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.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
FGM-148 Javelin anti-tank missiles are supplied through a joint venture between Raytheon and Lockheed Martin.
- 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.
Subsidiaries and affiliates supplying the Chinese armed forces include Oboronprom, Kamov, Mil, Russian Helicopters, and Rostvertol.
- 4.
Subsidiaries and affiliates supplying the Chinese armed forces include Ilyushin and Sukhoi.
- 5.
- 6.
Personal correspondence.
Bibliography
2016 Defense White Paper. Department of Defense, Australian Government, 2016. Accessed January 27, 2017. http://www.defence.gov.au/whitepaper/Docs/2016-Defence-White-Paper.pdf.
Aquino III, Benigno S. “Benigno S. Aquino III, Fourth State of the Nation Address, July 22, 2013.” Official Gazette. Manila: Republic of Philippines, 2013. Accessed January 27, 2017. http://www.gov.ph/2013/07/22/english-benigno-s-aquino-iii-fourth-state-of-the-nation-address-july-22-2013/.
Auslin, Michael. “Japan’s New Realism: Abe Gets Tough.” Foreign Affairs 95, no. 2 (March/April 2016).
Bienaimé, Pierre. “ Japan’s Military Is Revving up to Meet China’s Growing Regional Ambitions.” Business Insider. Last modified November 19, 2014. http://www.businessinsider.com/japan-military-increases-south-china-sea-2014-11.
Bitzinger, Richard A. “The Revolution in Military Affairs and the Global Defence Industry: Reactions and Interactions.” Security Challenges 4, no. 4 (2008), 1–12.
Blanchard, Ben. “China Eyes Turning South China Sea Islands into Maldives-style Resorts.” Reuters. Last modified May 26, 2016. http://www.reuters.com/article/us-southchinasea-china-idUSKCN0YI08B.
Carter, Ashton. “The United States and Challenges to Asia-Pacific Security: Ashton Carter.” The International Institute for Strategic Studies. May 29, 2015. Accessed January 27, 2017. https://www.youtube.com/watch?v=oQtGHpS_LGI.
Chang, Felix K. “Japan’s Constitutional Reinterpretation and Its Pursuit of New Security Relationships.” Foreign Policy Research Institute. Last modified July 8, 2014. http://www.fpri.org/2014/07/japans-constitutional-reinterpretation-and-its-pursuit-of-new-security-relationships/.
Chen, Chia-lun, Tang Pei-chun, Sophia Yeh, and Lilian Wu. “Top Cabinet Officials in New Administration Announced.” Focus Taiwan News Channel. Last modified April 15, 2016. http://focustaiwan.tw/news/aipl/201604150024.aspx.
Chen, Jingyuan. “Six Companies Highlighted in Indigenous Submarine Development.” United Daily News. Last modified March 27, 2016. https://udn.com/news/story/9485/1722466-%E6%BD%9B%E8%89%A6%E5%9C%8B%E9%80%A0-%E9%BB%9E%E5%90%8D%E5%85%AD%E4%BA%AE%E9%BB%9E%E4%BC%81%E6%A5%AD. [Chinese: 陳景淵. “潛艦國造 點名六亮點企業.”]
“China is Developing, Designing, and Manufacturing Its Second Aircraft Carrier 国正在自主开展设计和建造第二艘航空母舰].” Xinhua News. Last modified July 31, 2015. http://news.xinhuanet.com/politics/2015-12/31/c_1117641735.htm.
China Review News Agency (CRNTT). “South China Sea Network Website Officially Goes Online [中國南海網正式開通上線].” August 3, 2016. http://hk.crntt.com/doc/1043/3/7/0/104337025.html?coluid=45&kindid=0&docid=104337025&mdate=0803172305.
China Shipbuilding Industry Corporation [CSIC]. “Introduction.” Last modified May 31, 2016. www.csic.com.cn/en/Survey.htm.
China State Shipbuilding Corporation [CSSC]. “Groups Profile.” Accessed May 31, 2016. http://www.cssc.net.cn/en/component_general_situation/.
“China’s Sinopec to Build Service Station on Woody Island in Disputed South China Sea.” South China Morning Post. December 15, 2015. Accessed January 27, 2017. http://www.scmp.com/news/china/diplomacy-defence/article/1891237/chinas-sinopec-build-service-station-woody-island.
