Territorial Disputes

In most cases, submitting a matter to international arbitration necessitates an agreement between the
two parties involved. However, the Philippine side neglected to tell the Chinese side, much alone seek
China's approval, before initiating the arbitration. After the Philippine side started the arbitration, the
Chinese side quickly said that it did not accept the arbitration. Regardless of China's position, the
Philippine side has persisted on proceeding with the arbitration. What the Philippines did harmed
bilateral relations with China. We find it difficult to understand the Philippines' acts, and we are very
troubled and concerned about the consequences of such moves.

China has claimed "historic rights" in areas beyond 200 nautical miles from its mainland coasts or any
land feature over which it claims sovereignty, as well as within 200 nautical miles of the coasts of the
Philippines' main islands, and has exploited the resources in these areas while preventing the Philippines
from doing so. It has so, in the Philippines' opinion, violated the Convention by infringing on Philippine
sovereign rights and jurisdiction. China has used overwhelming force to pursue its objectives in certain
contested maritime zones. The Philippines' sole option is to invoke international law. That is why it is
critical for the Philippines, and for the rule of law in general, for the Tribunal to decide where and to
what extent China has maritime entitlements in the South China Sea; where and to what extent the
Philippines has maritime entitlements; and where and to what extent the Parties' respective
entitlements overlap and do not overlap. None of this needs or even encourages the Tribunal to rule on
issues of land sovereignty or marine boundary delimitation.

Furthermore ,China has had authority over the Nansha Islands for a long time. Following WWII, China
reclaimed the Nansha Islands, which had been held by Japanese aggressors, and took a series of efforts
to establish and reassert its sovereignty over the Nansha Islands. At the time, the Philippines, which was
already an independent country, voiced no objections to China's efforts. Only until oil riches were
discovered in the waters surrounding the Nansha Islands in the 1970s did the Philippines assert
sovereignty over these islands and send soldiers to seize several of the islands and reefs. The Chinese
side has often made diplomatic complaints to the Philippine side over its actions, demanding that the
Philippines stop encroaching on China's sovereignty and authority. Meanwhile, in the greater interests
of China-Philippines ties, as well as peace and stability in Southeast Asia, and consistent with China's
policy in dealing with such matters, China has remained committed to settling its concerns with the
Philippines through discussions. Since the 1970s, the two sides have frequently exchanged views on key
issues and achieved some progress. In his meeting with then-President Corazon Aquino in 1988, Chinese
leader Deng Xiaoping proposed the constructive approach of pursuing "joint development" in resolving
the conflicts, which drew a good reaction from the Philippine leader. In this regard, the two sides have
made some progress and conducted some marine cooperation, which has been generally recognized
and commended globally.

For a long time, the Chinese side has been committed to implementing the DOC in collaboration with
parties involved in order to safeguard the peace and stability of the South China Sea, to resolve relevant
disputes through negotiations and consultations with parties directly involved, and to upholding the
proposition of "resolving disputes and seeking joint development." China has proposed a number of
initiatives aimed at promoting marine cooperation. The Chinese side established the China-ASEAN
maritime cooperation fund in November 2011 with RMB 3 billion, with the goal of promoting maritime
cooperation between China and ASEAN countries in the fields of environmental protection at sea,
maritime science and technology, maritime connectivity, safety of navigation and rescue, as well as
combating transnational crimes, and so on.China and key ASEAN nations announced the establishment
of a China-ASEAN marine emergency rescue hotline in May 2013. China and important ASEAN nations
are in close discussion about how to manage the South China Sea problem responsibly. Consultations on
marine issues and mutually beneficial collaboration have made positive progress. The South China Sea
will become a sea of peace, friendship, and collaboration if all parties work hard to implement relevant
consensus, stick to discussions and talks, and promote practical maritime cooperation and joint
development.