Starting up trade talks in Beijing today to resolve the trade war between the U.S. and China, 72-year-old President Donald Trump sent the U.S.S. McCampbell into the South China Sea. Trump’s decision reminds China that they lost their claim to the South China Sea at The Hague June 12, 2016 in dispute with the Philippines. Philippines filed suit in 2013 after China began dredging and building military installations in shallow shoals and islands in the South China Sea, claiming sovereignty over fishing rights and the international waterway. Trump’s move was swiftly called “provocation” by China’s Foreign Ministry, calling it a violation of China’s sovereignty. U.S. Navy officials called the McCampbell’s mission one of “freedom of navigation” 12 miles off the Parcel Island chain “to challenge excessive maritime claims,” said Pacific Fleet spokeswoman Rachel McMarr.
Sending the McCampbell into international waters in the South China Sea, Trump sent a loud message to Beijing that the U.S. would not be intimidated by China’s claims to the South China Sea. With much riding on trade talks, China’s Foreign Ministry reacted harshly to the U.S. McCampbell patrolling international waters in the South China Sea. Beijing lost all of its claims of sovereignty in the South China Sea in a resounding defeat at The Hague. China’s Foreign Ministry spokesman Lu Kang said the U.S. ship had violated China’s and international law, prompting China to file “stern representations.” Beijing knows they lost the case in The Hague over their claims to the South China Sea, proving they have no legal standing. Trump put China on notice that they have no legal standing claiming sovereignty to islands in the South China Sea or control of international waters.
Meeting in Beijing for trade talks, the South China Sea incident weighs heavily on the outcome of talks. “We urge the United States to immediately cease this kind of provocation,” said Kang, sending ships and aircraft into the area. China’s Defense Ministry insisted the U.S.S. McCampbell “gravely infringed upon China’s sovereignty,” showing that China makes up its own rules, does not follow international maritime law. Ignoring The Hague’s July 12, 2016 ruling doesn’t give China the right to make up its own rules on sovereignty or international navigation. “We will be on high alert and will closely monitor the air and sea situation to strongly defend our sovereignty and security,” said China’s state media. China’s reaction to U.S. Navy’s right to freedom of navigation on the high seas in international water doesn’t bode well for trade talks where China doesn’t recognize international legal norms.
Sending a U.S. ship into international waters in the South China Seas shows the extent of China’s bubble, unwilling to abide by international standards. Losing their sovereignty argument over a land-grab in the South China Sea shows that China operates independently of international laws. Trump’s decision to send the U.S.S. McCampbell into the South China Sea reminds China that, like international trade violations, China can’t infringe on freedom of navigation. “Both sides have the responsibility to create the necessary positive atmosphere for this,” said Kang referring to today’s trade talks that affect the U.S. and Chinese economies. Trump decided to tariff Chinese goods last year to stop China’s corporate espionage, patent infringements and currency manipulation leaving the U.S. with massive trade deficits. Chinese President Xi Jinping promised to remedy these problems.
China’s reaction to the U.S.S. McCampbell doesn’t bode well for trade talks, where China thinks it’s entitled to ignore international copyright and patents laws covering a wide rage of software and products. Trump wants Beijing to open up its markets to U.S. products and stop corporate espionage and copyright and patent infringements. When it comes to international navigation, Trump won’t tolerate Beijing’s arbitrary declaration of sovereignty over the South China Sea, especially because of The Hague ruling. Vietnam, Brunei, Malaysia, Indonesia and Taiwan all seek freedom of navigation under international maritime law. When the Philippines won its case at The Hague, all other Pacific Rim countries declared victory over China’s attempt to dominate the region. China ignores the ruling, threatening military action against anyone violating its sovereignty in the South China Sea.
Rallying on hope of a trade deal with China today, Wall Street could easily find itself disappointed if trade talks head south. Given China’s cavalier way of doing business or navigating international waters, it’s possible they won’t make the kind of concessions needed to satisfy Trump. Whether it’s trade or international navigation, the U.S. can’t cow to China’s bent to dominate the landscape. Ignoring The Hague ruling on Philippine fishing and navigation rights tells Trump everything he needs to know about how trade talks are likely to go. China defends its unfair trade practices as necessary for its economy, much the same way they claim sovereignty over the South China Sea for its national security. Militarizing the South China Sea has shown China’s intent to dominate the region. Intimidating its neighbors or international trading partners makes Trump’s trade talks all the more difficult.
