	Overview

Since September 2013, China has undertaken extensive land reclamation and construction on several reefs in the Spratly island chain in the southern part of the South China Sea, raising a variety of concerns in the United States and Asia. China's Foreign Ministry announced on June 16, 2015, that China would complete its reclamation work "in the upcoming days" and then turn its attention to building facilities on the newly created artificial islands. The reclamation activity continues a series of assertive actions by China in the South China Sea as Beijing seeks to more actively stress its sovereignty claims in the area. These actions have led the U.S. government to argue that China is seeking to strengthen its maritime territorial claims using threats, coercion, and other actions that fall short of direct conflict. Moreover, some features in their original form may not have extended above water at high tide, meaning no sovereignty claim to those features is recognized under the United Nations Convention on the Law of the Sea (UNCLOS). The reclamation arguably violates the spirit of the 2002 Declaration on the Conduct of Parties in the South China Sea (DOC) between China and the Association of Southeast Asian Nations (ASEAN) and makes discussions over a potential Code of Conduct more difficult. U.S. Strategy

The question of whether the United States has a strategy for dissuading China from continuing its land reclamation activities, or for responding to those activities, and if so, whether that strategy is adequate, is part of a larger question. In recent weeks, several observers have presented ideas on potential U.S. options for imposing such costs, including the following:
stronger U.S. statements to China about the consequences for China of continuing the land reclamation activities, and more generally, changing the U.S. tone of conversation with China; better publicizing China's land reclamation activities and other actions in the area, as well as their potential implications for international law and the treatment of the global commons, to the public and governments in the region and globally; opposing land reclamation activities in disputed waters by both China and other claimants; strengthening the capacity of allied and partner countries in the region to maintain maritime domain awareness (MDA), coast guard patrols, and fishing fleet operations in the area; further strengthening U.S. security cooperation with allied and partner countries in the region, and with India, to the point of creating a coalition for balancing China's assertiveness; increasing arms sales to Taiwan; and increasing U.S. Navy operations in the region.
Since September 2013, China has undertaken extensive reclamation and construction on several reefs in the Spratly Island chain in the South China Sea, raising a variety of concerns in the United States and Asia. The reclamation has created over 2,000 acres (809 hectares) of artificial landmasses on Chinese-occupied reefs that are disputed between several countries and are located in some of the world's most heavily trafficked waters. China announced on June 16, 2015, that its reclamation work would be completed "in the upcoming days," and that when reclamation was finished, it would turn to building facilities on the newly created artificial islands.
The reclamation activity continues a series of assertive actions by China in the South China Sea as Beijing seeks to more actively stress its sovereignty claims in the area. These actions have led the U.S. government to argue that China is seeking to strengthen its maritime territorial claims using threats, coercion, and other actions that fall short of direct conflict. This, some observers argue, raises the question of whether the United States has developed a strategy for countering Chinese actions, and if so, whether that strategy is adequate. China states that its activities are legal, reflecting its claim of sovereignty over the affected features, and notes that other South China Sea claimants have also reclaimed areas on features that they occupy.
The reclamation and construction has military/operational, diplomatic, and legal implications. The Chinese government has stated that the work is intended to fulfill "the need of necessary military defense," as well as to serve non-military purposes. China's plans to use the artificial islands for military purposes could affect U.S. strategy in the Asia-Pacific. The activity has complicated diplomatic processes intended to lower tensions in the region, and legal processes under the United Nations Convention on the Law of the Sea (UNCLOS), that could bring clarity to disputes over maritime rights in the area. According to many analysts, it violates the (non-binding) 2002 Declaration on the Conduct of Parties in the South China Sea (DOC) between China and the Association of Southeast Asian Nations (ASEAN).
This report assesses legal, military/operational, and diplomatic implications of the reclamation and construction activity. It surveys U.S. and Chinese statements on the situation, provides a history of reclamation activity by other nations including the United States and other South China Sea claimants, and discusses U.S. strategy and potential options for U.S. policymakers.