Philippines v. China (PCA case number 2013–19), also known as the South China Sea Arbitration, was an arbitration case brought by the Republic of the Philippines against the People's Republic of China (PRC) under Annex VII of the United Nations Convention on the Law of the Sea (UNCLOS, ratified by the Philippines in 1984 and by the PRC in 1996) concerning certain issues in the South China Sea, including the nine-dash line introduced by the mainland-based Republic of China since as early as 1947. A tribunal of arbitrators appointed the Permanent Court of Arbitration (PCA) as the registry for the proceedings.
On 19 February 2013, China declared that it would not participate in the arbitration. On 7 December 2014, it published a white paper to elaborate its position that, among other points, the tribunal lacks jurisdiction. In accordance with Article 3 of Annex VII of UNCLOS, the Philippines appointed 1 of the 5 arbitrators, while China did not appoint any. On 29 October 2015, the tribunal concluded that it had jurisdiction to consider seven of the Philippines' submissions, subject to certain conditions, and postponed the consideration of its jurisdiction on the other eight submissions to the merits phase.
On 12 July 2016, the arbitral tribunal ruled in favor of the Philippines on most of its submissions. It clarified that while it would not "rule on any question of sovereignty ... and would not delimit any maritime boundary", China's historic rights claims over maritime areas (as opposed to land masses and territorial waters) within the "nine-dash line" have no lawful effect unless entitled to under UNCLOS. China has rejected the ruling, as has Taiwan. Eight governments have called for the ruling to be respected, 35 issued generally positive statements noting the verdict but not called for compliance, and eight rejected it. The United Nations does not hold any position on the case or on the disputed claims."
Background
The dispute has been affected by the fact that after Japan renounced all claims to the Spratly Islands and other conquered islands and territories in the Treaty of San Francisco and Treaty of Peace with the Republic of China (Taiwan) signed on 8 September 1951, it did not indicate successor states since China was not invited to the treaty talks held in San Francisco. In reaction to that, on 15 August, the Chinese government issued the Declaration on the Draft Peace Treaty with Japan by the US and the UK and on the San Francisco Conference by the then Foreign Minister Zhou Enlai, reiterating China's sovereignty over the archipelagos in the South China Sea, including the Spratly Islands, and protesting about the absence of any provisions in the draft on who shall take over the South China Sea islands following Japan's renouncement of all rights, title and claim to them. It reiterated that "the Chinese government of the day had taken over those islands" and that the PRC's rightful sovereignty "shall remain intact".
On 28 April 1952, the United States presided over the signing of the Treaty of Peace between Japan and the Republic of China. Article 2 of the document provided that "It is recognized that under Article 2 of the Treaty of Peace which Japan signed at the city of San Francisco on 8 September 1951 (hereinafter referred to as the San Francisco Treaty), Japan has renounced all right, title, and claim to Taiwan (Formosa) and Penghu (the Pescadores) as well as the Spratly Islands and the Paracel Islands."
The Philippines bases its claim on its geographical proximity to the Spratly Islands.
In May 1956, the dispute escalated after Filipino national Tomas Cloma and his followers settled on the islands and declared the territory as "Freedomland", now known as Kalayaan for himself and later requested to make the territory a protectorate of the Philippines. Tomas Cloma even stole China (ROC)'s national flag from the Taiping Island. In July 1956, he apologised officially for his act and he surrendered the flag he stole to China's embassy in Manila. On 2 October 1956, he wrote a letter and ensured he would not make further training voyages or landings in the territorial waters of China (ROC).
Philippine troops were sent to three of the islands in 1968, when the Philippines were under President Ferdinand Marcos. In the 1970s, some countries began to occupy islands and reefs in the Spratlys. The Spratlys were placed under the jurisdiction of the province of Palawan in 1978.