After three years of hearing the territorial case filed by the Philippines against China about the ownership of contested territories in the resource-rich South China Sea, the Permanent Court of Arbitration in the Hague made a ruling on Tuesday saying that there is no legal basis to Beijing's claim that it has 'historic rights' to the islands, reefs, and other features in the disputed international waterway.

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In a press release issued by the arbitral tribunal, the five-member panel ruled in favor of the Philippines in its case against China in what has been described as a "historic case."

"[The] Tribunal concluded that, as between the Philippines and China, there was no legal basis for China to claim historic rights to resources, in excess of the rights provided for by the Convention, within the sea areas falling within the 'nine-dash line,'" the press release stated.

Entirety

China is claiming ownership over several reefs and islands in the South China Sea. Beijing has reclaimed hundreds of acres of land to build artificial islands in the region in the past two years and has built facilities in disputed area.

The three-year legal process saw the Philippines submit voluminous documents to the arbitration court; arguing its case despite China's boycott of the case. Beijing has insisted that the court had no jurisdiction over the dispute and has instead called for bilateral talks.

Political observers have said the PCA's ruling risks raising tensions further in the South China Sea region. Experts have also noted that the ruling has dealt Beijing a setback that would likely push it to control the disputed waters by force.

'Outlaw state'

The international community had earlier urged China to respect the Hague ruling saying it risks being branded as an "outlaw state" if it does not abide by international law.

The Philippines' Department of Foreign Affairs welcomed the favorable ruling of the PCA and urged all those concerned to exercise restraint and sobriety.

Meanwhile, Manila has asked the tribunal to rule on whether several features in the contested areas in the South China Sea are reefs or islands in its bid to clarify the extent of its territorial waters and exclusive economic zone (EEZ).

The disputed territories in the South China Sea are being claimed by China, Vietnam, Taiwan, Brunei, Malaysia and the Philippines. More than $5 Trillion worth of ship-borne goods passes through the strategic waterway annually. 

TagsPermanent Court of Arbitration, nine dash line, unclos, Philippines, South China Sea ruling, china