Cronk, Terri Moon. “DoD Report: China’s Military Investments Continue.” U.S. Department of Defense. Last modified May 13, 2016. https://www.defense.gov/News/Article/Article/759522/dod-report-chinas-military-investments-continue.
Cropsey, Seth. “The Master Plan to Upgrade Taiwan’s Military: New Submarines.” The National Interest. November 12, 2015. http://nationalinterest.org/blog/the-buzz/the-master-plan-upgrade-taiwans-military-new-submarines-14327.
Dyer, Geoff. “US to Sail Submarine Drones in South China Sea.” Financial Times. April 17, 2016. Accessed January 27, 2017. http://www.ft.com/cms/s/0/e5dd3d5a-0314-11e6-af1d-c47326021344.html.
“Elta, Triton Expected to Bag Contracts from Philippines.” Defense World Net. Last modified January 4, 2016. http://www.defenseworld.net/news/14987/Elta__Triton_Expected_to_Bag_Contracts_from_Philippines#.WJLeSNJ96t8.
Enhanced Defense Cooperation Agreement Between the Philippines and the United States. Manila: Government of the Republic of Philippines, April 28, 2014. Accessed January 27, 2017. http://www.gov.ph/2014/04/29/document-enhanced-defense-cooperation-agreement/.
“Fact Sheet: Unmanned Maritime Systems Program Office (PMS406).” Program Executive Officer, Littoral & Mine Warfare, n.d. Accessed January 27, 2017. http://auvac.org/uploads/publication_pdf/Pms406_PROGRAM.pdf.
“Flight Attendants Land and Take Photographs on Fiery Cross Reef in the Spratly Islands [空姐登上南沙永暑礁自拍:定格美丽瞬间_图片频道_新华网].” 新华网_让新闻离你更近. Last modified January 10, 2016. http://news.xinhuanet.com/photo/2016-01/10/c_128612422.htm.
Frost, Christopher. “The Great Green Fleet Operates in the South China Sea.” Commander, U.S. 7th Fleet. Last modified March 4, 2016. http://www.c7f.navy.mil/Media/News/Display/Article/685811/the-great-green-fleet-operates-in-the-south-china-sea/.
Hagel, Chuck. “A New Era for the Defense Department.” Defense One. Last modified November 18, 2014. http://www.defenseone.com/ideas/2014/11/new-era-defense-department/99392/.
Harner, Stephen. “The NYTimes’ ‘China Threat’ Myth, the ‘Pivot to Asia,’ and Obama’s Foreign Policy Legacy.” Forbes. June 22, 2014. Accessed January 27, 2017. http://www.forbes.com/sites/stephenharner/2014/06/22/the-nytimes-china-threat-myth-the-pivot-to-asia-and-obamas-foreign-policy-legacy/#292d092c1a9d.
Hayton, Bill. South China Sea, the: The Struggle for Power in Asia. New Haven: Yale University Press, 2014.
Hong, Minlong, and Junhao Zhang. “Taiping Island Construction Unexpectedly Hires Chinese Vessel.” Apple Daily. November 11, 2014. http://www.appledaily.com.tw/appledaily/article/headline/20141111/36200238/. [Chinese: 洪敏隆 and 張君豪, “太平島施工 竟僱中國船,” 蘋果日報.]
Hornung, Jeffrey W. “Constitutional Revision in Japan: Why Change Is Hard to Come By.” Foreign Affairs. Last modified July 26, 2016. https://www.foreignaffairs.com/articles/japan/2016-07-26/constitutional-revision-japan.
Information Office of the State Council, The People’s Republic of China. “Full Text: The Diversified Employment of China’s Armed Forces.” Xinhua English.news.cn. Last modified April 16, 2013. http://news.xinhuanet.com/english/china/2013-04/16/c_132312681.htm.
Ishida, Michiyo. “Defence Contractor Lockheed Martin Sees Promising Market in Japan.” Channel NewsAsia. Last modified November 29, 2016. http://www.channelnewsasia.com/news/business/defence-contractor/2467044.html.
“Island Tracker.” Asia Maritime Transparency Initiative. Accessed June 30, 2016. https://amti.csis.org/island-tracker.
“Japan to Start Delivery of 10 Brand New Patrol Vessels to PH Next Year.” The Philippine Pride. Last modified June 5, 2015. http://www.thephilippinepride.com/japan-to-start-delivery-of-10-brand-new-patrol-vessels-next-year/.
