The 2016 South China Sea Arbitration ruling remains a central point of contention, particularly regarding maritime rights versus territorial sovereignty. The tribunal explicitly ruled that China's historic rights claims in the South China Sea lack a legal basis under the United Nations Convention on the Law of the Sea (UNCLOS). However, the ruling did not settle the overarching issue of territorial sovereignty over the islands themselves, including the disputed features of the Spratly Islands.
Lawak Island, for instance, is classified as a 'rock' under Article 121(3) of UNCLOS, which impacts its entitlement to an exclusive economic zone and continental shelf. This distinction is crucial because it limits the maritime entitlements that can be generated by the feature, rather than resolving who owns the land territory.
The tribunal emphasized that its mandate was not to determine which state enjoys sovereignty over land territory in the South China Sea. This means that while the tribunal invalidated China's expansive maritime claims, it did not assign ownership of the physical land features.
Therefore, despite the significant legal victory for the Philippines regarding maritime entitlements, the fundamental territorial disputes over islands like Lawak continue to fuel tensions, as nations interpret the ruling differently in relation to their sovereignty claims.