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The two countries have disputes over the sovereignty of some islands and shoals in the Spratly Islands. These disputes are linked to other disputes in the South China Sea. China conducts grey-zone operations in these waters.
In July 2016, the Permanent Court of Arbitration at The Hague ruled on a claim brought against China by the Philippines under UNCLOS, ruling in favor of the Philippines on almost every count. While China is a signatory to the treaty establishing the tribunal, it refuses to accept the court's authority.
Philippine stance Its position was that because most of the features in the South China Sea, such as most of the Spratly Islands, cannot sustain life, they cannot be given their own continental shelf as defined in the convention.
A territorial row between China and the Philippines in the South China Sea has turned increasingly violent, with the two sides trading allegations of intentional boat rammings, and Manila accusing Chinese coastguard personnel of using water cannon against its troops and engaging in fist fights with spears and knives.
The dispute is ostensibly over the jurisdiction and administration of the maritime features—shoals, reefs, rocks, and islands—territorial waters, and exclusive economic zones of the South China Sea. China (as well as Taiwan) vaguely claims jurisdiction, but not necessarily territorial control, over the entire Sea.
Scarborough is the largest atoll in the South China Sea, located some 220 kilometers from the Philippines. The shoal is located inside the Exclusive Economic Zone of the Philippines but is claimed by China as its ancestral territory since the 13th century.
On July 12, 2016, the arbitral tribunal adjudicating the Philippines' case against China in the South China Sea ruled overwhelmingly in favor of the Philippines, determining that major elements of China's claim—including its nine-dash line, recent land reclamation activities, and other activities in Philippine waters— ...
The existing PRC Arbitration Law requires a valid arbitration agreement to include a specific designation of an arbitration commission (Article 16). The law further sets out stringent requirements on the establishment of an “arbitration commission” in China at the provincial and municipal levels (Article 10).
The PCA is an intergovernmental organization with 124 Contracting Parties.
The PCA is constituted through two separate multilateral conventions with a combined membership of 124 Contracting Parties. The PCA is not a United Nations agency, but has been a United Nations observer since 1993.