quietly encouraging a stepped-up US
presence. And many of these countries are forging their own new security alignments.
These include growing strategic ties between India and Japan, and Japan and Australia,
and the emergence of new trilateral security groupings (including between Australia,
Japan and the United States and Australia, India and Japan). Regional countries areboosting their maritime capabilities: Australia, for example, is embarking on its largest
naval build-up since the Second World War.
So what are they responding to?
It is increasingly clear that Beijing, so far undeterred by the reactions of the UnitedStates and the region, is rolling out a deliberate strategy that draws on all the
instruments of national power – including military and paramilitary forces, diplomacy
and economic coercion. The motives for this are debated, but the aims seem clear. In the
short to medium term China seeks to deny the United States and other regionalcountries the unfettered access they have traditionally enjoyed to the international
waters Beijing calls its ‘near seas’, including – through its ‘Nine Dash Line’ claim –most of the South China Sea. In the medium to longer term China aims to assert control
over those waters, neutralising and pushing back the US military presence and influencein the Western Pacific.
China is using its rapidly growing paramilitary and military presence, newfacilities, diplomacy and economic muscle to change the facts on the ground. The
approach is incremental but the pace has often taken Western analysts by surprise.
Beijing’s strategy depends on staying below the threshold at which the United States or20

other countries might respond in ways which would have a real cost for China – such as
the imposition of economic sanctions or military power; Japanese defence planners referto this as ‘gray zone conflict’. There are parallels with Russia’s ‘denial and deception’tactics in Europe, which likewise seek to exploit Western preoccupation in the Middle
East and elsewhere as well as perceived shortfalls in Western political leadership.
Developments in the South China Sea are challenging the three key elements of
the regional order that have been essential to the region’s success: the US alliancesystem in Asia; open economic institutions; and freedom of navigation. In particular,
any attempt to assert military control over the international waters of the South China
Seas would strike at the connectivity that has been vital to Asia’s economic growth. Fora country such as Australia, which depends heavily on trade for its prosperity and 60 per
cent of whose trade passes through the South China Sea, this would be a very different
world – and a much more challenging and insecure one.
The risks are exacerbated by the proliferation of advanced military capabilities in
Asia. China and other countries around the region are acquiring precision-guided
munitions, ballistic and cruise missiles, electronic and cyber warfare systems, andsubmarines – greatly extending the range, accuracy and lethality of regional militaryforces and increasing the risk of miscalculation. This risk is greater because the region’s
security institutions are still relatively immature, confidence building measures arelimited, and – compared with the relatively stable bipolar order imposed by the Cold
War – escalation dynamics in Asia are fluid and unpredictable, involving many moresecurity actors.
Of course there are strong influences in favour of stability in Asia – economic
interdependence is high; the entire region has a significant stake in the maintenance ofpeace; and neither China nor the United States wants conflict. But this is not enough toguarantee a benign regional future. And instability in Asia will quickly be transmitted toEurope – not least because of the region’s increasingly crucial role in the global
economy.
The best way to ensure stability and prosperity in the future is to uphold the rulesbased order that has been responsible for Asia’s past success. Irrespective of theoutcome of the presidential election, the United States needs to follow through with its
rebalance to Asia to deter moves to change the regional order by force or coercion andto reassure its allies. This includes ratifying the Trans Pacific Partnership as soon as
possible. America’s allies and partners in the region need to step up too, boosting theirown capabilities and security networks, hosting US forces and working to strengthen

21maritime capacity in Southeast Asia. India can play an important role and needs to bebrought into the centre of regional political, security and economic frameworks.
The United States and other countries should also continue to engage China and todevelop institutional linkages and confidence building measures where interests
coincide and where Beijing is receptive. Where it isn’t, and certainly in the event offurther destabilising moves in the South China Sea – for example, further seizures offeatures or unilateral declaration of an Air Defence Identification Zone – the region
should act and speak with one voice in support of the rules-based order. And it should
do so with the full and active backing of the UK and Europe.

22

Yoji Koda
Maritime Security Cooperation in the South China Sea
Japan’s Perspectives
Introduction and Overview
a. General
China's rapid and substantial naval build-up, together with its assertive and high-handed
activities in Asian waters - especially those in the South China Sea (SCS) - aregenerating serious security concerns within the international community. China's uniqueand unilateral positions on all maritime issues, which are supported by its wider, andsometimes self-centered interpretation of the UNCLOS and other establishedinternational rules, really confuses regional states and other related nations, such as
Japan and the United States.
b. Paracel Islands
There are about forty position-located geographical maritime terrain features, and China
has been exercising practical control over the area since its victory in 1974 skirmish
against then South-Vietnam.
Among them, the largest Woody Island with various facilities, including anairfield with a 2,700 m (9,000 ft.) and two ports is regarded as a gateway and a key
military site to the SCS. Last month, there were some media-reports on China’s
deployment of Fighter Squadron, Surface to Air Missile units and air surveillance radarto this island.
c. Spratly Islands
Like the Paracels, there are many surfaced and shallowly submerged geographic terrain
features, however only 13 of them are suitable for human activities. With the successful
ouster of Vietnamese forces from the Johnson-South in Reef in 1988, China established
its presence in the Spratlys for the first time in history. However, as of January 2016,
China only controls about 10 small rocks and reefs with no practical use.
China has started reclaiming seven lagoons and build artificial islands (AI) in
20013. Fiery Cross Reef seems to be a core-spot with 3,000m runway, a deep port andvarious facilities. There are two other AIs with air-facilities. Other four AIs with smaller
facilities are considered to be guarding-spots.

