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President Xi Orders Chinese Army To “Prepare For War”

In just a few short days, China has proved that investors who have been underestimating the geopolitical risks stemming from the simmering tensions between the US and China over the latter’s territorial claims in the South China Sea and paranoia over the fate of Taiwan – a de facto independent state that President Xi Jinping is aggressively seeking to bring under the heel of Beijing – have done so at their own peril.

Earlier this week Xi Jinping, the Chinese emperor for life president provoked an angry rebuke from the island’s pro-independence president when he demanded during a landmark speech earlier this week that Taiwan submit to “reunification” with Beijing.

Xi

And as if tensions between China and the international community weren’t already high enough amid a worsening economic slowdown that’s threatening global economic growth and a tenuous trade “truce” with the US,  in another speech delivered on Friday during a meeting of top officials from China’s Central Military Commission which he leads, Xi took his belligerent rhetoric one step further by issuing his first military command of 2019: that “all military units must correctly understand major national security and development trends, and strengthen their sense of unexpected hardship, crisis and battle.”

China’s armed forces must “prepare for a comprehensive military struggle from a new starting point,” Xi said adding that “preparation for war and combat must be deepened to ensure an efficient response in times of emergency.”

Xi’s order prioritizes training with a focus on combat readiness, drills, troop inspections and resistance exercises.

It applies to all units of the PLA, including troops, academies and armed police, and is designed to “ensure new challenges are met and battles are won,” according to a copy of the guidelines seen during the television report.

In other words, Xi just ordered the Chinese military to prepare for war.

…click on the above link to read the rest of the article…

 

Will the ‘Taiwan question’ give rise to a World War III scenario?

Will the ‘Taiwan question’ give rise to a World War III scenario?

The United States and China are set to go head-to-head over disputes in relation to Taiwan and the South China Sea, with deadly consequences on the immediate horizon.

You wouldn’t know it with all the media hype over the US mid-term elections, but the US and China are on a deadly collision path in the South China Sea and Taiwan Strait. In the last two months, the US military has flown B-52 bombers and carried out its so-called “freedom of navigation” operations in the South China Sea. There have also been instances of US warships sailing through the Taiwan Strait in support of Taiwan, an island which China considers to be a rogue part of Chinese territory.

On a side note, it is amazing to say the least that the US believes it should have the “freedom to navigate” in the South China Sea, yet seems to get up in arms when Iranian ships expect the same kind of freedom in the Persian Gulf.

Near-collisions in the South China Sea

Last September, US and Chinese warships almost collided when sailing near an islet claimed by Beijing in the Spratly Islands. Reportedly, the Chinese warship threatened the US Destroyer that it would “suffer consequences” if it did not move, as it sailed within 45 yards of the American vessel.

In a last-ditch effort to avert this collision course, US Secretary of State Mike Pompeo and Secretary of Defence James Mattis will hosttheir Chinese counterparts Yang Jiechi and China’s Defence Minister Wei Fenghe this Friday for talks on reducing tensions. However, I think we can say with some confidence that these talks will be absolutely meaningless. Firstly, China already canceled the first round of talks set for September due to their frustration over US-enforced sanctions. Secondly, Chief of US Naval Operations Adm.

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“Flashpoint For War”: U.S. And Japan Plan Military Response To Chinese Incursions Of Disputed Islands

Things are again rapidly heating up in the East China Sea amidst already heightened tensions in a region where Washington is increasingly asserting the right of navigation in international waters against broad Chinese claims and seeking to defend the territorial possessions of its allies.

According to a bombshell new Reuters report the tiny and rocky Senkaku Islands which lie between northern Taiwan and the Japanese home islands are “rapidly turning into a flashpoint for war”. Alarmingly, Japanese government sources have been quoted as saying Tokyo and the United States are drawing up an operations plan for an allied military response to Chinese threats to the disputed Senkaku Islands.

The Senkaku Islands, historically claimed by both Japan and China.

From nearly the start of his entering the White House, President Trump has said he’s committed to upholding Article 5 of the US-Japan security treaty signed the post-war years of the mid-20th century: “We are committed to the security of Japan and all areas under its administrative control and to further strengthening our very crucial alliance,” Trump had promised from the first official reception of Japanese Prime Minister Shinzo Abe back in February 2017, and since consistently maintained.

