4. As neighbors facing each other across the sea, China and the Philippines have closely engaged in exchanges, and the two peoples have enjoyed friendship over generations. There had been no territorial or maritime delimitation disputes between the two states until the 1970s when the Philippines started to invade and illegally occupy some islands and reefs of China's Nansha Qundao, creating a territorial issue with China over these islands and reefs. In addition, with the development of the international law of the sea, a maritime delimitation dispute also arose between the two states regarding certain maritime areas of the South China Sea.

5. China and the Philippines have not yet had any negotiation designed to settle their relevant disputes in the South China Sea. However, the two countries did hold multiple rounds of consultations on the proper management of disputes at sea and reached consensus on resolving through negotiation and consultation the relevant disputes, which has been repeatedly reaffirmed in a number of bilateral documents. The two countries have also made solemn commitment to settling relevant disputes through negotiation and consultation in the 2002 Declaration on the Conduct of Parties in the South China Sea (DOC) that China and the ASEAN Member States jointly signed.

6. In January 2013, the then government of the Republic of the Philippines turned its back on the above-mentioned consensus and commitment, and unilaterally initiated the South China Sea arbitration. The Philippines deliberately mischaracterized and packaged the territorial issue which is not subject to the United Nations Convention on the Law of the Sea (UNCLOS) and the maritime delimitation dispute which has been excluded from the UNCLOS dispute settlement procedures by China's 2006 optional exceptions declaration pursuant to Article 298 of UNCLOS. This act is a wanton abuse of the UNCLOS dispute settlement procedures. In doing so, the Philippines attempts to deny China's territorial sovereignty and maritime rights and interests in the South China Sea.

7. This paper aims to clarify the facts and tell the truth behind the relevant disputes between China and the Philippines in the South China Sea, and to reaffirm China's consistent position and policy on the South China Sea issue, in order to get to the root of the issue and set the record straight.

I. Nanhai Zhudao are China's Inherent Territory

i. China's sovereignty over Nanhai Zhudao is established in the course of history

8. The Chinese people have since ancient times lived and engaged in production activities on Nanhai Zhudao and in relevant waters. China is the first to have discovered, named, and explored and exploited Nanhai Zhudao and relevant waters, and the first to have continuously, peacefully and effectively exercised sovereignty and jurisdiction over them, thus establishing sovereignty over Nanhai Zhudao and the relevant rights and interests in the South China Sea.

9. As early as the 2nd century BCE in the Western Han Dynasty, the Chinese people sailed in the South China Sea and discovered Nanhai Zhudao in the long course of activities.