23

Thanks to a two-year long silence by the Obama administration, China has
successfully established a ‘fate accompli’ in the islands and gained strong footholds forthe first time.
Thus, China has two stepping stones in the SCS: one on the northern Woody
Island and the other on the southern seven AIs in the Spratlys. China’s North-Southstrategic chain of islands in the SCS, which could be an enabler for Beijing's strategy tocontrol whole SCS area surrounded by its unilaterally-claimed nine-dashed-line, will becompleted.
d. A Game Changer: Scarborough Shoal and a Strategic Triangle
In the above sections, the significance of a "strategic N-S line" connecting Woody
Island and Spratlys was discussed. However, this imaginary N-S line alone is notenough to help China establish functioning control over the whole SCS.
In addition to the N-S line, there is one more shoal, namely Scarborough Shoal(Scarborough), in the eastern part of the SCS. Scarborough has once attracted theworld's attention because of the tricky seizure over the long-controlled Philippines shoal
by China in 2013.
China lacks a stronghold from which to control the eastern part of the SCS. From
this viewpoint, the Scarborough is the only potential spot for this purpose for China.
The lagoon is large enough for land-reclamation to build an AI and military facilities,
including an airfield and a port. If China successfully builds an AI at the Scarborough,there will be a strategic triangle, connecting Woody Island, Seven AIs in Spratlys, andScarborough which covers most of the SCS. The impact of this strategic triangle will betremendous in U.S. and Japan's future strategy, and could be a game changer in the SCS
power relations.
Three Reasons behind China’s Firm Position on SCS Issues
Behind China’s unilateral ambition to monopolize the whole SCS, there seem to be
three primary reasons behind its hard and determined positions on SCS issues.
a. Ambitious territorial design for South China Sea-Establishing National Sovereignty and Territorial Integrity to erase 150 years
long humiliation age.
b. Maritime Strategic Nuclear Posture comparable to the United States-New Naval base at Sanya, Hainan Island for PLAN’s SSBN force-ASW Capability in the South China Sea to protect PLAN’s SSBN force fromc.

USN SSNs
Control of SLOCs in the South China Sea

24

Freedom of Navigation
With regard to U.S. maritime policy, there is one subject that should be understood
accurately, but only gaining a slanted understanding about it. That is the concept of
freedom of navigation (FON). Traditionally and historically, successive U.S.
Governments (USG) have not supported any specific country in a territorial dispute, buthave encouraged those involved in sovereignty disputes to take peaceful means to solve
the problem.
Based on this fundamental policy, the position of the USG on territorial disputes
in the SCS has also been the neutral, even towards China, which has created many
territorial disputes over SCS with other coastal states for years.
At the same time, the USG has repeatedly affirmed FON as one of the key
national interests of the Nation. After first being mentioned by then-secretary of states,
Hillary R. Clinton at the 2010 ASEAN Regional Forum (ARF) meeting in Hanoi, the
USG has repeatedly confirmed its position at various opportunities since then.
There are two key tenets of this policy. One is simply the principle of long-lasting
and firmly-established conduct of the FON.
The other is more important than the first one, but less understood. According tothis tenet, since FON is a U.S. national interest, if any conflict in the SCS is interpreted
as an incident causing interference against free and safe navigation, the United States,
which may not even be a party to the dispute and a clear geo-outsider, may interpret thisconflict as an infringement of its national interest. Thus, the USG preserves the right tointervene in any maritime conflict in the SCS if the conflict is interpreted as a violationof the principle of FON. Both in theory and in practice, in order to protect U.S. national
interests, the United States may intervene in the regional conflict in the SCS.
For China, it is a strong warning from USA to Beijing's aggressive and toughposition on SCS issues. This is one of the reasons why China has been strongly
protesting the U.S. policy.
Proposed Japan’s Action
a. Support to Maritime Capacity Building, both physical-military and domainawareness capabilities of regional states-Capacity Building of Coastal Countries: Naval and Coast Guard Assets
Patrol and Surveillance Forces,
Reaction Forces,
At Sea Law-Enforcing Forces,
Personnel Training

25

-Capacity Building of Domain Awareness
Maritime Information Sharing Networks among coastal countries
In order to help develop these capabilities, Japan and the United States, shouldmake a determined and well-coordinated joint-action to support the coastal countries'
capacity buildings.
b. Support to U.S. FON-Japan’s Own FONOPS-Support U.S. Forces FONOPS
U.S. Forces conducted military operations to support FON (FONOP) in vicinitiesof the AIs by sending destroyers and bombers. Australia reportedly conducted its own
FONOP by its P-3 in mid-December.
Japan strongly supports the U.S. FONOP. Japan as a real seafaring nation and aclosest allied-partner of the USA, should take clear and visible action to realize its own
FONOP.
c.

Stopping China’s AI building at Scarborough-Diplomacy and Summit-meetings-Naval Blockade as the last resolution
A before-mentioned strategic triangle will change the power-balance in the SCS
substantially unrecoverable to Japan and the United States. Various actions including
the above should be planned and appropriately be executed.
d. Support U.S. Strategy and Maintain U.S. Presence-Japan’s support to U.S. Force’s Operations-Japan’s support to increase U.S. Force Presence-Facilitating use of strategic spots in the Regional Nation to U.S. Forces
Camranh Bay, Da Nang, Palawan Island, Subic Bay, Clark Airfield-Increase JSDF’s Presence in the SCS
Japan, as a major allied partner of the United States, should provide best support
to U.S. forces operating in the region for deterrence.
In this article, I mainly mentioned my thoughts on the SCS, focusing on China's
activities. I hope my article provided general views on a troublesome situation, andhopefully could become a launching pad for readers’ thoughts-development on thisissue.