Japanese government sources have told regional media that the joint plan of response with the United States involves “how to respond in the event of an emergency on or around the uninhabited islands in the East China Sea” — which is set to be completed by next march, according to the statements.

Beijing claims the islands as part of its historical inheritance — as it does neighbouring Taiwan, despite failing to seize the protectorate during the Chinese Civil War.

Taiwan, however, was a Japanese protectorate before World War II.

…click on the above link to read the rest of the article…

DoD Official Urges Taiwan To Buy More Weapons In Fear Of “Cross-Strait Invasion” By China

A Pentagon official said Monday that Taiwan should increase its military spending to safeguard continued peace and security both across the Taiwan Strait and within the Indo-Pacific, reported Focus Taiwan.

David Helvey, U.S. principal deputy assistant secretary of defense for Asian and Pacific security affairs, made the suggestion that the self-ruled island “must have resources to modernize its military and provide the critical material, manning and training needed to deter, or if necessary defeat, a cross-strait invasion” at the U.S.-Taiwan Defense Industry Conference in Annapolis, Maryland.

According to the official transcript of the speech, Helvey said in a combination of strengthening its military, Taiwan is developing conventional capabilities to meet the peacetime requirements of active military in the South China Sea.

The defense official criticized China for attempting to “erode Taiwan’s diplomatic space in the international arena while increasing the frequency and scale of [People’s Liberation Army] activity within and beyond the First Island Chain.”

He warned that Taiwan could not “afford to overlook preparing for the one fight it cannot afford to lose.”

In the face of China’s increasing military threat, the U.S. has utilized the Taiwan Relations Act to sell arms to Taiwan to maintain the island’s self-defense capability as part of an overall effort to prevent China from taking it over by force.

Helvey’s comments come days after President Xi Jinping told the Chinese military that they should “prepare for war” in the South China Sea.

Helvey told the audience that the U.S. and Taiwan both needed to update their strategy on arms procurement, planning, and training to thwart a Chinese invasion.

…click on the above link to read the rest of the article…

China’s President Orders Military To “Prepare For War”

China’s President Xi Jinping ordered the military region responsible for monitoring the South China Sea and Taiwan to “assess the situation it is facing and boost its capabilities so it can handle any emergency” as tensions continue to mount over the future of the South China Sea and Taiwan, while diplomatic relations between Washington and Beijing hit rock bottom.

The Southern Theatre Command has had to bear a “heavy military responsibility” in recent years, state broadcaster CCTV quoted Xi as saying during an inspection tour made on Thursday as part of his visit to Guangdong province.

“It’s necessary to strengthen the mission … and concentrate preparations for fighting a war,” Xi said. “We need to take all complex situations into consideration and make emergency plans accordingly. “We have to step up combat readiness exercises, joint exercises and confrontational exercises to enhance servicemen’s capabilities and preparation for war” the president-for-life added.

According to the South China Morning Post, Xi’s visit to the military command was one of several he made during a four-day trip to the south China province aimed at bolstering confidence amid an economic slowdown, and growing trade and strategic disputes with the United States.

Xinhua reports President Xi “stressed the need to focus on combat research and commanding, to advance work in all areas and accelerate developing strong and efficient joint-operation commanding institutions for theatre commands to comprehensively boost the military’s battle-winning ability.”

The president instructed the military to ramp-up opposition to ‘freedom of navigation’ exercises being undertaken by the US, Australia, France, the UK, Japan and others through the waterway through which arterial shipping lanes have grown since the end of World War II.

…click on the above link to read the rest of the article…

Top Communist Party Official Threatens Military Intervention Over Pence’s Support For Taiwan

With the on-again-off-again trade war detente back in “off again” mode as China is once again refusing to bow to the US’s demands for concessions, and with military tensions simmering in the background as the US seriously considers withdrawing from the INF, the Communist Party’s top defense official demanded that the US end its aggressive policy toward China during a speech at the Xiangshan security forum in Beijing in front of a crowd of 500 foreign delegates from 74 countries (including the US).

