NEW CHINESE REGULATIONS REQUIRE FOREIGN FISHING VESSELS TO OBTAIN PERMISSION TO ENTER SOUTH CHINA SEA

Area that China will enforce its new fishing restrictions in

In a move sure to generate opposition from the countries in the region, China's Hainan administrative region has implemented regulations that require non-Chinese fishing vessels to obtain prior permission from Chinese authorities before sailing into, or through, the South China Sea, which China has claimed in its entirety.

Fines, confiscation of catch and vessel, and even imprisonment can result from violations, according to the reports, which state that the new regulations took effect on January1. Do not expect China's neighbors, or the United States, to take this lying down; it will, unfortunately, inevitably result in maritime incidents, and the resultant increase in Country Risk. The Philippines and Vietnam both have territorial claims in the area, and their fishermen ply the waters of the South China Sea, and it is expected that Country Risk for those nations will be increased in 2014, when China seeks to enforce this new effort to expand its territory, through aggressive action.