26

Nguyen Thi Lan Anh*1
Challenges in the South China Sea: A Vietnamese View
The South China Sea has been known as a hot spot for many years. Massive
construction at sea, fishing incidents, big oil platform installation, freedom ofnavigation operation program (FONOP), militarization, etc. are frequent headlines on
the South China Sea in the media recently. They indicate three urgent challenges of how
to maintain good order at sea, preserve peace and stability and strengthen the role of the
security architecture of the region.
The first challenge is to maintain good order at sea, a common goal of all littoraland sea user states. Good order at sea can only be achieved in a rule-based order wheresovereign rights and jurisdiction of coastal states and the rights of other countries,
including freedom of navigation and over flight, are respected. Unfortunately, in theSouth China Sea, the nine-dash line, albeit its ill-legal basis as drawn beyond the limitsof any maritime zones under UNCLOS, has been claimed to deprive the legitimate
sovereign rights and jurisdiction of other states. The placement of a gigantic oil rig, theinvitation for biding on oil blocks deep into other country’s continental shelf and thefrequent arrests and collisions, to the extent that sink other countries fishing vessels arethose incidents that illustrate the grave detriment to the rights of the coastal states which
are provided for under UNCLOS. The nine-dash line and the massive constructions on
low tide elevations or even submerged features in the South China Sea are increasingly
utilised as the pretext to deny access of other countries’ vessels and aircrafts travellingthrough the South China Sea. Repeated warnings were sent to both civilian and military
vessels from as far as 25 nautical miles from and to aircrafts flying over the artificial
structures. The eagerness to follow other countries’ military vessels and challenge theirnormal navigation directions further contributes to the violation of freedom ofnavigation. Many attempts to hamper freedom of navigation resulted in several “nearcollisions” which gravely threatened safety of navigation. In addition, the destruction ofa massive area of coral caused serious damages for the marine environment anddestroyed the habitat of fishes and other living resources. The deteriorating marine
environment and the sharp increase in harassment at sea such as arrests, sinking and*

Diplomatic Academy of Vietnam. The views expressed in this paper are strictly of the author and not necessarily reflect
any official position of the institution where she works

27

burning of fishing vessels, sabotaging or damaging navigation equipment etc. havemade the likelihood of millions of fishermen of the littoral states at risks.
The second challenge in the South China Sea is preservation of peace and stability
in the context of escalating tensions and militarization. The South China Sea had
experienced illegal uses of force in 1974, 1988 and 1995 and this violation stillpresently exists in different forms. The popular form of the use of force is intimidationand harassment towards fishermen and oil companies within the EEZ and continental
shelf of littoral states through the use of heavily armed law enforcement forces. The
latest form of threat to use of force is the deployment of missiles, radars and othermilitary equipment in the Paracels and artificial features in the Spratlys. The threat anduse of force even caused serious concerns when dispute settlement by peaceful means, afundamental principle enshrined under the UN Charter, has been intentionally distorted.
Attempts to settle disputes through third party judicial bodies are considered hostile acts.
Awards of the international arbitration under Annex VII of UNCLOS are treated as nulland void. Meanwhile, negotiation and consultation reached a deadlock due to sharp
differences. In addition, misperception and miscalculation that might lead toconfrontations and conflicts will likely occur at anytime in the context of increasing
deployment of naval and armed law enforcement forces in the narrow and busy sealanes of the South China Sea.
Responding to the situation in the South China Sea, a COC negotiation process
was initiated since the 1990s. This process, nevertheless, only resulted in a non-binding
DOC. Although the DOC reiterates all fundamental principles of none use of force,
peaceful settlement of disputes, and further emphasises on the need to self restrain andno new occupation of non-occupied features, all these commitments have been broken.
The DOC also lacks enforcement mechanism to prevent violations. Thanks to ASEAN
efforts, the South China Sea issues have been included on the agendas of numerous
ASEAN centric mechanisms including the AMF, EAMF, ADMM, ADMM+, ARF, andEAS. Discussions in these fora led to diplomatic statements, preventive diplomacy
initiatives and cooperation measures. These achievements, unfortunately, areinsufficient to prevent violations to the international laws and escalation of tensions in
the South China Sea continues.
War or peace? Right or might? The South China Sea will serve as a test case. If
the regional and international community are divided, conquered by economic incentive
and compromised on long established institutions, more will get away freely after
seriously bypassing international law and more small nations will be bullied. The issues
we face in the South China Sea will then not be confined to just South East Asia, it will28

be like infectious diseases spreading into other regions challenging the current
international order if not timely quarantined.

29

Jay L. Batongbacal*
Challenges in the South China Sea
Introduction
Within the next two months, an international arbitral tribunal is expected to promulgate
its decision in the case of the Philippines vs. China.2 One of the principal objectives ofthe suit is to establish, as a basis for future interaction, the legitimacy of certain
contested claims to rights to/jurisdictions over the maritime domain between theparties. 3 But whether or not the tribunal's decision will indeed set the stage for"normalization" of the currently strained relationships between the opposing sides, orinstead spark off another round of destabilizing unilateral actions (even possibly armed
conflict), remains uncertain.
Short-Term Challenge: Leadership Transition in the Philippines
The Annex VII tribunal is widely expected to hand down its decision within the next
few weeks during the run-up to the Philippine Presidential elections in May. The timingof the decision could obviously be critical, as the transition in leadership may be viewed
as a time of vulnerability to a major move to alter the status quo. Last week, the media
was abuzz with news that Chinese grey and white ships had excluded Philippine fishers
from Jackson Atoll, close to Philippine-held Patag and Lawak Islands.4 This naturally
raised fears of another Scarborough Shoal scenario (where China has prevented
Philippine access since 2012), and a possible incremental acquisition and occupation
similar to the way in which China took possession of Mischief Reef in 1995.5 Although
it was later confirmed that the Chinese ships had left the reef, the incident exposed thevulnerability of Philippine possessions in the Spratly Islands: Chinese occupation of*

