Basics
- Event: China has announced the creation of a national nature reserve at Scarborough Shoal in the South China Sea.
- Background: Scarborough Shoal (Huangyan Dao by China / Panatag Shoal by Philippines) is a strategic atoll, ~200 km off the Philippines coast and within its Exclusive Economic Zone (EEZ).
- Fact: The South China Sea carries annual trade worth $3 trillion; it is also rich in fisheries and hydrocarbon resources.
Relevance : GS-II (International Relations, Maritime Law, UNCLOS), GS-III (Security, Trade, Indo-Pacific Strategy)

Why in News
- China approved a 3,524-hectare marine nature reserve at Scarborough Shoal.
- The Philippines reacted strongly, accusing China of damaging coral reefs and violating international law.
- Tensions revived over sovereignty, fishing rights, and maritime security.
Overview
- Polity/Legal
- UNCLOS (1982) grants EEZ rights to the Philippines within 200 nautical miles.
- Permanent Court of Arbitration (2016) rejected China’s “nine-dash line” claim, but China does not recognize the verdict.
- Raises questions about international law enforcement and arbitral authority.
- Governance/Administrative
- Philippines struggles with limited coast guard/naval capacity compared to China’s maritime militia and coast guard.
- Managing fisheries and marine environment requires cooperative mechanisms, not unilateral actions.
- Economy
- Scarborough Shoal is a fishing hotspot, vital for Philippines’ coastal communities.
- Disruption threatens food security and livelihoods.
- Trade security through South China Sea is critical for global supply chains.
- Society
- Filipino fishermen face harassment, reducing income and deepening social tensions.
- Rising nationalism in both countries complicates diplomatic resolution.
- Environment/Science & Tech
- China claims “nature reserve” status, but dredging, coral destruction, and militarization contradict ecological aims.
- Marine biodiversity loss impacts regional ecology.
- International
- US–Philippines Mutual Defense Treaty (1951) covers South China Sea after recent updates.
- China–US rivalry sharpens, making the shoal a potential flashpoint.
- ASEAN divided between pro-China and pro-US positions, weakening collective response.
Challenges
- China’s rejection of international arbitration rulings.
- Asymmetry of military and coast guard capabilities between China and Philippines.
- Risk of accidental escalation from maritime confrontations.
- Weak enforcement of environmental safeguards.
- ASEAN’s lack of unity on South China Sea Code of Conduct.
Way Forward
- Strengthen UNCLOS-based dispute resolution; push for binding ASEAN–China Code of Conduct.
- Philippines to enhance maritime domain awareness (satellites, AI-based surveillance) with Quad/US support.
- Promote joint development of resources (as done in some ASEAN disputes) while shelving sovereignty claims.
- Environmental safeguards under SDG-14 (Life Below Water) to balance ecology with security.
- India and like-minded nations to support freedom of navigation under Indo-Pacific strategies.
Conclusion
The Scarborough Shoal dispute reflects the larger contest between international law and power politics in the South China Sea. A rules-based, cooperative approach is the only sustainable way forward to ensure peace, ecology, and regional stability.