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Hong Kong (CNN) - An international tribunal in The Hague ruled in favor of the Philippines in a maritime dispute Tuesday,
concluding China has no legal basis to claim historic rights to the bulk of the South China Sea.
Chinese President Xi Jinping rejected the decision by the Permanent Court of Arbitration, which is likely to have lasting
implications for the resource-rich hot spot, which sees $5 trillion worth of shipborne trade pass through each year.
"China will never accept any claim or action based on those awards," Xi said. China had boycotted the proceedings.
The tribunal concluded that China doesn't have the right to resources within its "nine-dash line," which extends hundreds
of miles to the south and east of its island province of Hainan and covers some 90% of the disputed waters.
China's Ambassador to the United States, Cui Tiankai, accused the tribunal of "professional incompetence" and
"questionable integrity." Speaking at the Center for Strategic and International Studies in Washington, he accused the
United States of engaging in military exercises that constituted "military coercion."
State Department spokesman John Kirby asserted that the United States, and the world, expect China to commit to
nonmilitarization. "The world is watching to see if China is really the global power it professes itself to be, and the
responsible power that it professes itself to be," Kirby said.
Viewed as a decisive win for the Philippines, the ruling could heighten friction in a region already bristling with tension,
especially if it unleashes a defiant reaction from China.
The United States, which has been at odds with China over freedom of navigation in the South China Sea, urged all
parties "to avoid provocative statements and actions."
The findings
The tribunal also found that none of the sea features claimed by China were capable of generating what's called an
exclusive economic zone -- which gives a country maritime rights to resources such as fish and oil and gas within 200
nautical miles of that land mass.
It deemed they were rocks or low-tide elevations such as reefs, rather than islands.
Because China had no rights to the area as an exclusive economic zone, the tribunal found that some of its activities in
the region were in breach of the Philippines' sovereign rights.
China had violated those rights by interfering in fishing and oil exploration, constructing artificial islands and failing to stop
Chinese fisherman from fishing the zone, the ruling said.
The panel found China had caused "severe harm" to coral around the site of its artificial islands. It had also "violated its
obligation to preserve and protect fragile ecosystems."
Chinese fisherman had also killed endangered sea turtles and giant clams "on a substantial scale" -- with the full
knowledge of China, the tribunal said.
What happens now?
Despite being considered a strong ruling against China, the decision offers no clues to what happens next.
The tribunal said it "lacked the jurisdiction to consider the implications of a stand-off" between the Chinese and Philippines
military, specifically at Second Thomas Shoal, and said any resolution of the dispute was "excluded from compulsory
settlement."
The tribunal hasn't ordered China to take any particular steps to remedy the situation, dismantle construction on the
islands or provide reparations to the Philippines.
China's government issued a statement saying it is ready to resolve relevant disputes peacefully through negotiation "on
the basis of respecting historical facts."
"Pending final settlement, China is also ready to make every effort with the states directly concerned to enter into
provisional arrangements of a practical nature, including joint development in relevant maritime areas, in order to achieve
win-win results and jointly maintain peace and stability in the South China Sea," the Chinese government statement said.
While the ruling in The Hague is regarded as legally binding, there is no mechanism to enforce it.
"In terms of enforcement, much will depend on what the Philippines is now prepared to assert against China based on the
award and China's responses to those assertions," said Natalie Klein, an international law professor at Macquarie Law
School in Australia
CNN's Steven Jiang and Shen Lu in Beijing and Hilary Whiteman, Rebecca Wright and Chieu Luu in Hong Kong
contributed to this report. Ryan Browne contributed from Washington.