LLB, MMM, PhD. Associate Professor, University of the Philippines College of Law and Director, UP Institute for
Maritime Affairs & Law of the Sea. Email: jay.batongbacal@gmail.com
2
The Republic of the Philippines v. The People's Republic of China. Permanent Court of Arbitration, 10 Mar 2016,
http://www.pcacases.com/web/view/7.
3
The principal manifestation of this objective is seen in the Philippines' claims concerning the legality and validity of
China's expansive claims to the SCS on basis of "historic" rights or title within the area encompassed by the now-infamousnine dashed lines map.
4
Mogato, M. Philippine officials say China blocked access to disputed South China Sea atoll. Reuters, 02 May 2016,
http://www.reuters.com/article/us-southchinasea-china-philippines-idUSKCN0W402A; Tweed, D. and D. Lopez. China
blocks Philippine boats in disputed sea, Mayor says. Bloomberg Business News, 01 May 2016,
http://www.bloomberg.com/news/articles/2016-03-02/china-blocks-philippine-fishermen-in-disputed-waters-mayor-says.
5
Dzurek, D. China occupies Mischief Reef in latest Spratly Gambit. IBRU Boundary and Security Bulletin, April 1995, 6571.

30

Jackson Atoll and/or one other reef nearby (e.g, Iroquois Reef, Hardy Reef) could easily
cut off the Philippine positions from the mainland as they lay in the islands' resupply
routes.
During the transition period, pending definite foreign policy positions andappointed leaders in the concerned government departments, a crisis situation such as a
ship-to-ship collision (arising from China's harassment tactics against Philippine
vessels), the sudden acquisition of a new feature (either by permanent presence orcontinuing control), or an unarmed take-over of a small isolated Philippine outpost by
Chinese fishermen-militia (e.g. Second Thomas Shoal, Likas Island, and Patag Island)
would present a major foreign policy test to a fledgling and perhaps unprepared
Presidential administration. At that point where leadership is weakest, the opportunity
exists for a major stratagem to retake Philippine positions in the SCS.
To help deter such a stratagem, two things are urgently needed at this time. One,
maritime domain awareness in the SCS must be maximized especially before, during,
and after the Philippine leadership transition period. The movements of all maritime
assets in the SCS and the Spratly Islands region must be continuously and closely
monitored. The Philippines lacks the necessary surveillance capability for this purpose6
and at this point requires the assistance of allies and friends to compensate. Since 2015,
US EP-8A Poseidon patrols have provided a significant degree of "scheduled" longrange surveillance of China's artificial islands, 7 while US Navy transits provide"opportunistic" coverage.8 Hence, FONOPs conducted by the US and even Australia9
serve dual purposes of ensuring that excessive maritime claims do not acquire
legitimacy, and at the same time provide opportunity for deterrence through presence
and surveillance.
The second necessary element is an international cooperative effort to encourage
and ensure a free flow of real-time information on actual events in the SCS between
States with varied interests could fill in the information and surveillance gaps. China's
island building spree began approximately March 2014, but was not reported until atleast a month into the dredging and island-building operations, and it was not until the
public release of satellite imagery a year later revealing its staggering and massive
6

Satellite remote sensing, even on a commercial basis, is subject to various limitations, and there is inadequate basic radar
coverage and even more scanty visual coverage from its few possessions.
7
Sciutto, J. Behind the scenes: A secret Navy flight over China's military buildup. CNN, 26 May 2015,
http://edition.cnn.com/2015/05/26/politics/south-china-sea-navy-surveillance-plane-jim-sciutto/.
8
Chen, S. US Navy ship met Chinese vessels on South China Sea patrol. Bloomberg Business, 19 May 2015,
http://www.bloomberg.com/news/articles/2015-05-19/u-s-says-navy-ship-met-chinese-vessel-on-south-china-sea-patrol.
9
Wroe, D. and P. Wen. South China Sea: Australia steps up air patrols in defiance of Beijing. Sydney Morning Herald, 15
Dec 2015, http://www.smh.com.au/federal-politics/political-news/south-china-sea-australia-steps-up-air-patrols-in-defianceof-beijing-20151215-gloc2e.html;

31

scope10 that the United States was prompted to take a noticeably stronger stance. By thattime, it was already too late for any international pressure to be brought to bear.
In the future, members of the international community can best contribute if wellinformed and enabled to make decisions and take positions well before a prospective
incident becomes a major crisis. Strategic partnerships between willing interested
States11 could provide the minimal requirements of information exchange that could be
crucial in deterring and preventing future incidents and escalation. FONOPs, aside frompreserving the legal status of maritime space, can provide value added through thesharing of maritime domain awareness necessary to deter adventurism in the South
China Sea. Weaving together a maritime domain information network for the benefit of
all interested parties as a means of crisis anticipation and prevention is an important task
worthy of cooperation between like-minded States.
Medium-Term Challenge: A Demilitarized Take-over?
Looking beyond the promulgation of the tribunal's decision, China's completion ofisland-building activities and full operation of its new extensive facilities will present
new major challenges in the medium term. Even assuming, for the sake of argument,that China will abide by its statement that it will not "militarize" its new islands,12 thesheer scale of its new facilities endanger the delicate social and environmental
conditions attached to the SCS. Even ostensibly civilian activities based on the massive
islands will negatively impact the limited activities of smaller claimants like thePhilippines and Vietnam. Already, under the watchful protection of China's civilian andmilitary maritime forces, mass destruction of coral reefs is being deliberately caused by
Chinese fishermen mining the coral reefs for tridacna gigas (giant clam), whose shells
have apparently become the new ivory for villages of stone carvers. 13 The islandbuilding activity and resulting increase in Chinese fishing effort in the Spratly has been
cited by Philippine fishing companies as the only new factor that correlates with an

