South China Sea: Why It’s So Important for the World

By Ikram | Updated on October 21, 2025

The South China Sea is one of the busiest and most important waterways in the world. Every year, ships carrying goods worth over $3 trillion pass through this sea. It is not only about trade — it’s also about power, oil, gas, and fishing rights. Because of this, several countries are fighting over who owns which part of it.

South China Sea ocean view with ships
The South China Sea connects many Asian countries and supports global trade.

Where Is the South China Sea?

The South China Sea lies between the coasts of China, Vietnam, the Philippines, Malaysia, Brunei, and Indonesia. It is part of the Pacific Ocean and covers an area of about 3.5 million square kilometers. The sea connects the Pacific and Indian Oceans, making it a key route for global shipping.

Why Is It So Important?

  • Trade: Around one-third of the world’s trade passes through here every year.
  • Energy: The seabed may contain huge oil and gas reserves.
  • Fishing: It has rich fish stocks that support millions of people.
  • Military: Whoever controls the sea can control major sea routes in Asia.
Did you know? Almost half of all container ships in the world travel through the South China Sea.

Which Countries Claim the South China Sea?

Six countries — China, Vietnam, the Philippines, Malaysia, Brunei, and Taiwan — claim different parts of the sea. China claims nearly the whole area using what it calls the “Nine-Dash Line.” Other countries say this claim is too large and violates international law.

The Nine-Dash Line

The Nine-Dash Line is a U-shaped line drawn by China that includes most of the South China Sea. However, the United Nations Convention on the Law of the Sea (UNCLOS) says countries can only claim up to 200 nautical miles from their coasts as an Exclusive Economic Zone (EEZ). Because of this, many nations disagree with China’s map.

Map illustration of South China Sea with countries around it
Countries around the South China Sea all have overlapping claims.

Disputes and Conflicts

In the past few years, there have been many tense moments in the region. Some examples include:

  • China building artificial islands with military bases.
  • U.S. Navy ships sailing through the sea to keep it open for everyone.
  • Confrontations between fishing boats and coast guards of different countries.

These actions increase tensions and sometimes lead to dangerous encounters between ships and aircraft.

Freedom of Navigation

The United States and its allies conduct what they call Freedom of Navigation Operations (FONOPs). These are naval patrols meant to show that international waters must stay open for everyone, not just one country.

What Does International Law Say?

In 2016, an international court in The Hague ruled that China’s claims had no legal basis. The case was brought by the Philippines under UNCLOS. But China refused to accept the ruling and continued to build and patrol in the area. This shows how difficult it is to enforce international law when powerful countries disagree.

Environmental Concerns

There’s also an environmental side to the story. The construction of artificial islands damages coral reefs and kills marine life. Overfishing has reduced fish stocks, hurting local fishermen. Pollution from ships and construction adds even more pressure on the sea’s ecosystem.

Fishing boats in South China Sea
Fishing is a key source of income for millions around the South China Sea.

Why Other Countries Care

The South China Sea is not just an Asian issue. Many countries, including the United States, Japan, India, and Australia, are concerned. They worry that if one country controls this sea, it could affect international trade and freedom of movement.

That’s why these countries often take part in joint military exercises and call for peace and respect for international law.

Possible Solutions

  • Talks and Dialogue: Countries can sit together and discuss their differences through diplomacy.
  • Joint Development: They can share resources like oil and gas without fighting over borders.
  • Regional Cooperation: ASEAN (Association of Southeast Asian Nations) can play a stronger role in keeping peace.
  • Environmental Protection: All sides should agree to protect marine life and stop island construction.

ASEAN’s Role

ASEAN countries are directly affected by the dispute. They have tried to create a Code of Conduct to manage conflicts, but progress is slow. Still, many believe this is the best way forward — talking instead of fighting.

Future Outlook

The future of the South China Sea depends on how countries choose to act. If they cooperate, it could become a model for peaceful resource sharing. But if tensions rise, it could easily turn into a hotspot for conflict.

Key takeaway: The South China Sea is not just about territory — it’s about trade, environment, and global peace.

Conclusion

The South China Sea shows how geography, resources, and politics come together to shape world affairs. It’s a test of whether nations can settle disputes peacefully and respect international laws. Everyone — from fishermen to presidents — has a stake in keeping this sea safe and open for all.