The South China Sea

Ceewan

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There is a lot of news, especially in Japan but internationally about the disputes over territory in the South China Sea. For those uninformed about the issue (my own knowledge is novice level at best) I thought it would be a good idea to explain why the conflict affects the world at large and Japan and South East Asia so much.

A map of the territories disputed:
spratly-paracel-scarborough-v3.png

From the Wiki, Map of various countries occupying the Spratly Islands:

Spratly_with_flags.jpg

Common shipping routes:
south-china-sea-map-slide-1-data.jpg


As you can see this is about resources and shipping, which affects everyone in the region. Also some of Chinas territorial claim is practically on the beaches of the Phillipines and Malaysia as well as uncomfortably close to Taiwan. The conflict over island territories with Vietnam are decades old and very recently a Vietnamese fishing boat was boarded, its' crew forced overboard and then sunk. The reason why everyone is upset over China militarizing this area is it gives them the strength and local power to control all shipping and resources in the region. Whether or not this is Chinas' intent isn't nearly as important as giving it them that capability. As the issue continues to escalate I will add to this thread, please feel free to add news bits yourselves. Let us all hope that this issue will end in a peaceful resolution that can benefit everyone involved. If all sides are willing to make concessions then hopefully peace can be maintained.
 
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CoolKevin

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they suspect a lot of oil there as well
 
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Ceewan

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they suspect a lot of oil there as well


You can see known Oil and Gas resources in the third map. Being blocked from developing these is one of the reasons the Philipines government is complaining and took this matter to an international arbitration court. Though in the short term this has seemed a wasted effort it has not only bought international attention but gathered international support for them on this issue.
 
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CoolKevin

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ah I get it now, the top grey areas are oil and gas thank you
 
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Ceewan

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ah I get it now, the top grey areas are oil and gas thank you


My fault for not providing a key but I wanted to keep the opening post simple. I have been reading news articles on this for months now and the rhetoric just keeps escalating and I found it hard to pick any one article to start the thread with....so I stole a little from a couple of them.
 
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Ceewan

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I haven't read the book but I am sure that many things have changed in the last 25 years. China has increased their military presence in the South China Sea, including airstrips and anti-air batteries as well increasing the size of their navy while reducing the size of their standing army on the mainland. The Philipines and Australia are both increasing the size of their navy, the USA has lifted the ban on sales of military weapons to Vietnam and Japan has commisioned for a new fighter plane. Joint naval exercises include Vietnam, Philipines, Australia and India. China has closed off the area around Hainan for naval exercises and I read a report about them calling up naval reserves. So while nothing may come of any of this....things are changing.
 
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Ceewan

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Philippines rejects bilateral talks with China



The Philippines' foreign secretary has refused China's offer to hold talks that would not encompass an international tribunal decision.

The arbitration tribunal in The Hague last Tuesday dismissed Beijing's claims over almost all of the South China Sea. China rejected the decision.

Philippine Foreign Secretary Perfecto Yasay commented during an interview with a local TV broadcaster on Tuesday. He said he met with Chinese Foreign Minister Wang Yi on the sidelines of last weekend's Asia-Europe Meeting in Ulan Bator, Mongolia.

Yasay said Wang proposed bilateral negotiations "outside of" and "in disregard of" the ruling.
Yasay said he responded by stressing the offer was inconsistent with the Philippines' national interest.

He also urged China to comply with the tribunal decision.
 

Ceewan

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Chinese boycotting US fast food chains


Some Chinese are boycotting American fast food chains over the US demand for China to comply with the recent decision by an international tribunal.

Last week, an arbitration tribunal in The Hague nullified China's claims to a vast region of the South China Sea.
The US and other countries are urging China to accept the decision.

A video reportedly taken inside a Kentucky Fried Chicken outlet in Hebei Province shows a woman urging customers not to eat American food.

Other online posts feature banners demanding the expulsion of Kentucky Fried Chicken and McDonald's from China.

The English-language edition of the Chinese Communist Party newspaper has called for restraint, despite condoning support for the protection of China's sovereignty.

Boycott campaigners are also being criticized online for attacking stores that hire Chinese workers and pay Chinese taxes.
 

Ceewan

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China says to hold drills with Russia in South China Sea


China and Russia will hold "routine" naval exercises in the South China Sea in September, China's Defence Ministry said on Thursday, adding that the drills were aimed at strengthening their cooperation and were not aimed at any other country.

The exercises come at a time of heightened tension in the contested waters after an arbitration court in The Hague ruled this month that China did not have historic rights to the South China Sea and criticized its environmental destruction there.

