Background:
Half the world's merchant traffic by tonnage passes through it, two-thirds of it crude oil. Whoever controls sea passage through the South China Sea has power over some of the largest and fastest growing economies in the world.
Connects to the Strait of Malacca, between Malaysia and Indonesia, the 2nd busiest oil chokepoint in the world.
Contains the Spratly Islands :
The Spratlys, believed to be rich in oil, gas and fish, consist of about 100 barren islets, reefs and atolls dotting the world's busiest shipping lanes in the South China Sea.
Vietnam, China, Taiwan, the Philippines, Malaysia and Brunei each claim all or part of the low-lying islands.
As well as Hainan Island, China's main naval and nuclear submarine base.
China's vulnerability to an oil embargo, called the "Malacca Dilemma" by Hu Jintao, and the desire for secrecy with their Hainan island-based naval program, means they will be increasingly aggressive in asserting territorial rights to this sea.