10

See Asian Maritime Transparency Initiative. Island Tracker. Center for Strategic and International Studies,
http://amti.csis.org/island-tracker/.
11
The Philippines recently announced strategic partnership agreements with Vietnam and Japan. Parameswaran, P. Japan,
Philippines to agree new military deal on APEC sidelines. The Diplomat, 17 Nov 2015,
http://thediplomat.com/2015/11/japan-philippines-to-agree-new-military-deal-on-apec-sidelines/; Philippines, Vietnam to
ink strategic partnership by end of 2015. The Diplomat, 04 Sep 2015, http://thediplomat.com/2015/09/philippines-vietnamto-ink-strategic-partnership-by-end-of-2015/.
12Page, J., C. Lee and G. Lubold. China's President pledges no militarization in disputed islands. Wall Street Journal, 25 Sep
2015, http://www.wsj.com/articles/china-completes-runway-on-artificial-island-in-south-china-sea-1443184818.
13
Wingfield-Hayes, R. Why are Chinese fishermen destroying coral reefs in the South China Sea? BBC News, 15 Dec 2015,
http://www.bbc.com/news/magazine-35106631; Lee, R. Satellite images show ecocide in the South China Sea. The
Diplomat, 15 Jan 2015, http://thediplomat.com/2016/01/satellite-images-show-ecocide-in-the-south-china-sea/.

32

observable significant drop recently in fish catch from the Western Palawan region.14
Considering the massive rate of depletion of coral resources, and China's spotty recordof environmental management, it is not unreasonable to fear a collapse of fisheries andrapid deterioration of marine environment conditions in the SCS within the next two
decades.
China's increased civilian activities on its new islands by themselves will create amuch larger environmental footprint that could indirectly oust all other maritime
activities. Ancillary facilities for power generation from the ocean, increased capturefishing effort and fish farming to provide sustenance, increased shipping and maritime
law enforcement, unilateral deep-water petroleum exploration and exploitation, otherkinds of resource activities, and could geographically constrain other nations' activities,
both civilian and military. The establishment of administrative controls to manage air
traffic (including Air Defense Identification Zones), allocation of fishery areas, laying
of submarine cable and pipeline networks, grant of exploration concessions for
petroleum and seabed minerals, operation of its maritime militia, among others, to carryout actual usage and demonstrate jurisdiction and control could also have the effect ofrestricting access to the maritime commons.
Thus, even if it were to stop attempting to establish and enforce arbitrary military
exclusion zones ("military alert areas") in the SCS, in the medium term an
overwhelming and ostensibly non-military presence unilaterally and exclusively
controlled and steadily expanded by China would create the same problem and effect ofexcessive appropriation of ocean space and resources at the expense of the region.
Whether by over-exploitation of resources or over-extension of controls, China does notneed to militarily conquer the SCS to achieve its strategic objectives.
Long-Term Challenge: Chinese Nationalism, Revisionism and Irredentism
This then brings us to the long-term challenge. China under the Communist Party iscertainly focused on achieving its centennial goals,15 with the latter firmly dedicated tomaintaining itself in power despite some apparent loss of its titular ideological soul. Its
excessive claim to the South China Sea is based on a publicly-accepted mythology thathas been ingrained into several generations of Chinese citizens denied alternative
sources of impartial and unfiltered information; the sense of unilateral and exclusive
14

Personal intervention, name withheld upon request. Asia-Pacific Pathways to Progress Foundation, Inc. and UP Institutefor Maritime Affairs & Law of the Sea. Roundtable Discussion on Fisheries in the South China Sea, 26 Jan 2016, at the
Astoria Plaza Hotel, Pasig City, Philippines.
15
See Pillsbury, M. The Hundred-Year Marathon: China's secret strategy to replace the United States as the global
superpower. Henry Holt and Co., 2015.

33

entitlement is deeply ingrained into the common Chinese worldview. To date, direct
challenges to this worldview appear to have only spurred even deeper resolve to resist
verifiable facts and insist on nationalist, revisionist, and irredentist arguments.
Especially in response to recent legal and military challenges to its excessive claims,
Chinese official statements on the issue have been increasingly rhetorical, to the pointof invoking ancestral obligations,16 ancient inheritance,17 and historical pre-emption.18
While outsiders might ignore these kinds of arguments, for the most ordinary Chinese
citizens they are the equivalent of religious truths. And they bring with them deeply
rooted emotional and psychological content that will be difficult to turn in less than ageneration. Add the majority Chinese population's virtual isolation from Westernknowledge, culture, and communications due to linguistic and technological barriers,
and it becomes clear that there will be no quick and easy way of reconciling Chineseinterests in this issue with those of the smaller claimants. Rational choice theory may
face a serious challenge in explaining and anticipating China's behavior toward the SCS
disputes.
To be sure, the decision in Philippines v. China represents the next stage in theevolution of the SCS disputes: in its aftermath, the UNCLOS Part XV disputesettlement procedures will clearly be open for smaller claimants to address subsequent
incidents with China; the legality of certain activities in pursuit of individual claims
may be determined; and obligations owed by disputing States to each other regardless ofprospective delimitations may be identified. But the impact of the tribunal's decision
ultimately still depends on self-restraint and voluntary compliance. These requirepolitical will and political decisions on the part especially of China, which requiredomestic political support.
Thus, even the geo-legal reconfiguration of the SCS seems less likely to attenuate
China's hardline and coercive inclinations toward its neighbors; current indications arethat it may only spur more uncompromising attitudes and actions particularly in the near
future. Despite the arbitration, the fundamental and original historical source of the
disputes, contested sovereignty over the islands in the SCS, will remain unresolved and16

Blanchard, S. China says changing position on sea dispute would shame ancestors. Reuters, 27 Jun 2015,
http://www.reuters.com/article/us-southchinasea-china-idUSKBN0P708U20150627.
17
Martel, F. Chinese President Xi: Entire South China Sea 'left to us by ancestors' in 'ancient times'. Breitbart, 19 Oct 2015,
http://www.breitbart.com/national-security/2015/10/19/chinese-president-xi-entire-south-china-sea-left-us-ancestorsancient-times/.
18
Blanchard, B. China says it should control the South China Sea because it 'discovered' it first. Business Insider, 08 Mar
2016, http://www.businessinsider.com/china-says-it-should-control-the-south-china-sea-because-it-discovered-it-first-20163.