“Japan Unveils First Stealth Fighter Jet.” Channel NewsAsia. Last modified January 28, 2016. http://www.channelnewsasia.com/news/asiapacific/japan-unveils-first/2467156.html.
Joint Statement: Between the United States of America and the Socialist Republic of Vietnam. Washington: The White House, Office of the Press Secretary, May 23, 2016. Accessed January 27, 2017. https://www.whitehouse.gov/the-press-office/2016/05/23/joint-statement-between-united-states-america-and-socialist-republic.
Lamothe, D. “Navy aircraft carrier group moves into contested South China Sea.” The Washington Post. March 3, 2016. Accessed January 27, 2017. https://www.washingtonpost.com/news/checkpoint/wp/2016/03/03/navy-aircraft-carrier-group-moves-into-contested-south-china-sea-pentagon-says/.
“Large Displacement Unmanned Underwater Vehicle Program Achieves Acquisition Milestone.” PEO LCS Public Affairs, US Navy. Last modified September 3, 2015. http://www.navy.mil/submit/display.asp?story_id=90932.
Lim, Kenneth. “Drone War: China, Vietnam, and Philippines Turn to Unmanned Flights in South China Sea ‘Mexican Standoff’.” The Inquisitr News. Last modified March 29, 2016. http://www.inquisitr.com/2941688/drone-war-china-vietnam-and-philippines-turn-to-unmanned-flights-in-south-china-sea-mexican-standoff/.
Lü, Zhaolong. “Chinese Ship Transports Goods to Taiping Island, Navy Monitors Full Route.” China Times. February 2, 2015. http://www.chinatimes.com/newspapers/20150202000287-260102. [Chinese: 呂昭隆. “陸船運貨太平島 海軍全程監控.” 中時電子報.]
Lubold, Gordon. “Pentagon to Sharply Expand U.S. Drone Flights Over Next Four Years.” The Wall Street Journal. August 16, 2015. Accessed February 2, 2017. http://www.wsj.com/articles/pentagon-to-add-drone-flights-1439768451.
Martinson, Ryan D. “From Words to Actions: The Creation of the China Coast Guard.” Paper presented at China as a “Maritime Power” Conference, Arlington, Virginia, July 28–29, 2015. https://www.cna.org/cna_files/pdf/creation-china-coast-guard.pdf.
McCarthy, John. “Australia and the South China Sea.” The Strategist. Australian Strategic Policy Institute, March 17, 2016. http://www.aspistrategist.org.au/australia-and-the-south-china-sea/.
Military Sealift Command Public Affairs. “Military Sealift Command Reorganizes to Increase Efficiency/Cut Costs.” Department of the Navy US. January 9, 2012. Last modified September 1, 2012. http://www.navy.mil/submit/display.asp?story_id=64680.
Mizokami, Kyle. “Essay: Understanding Japan’s Shifting Defense Policy.” USNI News. Last modified August 20, 2015. https://news.usni.org/2015/08/20/essay-understanding-japans-shifting-defense-policy.
Mogato, Manuel. “Philippines Ramps Up Military Spending in Face of China Threat.” Reuters. Last modified July 7, 2015. http://mobile.reuters.com/article/idUSKCN0PH0VT20150707?irpc=932.
Moss, Trefor, and Colleen McCain Nelson. “Obama Sets Tone for APEC Forum With Focus on South China Sea.” The Wall Street Journal. November 17, 2015. http://www.wsj.com/articles/obama-sets-tone-for-apec-forum-with-focus-on-south-china-sea-1447761193.
National Institute for South China Sea Studies (NISCSS). “About the National Institute for South China Sea Studies.” May 27, 2016. http://en.nanhai.org.cn/index.php/Index/Special/video_ic/id/221.html.
National Institute for South China Sea Studies (NISCSS). “NISCSS Profile.” Accessed May 31, 2016. http://en.nanhai.org.cn/index.php/Index/Survey/index.html.
The New York Times. “Guest Post: James Ledbetter on 50 Years of the “Military-Industrial Complex.” January 25, 2011. Accessed January 27, 2017. https://schott.blogs.nytimes.com/2011/01/25/guest-post-james-ledbetter-on-50-years-of-the-military-industrial-complex/.
Office of the Press Secretary. “FACT SHEET: U.S. Building Maritime Capacity in Southeast Asia.” The White House. Last modified November 17, 2015. https://www.whitehouse.gov/the-press-office/2015/11/17/fact-sheet-us-building-maritime-capacity-southeast-asia.