According to the South China Morning Post, Wei Fenghe, the Chinese defense minister, criticized Washington for “seriously damaging the Sino-US relationship and mutual trust” by accusing China of interfering in the midterm elections and by characterizing China’s “debt diplomacy” as a neo-colonialist tool for acquiring foreign resources for its “One Belt, One Road” initiative.

Without referencing Pence by name (the Vice President delivered one of the most sweeping condemnations of China’s foreign and economic policies during a speech earlier this month), Wei articulated China’s “anger and resolute opposition” and demanded that the Trump Administration drop its aggressive posture toward China. “We strongly call on the US to remedy the mistakes, stop damaging China’s interests and the Sino-US relationship.”

The remarks followed similarly hostile remarks directed at Secretary of State Mike Pompeo, who became embroiled in a dramatic confrontation with China’s foreign minister during a recent trip to Beijing.

China

In the latest sign that the Trump Administration’s friendly stance toward Taiwan has rattled China, Wei, reiterating a threat made by numerous senior Chinese officials, warned that the mainland wouldn’t hesitate to bring the full brunt of is military to bear against Taiwan – and any country aiding the Taiwanese – if its rogue province tries to formally break away from the mainland.

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Taiwan To Simulate Chinese Invasion In Live-Fire Military Drill Starting Next Week

As concerns about nuclear war with North Korea wane, Taiwan is reminding the world that its own relations with Beijing have been progressively deteriorating; to do that the small island nation will simulate a response to an “invading force”, along with using civilian operated drones, in war games next week amid its increasing tensions with China the defense ministry said Tuesday according to Reuters.

While the annual Han Kuang drills, set to begin on April 30 with a computer-aided command post exercise, make no mention of China, only “offensive forces invading Taiwan” and will include a live-fire field training exercise and “enemy elimination on beaches”, it is clear that the “hypothetical” aggressor is China.

The major part of the drill will be a live-fire field training exercise from June 4-8, including “enemy elimination on beaches”, the ministry said.

Civilian resources will also be integrated into this exercise to support military operations,” it added, envisioning exercises involving a private drone army. Tech companies will offer support with drones to mark targets and provide battlefield surveillance, and building companies will help with emergency runway repairs for the Ching Chuan Kang air base in central Taiwan, the ministry said.

According to a recent survey conducted by the Taiwan Foundation for Democracy, 68% of people said they would join the army or find other means of resistance should China invade.

Flares are set off from during a drill near Yilan naval base, Taiwan April 13, 2018

The Air Combat Command will issue air raid alerts with an “aerial threat warning system” during the air defence drills, and the Coast Guard will also join in exercises with the navy, it added. In January, Taiwan held a military drill at the Port of Hualien using reconnaissance planes and F-16 fighter jets.

M60A3 tanks fire off shells during annual Han Kuang military drill in Penghu, Taiwan May 25, 2017

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Emperor Xi Delivers Stark Warning To Trump: Hands Off Taiwan

President Donald Trump may have kicked the hornet’s nest by signing on Friday the “Taiwanese Travel Act”, encouraging official visits to Taiwan by officials at all levels with an emphasis on “national security officials.”

The signing angered the newly crowned Chinese President Emperor Xi Jinping, who lashed out at Trump and the US during a speech on Tuesday marking the start of his second term running the world’s most populous country. Xi warned that attempts to sow divisions between China and Taiwan would be “punished by history”.

His speech follows Chinese bureaucrats’ rubber-stamping changes to the constitution that could allow Xi to serve as leader for life, or as some have correctly defined it, emperor.

“Any actions or tricks to separate the country are bound to fail,” Xi said. “They will receive the condemnation of the people and the punishment of history.”

“We cannot allow, and it is impossible for, an inch of our great country’s territory to separate from China,” said Mr. Xi.

Also, several close Xi allies have been confirmed in senior government posts – though Xi somewhat unexpectedly named Yi Gang the next chairman of the People’s Bank of China, a veteran deputy governor whose only task it appears is to preserve continuity. China’s legislature also approved former anti-graft czar Wang Qishan as vice president and economic adviser Liu He – poised to become China’s financial superregulator – as vice premier.

Xi warned in his speech that China has the means to retaliate against attempts to divorce Taiwan from the mainland, per Bloomberg.