34

will certainly cause recurring frictions. At best, the tribunal's decision may address
somewhat and perhaps mitigate the region's tendency to conflate sovereignty withmaritime jurisdictions. In the meantime, the challenge to external powers and theinternational community at large is to find and determine their roles in order tocontribute to maintaining regional peace and stability by helping prevent crises,
ensuring communications, and encouraging the parties to reach fair and acceptable
compromises.

35

Tetsuo Kotani
The East China Sea: Another Chinese Lake?
As the world pays attention to the recent Chinese militarization of the South China Sea
islets, China is establishing a “new normal” with more frequent military andparamilitary presence in the East China Sea. China is taking necessary steps to make theSouth China Sea a Chinese lake with surveillance and air defense assets deployed. But it
is less likely that the East China Sea will become a Chinese lake because the militarybalance still favors Japan.
China’s assertiveness in the East China Sea reflects Beijing’s challenge to theregional order based on the 1951 San Francisco Peace Treaty. Under this Treaty, theSenkaku Islands as part of Okinawa were placed under US trusteeship and returned toJapan under the 1972 Okinawa Reversion Treaty. No a party to the Peace Treaty, China
started to claim the Senkaku Islands in 1971 based on the 1895 Treaty of Shimonoseki
and the 1943 Cairo Declaration.
Beijing launched physical challenges to Japanese administration of the Senkaku
Islands in 2008 when two Chinese government ships intruded into Japanese territorial
waters around the Islands. The frequency of intrusions increased dramatically after
September 2012 and gradually declined after the latter half of 2013. But Chinese ships,
including armed coast guard ships converted from warships, maintain presence aroundthe Senkaku Islands.
China’s attempts to establish a “new normal” also reflect growing antiaccess/area-denial (A2/AD) strategy in the East China Sea. Since 2008, China’s naval
surface and submarine fleet activities have grown increasingly frequent in the East
China Sea and beyond in an effort to improve access to the open ocean and to develop
its A2/AD capabilities. The most frequently used route is the Miyako Channel between
Mainland Okinawa and Miyako Island, the widest gap along the first island chain.
Chinese military aircraft activities also increased after 2010, and China announced
the “East China Sea Air Defense Identification Zone” in November 2013. The flightpatterns of Chinese aircraft indicate that the coastal radar system covers only western
half of the East China Sea, and the airspace beyond the geographical median line
remains a blind spot. Under such a circumstance, there is a growing concern that Chinamight militarize some of the 16 offshore gas platforms along the median line forsurveillance and better air domain awareness.

36Facing China’s assertive behavior to establish a “new normal” in the East China
Sea, Japan revised the National Defense Program Guidelines in 2013, which called for
dynamic joint defense force. The dynamic joint defense force concept envisions air andmaritime superiority with active and regular surveillance, plus rapid deployment ofamphibious troops, armored vehicles, air-defense units and surface-to-ship missile
launchers in defense of the Nansei (Southwestern) Islands. In essence, it is a Japaneseversion of an A2/AD strategy in the East China Sea.
To deal with Chinese challenges in the East China Sea more effectively, Japan
also strengthened its alliance with the United States. President Obama confirmed US
treaty commitment to the Senkaku Islands during his visit to Tokyo in April 2014.
Following this, Tokyo and Washington revised the bilateral defense cooperation
guidelines to upgrade bilateral operational cooperation. Under the new Guidelines, theJapan Self-Defense Force takes the primary responsibility for the defense of Nansei
Islands, while the US military plays a supporting role with long-range strikecapabilities.
In addition to enhancing deterrence, Japan has been seeking ways to improvecrisis management with China. Japan and China essentially reached an understandingon the structure of a military-to-military maritime and air communication mechanism.
Under the mechanism, the two defense authorities would establish hotlines, regularconsultations, and common communication methods between ships for risk mitigation.
Tokyo and Beijing cannot agree on the geographical coverage of the agreement. Tokyo
does not assume the communication mechanism is applies to the 12 nautical miles
territorial seas and skies around the Senkakus, while Beijing insists on. Beijing is
attempting to use the mechanism to justify its presence and intrusions in Japanese
territorial space, and attempts to use the crisis management negotiations as a means toachieving its policy goals.
Japan is now better able to respond to Chinese assertiveness in the East China
Sea. But probably because the overall military balance in the East China Sea favors
Japan and the United States, China has adopted an approach characterized by gray-zone
coercion short of war. Seeking to remain below the threshold of military power thatwould lead to a joint Japan-US military response, China has regularized the presence ofits coast guard ships in the vicinity of the Senkaku Islands. While China has been
deterred from the use of overt military force, its gray-zone coercion has not been
deterred by the strengthened US-Japan alliance.
In order to respond to China’s gray-zone coercion, Tokyo has been reinforcing theJapan Coast Guard (JCG), the first responder to such coercion. The JCG is establishing37

a special unit for the Senkaku patrol with 24 patrol ships based in Ishigaki Island. But
Beijing is outpacing Tokyo in terms of shipbuilding for its coast guard. Tokyo alsochanged the procedures for issuing a maritime security order under which the JSDF
conducts law enforcement operations in support for the JCG. But the JSDF’s presence
in a gray-zone contingency could escalate the situation, something that may give Tokyo
pause.
The East China Sea is not likely to become a Chinese lake. Since China is notserious about crisis management and confidence building, however, China’s gray-zone
coercion continues to be a big challenge in the East China Sea. For Japan, it is importantto effectively respond to China’s gray-zone coercions by controlling the escalation,
while maintaining overall military superiority.