Page, Jeremy. “New Chinese Institute to Tackle Thorny Island Dispute.” The Wall Street Journal. May 1, 2015. http://www.wsj.com/articles/new-chinese-institute-to-tackle-thorny-island-dispute-1430523945.
“Pentagon Launches New Future Weapons Research Effort.” Washington: Defense Technical Information Center, U.S Department of Defense, 2015. Accessed February 2, 2017. http://www.dtic.mil/dtic/pdf/newswire_longrange_plan.pdf.
Perlez, Jane. “Australia Announces Rise in Spending for Military.” The New York Times. February 24, 2016. Accessed January 27, 2017. https://www.nytimes.com/2016/02/25/world/australia/australia-announces-rise-in-spending-for-military.html.
Perlo-Freeman, Sam, Elisabeth Sköns, Carina Solmirano, and Helén Wilandh. “Trends in World Military Expenditure, 2012.” SIPRI Fact Sheet. April/May 2013. Accessed January 27, 2017. http://books.sipri.org/files/FS/SIPRIFS1304.pdf.
Perlo-Freeman, Sam, and Carina Solmirano. “Military Spending and Regional Security in the Asia–Pacific.” In SIPRI Yearbook 2014: Armaments, Disarmament and International Security. Oxford: Oxford University Press, 2014, pp. 188–201.
Perlo-Freeman, Sam, and Pieter D. Wezeman. “The SIPRI Top 100 Arms-Producing and Military Services Companies 2012.” In SIPRI Yearbook 2014: Armaments, Disarmament and International Security. Solna: Stockholm International Peace Research Institute (Stockholms internationella fredsforskningsinstitut) (SIPRI), 2014.
“Philippine Coast Guard to Host Bilateral Exercise with Japan Coast Guard.” Philippine Coast Guard Official Website. Last modified July 11, 2016. http://www.coastguard.gov.ph/index.php/notice-to-mariners/notam-2016/11-news/1288-philippine-coast-guard-to-host-bilateral-exercise-with-japan-coast-guard.
The PLA Navy: New Capabilities and Missions for the 21st Century. Washington: The U.S. Office of Naval Intelligence (ONI), 2015. Accessed January 27, 2017. http://www.oni.navy.mil/Portals/12/Intel%20agencies/China_Media/2015_PLA_NAVY_PUB_Print.pdf.
Rahmat, Ridzwan. “Japan Readies First MMRV for Delivery to the Philippines.” IHS Jane’s Defence Weekly. Last modified June 9, 2016. http://www.janes.com/article/61093/japan-readies-first-mmrv-for-delivery-to-the-philippines.
Rahmat, Ridzwan. “Indonesian Navy Plans for Submarine Base in South China Sea.” IHS Jane’s Navy International. Last modified March 31, 2016. http://www.janes.com/article/59159/indonesian-navy-plans-for-submarine-base-in-south-china-sea.
Rees, Evan. “Indonesia Guards Its Front Door.” Stratfor. Last modified July 28, 2016. https://www.stratfor.com/analysis/indonesia-guards-its-front-door.
The Republic of China Yearbook. Taipei: Executive Yuan, R.O.C. (Taiwan), November 2015. Accessed January 27, 2017. http://english.ey.gov.tw/cp.aspx?n=ec9205f763e2a607.
Rubin Central Design Bureau for Marine Engineering (Rubin). “Company Profile.” Accessed June 30, 2016. http://ckb-rubin.ru/en/company_profile/.
Rubin Central Design Bureau for Marine Engineering (Rubin). “Main.” Accessed June 30, 2016. http://ckb-rubin.ru/en/main/.
Shanghai Zhenhua Heavy Industries Co., Ltd. [ZPMC]. “About Us.” Last modified February 2, 2015. http://www.zpmc.com/about.php.
Soble, Jonathan. “With Ban on Exports Lifted, Japan Arms Makers Cautiously Market Wares Abroad.” The New York Times. July 12, 2015. Accessed January 27, 2017. https://www.nytimes.com/2015/07/13/business/international/with-ban-on-exports-lifted-japan-arms-makers-cautiously-market-wares-abroad.html?_r=1.
Stewart, Phil. “U.S. Military Christens Self-driving ‘Sea Hunter’ Warship.” Reuters. Last modified April 28, 2016. http://www.reuters.com/article/us-usa-military-robot-ship-idUSKCN0X42I4.
