The South China Sea Rim, an important component of East Asia, has been maintaining the freedom and safety of navigation for decades. It has done a lot in safeguarding the economic, political and social progress of the region and made world-acknowledged contribution to the peace, development and cooperation of the world.

I.  The Importance of Freedom and Safety of Navigation in the South China Sea

The strategic location of the South China Sea is extremely important. In between the Pacific Ocean and the Indian Ocean, the South China Sea is a semi-closed sea lying diagonally from northeast to southwest and connecting six straits on its periphery.[1] All these straits are sea routes of international trade and commerce. What is called “in and out of Nanhai” refers exactly to the connection between the South China Sea and these straits.

The South China Sea is the second most used sea lane in the world, only next to the Mediterranean. Over half of the world’s super-tankers and commercial fleets (measured in tonnage), or over 40,000 various vessels, pass through the South China Sea annually. Tankers transiting through the Malacca Strait to the South China Sea are three times of those transiting through the Suez Canal or five times of those transiting through the Panama Cannel. The natural gas transiting through the South China Sea accounts for two-thirds of the total volume of the gas trade of the world. The busy shipping industry has given rise to the thriving of maritime-related industries in East Asian countries and areas.

The freedom and safety of navigation in the South China Sea are the pivotal safeguard for the East Asian economic development and prosperity. Thanks to the shift and adjustment of the world economic configuration, the sound East Asian economic development and, in particular, China’s sustained economic growth has provided the regional economy as well as the world economy with new drives and dynamics. East Asia as a region boasts of the highest economic growth in the world for the last 50 years, which is mainly contributed by the “export-oriented economy", indicating that every day huge amount of cargoes continuously transit through the sea lanes of the South China Sea from East Asian countries and areas to places all over the world and so do the global resources, energy and commodities the other way around. Therefore, the freedom and safety of navigation in the South China Sea are crucial not only to the coastal states, but also to other East Asian states and areas.

II. The Role of the Freedom and Safety of Navigation in the South China Sea in Promoting East Asia’s Economic Development

The East Asia region as a whole owes its world’s fame of “East Asian miracle” to the freedom and safety of navigation in the South China Sea. Waves of economic development have been rolling on in East Asia since the 1960s: Japan took the lead in economic boom, which was followed by the rise of the NIEs (“four dragons”), and again by the economic take-offs of the ASEAN countries and China. The robust economic growth in the East Asian region by the early 1990s led to the talk of "Asian century". Since the onset of 21st century, especially in the wake of international financial crisis, China and some East Asian countries have sustained a high economic growth that made the East Asia the center of global attention again. The speed, the achievement and influence of the East Asian economic growth were larger than ever in the world. The rise of East Asia as a whole is closely associated with the growing economic globalization though, the freedom and safety of navigation in the South China Sea is vital to the development and prosperity of East Asian economy.

The freedom and safety of navigation in the South China Sea has also promoted the economic development of the countries and areas in East Asia. For example, with a limited land territory and scant resources and energy, Japan needs to import raw materials and export goods across the world via sea. Japanese economy has a high dependence on foreign trade, which shares 20 % of the world's shipping volume. Thanks to the distinctive geographic location and the export-oriented economy, Japan is endowed with ocean routes in all directions, though the most important routes are the Southwest routes, i.e., the Asia-Europe route and the Asia-Africa route transiting from Okinawa islands through the South China Sea linking Western Europe and Africa. The routes account for 80% of Japan's total shipping volume and are deemed as Japan's maritime lifeline. The same is true to the Republic of Korea, which imports resources and energy, and exports finished goods, which rely mainly on the routes of the South China Sea. Therefore, the freedom and safety of navigation in the South China Sea is equally important to ROK.