In an address to China’s almost 3,000-member national parliament, Xi said China had the capabilities to stop any attempt to formalize the democratically ruled island’s independence. The remarks came just days after U.S. President Donald Trump signed a law allowing high-level official visits to Taiwan, a move that would elevate its diplomatic status.

…click on the above link to read the rest of the article…

‘Descent Into Hell’: China Warns of Potential War With US Over Taiwan

(ANTIMEDIA)  It’s no secret that for Beijing, the most sensitive issue within Sino-American relations is that of Taiwan, the semi-autonomous island territory that China considers to be a breakaway province. Now, a political move made by the U.S. on Taiwan has Beijing warning of the possibility of military action.

Back in January, the House of Representatives unanimously passed the Taiwan Travel Act, a bill aiming to significantly strengthen ties between U.S. officials and their Taiwanese counterparts. The bill reached the Senate floor on Wednesday, where it also passed without opposition. Now, all that’s required for the legislation to become law is Donald Trump’s signature.

Taiwan welcomed the bill’s passage. Speaking to reporters in the capital of Taipei, Premier William Lai said the U.S. is a “solid ally” of Taiwan and that the two sides’ ties can now become even stronger.

“We wholeheartedly anticipate that this law can in the future further raise the substantive relationship between Taiwan and the United States,” Lai said.

Unsurprisingly, China had an altogether different reaction — one that included a warning to its neighbor and a hint at military confrontation if things continue to progress in this manner.

“We are firmly against the act,” China’s state-run Xinhua News Agency quoted Taiwan Affairs Office spokesperson An Fengshan as saying. “We sternly warn Taiwan not to rely on foreigners to build you up, or it will only draw fire against yourself.”

The U.S. cut formal ties to Taiwan when it recognized Beijing as the Chinese capital in 1979. This event marked official acceptance of the “one China” policy, which regards Taiwan as a Chinese territory.

But Beijing has grown increasingly concerned over what it views as Taipei’s push toward independence since the election of President Tsai Ing-wen in 2016.

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Furious China “Outraged” By U.S. Sale Of $1.4BN In Weapons To Taiwan

Furious China “Outraged” By U.S. Sale Of $1.4BN In Weapons To Taiwan 

One day after the US announced it would sell $1.42 billion in weapons to China’s offshore nemesis Taiwan, Beijing lashed out at the United States, saying it was “outraged” and demanded the US revoke immediately its “wrong decision”, saying it contradicted a “consensus” President Xi Jinping reached with his counterpart, Donald Trump, in talks in April in Florida.

The proposed U.S. package for Taiwan includes technical support for early warning radar, high speed anti-radiation missiles, torpedoes and missile components.

The sales would send a very wrong message to “Taiwan independence” forces, China’s embassy in Washington said in a statement. A U.S. State Department spokeswoman said on Thursday the administration had told Congress of seven proposed sales to Taiwan, the first under the Trump administration. “The Chinese government and Chinese people have every right to be outraged,” the embassy said.

Besides token bluster, however, this time China also warned that Trump’s action was counter to the agreement reached with Xi in Palm Beach, suggesting retaliation will likely be imminent. “The wrong move of the U.S. side runs counter to the consensus reached by the two presidents in and the positive development momentum of the China-U.S. relationship,” the embassy said.

This was the second major diplomatic escalation between the US and China in just the past 24 hours, with the US announcing late yesterday the first sanction imposed on Chinese entities for ties with North Korea, a move which likewise was slammed by the Chinese press.

As a reminder, one of Trump’s initial diplomatic snafus was to implicitly recognize Taiwan when he spoke over the phone with its president Tsai Ing-wen shortly after the election, in the process infuriating Beijing. China regards Taiwan as a wayward province and has never renounced the use of force to bring it under its control. China’s Nationalists fled to the island after losing the civil war with China’s Communists in 1949.  The United States is the sole arms supplier to Taiwan.

