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Political Risk / China

Potential For Renewed Tension In South China Sea

September 2009 | Political Risk Analysis

We see potential for a new flare-up in tensions between China and Vietnam in the South China Sea as the underlying dispute over the Paracel and Spratly Islands remains unresolved. While a United Nations commission is currently examining the conflicting claims, there is no mechanism or arbiter for resolving territorial disputes. We therefore suspect that Beijing will continue its strong-arm tactics to strengthen its claim for the islands.

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