An aerial photo shows one of the lighthouses built by China on Johnson South Reef in the Spratly Islands. (Photo : www.scmp.com)
Patriotic Chinese who are angry at the U.N. Permanent Court of Arbitration’s decision on the South China Sea dispute in favor of the Philippines would probably do more than boycott Cebu dried mangoes or smash iPhones if they learn how much an international expert reckons China’s overdue rent and damage for the use of the islands.
In a contribution to Forbes, expert on international politics, security and political risk Anders Corr estimates the back rent and penalties would be in the vicinity of $177 billion.
Corr noted that China has been occupying the reef – which the PCA said was within the Philippine exclusive economic zone – since 1995. But it went beyond occupation because Beijing irreparably damaged the reef’s marine ecosystem when it dredged the area and built an artificial island.
The infrastructure built include an airstrip and a military garrison. In Mischief Reef alone, Corr estimates the overdue amount is $12.4 billion.
He based the whopping $177 billion figure on the $1.97 million that the U.S. paid the Philippines when it destroyed 0.58 acres of coral reef after the USS Guardian went aground. In 1988, Manila asked the U.S. to pay $1.2 billion rent – which is more costly than paying for damaged reefs – for six military bases in the Philippines or $200 million each annually. Because the U.S. refused to pay, Manila ordered the Americans to leave, although the process was hastened by the 1991 eruption of Mount Pinatubo in Pampanga which covered Subic and Clark with ashfall.
On the basis of those amounts, Corr believes the Philippines could sue China in U.S. courts or other countries where Beijing holds property for $4.6 billion as environmental damage to Mischief Reef and $7.8 billion rent. If Beijing refuses to pay, Corr’s advice to the Philippines is to seek redress in foreign civil courts to attach offshore assets of China.
The other amounts would be rent for islands in Spratleys and Scarborough Shoal, occupied by China in 1988 and 2012, respectively.
The Chinese patriots have included Japan in the list of countries they push for a boycott of products because of Tokyo’s support to the UN PCA verdict. Inquire reported that Japanese Prime Minister Shinzo Abe pressured China at an Asia-Europe summit on Saturday to respect the decisions of international tribunals.
“I strongly hope the parties to the dispute comply with the award and lead to a peaceful solution of the dispute in South China Sea,” Abe said in Mongolia.
