Wednesday, September 13, 2023

"The South China Sea’s Resource Wars"

Via naked capitalism, September 13:

Yves here. Natural gas and oil reserves have long been a source of conflict. The early 1990s Desert Storm operation was triggered by Saddam Hussein attacking Kuwait for taking what Iraq (apparently correctly) thought was more than its fair share of an oil field that straddled borders. None other than the Economist reported years later that Hussein had gone to the US to make sure they would not object to his incursion, and got a go ahead. Readers no doubt can easily add to this list. And as this article explains, the South China Sea has even more goodies.
It’s an ocean of conflict and ecological decline. Despite its vast size — 1.3 million square miles — the South China Sea has become a microcosm of the geopolitical tensions between East and West, where territorial struggles over abundant natural resources may one day lead to environmental collapse.

While the threat of a devastating military conflict between China and the United States in the region still looms, the South China Sea has already experienced irreparable damage. Decades of over-harvesting have, for instance, had a disastrous impact on that sea’s once-flourishing fish. The tuna, mackerel, and shark populations have fallen to 50% of their 1960s levels. Biologically critical coral reef atolls, struggling to survive rising ocean temperatures, are also being buried under sand and silt as the Chinese military lays claim to and builds on the disputed Spratly Islands, an archipelago of 14 small isles and 113 reefs in that sea. Taiwan, the Philippines, Malaysia, and Vietnam have also laid claim to many of the same islands.

Perhaps no one should be surprised since oil and gas deposits are plentiful in the South China Sea. The U.S. government estimates that 11 billion barrels of oil and 190 trillion cubic feet of natural gas are ready to be extracted from its floor. Such fossil-fuel reserves, some believe, are helping to — yes, how can anyone not use the word? — fuel the turmoil increasingly engulfing the region.

This year, the Washington-based Asia Maritime Transparency Initiative reported that several countries are pursuing new oil and gas development projects in those contested waters, which, the organization notes, could become a “flashpoint in the disputes.” Between 2018 and 2021, there were numerous standoffs between China, Vietnam, and other Southeast Asian countries over drilling operations there, and fears are building that even more severe confrontations lie ahead.

The United States, of course, lays the blame for all of this on China, claiming its aggressive island-reclamation projects violate international law and “militarize an already tense and contested area.” Yet the U.S. is also playing a significant part in raising tensions in the region by agreeing to supply Australia with nuclear-powered submarines as part of its Australia-United Kingdom-United States (AUKUS) security pact. The goal, no doubt, is to restrain Chinese activity with the threat of Western military might. “Next steps could include basing U.S. nuclear-capable platforms — such as strategic bombers — in Australia as well as cooperation on hypersonic missiles, cyber operations, [and] quantum computing,” writes Derek Grossman for the Rand Corporation, the “paramilitary academy” of American defense policy. (And, in fact, the U.S. is evidently preparing to deploy the first nuclear-capable B-52s to that country soon.)

On August 25th, in partnership with Australia and the Philippines (where Washington is getting ready to occupy bases ever closer to China), U.S. Marines practiced retaking an “island” supposedly captured by hostile forces. In that exercise,1,760 Australian and Filipino soldiers and 120 U.S. Marines conducted mock beach landings and air assault maneuvers in Rizal, a small town in western Palawan province in the Philippines, which does indeed face the South China Sea.

“A whole lot of damage can be done to Australia before any potential adversary sets foot on our shores and maintaining the rules-based order in Southeast Asia, maintaining the collective security of Southeast Asia, is fundamental to maintaining the national security of our country,” said Australian Defense Minister Richard Marles of the joint military drills.

Like AUKUS itself, those war games were intended to send a message: China beware. The resources of the South China Sea aren’t for the taking.

But here’s a question to consider: Is all this international saber-rattling only about fossil fuels? Trade routes through the area are also vital to the Chinese economy, while its fisheries account for 15% of the reported global wild fish catch. Yet neither its well-used shipping routes, necessary as they are to the flow of goods globally, nor those fisheries fully explain the ever-heightening controversy over the region. Having exploited that sea’s wild fisheries for decades, China is now becoming a global leader in fish farming, which already accounts for 72% of the country’s domestic fish production, It’s also increasingly true that fossil fuels have a distinct shelf life. But is it possible that another set of natural resources, arguably more crucial to the economic future of the global superpowers, could be adding to the growing territorial furor over who possesses the goods in the South China Sea?

Mining the Deep Blue Sea...

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