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Taiwan Joins Global War On Cash: Plans To Ban Purchases Of Houses, Cars, & Jewelry

Taiwan Joins Global War On Cash: Plans To Ban Purchases Of Houses, Cars, & Jewelry

The cancerous virus of freedom-destroying worldwide cash-bans – in the name of fighting terrorism – has reached Taiwan this week. With the aim of ‘preventing money-laundering’, Taiwan may ban cash purchases of properties and luxury goods, Taipei-based Economic Daily News reports, citing unidentified official at Ministry of Justice.

As we previously noted, the War on Cash is not merely continuing, it is intensifying. 

It began in the West, with relatively minor infringements on our right to use the currency of our own nationThe War has now shifted to India, been radically ratcheted up, and inflicted upon a population of 1.2 billion people, where 68% of transactions were conducted with cash. And now, as The Economic Daily News reports (via Google Translate), to Taiwan…

With the goal of strengthening the prevention and control of money laundering, Taiwan’s Ministry of Justice plans to promote large-scale transactions without cash. The first wave may lock real estate, luxury cars and jewelry transactions.

According to the provisions of the money-laundering control law, which currently controls the use cash payment tools, The Ministry of Justice to discuss the plan with other regulators in the second half of the year.

Once finalized, the sale of real estate, cars, and jewelry will not be possible using cash; only non-cash payment tools, such as credit cards, financial cards, checks, electronic payments or remittances.

Current regulations require the keeping of records and reporting of any transcations over 500,000 Yuan (around $72,000), with no limit on the amount of cash that can be used.

As to whether a lower threshold will be set, it is unclear; but from indications, for the sale of real estate, luxury cars or jewelry the threshold will be zero – and only non-cash allowed.

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Unprecedented Moves Towards War With China Would “Upend Supply Routes, Trigger Global Recession”

Unprecedented Moves Towards War With China Would “Upend Supply Routes, Trigger Global Recession”

russia-china-usa

Economic tensions are tipping over into military ones.

Warships have sailed, and the rhetoric of Trump’s officials has shifted dramatically from the previous era.

The larger threat to the petrodollar and the continuance of U.S. hegemony has been put face-to-face with a China gaining in power and confidence, and ready to depose American dominance. It has become bold enough to make fresh claims on territory, and the U.S. has taken it as a call to war.

How much more pressure will this situation take before it explodes into a deadly confrontation? And why is world war three suddenly back on the table?

The Trump Administration is starting off on a highly aggressive posture with China – with taboo calls to Taiwan, loose talk from President Trump (since the campaign trail) about a trade war with China, and now stern warnings from Secretary of State Tillerson about China’s activities in the South China Sea.

It might come off as just a scolding, if not for the huge military assembly surrounding the region, and the unprecedented level of ICBM missile testing and genuine threats/predictions of war to come. Someone clearly means business:

via London Independent:

China has accused Donald Trump’s administration of putting regional stability in East Asia at risk following remarks by the President’s defense secretary that a U.S. commitment to defend Japanese territory applies to an island group that China claims.

Foreign Ministry spokesman Lu Kang has called on Trump’s administration to avoid discussion of the issue and reasserted China’s claim of sovereignty over the tiny uninhabited islands…

[…]

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Missiles Just the Latest Chapter in the South China Sea Saga

Missiles Just the Latest Chapter in the South China Sea Saga

 

US Navy, public domain 

With the recent placement of surface-­to-­air missiles (SAMs) on Woody Island, a subset of the Paracel Islands, China has taken a major step toward militarization of the South China Sea. The action was taken during the recent US-­ASEAN “Sunnylands” Summit, where economics, security, and international law were all discussed. In the context of recent and historical events however, the action, though not entirely justified, could not have come as a surprise to any of the parties involved and forms only the latest chapter in the ongoing book of the South China Sea.

FONOPS and the First Island Chain 

Recently, the U.S. initiated “freedom of navigation” (FONOPS) maneuvers in the South China Sea, designed to ensure the free flow of maritime commerce between the various claimants in the South China Sea disputes. More importantly, the FONOPS actions are designed to ensure military freedom of maneuver for the U.S. Navy. Strategically, the U.S. cannot allow the rise of a peer competitor and definitely not in Asia, the swiftly emerging locus of world economic activity and geopolitical consequence, hence its “rebalance” strategy. Tactically, the U.S. also cannot allow any doubt to emerge regarding its willingness to defend its regional allies in a conflict scenario. To negate this doubt, it must show its resolve to sail anywhere necessary in regional waters to affect this end, citing international law.

