The letter represented a diplomatic gesture of goodwill that has no legal relevance to the current territorial dispute, stating:  [ unreliable source? Dear Comrade Prime Minister, We solemnly inform you that the Government of the Democratic Republic of Vietnam acknowledges and supports the declaration dated September 4th, by the Government of the People's Republic of China regarding the decision on the breadth of China's territorial sea.
InChina occupied the shoal in a standoff between the Philippines and China. Philippines still claims the shoal and surrounding waters belong to them.
If completed as envisioned in the CGI designs, China will have its first airstrip in the Spratly islands — and a base from which to impose its interpretation of the surrounding features' sovereignty'. China is likely to set up an air defence zone over the South China Sea territory.
The US has made it clear it sides with the Philippines, and it is this which has the potential to lead to trading disputes between China and the US as well.
If an area is specifically excluded for cover from a geographical area then the Insured will presumably seek to avoid that area or risk not being covered. Vessels would have to source alternative routes which could impact on shipping time and cause delays.
Vietnam was to be temporarily divided along the 17th Parallel. Sound in principle, most other claimants consider the presumption the nine-dash line would be the starting point of negotiations for joint development as fundamentally unfair.
Concerns The United States, which maintains important interests in ensuring freedom of navigation and securing sea lines of communication SLOCshas expressed support for an agreement on a binding code of conduct and other confidence-building measures.