States dispute title over islands, rocks, reefs, shoals, banks, and low-tide elevations. Sovereignty questions are distinct from maritime-zone entitlements under UNCLOS, but the two interact politically and practically.
UNCLOS
Maritime zones and entitlements
The core legal contest concerns territorial seas, EEZs, continental shelves, historic-rights assertions, and whether particular features can generate zones beyond 12 nautical miles.
Security
Navigation, overflight, and military activity
Major external and regional powers view the South China Sea as a strategic waterway. Disputes arise over freedom of navigation, military surveys, coast guard operations, and archipelagic sea lanes.
Resources
Resources, fisheries, and environment
Fisheries, hydrocarbons, coral reefs, and marine scientific research are recurring flashpoints. Environmental harm from dredging and destructive fishing was central to the 2016 award.
Diplomacy
Crisis management and regional order
ASEAN-China (PRC) diplomacy, confidence-building measures, incidents at sea, and the proposed Code of Conduct shape the dispute even when legal positions remain fixed.
Claimants
Competing claims and affected interests
The dispute involves overlapping sovereignty claims to features and overlapping maritime-zone
claims. Indonesia is tracked as an affected coastal state because the Natuna-area issue is primarily
about EEZ and continental shelf rights, not Spratly or Paracel sovereignty.
The tribunal found that UNCLOS comprehensively allocates maritime entitlements and that Chinese historic-rights claims within the nine-dash line had no lawful effect where they exceeded UNCLOS limits.
Status of maritime features
The tribunal classified numerous features as low-tide elevations or rocks and concluded that none of the Spratly features could generate a full EEZ or continental shelf.
Philippine sovereign rights
The award held that certain Chinese activities interfered with the Philippines' sovereign rights in its EEZ and continental shelf, including at Mischief Reef and Reed Bank-related areas.
Environment and safety
The tribunal addressed coral reef harm, endangered species, dredging, and dangerous vessel conduct, connecting maritime disputes to environmental protection and navigational safety.
The central treaty framework governing maritime zones, navigation, continental shelves, islands, environmental obligations, and Part XV dispute settlement.