The Dynamics of Chinese Expansion in the South China Sea

Abstract

China is trying to increase its sphere of influence in the South China Sea. Expanded trade with countries in the region through special trade agreements helps China secure sources of commodities and supplies. China has established financial institutions, such as the Asian Infrastructure Investment Bank, and opened the way for greater use of the yuan in settlement of trade. Claims on certain islands in the South China Sea have other countries on high alert and work counter to trade offensive. Diplomatic solutions are called for to keep the area stable. Suggestions of conflict resolution are part of a possible settlement.