South China Sea territorial and maritime disputes
China, the Philippines, Vietnam, Malaysia, Brunei, Indonesia and Taiwan hold overlapping territorial and maritime claims in the South China Sea. China's claim, drawn as the nine-dash line, covers most of the sea and overlaps exclusive economic zones claimed by the other parties. An arbitral tribunal constituted under the UN Convention on the Law of the Sea ruled in 2016 that the line has no legal basis; China does not recognise the ruling. Several claimants occupy features in the Spratly and Paracel groups, and some have built installations on them. Coast guard, naval, militia and fishing vessels operate in contested waters, and encounters occur around features including Scarborough Shoal, Second Thomas Shoal and Reed Bank. The United States and other states outside the dispute conduct naval and air operations in the sea and hold exercises with claimant states. China and ASEAN have negotiated a code of conduct for the sea since 2002. Roughly a third of global shipping transits the sea, and the seabed holds oil, gas and fishing grounds.