The international oil and gas industry is no stranger when it comes to maritime disputes. After all, the exploration, production, and transport of hydrocarbons in international waters are central to the industry's mission and well-being.
But China seems to think otherwise. That fact emerged at presstime last week when China's top diplomat called on the US to steer clear of its disputes with neighboring countries over the South China Sea and to avoid making them an international issue.
"The internationalization of the issue will only make matters worse and more difficult to resolve," said Chinese Foreign Minister Yang Jiechi after US Sec. of State Hillary Clinton said resolving disputes over the South China Sea peacefully was "pivotal" to regional stability.
Clinton is correct in her assessment, especially as the issue already is international: the South China Sea and its some 200 mostly uninhabited islands have been subject to competing claims by numerous countries, including Taiwan, Vietnam, Malaysia, Indonesia, the Philippines, Singapore, and Brunei.
Heedless approach
But Yang paid little heed to Clinton's comments. "The current situation in the South China Sea is peaceful. In bilateral talks with other [neighboring] countries, the situation did not pose any threat to the regional peace and stability of the situation." Yang added that "direct bilateral talks" between the involved parties are the best solution to the disputes. "With the rise of Asian countries, we can treat each other equally, with mutual respect and dignity, and will resolve each other's concerns."
Really? That's not how one Asian diplomat sees things.
Indeed, according to this Asian diplomat, plans for joint development in disputed South China Sea territories have hit a snag over persistent disagreements between China and the Association of Southeast Asian Nations (ASEAN).
Unilateral efforts
The plans for joint development by China and the 10-member ASEAN would include marine research as well as oil and gas exploration. But tensions have arisen as Chinese companies have increased unilateral exploration efforts in the region to look for hydrocarbons.
China and ASEAN remain in dispute over Beijing's claim to the entire sea area, the diplomatic source said, and China's approach of dealing with individual ASEAN claimants instead of the grouping as a whole.
"China is biding its time because it wants to deal with us bilaterally," the diplomat said. "ASEAN wants a collective stand. It views the South China Sea issue as a collective matter."
So does Washington. In addition to Clinton's diplomatic overture, US Sec. of Defense Robert Gates added muscle with his recent call for free access to the South China Sea, saying Washington objects to efforts to "intimidate" US energy firms in the region.
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