China rejected the ruling and refused to participate in the case.

"This is a routine exercise between the two armed forces, aimed at strengthening the developing China-Russia strategic cooperative partnership," China's defense ministry spokesman Yang Yujun told a regular monthly news conference.

"The exercise is not directed against third parties."

China and Russia are veto-wielding members of the U.N. Security Council, and have held similar views on many major issues such as the crisis in Syria, putting them at odds with the United States and Western Europe.

Last year, they held joint military drills in the Sea of Japan and the Mediterranean.

White House spokesman Josh Earnest played down the significance of the exercises even though he conceded that the South China Sea was "a sensitive diplomatic topic right now".

"I don't know what exercises they are planning, but in the same way the United States and China have a military-to-military relationship, I'm not surprised that Russia and China are seeking to build upon their military-to-military relationship as well," he told a regular briefing.

China has recently taken part in U.S.-led multinational naval drills in the Pacific and a U.S. defense official said he did not expect the China-Russia exercises to affect U.S. military activity or behavior in the South China Sea.

“We're not concerned about the safety of U.S. vessels in the region as long as interactions with the Chinese remain safe and professional, which has been the case in most cases,” the official said.

China claims most of the South China Sea, through which more than $5 trillion of trade moves annually. Brunei, Malaysia, the Philippines, Taiwan and Vietnam have rival claims.

China has repeatedly blamed the United States for stoking tension in the region through its military patrols, and of taking sides in the dispute.

The United States has sought to assert its right to freedom of navigation in the South China Sea with its patrols and denies taking sides in the territorial disputes.

Russia has been a strong backer of China's stance on the arbitration case, which was brought by the Philippines.

Yang said China and Russia were comprehensive strategic partners and had already held many exercises this year.

"These drills deepen mutual trust and expand cooperation, raise the ability to jointly deal with security threats, and benefit the maintenance of regional and global peace and stability," he said.
 

Ceewan

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South China Sea PR campaign falsely suggests British lawmaker backs maritime claims


Beijing has taken its fight over the disputed South China Sea to a whole new arena — New York’s Times Square — leasing a giant electronic billboard to showcase its claims in a video that falsely suggests a British lawmaker supports its position.

In a bid to explain what state media calls the “historical and legal basis” backing its “indisputable territorial sovereignty and rights” in the region, Beijing has been running the more than three-minute video about 120 times a day since July 23, according to state-run media.

The ad is being displayed just weeks after a July 12 ruling by an international arbitration tribunal in The Hague in The Netherlands rejected Beijing’s historic claims to much of the South China Sea. China rejected the decision, which it has vowed to ignore, blasting the case brought by the Philippines as a “farce” and calling the ruling “wastepaper.”

More than 1.5 million people see the billboards on the Bow Tie Building in Times Square each day.

China has conducted a massive land-reclamation project in the waters, creating man-made islets upon which it has built extensive infrastructure, including military-grade airfields and radar facilities.

The ad, which features several “experts” and officials who “defend China’s position” and urge the dispute to be settled through bilateral negotiations, is due to run through Wednesday, the official Xinhua News Agency has reported.

But one of the officials in the video, Catherine West, a British member of Parliament and the Labour Party’s shadow foreign minister, told The Japan Times via email that she was “perplexed and deeply concerned” by the video’s assertions.

“I was unaware that these comments would be used in this manner,” West said of the video, which also misidentified her title as shadow foreign secretary.

West said that while she was happy to give an interview on her “concerns regarding the militarization of the South China Sea and the need to work together to secure a peaceful resolution,” she was upset that footage was used in a way that suggests that she supports China’s current approach toward the man-made islands.

“I would hope my parliamentary record has demonstrated that I have consistently raised concern over Chinese island-building and military deployment in the South China Sea and indeed I have urged the U.K. Government to do all it can to ensure international law is upheld and that the region is stabilized for all parties concerned,” she said.

Regarding her comments used in the video, West said that while she maintained that dialogue is crucial to securing peace in the region, “the arbitration process at The Hague would have been such an opportunity for the dispute to have been settled in a grown-up way.”

The video also features John Ross, a former economic adviser to then-London Mayor Ken Livingstone during his term in office from 2000 to 2008 and a current fellow at Renmin University in Beijing.

In a Pentagon report released in May, Washington said that while Beijing had paused its land-reclamation work in the disputed Spratly Islands late last year after adding more than 3,200 acres (1,280 hectares) of land to seven features it occupies there, the man-made islets give it long-term “civil-military” outposts from where it can project power.
 

