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Chapter 2
Geo-Strategic Shifts in the South China Sea
Introduction
S outh China Sea possesses
numerous natural resources
like oil, gas and hosts of other
minerals. It also acts as the sea line of
Implications to ASEAN
communications for thousands of cargo
vessels, which makes it the main trade
route between the littoral ASEAN member
states. Geostrategic realities thus make
South China Sea the main gateway to
South East Asia. Consequently, South
China Sea and its mineral resources
Evolving Geo-Strategic Matrix in South China Sea:
08 China’s Influence in the South China Sea
China was viewed as a threat to its
Southeast Asian neighbors in the 1990s,
partly due to its disputing territorial claims
over the South China Sea. After the
financial crisis of 1997/1998, this opinion
began to change when China avoided
pressure to devalue its currency while
the currencies of its neighbors were
collapsing. China’s “charm offensive”
10 Gudrun Wacker Security Cooperation in East Asia Structures, Trends and Limitations.
11 The South China Sea Needs ASEAN More Than Ever. https://www. crisisgroup.org/asia/south-east-asia/
south-china-sea-needs-asean-more-ever.
are required to be reinforced with viable
security and political strategies by the
ASEAN nations. Without this effort, South
China Sea is likely to become a playground
for conflicts and instability between the
10
interested parties. The likely major
players in such a developing scenario
would be an assertive China and a
re-assertive United States in the region.
This is likely to have a marked effect on
the overall geo-strategy of ASEAN region.
has softened territorial disputes and
increased trade relationships with
Southeast Asia. China and the Association
of Southeast Asian Nations (ASEAN
includes Brunei, Burma, Cambodia,
Indonesia, Laos, Malaysia, Philippines,
Singapore, Thailand, and Vietnam) agreed
to gradually remove tariffs and create the
world’s largest free trade area by 2010. 11