On the part of Southeast Asia, 85% of the trade of Malaysia comes true by sea transportation, and most of it through the South China Sea.[2] As a city state Singapore depends mainly on international trade, almost all of which by sea transportation. In 2010, maritime industries account for 7% of the total output of the nation, with over 5,000 maritime-related companies and over 150,000 employees.[3] In addition, as a transportation hub of international goods, Singapore owes its prosperity largely to the port transference and redistribution of goods in massive amount. It is unimaginable that Singapore can develop without being bolstered by the freedom and safety of navigation in the South China Sea. Thailand depends on shipping for 95% of its export of finished products, agriculture products and raw materials, while its important imports including oil and gas are also by sea transportation.[4] Nevertheless, Bangkok and other major ports are all located in the Gulf of Thailand, which allows 70% of Thailand’s export and import goods transfer at Singapore, i.e., through the South China Sea.

III. China as a Steadfast Maintainer of the Freedom and Safety of Navigation in the South China Sea

The safeguard of freedom and safety of navigation in the South China Sea has much to do with China’s national development strategy and economic safety. The South China Sea is the main route for China’s trade. China’s dependence on foreign trade is over 80%, of which 90% comes true by sea transportation, for most of China’s trade partners are along the coast. The freedom and safety of navigation in the South China Sea bear directly on the development of China’s foreign trade and the overall national economy. Moreover, the South China Sea is also the important channel to China’s imports of energy and resources. China was a net oil exporter until 1993, though China has become the world’s second largest oil consumer next only to the United States since 2003. China has doubled its oil demand from 1995 to 2005, and its oil import dependence had reached 56% in 2009. The figure will surely redouble in the ensuing 15 years. China imports crude oil mainly from the Middle East, Africa and the Asia-Pacific region, most of which are shipped by oil tankers transiting through the South China Sea.

The South China Sea is an important part of China’s overseas interests as well. China’s economic development allows more and more enterprises and individuals “going global”, hence China’s overseas interests are increasing, while Southeast Asia is the key region China implements its strategy of diversified markets and the strategy of “going global”. Both have enlarged their mutual investment volumes and especially China’s investment in ASEAN has increased rapidly. Between 2003 and 2009, China’s investment in ASEAN had increased by 13 times from $230 million to $3 billion. In the first half of the year 2010, China’s non-financial direct investment in ASEAN reached about $120 million. By June-end 2010, the accumulated mutual investment totaled about $69.4 billion, of which ASEAN accumulated investment in China was about $59.8 billion, while China’s in ASEAN was about $9.6 billion. China’s direct investment in ASEAN has fast increased and has involved sectors of agriculture, manufacture, and service.[5]

The South China Sea is the main region that China practices its regional cooperation, joint development and mutual benefit cooperation with ASEAN. The South China Sea Rim comprises the bulk of the ASEAN members as well as China, while ASEAN is the major partner in China’s cooperation with East Asian region. “ASEAN China” is the foundation of the East Asian cooperation, which matters directly to the establishment of “ASEAN 3” as well as the East Asia Community. The China-ASEAN Free Trade Area was established on schedule and has developed apace since. According to China Customs Statics report issued on October 1, 2011, the China-ASEAN trade volume in the year 2010 totaled $292.776543 billion, of which China's export to ASEAN was $138.206703 and import from ASEAN was $154.56984 billion, altogether 37.5% higher than the year before, and 30.1% higher for export and 44.8% higher for import.[6] The ever strengthening China-ASEAN economic and trade relationship calls for building a more convenient and efficient interconnected infrastructure network in the region. China therefore has sped up joining ASEAN in the effort. Premier Wen Jiabao called on the 12th meeting of China-ASEAN Summit for “speeding up infrastructure construction…to build an interconnected infrastructure network in the region. China has decided to increase preferential loans up to 6.7 billion U.S. dollars in the total $15-billion credit offered to ASEAN countries so as to intensify the cooperation between China and ASEAN in infrastructure construction.”[7] Given that the China-ASEAN interconnected infrastructure network is all-dimensional, the maritime and air interconnections will mainly counts on the South China Sea. So far, the interconnection infrastructure on the land has made big progress: the projects in China related to the three projects, the eastern, central and western projects, of the trans-Asian railway have been listed in China’s “Mid and Long Term Railway Network Plan” and “The 12th Five Year Railway Program”, having actively and efficiently boosted the building of the trans-Asian railway; the western section of the south-north economic corridor (Kunming-Laos-Bangkok) is completed; the Kunming-Hekou 400km expressway, the project in China, of the middle section (Kunming-Hanoi-Haiphong) was completed and opened to traffic in 2008; the 179km Naning-Friendship expressway, the project in China, of the eastern section (Kunming-Nanning-Hanoi) was completed and opened to traffic in 2005. China-ASEAN maritime and air interconnected infrastructure is under construction. The infrastructure is the important foundation and the precondition to deepening the China-ASEAN relations and boosting the bilateral relations.