Ceewan

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This actually has to do with the East China Sea but I think it is pertinent and belongs in this thread...so that is where I am putting it.


Chinese ships enter Senkaku waters


Three Chinese patrol vessels have entered Japanese territorial waters off the Senkaku Islands in the East China Sea.

The Japan Coast Guard says the Chinese government vessels navigated into waters off the Uotsuri Islands in the Senkaku chain at around 10 AM on Saturday.

The ships cruised inside the waters for about 2 hours before departing.

It was 20th day this year for Chinese ships to enter the waters. The previous occasion was on July 18th.

Japan controls the Senkaku Islands as its inherent territory. China and Taiwan also claim them.
 

Ceewan

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Now personally I take reports from Reuters with a "grain of salt" because they have been known to sensationalize and quote out of context from time to time. But I still read a lot of their articles as they are one of the most recognized reporting institutions in the world. This particular article was reprinted in The Japan Times, which is Japans largest english newspaper.


Emboldened Chinese military presses Xi for stern response to South China Sea ruling
f-xi-b-20160802-870x580.jpg

BEIJING – China’s leadership is resisting pressure from elements within the military for a more forceful response to an international court ruling against Beijing’s claims in the South China Sea, sources said, wary of provoking a clash with the United States.

China refused to participate in the case overseen by the Permanent Court of Arbitration in The Hague.

It denounced the emphatic July 12 ruling in favor of the Philippines as a farce that had no legal basis and part of an anti-China plot cooked up in Washington.

The ruling has been followed in China by a wave of nationalist sentiment, scattered protests and strongly worded editorials in state media.

So far, Beijing has not shown any sign of wanting to take stronger action. Instead, it has called for a peaceful resolution through talks at the same time as promising to defend Chinese territory.

But some elements within China’s increasingly confident military are pushing for a stronger — potentially armed — response aimed at the United States and its regional allies, according to interviews with four sources with close military and leadership ties.

“The People’s Liberation Army is ready,” one source with ties to the military told Reuters.

“We should go in and give them a bloody nose like Deng Xiaoping did to Vietnam in 1979,” the source said, referring to China’s brief invasion of Vietnam to punish Hanoi for forcing Beijing’s ally, the Khmer Rouge, from power in Cambodia.

The sources requested anonymity because they were not authorized to speak to the media.

President Xi Jinping has assiduously courted and thoroughly cemented his leadership over the PLA and faces no serious challenges to his command.

While he is overseeing sweeping military reforms to improve the PLA’s ability to win wars, he has said China needs a stable external environment as it deals with its own development issues, including a slowing economy. And few people expect any significant move ahead of Xi’s hosting of a G-20 summit in September.

But the hardened response to The Hague ruling from some elements of the military increases the risk that any provocative or inadvertent incidents in the South China Sea could escalate into a more serious clash.

Another source with ties to the leadership described the mood in the PLA as hawkish.

“The United States will do what it has to do. We will do what we have to do,” the source said. “The entire military side has been hardened. It was a huge loss of face,” he said, declining further comment.

Chinese Defense Ministry spokesman Yang Yujun, asked whether the PLA was pushing for a stronger response, repeated that the armed forces would resolutely defend China’s territory and maritime rights, and peace and stability, while dealing with any threats or challenges.

Retired military officers and army-linked academics have pushed home a strongly martial message.

“The Chinese military will step up and fight hard and China will never submit to any country on matters of sovereignty,” Liang Fang, a professor at the military-run National Defense University, wrote on his Weibo microblog about the ruling.

It is not clear exactly what steps military hardliners are considering.

Much attention has been focused around the potential establishment of an Air Defense Identification Zone (ADIZ) for the South China Sea, which would require international aircraft to identify themselves to Chinese authorities.

Other options floated by those linked to the PLA include putting missiles on bombers patrolling the South China Sea capable of hitting targets in the Philippines or Vietnam.

Yue Gang, a retired colonel, said China’s announcement promising regular air patrols over the region showed it was seeking to deny the U.S. air superiority afforded by aircraft carriers. China should be confident enough to provoke an incident and drive the U.S. out, he added.

“China is not intimidated by U.S. carriers and is brave enough to touch off an inadvertent confrontation,” Yue wrote on his Weibo account.

China’s military build-up in the region looks set to quicken regardless of any action.

“We must make preparations for a long-term fight and take this as a turning point in our South China Sea military strategy,” Li Jinming of the South China Sea Institute at China’s Xiamen University wrote in the Chinese academic journal Southeast Asian Studies.

