Scarborough Shoal: Controversial area of ​​South China Sea

China has announced to create a National Nature Reserve in Scarborough Shoal. The Philippines has strongly objected to this move and this dispute is once again in the international headlines.

About Scarborough Shoal

• It is a triangular atoll located about 200 km from the Philippines.
• It is called Huangyan Island in China and Panatag Shoal or ‘Bajo de Masinloc’ in the Philippines.
• It falls within the Exclusive Economic Zone (EEZ) of the Philippines.

Importance

• Geographical importance: It is located in the middle of the South China Sea and is close to major international trade routes through which annual trade of more than $3 trillion takes place.
• Fisheries Resources: Abundant fish are found here which is the main source of livelihood for the local fishermen.
• Strategic Importance: It serves as a safe haven for ships during storms and is also an important place from a military point of view.

Announcement of new plan by China

• China has announced to create a 3,524 hectare coral reef ecosystem protected area in Scarborough Shoal.
• China is calling it necessary for environmental protection but there is a fear that this could be the first step towards creating artificial islands in the future, as China did in the Spratly Islands.

Risks and Disputes

• Dispute over sovereignty: Since 2012, this shoal is effectively under the control of China while the Philippines claims it.
• Incidents of conflict: Water cannon, boat collisions, dangerous sea maneuvers and aerial pursuit are frequent incidents.
• International law: In 2016, the International Permanent Court of Arbitration said that China's blockade is a violation of international law.
• Threat of conflict: The Philippines' navy is relatively weak, but due to the Mutual Defense Treaty of 1951 with the US, the possibility of US intervention in case of any attack increases.

Effects

• Regional tensions: Relations between China and the Philippines may become tense.
• Impact on international trade: In case of any conflict, shipping lanes in the South China Sea may be affected.
• Geopolitical competition: Countries like the US, Japan and Australia may support the Philippines, which may increase the conflict between the Quad and China. 
• Environmental Impact: China and the Philippines have accused each other of damaging coral reefs and marine life.