The Philippines will mark the 10th anniversary of a 2016 arbitral ruling on July 12, which invalidated China's nine-dash line territorial claims in the South China Sea under the United Nations Convention on the Law of the Sea (UNCLOS). The tribunal ruled that China's claims violated UNCLOS provisions granting coastal states a 200-nautical-mile Exclusive Economic Zone, and that occupied features in the Spratlys were submerged reefs incapable of generating extended maritime rights. China rejected the ruling and has since deployed maritime militia, coast guard vessels, and recently installed a floating platform at Bajo de Masinloc (Scarborough Shoal), according to maritime security observers. Semiconductor industry consultant Cesar Tolentino stated at a June 29 forum that China is conducting deep-sea mining operations in the South China Sea for rare earth elements, which are critical for semiconductor manufacturing, medical equipment, and other technologies. China controls approximately 60% of global rare earth mine production and over 90% of refining capacity, and Tolentino indicated the country is exploring sources in disputed waters including Bajo de Masinloc and Ayungin Shoal areas.
2016 Tribunal Invalidated China's Nine-Dash Line Under UNCLOS
The arbitral tribunal facilitated by the Permanent Court of Arbitration in The Hague issued its ruling on July 12, 2016, addressing the Philippines' claim against China in the West Philippine Sea. The Philippines argued that China's nine-dash line had no legal basis under UNCLOS, that none of the Spratlys were legally islands capable of generating an Exclusive Economic Zone, and that China had violated the Philippines' sovereign rights and damaged the environment. The tribunal anchored its decision on the principle that UNCLOS supersedes prior claims upon signing, and that historic claims to resources within an EEZ are legally extinguished if incompatible with the UNCLOS framework. The ruling stated that China's occupation of maritime features in the Spratlys involved submerged reefs, rocks, and low-tide elevations that do not produce extended EEZ or continental shelf rights under UNCLOS provisions. The tribunal found no evidence that China had historically exercised exclusive control over the waters or restricted other states from exploiting their resources, noting that while Chinese navigators and fishermen historically used the islands, sailors from many other nations did the same. The ruling also stated that China's construction of artificial islands at locations like Kagitingan Reef (Fiery Cross Reef) cannot change the legal status of a reef into an island capable of creating maritime sovereign rights.
China Deployed Floating Platform at Bajo de Masinloc
China has deployed a movable floating platform and communication antennae inside Bajo de Masinloc, which maritime experts view as potential groundwork for permanent structures. The China Coast Guard has dropped long chains of floating nets and barriers secured by anchors across narrow entrances in Bajo de Masinloc, blocking access to lagoon waters for both Philippine Coast Guard and local fishermen. China declared Bajo de Masinloc a "national nature reserve," naming it the Huangyan Dao National Nature Reserve. Chinese vessels have engaged in ramming incidents with Philippine Bureau of Fisheries and Aquatic Resources ships, and the Coast Guard has used high-pressure water cannons and military-grade lasers against Philippine vessels. China has focused assets on blockading Ayungin Shoal to restrict supplies to Philippine Marines stationed aboard the grounded BRP Sierra Madre. Chinese dredging operations to build artificial military bases in the Spratlys have buried 1,861 hectares of living coral reefs under sand and concrete, according to the article. Chinese fishermen escorted by Coast Guard and maritime militia have harvested endangered giant clams, sea turtles, pufferfish, and stingrays, using boat propellers to destroy coral reef structures.
China Controls 60% of Global Rare Earth Mine Production
Cesar Tolentino, a consultant in the semiconductor industry and member of The Monday Circle forum, stated on June 29 that China is conducting deep-sea mining operations in the South China Sea for rare earth elements. Tolentino explained that rare earth elements including Scandium, Yttrium, Lanthanum, Cerium, Praseodymium, and Neodymium are critical components in semiconductor manufacturing, serving as crystals for lasers, tracing compounds for MRI procedures, doping compounds for metal alloys, and additives to magnets used in medical equipment. These elements are also used in solar panels, manufacturing equipment, space vehicles, power plants, water treatment, and disaster mitigation applications. China retains approximately 60% of global mine production and over 90% of refining and magnet manufacturing capacity for rare earth elements. Tolentino stated that China is investing in exploring sources outside its borders, including the South China Sea, particularly in the Bajo de Masinloc and Ayungin Shoal areas. Deep-sea basins surrounding these shoals are considered high-prospect areas because these formations absorb high concentrations of critical tech metals over millions of years, including rare earths like yttrium, lanthanum, cerium, and neodymium, according to Tolentino. China utilizes strict export restrictions on minerals and technology to protect its strategic leverage in the rare earth supply chain.
FAQ
What did the 2016 arbitral tribunal rule regarding China's claims in the South China Sea?
The tribunal issued its ruling on July 12, 2016, invalidating China's nine-dash line territorial claims under UNCLOS. The ruling stated that China's claims violated provisions granting coastal states a 200-nautical-mile Exclusive Economic Zone, and that occupied features in the Spratlys were submerged reefs incapable of generating extended maritime rights. The tribunal found no evidence of China's historical exclusive control over the waters.
Why is China exploring the South China Sea for rare earth elements?
Cesar Tolentino, a semiconductor industry consultant, stated at a June 29 forum that China is conducting deep-sea mining operations in the South China Sea for rare earth elements critical to semiconductor manufacturing, medical equipment, and other technologies. China controls approximately 60% of global rare earth mine production and over 90% of refining capacity, and Tolentino indicated the country is exploring sources in disputed waters including Bajo de Masinloc and Ayungin Shoal areas to maintain its dominance in the supply chain.
What actions has China taken at Bajo de Masinloc?
China deployed a movable floating platform and communication antennae inside Bajo de Masinloc, which maritime experts view as potential groundwork for permanent structures. The China Coast Guard has dropped floating nets and barriers across entrances to block access, and China declared the area a "national nature reserve" named Huangyan Dao National Nature Reserve.
