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Undisputed Winners: The Benefits and Beneficiaries of the South China Sea Maritime Territorial Disputes

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Enterprises, Localities, People, and Policy in the South China Sea

Part of the book series: Critical Studies of the Asia-Pacific ((CSAP))

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Abstract

This chapter argues that, while states continue to vie for control of maritime territory and resources in the South China Sea, it is already clear who the real winners are. The global defense industry, comprising elements of government, private, and state-run enterprises, academia, and civil society, has benefited greatly from the developments and interactions in the region and, regardless of the outcome of the disputes, will continue to do so for the foreseeable future. This analysis begins by outlining the roles of the constituents of the global defense industry as beneficiaries of the disputes. It then takes a closer look at the different forms in which the benefits are manifested. It is structured upon the premise that these benefits are both material and immaterial in nature, the former including immediate financial gains, future investment guarantees, and sub-industry creation and expansion, and the latter including securitization strategy prioritization and reduced relative risk.

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Notes

  1. 1.

    FGM-148 Javelin anti-tank missiles are supplied through a joint venture between Raytheon and Lockheed Martin.

  2. 2.

    Original quote was revised by the author for grammatical clarity from: “As for the naval ships, CSSC is capable of building almost various kinds of warship and auxiliary vessels as well as the related equipment for the Chinese Navy, thus earning the position as the backbone forces backing-up the Chinese Navy in terms of its construction.”

  3. 3.

    Subsidiaries and affiliates supplying the Chinese armed forces include Oboronprom, Kamov, Mil, Russian Helicopters, and Rostvertol.

  4. 4.

    Subsidiaries and affiliates supplying the Chinese armed forces include Ilyushin and Sukhoi.

  5. 5.

    See Table 2.1. These percentages were calculated by the author based on the 2003–2014 period. Note that the military spending growth figures for China and Indonesia in Table 2.1 are calculated based on the 2001–2014 period.

  6. 6.

    Personal correspondence.

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Spangler, J. (2018). Undisputed Winners: The Benefits and Beneficiaries of the South China Sea Maritime Territorial Disputes. In: Spangler, J., Karalekas, D., Lopes de Souza, M. (eds) Enterprises, Localities, People, and Policy in the South China Sea . Critical Studies of the Asia-Pacific. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-62828-8_2

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