From the Chinese viewpoint, the FONOPS are highly hypocritical. This is because while the U.S. purports to support freedom of navigation for itself and its allies within the First Island Chain, it simultaneously seeks to deny that freedom to China outside the chain. This chain stretches from southern Japan to Taiwan to the Philippines and on to the South China Sea.

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Global Easing Bonanza Continues As Norway, Taiwan Cut Rates To Spur Struggling Economies

Global Easing Bonanza Continues As Norway, Taiwan Cut Rates To Spur Struggling Economies

On several occasions this year we’ve profiled Norway where the central bank, much like the Riksbank in neighboring Sweden, is walking a fine line between keeping rates low to support the economy (not to mention remain competitive in the global currency wars) and being mindful of the effect low rates have on an overheating housing market.

Like the Riksbank, The Norges Bank is in a tough spot. The property bubble quite clearly needs to be arrested but using monetary policy to rein in the housing market means leaning hawkish in a world of DM doves and that can be exceptionally dangerous especially when your economy is heavily dependent on oil and crude prices are crashing.

Indeed, the pain from low oil prices has become so acute that Norway may ultimately be forced to tap its $900 billion sovereign wealth fund in order to avoid fiscal retrenchment.

Given the above, no one was surprised (well, no one except PhD economists, most of whom got this one wrong) when the Norges Bank cut rates on Thursday, taking the overnight depo rate to a record low of 0.75%. Here’s Bloomberg:

Norway’s central bank cut interest rates to an all-time low and said it may ease policy further as it seeks to rescue an expansion in western Europe’s biggest petroleum producer amid a plunge in oil prices.

The overnight deposit rate was lowered by 25 basis points to 0.75 percent, the Oslo-based central bank said Thursday. The move was forecast by seven of the 17 economists surveyed by Bloomberg, with the remainder expecting no change. The bank forecast its rate may fall as low as 0.59 percent in third quarter of next year. The krone plunged 2 percent against the euro on the news, its biggest drop since August.

“Growth prospects for the Norwegian economy have weakened, and inflation is projected to abate further out,” Governor Oeystein Olsen said in a statement

…click on the above link to read the rest of the article…

 

A Fine Balance: China’s Need for Resources and Stability in the South China Sea

A Fine Balance: China’s Need for Resources and Stability in the South China Sea

The shift in demographic and economic weight from Europe to East Asia has intensified over the past 20 years, which makes East Asia and its coastal areas increasingly important – a critical shift in current and future international relations dynamics underscored by the United States’ (US) “Pivot to Asia” or East Asian foreign policy of the Obama administration. Four Association of Southeast Asian Nations (ASEAN) members, plus China/Taiwan either partially or fully claim sovereignty over the South China Sea and its territorial features: islands, reefs, and atolls. Given the importance of the South China Sea’s islands and sub-soils, we seek to assess whether a Chinese policy towards the South China Sea’s territorial disputes endangers regional stability and cooperation.

Economic and Strategic Importance of the Spratly Islands

China’s extensive borders, surrounded by sea and a rich diversity of neighbors, from large Russia, unstable Afghanistan, to maritime neighbors such as the Philippines, South Korea, and Japan, presents a host of security challenges. The South China Sea forms part of the complexity of China’s border security challenges. The following claimants surround the South China Sea: China, Taiwan, Vietnam, Malaysia, Brunei, and the Philippines. Territorial disputes contribute to regional volatility. The Sea is considered a flashpoint for conflict in the Asia Pacific Region. There are two groups of islands in the South China Sea: the Paracel and Spratly Islands. China, Taiwan, and Vietnam claim all of the Paracel and Spartly Islands, while Malaysia, the Philippines, and Brunei only claim parts of the Spratlys. Claims put forward by China, Taiwan, and Vietnam are historically based, whereas claims made by Malaysia and Brunei are based on the United Nations Convention on the Law of the Sea (UNCLoS), the proximity principle, and the continental shelf principle. The Philippines’ claim is based on proclaimed discovery of unclaimed islands in 1956.

 

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