Despite the saber-rattling, there have been no firm military moves that could cause an escalation of tensions. Diplomats and sources said the Chinese leadership was well aware of the dangers of a clash.

“They’re on the back foot. They’re very worried by the international reaction,” said one senior Beijing-based diplomat, citing conversations with Chinese officials.

“They are genuine about wanting to get talks back on track. The leadership will have to think long and hard about where to go next.”

Within China’s armed forces there is a recognition that China would come off worst in a face-off with the United States.

“Our navy cannot take on the Americans. We do not have that level of technology yet. The only people who would suffer would be ordinary Chinese,” said the source with ties to the military.

Those voices appeared to have the upper hand for now, the source said, pointing to a realization that the 1979 border war with Vietnam did not go as well for China as the propaganda machine would like people to believe.

Even setting up an ADIZ, like the one Beijing set up over the East China Sea in 2013 to anger from the United States, Japan and others, would be difficult to enforce given the distance from the mainland.

China has repeatedly said it has the right to set up an ADIZ but that the decision depends on the level of threat it faces.

A second source with leadership ties put it bluntly: “War is unlikely.

“But we will continue to conduct military exercises,” the source said. “(We) expect U.S. naval vessels to continue to come,” and “miscalculation cannot be ruled out.

Foreign Minister Wang Yi has stressed the importance of dialogue, saying it now was the time to return things to the “right track” and to “turn the page” on the ruling.

The United States has responded positively to these overtures, sending U.S. National Security Adviser Susan Rice to China last week with a call for calm.

Washington is also using quiet diplomacy to persuade other regional players not to move aggressively to capitalize on the ruling.

China has been angered by U.S. freedom of navigation patrols in the South China Sea, but its forces have responded only by shadowing U.S. vessels and warning them, showing China’s unwillingness to goad the U.S. military unnecessarily, according to Western and Asian diplomats.

China is also wary of any incident overshadowing the G-20 summit in Hangzhou in September, the highlight of this year’s diplomatic calendar for Xi when he will be host to the leaders of most of the world’s economically most powerful countries, the sources said.

The Beijing-based diplomat said it was more likely China would choose the period between the end of the G-20 and the U.S. presidential election in November to make any move.

“But that is a misjudgment if China thinks the United States will just sit back and do nothing,” the diplomat said.
 
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Ceewan

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China conducts 'combat patrols' over contested islands


China's air force sent bombers and fighter jets on "combat patrols" near contested islands in the South China Sea, in a move a senior colonel said was part of an effort to normalize such drills and respond to security threats.

The exercises come at a time of heightened tension in the disputed waters after an arbitration court in The Hague ruled last month that China did not have historic rights to the South China Sea.

The air force sent several H-6 bombers and Su-30 fighter jets to inspect the airspace around the Spratly Islands and Scarborough Shoal, Senior Colonel Shen Jinke of the People's Liberation Army (PLA) Air Force said, according to state news agency Xinhua.

The patrols included surveillance and refueling aircraft, Xinhua said, although it did not say when they occurred.

"The Air Force is organizing normalized South China Sea combat patrols, practising tactics ... increasing response capabilities to all kinds of security threats and safeguarding national sovereignty, security and maritime interests," Shen said.

China has refused to recognize the ruling by an arbitration court in The Hague that invalidated its vast territorial claims in the South China Sea and did not take part in the proceedings brought by the Philippines.

A dispute over the shoal, 124 nautical miles northwest of the Philippines mainland, was one of Manila's main reasons for bringing international legal action against China in 2013.

Beijing has reacted angrily to calls by Western countries and Japan for the decision to be adhered to and has released pictures of aircraft flying over the shoal since the ruling.

China has repeatedly blamed the United States for stoking tension through its military patrols in the South China Sea, a strategic waterway through which more than $5 trillion of trade moves annually.

China, Brunei, Malaysia, the Philippines, Taiwan and Vietnam all have rival claims in the South China Sea.

The United States has conducted freedom of navigation patrols close to Chinese-held islands, to Beijing's anger, while China has been bolstering its military presence there.
 
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Ceewan

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Images suggest China has air force hangars in S. China Sea


WASHINGTON (Reuters) — Recent satellite photographs show China appears to have built reinforced aircraft hangars on its holdings in the disputed South China Sea, according to a Washington-based think tank.

Pictures taken in late July show the hangars constructed on Fiery Cross, Subi and Mischief Reefs in the Spratly Islands, have room for any fighter jet in the Chinese Air Force, the Center for Strategic and International Studies (CSIS) said.

