Why is China creating a 'nature reserve' in the South China Sea?

China has announced plans for a national nature reserve at the Scarborough Shoal in the South China Sea, a region already marked by frequent confrontations over territorial claims.

The decision has been condemned by the Philippines, which argues that Beijing is using environmental protection as a cover to reinforce its control over a strategically important maritime feature.

Scarborough Shoal — also called Huangyan Island in China and known in the Philippines as Bajo de Masinloc or Panatag Shoal — has long been a source of friction between the two nations.

What is the strategic significance of Scarborough Shoal?

The Scarborough Shoal is a triangular atoll located about 200 kilometres (124 miles) from the Philippine coast, placing it well within Manila’s exclusive economic zone (EEZ) under the 1982 United Nations Convention on the Law of the Sea (UNCLOS).

Its lagoon provides a natural safe harbour for fishing vessels during storms, while its surrounding waters are known for their abundant fish stocks.

The shoal is not only valued for its marine resources but also for its strategic location. It sits near key shipping lanes through which more than $3 trillion worth of trade passes annually, making it an area of great interest to regional and global powers, including the United States.

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Control over this maritime feature provides a potential advantage in overseeing movement through one of the world’s busiest waterways.

Historically, the shoal was named after a British vessel that ran aground there nearly three centuries ago. Today, it is among the most contested maritime areas in Asia and a frequent site of diplomatic disputes, standoffs, and military activity.

What do we know about China’s new nature reserve plan?

On Wednesday, China’s State Council approved a proposal from the Ministry of Natural Resources to create a national nature reserve at Scarborough Shoal.

According to official notices, the reserve will encompass 3,524 hectares (8,708 acres), covering the northeastern side of the atoll — an area that includes the main access point for larger vessels entering the lagoon.

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The Chinese government has stated that the primary objective is to protect the shoal’s coral reef ecosystem and ensure the “diversity, stability and sustainability” of its natural environment.

The Chinese National Forestry and Grassland Administration described the reserve as an “important safeguard” for ecological preservation.

Under Chinese law, such reserves are divided into three distinct zones:

• Core Area – strictly off-limits to all activities to prevent environmental disturbance.

• Buffer Zone – restricted for scientific research purposes only.

• Experimental Zone – limited research and controlled visits are allowed, but foreign visitors must first obtain approval from Chinese authorities.

By applying this framework to Scarborough Shoal, Beijing would gain formal mechanisms to regulate access and activity in the area, with its coast guard tasked with enforcement.

Yang Xiao, a maritime scholar at the China Institutes of Contemporary International Relations, defended the move, stating that the new plan and its demarcation were justified and necessary for conservation.

He argued that it “reflects the gradual improvement of our jurisdiction and governance over this sea area.”

How has Manila reacted?

Officials in Manila have described the plan as an unlawful attempt to consolidate Beijing’s control over an area the Philippines considers part of its sovereign territory.

National Security Adviser Eduardo Año was especially direct, saying, “It is a clear pretext towards eventual occupation.” In his view, the proposal has little to do with ecological protection and is instead a way for China to legitimise its presence at Scarborough Shoal.

Año added that the initiative was “less about protecting the environment and more about justifying its control” over a maritime feature belonging to the Philippines.

The Philippine Department of Foreign Affairs (DFA) announced it would be lodging a formal diplomatic protest against China’s decision.

In its statement, the DFA asserted that Beijing’s actions “clearly infringe on Manila’s rights and interests.” It pointed out that Bajo de Masinloc is a “longstanding and integral part” of the Philippines.

The DFA also urged Beijing to immediately withdraw the nature reserve designation and comply with international law, specifically UNCLOS, which governs maritime rights and responsibilities.

Año echoed this stance, stating that the Philippines will continue to assert its sovereignty. “The Philippines will be issuing a formal diplomatic protest against this illegitimate and unlawful action by China,” he said.

How has Beijing responded?

China’s Foreign Ministry dismissed Manila’s objections and reiterated its position that Scarborough Shoal is Chinese territory.

At a regular press briefing, ministry spokesperson Lin Jian criticised the Philippine response, urging Manila to halt its actions and rhetoric.

Lin stated, “China urges the Philippine side to effectively stop the relevant infringement, provocation, and wanton hype, and avoid complicating the maritime situation.”