38

Zack Cooper

East China Sea Observations, Predictions, and Prescriptions

Three Historical Observations
1. The East China Sea has been controlled by just three maritime states for 175
years: Britain was the primary power in the East China Sea from 1839 to 1904.
Japan generally controlled the East China Sea from 1904 to 1945. Washington has
exercised control over the East China Sea from 1945 onward. Today, however the
People’s Liberation Army Navy and the China Coast Guard are changing the balanceof power in East Asia. As a result, it is possible that a continental power could exert
control over the East China Sea for the first time in centuries.
2. An analogue is the early 20th century Anglo-German competition in the North
Sea: As German power grew in the 1890s, leaders in London were forced to recall
most major assets to the British Isles. As The Standard wrote in 1912, “Because ofthat formidable and threatening Armada across the North Sea, we have almost
abandoned the waters of the Outer Oceans. We are in the position of Imperial Rome
when the Barbarians were thundering at the frontiers. The ominous word has gone
forth. We have called home the legions.” Indeed, just as Britain abandoned the two
power standard in 1904, the United States is reconsidering its two war doctrine torefocus on East Asia today.
3. History suggests that power projection may be secondary to sea denial
capabilities: The initial focus in the Anglo-German naval race was on power
projection assets, particularly battleships and dreadnoughts. Both Britain andGermany built more and larger battleships. Yet, when war came, the smaller craft
such as submarines and torpedo boats were vital to Britain preventing German
surface ships from escaping the North Sea and to Germany attacking British shipping
beyond the North Sea. This suggests that the current focus on power projection—
especially carrier strike groups and surface action groups—may be ill-advised sincesea denial capabilities—such as submarines, torpedo craft, and anti-ship missile
batteries—are more vital than power projection capabilities.

39

Three Future Predictions
1. If Chinese economic power continues to grow, East China Sea tensions will rise:
History suggests that as a rising power, China is likely to expand its maritime
ambitions. Chinese leaders tend to press in one geographic region at a time in orderto prevent the emergence of multiple simultaneous security challenges. The last two
years has witnessed a Chinese push in the South China Sea, but China’s focus will
likely return to the East China Sea once Beijing has accomplished its aims to thesouth. Japan and the United States must therefore prepare today for a new round of
Chinese coercive activity in the East China Sea over the next few years. If Chinesepressure on the East China Sea increases, the United States will have to choose
between growing naval requirements in East Asia and its surface naval presence ineither the Middle East or Europe.
2. Japan’s Coast Guard will not be sufficient to deter increasing Chinese
assertiveness: In the long-term, Japan’s Coast Guard will be forced to rely on
Maritime Self-Defense Force and U.S. Navy support in “grey zone” crises. China’s
construction of large numbers of increasingly capable coast guard vessels will prove
impossible for Japan to match. As a result, Japan will be forced to use Self-Defense
Force or U.S. Navy assets when responding to Chinese incursions. Japan and theUnited States should therefore prepare a set of combined options for responding toChinese pressure, using the alliance’s other strengths to offset its coast guard
weakness.
3. As the U.S. rebalances to Asia, Britain will take on a role similar to Japan’s in
1902: In the early 20th century, Britain needed Japanese support in East Asia so thatit could refocus on Western Europe. Today, the United States needs strong British(and NATO) allies so that it can refocus on East Asia. This dynamic will increase
rather than decrease the importance and responsibilities of Britain, and NATO more
broadly. The implication is that NATO should focus its military capabilities onchallenges in Europe rather than security issues in Asia. However, if NATO expects
Japanese diplomatic support to constrain Russian revisionism, then it in turn will
have to exert diplomatic influence to deter China’s revisionism.
Three Policy Prescriptions
1. Combining U.S.-Japan “grey zone” planning and command structures will bevital: As Japan relies more on the alliance to deter Chinese “grey zone” activities,
the United States will need to be incorporated into planning and exercising. Beijing
will look to split Tokyo and Washington, breaking the Alliance Coordination40

Mechanism. Leaders in both capitals will need on-the-shelf response plans to deal
with Chinese pressure. Coordination across the Japan Coast Guard, Japan Maritime
Self-Defense Force, and U.S. Navy will require new means of coordination, as well
as new command and control arrangements. To this end, the United States should
examine options for a Joint Task Force for maritime security and Japan should
consider establishing a Joint Operations Command.
2. The United States and Japan should use asymmetric responses to Chinese
coercion: China will likely be able to determine the time, location, and domain ofmaritime crises, choosing those features in which it has asymmetric advantages (suchas coast guard forces, fishing vessels, and use of oil rigs in disputed waters). The
alliance will be put at a disadvantage if Tokyo and Washington constrain themselves
to symmetric responses to Chinese provocations. Thus, the United States and Japan
should prepare to use their superior “grey hull” naval capabilities, financial leverage,
and diplomatic influence to constrain Chinese coercion.
3. Britain (and other NATO allies) should actively work to deter Chinese
revisionism: There is a perception in both Washington and Asia that most European
leaders are unwilling to sacrifice economic interests in China to uphold the status quo
in East Asia. Yet, European leaders cannot expect Japan and other Asian states tohold the line against Russia if they perceive that Europe is unwilling to do the samewith China. Economic sanctions against Russia require Japanese coordination, so
leaders in Europe have a choice between economic cooperation and status quo
revisionism that crosses continents.