“Except for a brief visit by a military transport plane to Fiery Cross Reef earlier this year, there is no evidence that Beijing has deployed military aircraft to these outposts. But the rapid construction of reinforced hangars at all three features indicates that this is likely to change,” CSIS said in a report.

China claims most of the South China Sea, through which $5 trillion in ship-borne trade passes every year. The Philippines, Vietnam, Malaysia, Taiwan and Brunei have overlapping claims.

The images have emerged about a month after an international court in The Hague ruled against China’s sweeping claims in the resource-rich region, a ruling emphatically rejected by Beijing.

The United States has urged China and other claimants not to militarize their holdings in the South China Sea.

China has repeatedly denied doing so and has in turn criticized U.S. patrols and exercises for ramping up tensions.

“China has indisputable sovereignty over the Spratly islands and nearby waters,” China’s Defense Ministry said in a faxed response to a request for comment on Tuesday.

“China has said many times, construction on the Spratly islands and reefs is multipurpose, mixed, and with the exception of necessary military defensive requirements, are more for serving all forms of civil needs.”

Ties around the region have been strained in the lead-up to and since The Hague ruling.

China has sent bombers and fighter jets on combat patrols near the contested South China Sea islands, state media reported on Saturday, and Japan has complained about what it has said were multiple intrusions into its territorial waters around another group of islands in the East China Sea.

The hangars all show signs of structural strengthening, CSIS said.

“They are far thicker than you would build for any civilian purpose,” Gregory Poling, director of CSIS’ Asia Maritime Transparency Initiative, told the New York Times, which first reported on the new images. “They’re reinforced to take a strike.”

Other facilities including unidentified towers and hexagonal structures have also been built on the islets in recent months, CSIS said.
 
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Ceewan

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Vietnam places rocket launchers within range of China-held isles, where aircraft hangars are now visible


HONG KONG/WASHINGTON – Vietnam has discreetly fortified several of its islands in the disputed South China Sea with new mobile rocket launchers capable of striking China’s runways and military installations across the vital trade route, according to Western officials.

Diplomats and military officers said intelligence shows Hanoi has shipped the launchers from the Vietnamese mainland into position on five bases in the Spratly islands in recent months, a move likely to raise tensions with Beijing.

The launchers have been hidden from aerial surveillance and they have yet to be armed but could be made operational with rocket artillery rounds within two or three days, the three sources said.

Vietnam’s Foreign Ministry said the information was “inaccurate,” without elaborating.

On Monday, China was reported to have built reinforced aircraft hangars on isles it holds in the area.

The hangars on Fiery Cross, Subi and Mischief reefs in the Spratly islands have room for any fighter jet in the Chinese air force, the Washington-based Center for Strategic and International Studies (CSIS) said in a report on satellite images taken in late July.

CSIS said that apart from a brief visit to Fiery Cross Reef by a military transport plane earlier in the year, “there is no evidence that Beijing has deployed military aircraft to these outposts.”

The rapid construction of the hangars, however, “indicates that this is likely to change.”

Chinese moves to build or fortify structures on its holdings have alarmed nations across the region.

Senior Lieutenant-General Nguyen Chi Vinh, Vietnam’s deputy defense minister, said in June that Hanoi had no launchers or weapons ready in the Spratlys but reserved the right to take any such measures.

“It is within our legitimate right to self-defense to move any of our weapons to any area at any time within our sovereign territory,” he said.

The move is designed to counter China’s build-up on its seven reclaimed islands in the Spratly archipelago. Vietnam’s military strategists fear the building runways, radars and other military installations on those holdings have left Vietnam’s southern and island defences increasingly vulnerable.

Military analysts say it is the most significant defensive move Vietnam has made on its holdings in the South China Sea in decades.

Hanoi wanted to have the launchers in place as it expected tensions to rise in the wake of the landmark international court ruling against China in an arbitration case brought by the Philippines, foreign envoys said.

The ruling last month, stridently rejected by Beijing, found no legal basis to China’s sweeping historic claims to much of the South China Sea.

Vietnam, China and Taiwan claim all of the Spratlys while the Philippines, Malaysia and Brunei claim some of the area.

“China’s military maintains close surveillance of the situation in the sea and air space around the Spratly islands,”

China’s defense ministry said in a faxed statement to Reuters.

“We hope the relevant country can join with China in jointly safeguarding peace and stability in the South China Sea region.”

