China’s naval Strategy heightens geopolitical risk to oil
INTELLIGENCE BRIEFING: 06.01.15
Summary: China is increasingly asserting itself militarily both near to its shores and farther at sea. In doing so, it will seek to define the rules of the sea in ways that better protect its interests. The United States and some closer treaty allies such as Japan and Australia are likely to lead the opposition to China redefining what they consider as settled law of the sea. Both sides will be careful to avoid a clash that could affect merchant traffic. However, an incident could prompt escalation and create another crisis between Beijing and Washington, and likely lift oil prices.