41

Theresa Fallon
Sino-Japanese Relations as Regards the East China Sea:
Is There Progress Towards Crisis Management?
The unresolved dispute between China and Japan over territorial rights to oil and gas
fields in the East China Sea threatens to develop into more serious problems between
the two countries as they jockey for position to extract the energy deposits located there.
The conflict over energy between China and Japan relate to an unsettled demarcationline in the sea where the two countries’ 200-nautical-mile Exclusive Economic Zones
overlap. This situation is made more complicated by the history between China andJapan and resurgent nationalism on both sides.
Historical Memory
Historical memory very often serves as a major motivating factor in Chinese foreignand security policy, especially when the confrontation is seen by China through thelenses of "national humiliation" (the 19th and 20th century legacy of Westernimperialism that weakened China). Thus accidental behavior or missteps by othernations could quickly touch on sensitive Chinese feelings. To counter "national
humiliation", the current Chinese leadership has a corresponding policy of "national
rejuvenation".
China adopted an explicitly nationalist discourse only in relatively recent times.
Because of its class-based view of history and of its world proletariat ideology, theChinese Communist party wished to distance itself from the nationalist Kuomintang andrather tended to blame China's own "feudal" and corrupt rules for the country's
decadence and weakness in the 19th and 20th centuries. In the post-Mao period,
however, the Communist party effectively embraced capitalism and could no longer relyon the old ideology as a source of political legitimacy. It needed something new. The
1989 Tiananmen crisis dramatically showed that economic development was notenough and had to be accompanied by a political narrative that could preserve socialand political cohesion.
To fill this void, the party increasingly promoted a nationalist view of history. It
ordered history textbooks to be rewritten to instil patriotism into the young generations
and new museums established to showcase past national humiliations. This included aNanjing Massacre Memorial Hall in Nanjing to preserve the memory of Japanese42

aggression. Nationalist education effectively neutralised the effect of the previous
decades of Japanese Overseas Development Aid and of soft power diplomacy in China.
By the 2010s, after three full decades of nationalist education in classrooms, thenarratives of national humiliation and of national rejuvenation are well rooted among
China's population. This sparked a corresponding nationalist backlash in Japan.
Recent Developments
The dispute between China and Japan over the East China Sea has existed for a longtime, but its importance has become clear only in recent decades as both Asian
economies share similar constraints on their patterns of development. Both are global
manufacturing giants which rely on imports of resources and exports of manufactured
goods, for which maritime security is crucial. The dispute has deteriorated broadly at
the same time as China hardened its claims over the South China Sea.
Tensions over the South China Sea, which is strategically vital and believed tocontain rich deposits of petroleum, go back decades, but over the past two-three years
they have escalated dramatically. This can be attributed to various causes, which also
apply to the East China Sea: perhaps economic problems distracted the U.S. from Asia
in the late the 2000s, which encouraged China to act; China's navy became stronger;
China's leadership responded to growing nationalism; China's resources companies
wanted to expedite exploration of the sea; or some combination of these and otherfactors.
As far as the East China Sea is concerned, Chinese patrolling into waters close to
the Senkaku/Diaoyu islands started in 2008. In September 2010, a Chinese fishing boat
rammed into a Japan Coast Guard patrol vessel there. In November 2013, China
announced the establishment of an Air Defense Identification Zone in the East China
Sea. As of May and June 2014, Japanese sources reported that Chinese military jets
flew excessively close to aircraft of the Japan Maritime Self Defence Forces and JapanAir Self Defence Forces over high seas. Between 2009 and 2013, according to Japanesedata, JASDF scrambles in response to Chinese intrusions increased tenfold from 40 toover 400 per year, and the trend is increasing.

Military Build-Up
An increase of military and paramilitary activities near the Senkaku/Diaoyu Islands
brings increased probability of miscalculation or unintended incident (collision in air orwater). China's 255,000-strong PLA Navy is largely focused on regional power43

projection. With its 68 submarines, 26 destroyers, 52 frigates, 20 corvettes and 1 aircraft
carrier it is to play an important role in "national rejuvenation". According to US
sources, between 2015 and 2030 China's surface fleet will grow by around 30% and hersubmarine fleet by 50%, compared to a 15% increase in the period 2000-2015. China isalso putting an emphasis on fleet modernization, with a growing preference forindigenous ship design and for advanced technologies.
Furthermore, the Chinese Coast Guard also has significant and increasing
capabilities, and is active patrolling around the Senkaku/Diaoyu Islands. Finally,
Beijing is making use of what some call its "maritime militia": fishing boats that also
carry out patrolling and reconnaissance functions, expanding the Chinese presence inthe East and South China Seas.
A Crisis Management Mechanism?
The prospects for conflict and crisis management over the East China Sea depend on
many factors, including the risk of political instability in China, challenges caused by
the DPRK and long-term as well as short-term deterioration and improvement cycles in
Sino-Japanese relations. Multiple reasons exist for concern about a possible East China
Sea crisis and China’s ability to prevent escalation should this happen.
Nevertheless there are grounds for cautious optimism. China's President Xi
Jinping, who places greater priority on national security in comparison to his
predecessors, also seeks to improve institutional capacity building. In November 2013 a
Central National Security Commission was established under his chairmanship. This
may improve Beijing's capacity to coordinate internally and respond to external crises.
At the moment no bilateral crisis management hotlines exist between China andJapan. Although neither side desires military conflict, risk of even an unintended one
remains high. The risk of miscalculation may be higher than many assume, and in theevent of a confrontation the potential for unintended escalation is significant.

44