In sum, whether the national development or the regional interests is concerned, China is invariably the steadfast maintainer of the freedom and safety of navigation in the South China Sea.

VI. The Freedom and Safety of Navigation in the South China Sea in the Global Context

Firstly, China and East Asian countries’ maintenance of their own regional peace, development and cooperation is globally significant. Had it not been the rise of East Asia in the past decades, there would have been no progress of the world economy today. In the hard time of international financial crisis starting in 2008, in particular, Asia contributed 50% of the global economic growth and China contributed 26%.[8] Moreover, the East Asian regional cooperation, open by nature, is an important component of the reform of international system. The regional cooperation has escalated the developing regions of Asia, Africa and Latin America in terms of agenda-setting and strength of voice on the issue of international system, which is good for them to strive for an international system and an international order with more fairness and justice.

Secondly, China’s steadfast maintaining of the safety and security of the South China Sea Rim is an important component of the ongoing construction of the regional and international safety system. “China is always for the view that efforts should be made to ensure navigation freedom and safety in accordance with the relevant principles of international law.”[9] Since the end of the Cold War, the coastal states have basically maintained a peaceful internal and external environment, they have avoided the military conflicts or even wars that inflicted the Balkans, South Asia, Middle East and Africa, and they have been exploring the road of collective security. Although there is the U.S.-led bilateral military security alliance system side by side with the ASEAN-centered collective security forum cum its dialogue partnership out there in the region, they coexist peacefully without occurrence of confrontational conflict. From now onwards, all parties concerned shall all the more continue to work with one another in joint efforts towards the construction of security system, and turn to the system for the guarantee of peace, development and cooperation in the region.

Thirdly, the coastal states must value the hard-earned, internal and external environment. The post-war history have repeatedly evidenced that war may bring the so-called “extraordinary demand” to some individual countries though, the war-based prosperity is immoral and unsustainable. Only regional cooperation under the banner of peace, development and cooperation can bring economic development, social progress and political stability to all the countries and areas concerned. Never should we be exploited by some countries to their own political, military and economic purpose. Otherwise we are doing harm to friends and good to foes, and we will miss the historical opportunity of further development.

Finally, it applies to the coastal states as well as the whole international society to advance with times regarding the norms and principles of international relations. The contemporary international system dominated by the West is facing fundamental challenges, while the non-West countries need to make their contribution to the aspects of international law, international consensus and the mainstream values. Since the onset of 21st century, the U.S.-led Western economy, political system and values have been quested on end, while the non-Western conceptions and ideas are increasingly gaining international influence. Singapore advanced “Asian values” based on Confucius ideas in the 1980s and 1990s. The Shanghai Cooperation Organization (SCO) has initiated and followed the “Shanghai spirit” that endorses mutual trust, mutual benefit, equality, consultation, respect for diversified civilizations and pursuit of common development.[10] Now, China is further advocating “Asian spirit” that upholds the spirit of standing on one's own feet, being bold in opening new ground, being open and inclusive, and sharing weal and woe”.[11] All these conceptions are critical of the power-based Western ideas and conceptions, and will make far-reaching and in-depth contribution of the non-Western ideas and conceptions to the world, and are therefore conducive to the peace, development and cooperation of the South China Sea Rim. 
(This article is based on the author’s speech at the Workshop entitled as “Implementing DOC: Maintaining Freedom and Safety of Navigation in the South China Sea” organized by the National Institute for South China Sea Studies (China) in Collaboration with the Center for Strategic and International Studies (Indonesia) in Haikou, China on December 14-15, 2011. The author thanks Prof. MA Ying for her contribution to the writing of this article.)

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