By virtue of geography, the South China Sea is home to some of the world’s most important shipping lanes. Ships carrying exports and imports between markets in Asia and in Europe, Africa, and the Americas must transit through the South China Sea; it is estimated that $5.3 trillion in trade passes through the region annually. Circumnavigating the region would involve both considerable expense and time delay in the delivery of goods. As a result, most nations have a direct stake in ensuring that freedom of navigation is respected in the South China Sea.

Unfortunately, however, the South China Sea is home to a number of longstanding territorial disputes. Brunei, China, Indonesia, Malaysia, the Philippines, Taiwan, and Vietnam have overlapping sovereignty claims to various maritime features and areas of water in the South China Sea. Most of these territorial disputes center on features located in the Paracel and Spratly island groups.