The United States is also monitoring developments closely.

“We continue to call on all South China Sea claimants to avoid actions that raise tensions, take practical steps to build confidence, and intensify efforts to find peaceful, diplomatic solutions to disputes,” a State Department official said.

Foreign officials and military analysts believe the launchers form part of Vietnam’s EXTRA rocket artillery system, an advanced weapon recently acquired from Israel.

EXTRA rounds are highly accurate up to a range of 150 km, with different 150 kg warheads that can carry high explosives or bomblets to attack multiple targets simultaneously. Operated with targeting drones, they could strike both ships and land targets.

That puts China’s 3,000-meter runways and installations on Subi, Fiery Cross and Mischief Reef within range of many of Vietnam’s tightly clustered holdings on 21 islands and reefs.

While Vietnam has larger and longer-range Russian coastal defence missiles, the EXTRA is considered highly mobile and effective against amphibious landings. It uses compact radars, so does not require a large operational footprint — also suitable for deployment on islets and reefs.

“When Vietnam acquired the EXTRA system, it was always thought that it would be deployed on the Spratlys … it is the perfect weapon for that,” said Siemon Wezeman, a senior arms researcher at the Stockholm International Peace Research Institute (SIPRI).

There is no sign the launchers have been recently test fired or moved.

China took its first Spratlys possessions after a sea battle against Vietnam’s then weak navy in 1988. After the battle, Vietnam said 64 soldiers with little protection were killed as they tried to protect a flag on South Johnson reef — an incident still acutely felt in Hanoi.

In recent years, Vietnam has significantly improved its naval capabilities as part of a broader military modernization, including buying six advanced Kilo submarines from Russia.

Carl Thayer, an expert on Vietnam’s military at the Australian Defence Force Academy, said the deployment showed the seriousness of Vietnam’s determination to militarily deter China as far as possible.

“China’s runways and military installations in the Spratlys are a direct challenge to Vietnam, particularly in their southern waters and skies, and they are showing they are prepared to respond to that threat,” he said. “China is unlikely to see this as purely defensive, and it could mark a new stage of militarisation of the Spratlys.”

Trevor Hollingsbee, a former naval intelligence analyst with the British defense ministry, said he believed the deployment also had a political factor, partly undermining the fear created by the prospect of large Chinese bases deep in maritime Southeast Asia.

“It introduces a potential vulnerability where they was none before. It is a sudden new complication in an arena that China was dominating,” he said.
 
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Ceewan

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China’s growing assertiveness led Australia to block grid sale



SYDNEY (Reuters) — Australia blocked the sale of a major power grid company to Chinese interests in part over concerns that China, its biggest trading partner, is becoming a geo-political threat, a senior member of Australia’s government said.

Treasurer Scott Morrison, from the country’s pro-business center-right coalition, halted the A$10 billion ($7.7 billion) sale of Ausgrid to government-owned State Grid Corp of China and Hong Kong’s Cheung Kong Infrastructure Holdings on Thursday, citing national security issues.

“The South China Sea disputes, the increased recognition that the Chinese regime is more authoritarian than we originally thought and the fact we are dealing with a state-owned enterprise; those three things have suspended people’s free-market instincts,” a senior member of Australia’s ruling coalition told Reuters.

While China’s growing militarization of the South China Sea has been a source of rising diplomatic and military tension with neighbors and the United States, the Australian decision indicates that trade matters could also be caught up in developments.

Last month, an arbitration court in The Hague ruled China did not have historic rights to the South China Sea, where it has built airstrips and other structures on disputed islands and artifically reclaimed land. China has rejected the court’s ruling.

The Ausgrid intervention came shortly after an eleventh-hour move by British Prime Minister Theresa May to delay a final decision on building a nuclear plant part funded by China.

Some fear blocking the Ausgrid deal will damage relations with a vital trading partner and disrupt the sale of other state-owned assets and private deals involving foreign bidders.

The China state-owned news agency Xinhua said on Friday that the decision was a “another demonstration of (Australia’s) obscure and inconstant strategy towards Chinese investors.”

“If Australia keeps sending mixed signals to Chinese bidders, it would eventually cast the impression as an unpredictable investment environment to Chinese buyers as well as other potential investors.”
 
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kharo88

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"...part of an anti-China plot cooked up in Washington."

Yeah, sounds about right.

"Australia blocked the sale of a major power grid company to Chinese interests in part over concerns that China, its biggest trading partner, is becoming a geo-political threat"

I don't know if Australia is simply dumb or another lackey, but this is ridiculous.