CHINA warned other countries against threatening its security in the South China Sea after an worldwide tribunal handed the Philippines a victory by saying Beijing had no legal basis for its expansive claims there.
"The ruling can serve as a foundation on which we can start the process of negotiations which hopefully will eventually lead to the peaceful settlement of the maritime dispute in the South China Sea", Charles Jose, a spokesman for the Philippines' Department of Foreign Affairs, said. For nearly all its neighbours, China's rise, as shown in its SCS encroachment policies, is a threat.
But the decision does return a great deal of scrutiny of China's actions in the South China Sea, which are being closely watched by the global community.
Japan also has another territorial dispute with China over the Senkaku islands - a group of uninhabited small islands controlled by Japan in the East China Sea.
The ADIZ was not recognised by the United States and other countries, said a report by Al Jazeera.
"It is a sign that the U.S. wants to make sure that conflict is off the table in South China Sea". "It will certainly intensify conflict and even confrontation".
The Hague arbitral tribunal has released its highly anticipated decision on the Philippines v. China case. Ever since, the nine-dash line has been the basis on which China has asserted it claim, and battled fellow claimants.
Amid this intensifying rivalry, the Philippines would be a frontline state, whose territory would necessarily be targeted by Chinese ballistic missiles ready to neutralize U.S. forces in the archipelago, plus the Cebu, Cagayan de Oro, Nueva Ecija, Palawan, and Pampanga bases used by them.
The US, in turn, accuses China of carrying out what it calls a land reclamation program in the South China Sea by building artificial islands in the disputed areas.
While blaming the previous Philippine government for complicating the dispute by seeking arbitration, Liu also sought to strike a conciliatory note with the Southeast Asian nation's new leadership.
"In very delicate matters like this you can not be provocative in statements".
Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said "we have not actually seen any impact [of the ruling] so far" on markets.
"From China's perspective, the ruling is even more unfavourable than expected".
A flight took off from Haikou, capital of south China's Hainan Province, at 8:30 am and landed on Meiji Reef two hours later, while another took off from Haikou at 8:40 am and landed on Zhubi Reef at 10:28 am. Liu said China remains committed to negotiations with the Philippines and noting new Philippine President Rodrigo Duterte's positive remarks on the issue.
"On whether China will set up an air defence zone over the South China Sea, what we have to make clear first is that China has the right to". It's not merely in the seas that China claims historical sovereignty.
Indonesia also announced it would sharply strengthen security around its islands in the sea, where there have been clashes with Chinese vessels recently.
Western powers, which have an interest in maintaining "freedom of navigation" in waters that support more than US$5 trillion in shipping trade annually, have already put pressure on China to honour the ruling.
But even if the Philippines and China reach a deal later, another analyst noted that the USA and other countries will likely still insist that China follow the decision of the PCA. If China followed that precedent, it could withdraw from the Law of the Sea Treaty altogether - joining the United States as one of the world's only nations not party to the agreement.
Right after the Philippines appealed to the court in 2013, Beijing stated that it would not participate in the tribunal proceedings because the Philippines had no legal grounds to unilaterally initiate compulsory arbitration.
The Beijing Morning Post carries a picture of China superimposed against a sea, and the headline: "South China Sea Islands: China's territory".