America pushes back in South China Sea

Tensions mount in the South China Sea as China pushes its claim to sovereignty over the islands.

Dr Matthew Partridge
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in Features

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China is expanding its presence
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US defence secretary James Mattis has denounced Beijing for its "militarisation" of the South China Sea, through which $5trn of international trade passes each year, says Richard Lloyd Parry in The Times.

Since 2014 Beijing has been concreting over coral reefs and expanding artificial islands to install military airports equipped with missiles, strengthening its claim to the entire area. At a recent meeting of defence ministers in Singapore, Mattis said that "despite China's claims to the contrary, the placement of these weapons systems is tied directly to military use for the purposes of intimidation and coercion".

The Philippines, Malaysia, Vietnam, Brunei and Taiwan also claim some of the hundreds of reefs and islands in these waters, but China's actions are making their claims look "increasingly forlorn", says Simon Roughneen in the Nikkei Asian Review. Mattis has warned that there will be "consequences" if Beijing does not start to "work more collaboratively with all of the nations".

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US pushback includes continuing to carry out so-called freedom of navigation operations and having US military aircraft flying over the Paracel Islands in early June. America has also sought to "widen the array of countries" that will join it in countering China's rising influence.

France, which cites its need to defend the interests of 1.5 million French citizens scattered across five French territories in the Pacific, is also upping its presence there, says the South China Morning Post. As part of its strategy, in August the air force will start its biggest-ever air exercise in southeast Asia.

Dr Matthew Partridge
Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri

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