He described the Philippine accusations and protests as “unreasonable” and invalid.

Who has sovereignty over Scarborough Shoal?

Sovereignty over Scarborough Shoal remains unresolved, as no international court or agreement has definitively assigned ownership.

In 2016, the Permanent Court of Arbitration in The Hague issued a landmark ruling that invalidated China’s sweeping claims to most of the South China Sea. However, that ruling did not determine who holds sovereignty over the shoal itself.

The tribunal did find that China’s blockade of the area violated international law. It recognised Scarborough Shoal as a traditional fishing ground historically used by several countries, including the Philippines, Vietnam, and China.

Despite the ruling, Beijing rejected the court’s decision and has since continued to strengthen its control over disputed maritime areas.

This has included establishing administrative regions, deploying coast guard vessels, and constructing infrastructure on other contested features in the South China Sea.

In November last year, China unilaterally established territorial baselines around Scarborough Shoal.

Manila strongly protested this move, calling it a continuation of the 2012 seizure, when China gained de facto control of the atoll after a prolonged standoff with Philippine forces.

Is China really concerned about the environment?

While China has framed the new nature reserve as a measure for ecological protection, its track record in the South China Sea has raised scepticism among regional governments and environmental groups.

A 2023 report by the Centre for Strategic and International Studies (CSIS) documented extensive environmental damage caused by Chinese activities in the region.

It found that Beijing’s construction of artificial islands and related projects had buried more than 4,600 acres (1,861 hectares) of coral reefs.

Additionally, giant clam harvesting by Chinese fishing crews was estimated to have destroyed another 16,353 acres of coral reef habitat.

The Philippines has repeatedly accused China of damaging marine ecosystems through dredging and extraction activities around disputed features, including Scarborough Shoal.

Beijing, in turn, has denied these claims and countered that the Philippines has also harmed the environment.

Yang Xiao has specifically accused Filipino fishermen of catching endangered species and contributing to water pollution in the area.

Maritime analyst Jay Batongbacal of the University of the Philippines argued that China’s environmental justification may serve a political purpose.

According to him, “China hopes that by clothing its actions as ‘environmental protection’ they will be able to dissuade countries from supporting Philippine activities and attempts to reintroduce traditional fishing on the shoal.”

Batongbacal warned that the new designation could give Beijing additional tools to restrict access, potentially including arrests of Filipino fishermen, who might then be used as leverage in future negotiations.

Speaking to Reuters, he described the move as a “thinly veiled attempt to tighten Beijing’s claims” in the contested waters.

What next in the South China Sea?

The South China Sea has seen a series of confrontations in recent years involving coast guard ships, fishing vessels, and naval forces. Scarborough Shoal has been one of the main flashpoints, with both sides accusing each other of provocations.

These encounters have included the use of water cannons, deliberate ramming of boats, and dangerously close maneuvers. There have also been reports of Chinese fighter jets shadowing Philippine aircraft flying over the area.

In August, tensions reached a new level when a China Coast Guard vessel collided with a Chinese navy ship during an incident involving a Philippine Coast Guard vessel near the shoal.

It was the first known collision between two Chinese vessels in the disputed area, underscoring the intensity and complexity of operations there.

That same month, the Chinese navy claimed it had expelled a US Navy ship from waters near the shoal. The US military rejected this account, stating that its operation was a lawful assertion of navigation rights under international law.

These developments highlight the risks of miscalculation. Any escalation involving Philippine or US forces could have serious consequences, particularly given the 1951 Mutual Defense Treaty between Washington and Manila.

Under this treaty, the United States is committed to defending the Philippines if its forces come under armed attack.

Scarborough Shoal is only one part of a wider territorial dispute that spans much of the South China Sea. Beijing’s “nine-dash line” claim overlaps with the EEZs of several other countries, including Vietnam, Malaysia, Brunei, and Indonesia.

Over the past decade, China has also built man-made islands on seven submerged reefs in the Spratly Islands, some of which now host runways, missile systems, and radar facilities.

The United States and its allies have increased their presence and patrols in the South China Sea in response to China’s growing assertiveness. This includes freedom of navigation operations aimed at challenging Beijing’s maritime claims.

With inputs from agencies