Stockholm International Peace Research Institute (SIPRI). “The SIPRI Top 100 Arms-Producing and Military Services Companies in the World (Excluding China), 2014.” SIPRI. December 2015. http://www.sipri.org/research/armaments/production/recent-trends-in-arms-industry/The%20SIPRI%20Top%20100%202014.pdf.
Stockholm International Peace Research Institute (SIPRI). “Asia and the Middle East Lead Rise in Arms Imports; the United States and Russia Remain Largest Arms Exporters, Says SIPRI.” SIPRI. Last modified February 22, 2016. https://www.sipri.org/media/press-release/2016/asia-and-middle-east-lead-rise-arms-imports-united-states-and-russia-remain-largest-arms-exporters.
Stockholm International Peace Research Institute (SIPRI). “Global Arms Industry: West Still Dominant Despite Decline; Sales Surge in Rest of the World, Says SIPRI.” SIPRI. Last modified December 14, 2015. https://www.sipri.org/media/press-release/2015/global-arms-industry-west-still-dominant-despite-decline-sales-surge-rest-world-says-sipri.
Stockholm International Peace Research Institute (SIPRI). “SIPRI Arms Transfers Database.” SIPRI. Accessed May 31, 2016. http://armstrade.sipri.org/armstrade/page/trade_register.php.
“Taiwan President Visits Disputed Taiping Island in South China Sea.” The Guardian. January 28, 2016. Accessed January 27, 2017. https://www.theguardian.com/world/2016/jan/28/taiwan-president-ma-ying-jeou-visit-south-china-sea-.
Taiwan Relations Act. American Institute in Taiwan, 1979. Accessed January 27, 2017. https://www.ait.org.tw/en/taiwan-relations-act.html.
Thayer, Carl. “Tensions Set to Rise in the South China Sea.” The Diplomat. February 19, 2014. Accessed January 27, 2017. http://thediplomat.com/2014/02/tensions-set-to-rise-in-the-south-china-sea.
“This Is Why China Is Deploying Surveillance Drones Over the South China Sea.” Sputnik International. Last modified June 2, 2016. https://sputniknews.com/politics/201606021040687992-china-us-surveillance-south-china-sea/.
“Trade Registers.” Stockholm International Peace Institute. Accessed May 31, 2016. http://armstrade.sipri.org/armstrade/page/trade_register.php.
“Vietnam Builds Indigenous Drone to Defend Its Stake at South China Sea.” IHLS Israel Homeland Security. Last modified December 31, 2015. http://i-hls.com/2015/12/67581/.
Viray, Patricia Lourdes. “China: Lighthouse in Subi Reef Serves Business Purposes.” The Philippine Star. April 7, 2016. Accessed January 27, 2017. http://www.philstar.com/headlines/2016/04/07/1570406/china-lighthouse-subi-reef-serves-business-purposes#1oAEB4ZDSmeoPkQm.99.
Tomiyama, Atsushi. “Vietnam Eyes Second Hand Japanese Defense Gear.” Nikkei Asian Review. June 26, 2016. Accessed January 27, 2017. http://asia.nikkei.com/Politics-Economy/International-Relations/Vietnam-eyes-secondhand-Japanese-defense-gear.
Vu, Truong-Minh, and Ngo Di Lan. “Moving the U.S-Vietnam Relationship into the Future.” The National Interest. May 26, 2016. http://nationalinterest.org/blog/the-buzz/moving-the-us-vietnam-relationship-the-future-16361.
Wu, J. R. “Taiwan to Launch Homegrown Submarine Plan with Initial 60.5 Million Pound Budget| Reuters.” Reuters. Last modified September 3, 2015. http://uk.reuters.com/article/2015/09/03/uk-taiwan-military-submarines-idUKKCN0R309Z20150903.
Xu, Beina. “South China Sea Tensions.” Council on Foreign Relations. Last modified May 14, 2014. http://www.cfr.org/china/south-china-sea-tensions/p29790.
Zhao, Lei. “New Surveillance Vessel Poised for Coast Guard Duties.” China Daily. January 12, 2016. Accessed January 27, 2017. http://www.chinadaily.com.cn/china/2016-01/12/content_23044129.htm.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2018 The Author(s)
About this chapter
Cite this chapter
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
Download citation
DOI: https://doi.org/10.1007/978-3-319-62828-8_2
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-62827-1
Online ISBN: 978-3-319-62828-8
eBook Packages: Political Science and International StudiesPolitical Science and International Studies (R0)