InvestingTop News

U.S. rejects China’s resource claims in South China Sea

2 Mins read
imageWorld4 hours ago (Jul 13, 2020 07:30PM ET)

(C) Reuters. U.S. Secretary of State Pompeo holds press briefing at the State Department in Washington

By Humeyra Pamuk and Arshad Mohammed

WASHINGTON (Reuters) – The United States on Monday rejected China’s disputed claims to offshore resources in most of the South China Sea, a move that may further sour the fraught ties between the world’s largest two economies.

China has offered no coherent legal basis for its ambitions in the South China Sea and for years has been using intimidation against other South Asian coastal states, U.S. Secretary of State Mike Pompeo said in a statement.

“We are making clear: Beijing’s claims to offshore resources across most of the South China Sea are completely unlawful, as is its campaign of bullying to control them,” said Pompeo, a prominent China hawk within the Trump administration.

The United States has long opposed China’s expansive territorial claims on the South China Sea, sending warships regularly through the strategic waterway to demonstrate freedom of navigation there. Monday’s comments reflect a harsher tone.

“The world will not allow Beijing to treat the South China Sea as its maritime empire,” Pompeo said.

Regional analysts said it would be vital to see whether other nations adopt the U.S. stance and what, if anything, Washington might do to reinforce its position and prevent Beijing from creating “facts on the water” to buttress its claims.

The relationship between the United States and China has grown increasingly tense over the past six months over Beijing’s handling of the coronavirus pandemic, its tightened grip on Hong Kong and its crackdown on China’s Uighur Muslim community.

China claims 90% of the potentially energy-rich South China Sea, but Brunei, Malaysia, the Philippines, Taiwan and Vietnam also lay claim to parts of it, through which about $3 trillion of trade passes each year. Beijing has built bases atop atolls in the region but says its intentions are peaceful.

Beijing routinely outlines the scope of its claims with reference to the so-called nine-dashed line that encompasses about nine-tenths of the 3.5-million-square-kilometer South China Sea on Chinese maps.

“This is basically the first time we have called it illegitimate,” said Chris Johnson, an analyst with the Center for Strategic and International Studies. It’s “fine to put out a statement, but what you going to do about it?”

(This story has been refiled to add dropped word “said” in 6th paragraph).

U.S. rejects China’s resource claims in South China Sea

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.