Context: China showcased on Thursday fighter jets firing missiles in the South China Sea, as it held rival military exercises with the United States in the hotly contested waters.The drills follow tense standoffs between Beijing and Manila in disputed reefs that saw vessels from the two countries collide and Chinese ships blast water cannon at Philippine boats.

Significance of the South China Sea:

1. Strategic Location:
   • The South China Sea is strategically located, bordered by China and Taiwan to the north, the Indo-Chinese peninsula to the west, Indonesia and Brunei to the south, and the Philippines to the east (known as the West Philippine Sea).
   • It is connected to the East China Sea through the Taiwan Strait and to the Philippine Sea through the Luzon Strait, both marginal seas of the Pacific Ocean.
2. Trade Importance:
   • A vital global trade route, with approximately USD 3.37 trillion worth of trade passing through in 2016.
   • According to the Center for Strategic and International Studies (CSIS), 80% of global trade by volume and 70% by value occurs through sea routes, with 60% passing through Asia and one-third through the South China Sea.
   • China, as the world's second-largest economy, heavily depends on the South China Sea, with around 64% of its trade moving through this region. In contrast, only 14% of U.S. trade navigates these waters.
   • India relies on the South China Sea for about 55% of its trade.
3. Fishing Ground:
   • The South China Sea serves as a significant fishing ground, offering a crucial SOURCE of livelihood and food security for millions of people in the region.

Major Disputes in the South China Sea:

Dispute Nature: The central issue in the South China Sea dispute revolves around competing territorial claims concerning land features, including islands and reefs, along with their associated territorial waters.

Key Features in Dispute:The primary contested island and reef formations include the Spratly Islands, Paracel Islands, Pratas, the Natuna Islands, and Scarborough Shoal.

• Extent of Disputed Areas: There are approximately 70 disputed reefs and islets, with China, Vietnam, the Philippines, Malaysia, and Taiwan all involved in constructing over 90 outposts on these contested features.
• China's Claims: China asserts dominance over up to 90% of the sea, as depicted by its "nine-dash line" map.The country has undertaken physical expansions of islands and erected military installations to strengthen its control.
• Chinese Activities: China has been notably active in the Paracel and Spratly Islands, engaging in extensive dredging and artificial island-building, resulting in the creation of 3,200 acres of new land since 2013.Control over the Scarborough Shoal is maintained by China through a consistent Coast Guard presence.