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Why in the News?

Tensions between China and the Philippines have sharply escalated after a violent clash between their sailors in the South China Sea (SCS) last week. Currently, escalating tensions in the South China Sea are heightening global security concerns over this vital trade route.

How Important is the South China Sea for World Trade?

• About a third of global maritime trade passes through the 3.5 million square kilometre South China Sea annually, according to UNCTAD.
• Around 40% of petroleum products traded globally are delivered via the South China Sea every year.
• In 2016, an estimated $3.4 trillion to $3.6 trillion worth of goods and commodities travelled the seaway.
• Tens of thousands of cargo vessels move through the South China Sea every year, carrying around 40% of China’s, one-third of India’s and 20% of Japan’s trade with the rest of the world.
• The South China Sea is a vital crossroads for both intra-Asian trade as well as for commerce with the rest of the world, especially Europe, the Middle East and Africa.

What makes the South China Sea such a Controversial Issue?

• Beijing claims almost all of the South China Sea as its own, angering its neighbours who say China’s territorial ambitions cut into their exclusive economic zones.
• China ignored a 2016 ruling by an international arbitration court that Beijing has no legal or historical basis for its expansive claims under international law.
• The Chinese military has staged increasingly aggressive actions in the seaway recently, including clashes with Filipino ships, fueling fears of a full-scale conflict.
• Vietnam and the Philippines have filed claims with the UN for extended continental shelves in the South China Sea.
• Concerns that Beijing may use military force to bring Taiwan under its control have further raised tensions in the region.

Why is the South China Sea Contested?

• Availability of Natural gas and oil: The South China Sea is estimated to hold about 5.38 trillion cubic meters of proven and probable natural gas and 11 billion barrels of oil reserves.
• Rare earth elements: The disputed waters also contain large deposits of rare-earth minerals crucial to China’s technological ambitions, including electric vehicle batteries and advanced electronics.
  • Some estimates suggest the Pacific Ocean contains a thousand times more rare-earth minerals than the currently known land reserves, more than half of which are controlled by China.

Biggest Chokepoint in the South China Sea

• The Malacca Strait, which lies between Malaysia, Indonesia and Singapore, is considered the biggest chokepoint in the South China Sea.
• Last year, 23.7 million barrels of oil and petroleum products were moved through the strait per day, 13% higher than through the Strait of Hormuz.
• The Malacca Strait is just 64 kilometers wide at its narrowest point and is already vulnerable to congestion and collisions.
• Experts predict that if China invades Taiwan, the U.S. and its allies could blockade the Malacca Strait, limiting China’s access to oil and exports

What should India do? (Way forward)

• Enhance Strategic Partnerships: India should strengthen its maritime collaborations with key regional players like ASEAN nations, Japan, and Australia while deepening its involvement in forums such as the Quad to promote a rules-based order in the Indo-Pacific and ensure freedom of navigation in the South China Sea.
• Bolster Naval Capabilities: India should continue to modernize and expand its naval presence in the Indo-Pacific, focusing on securing critical sea lanes and chokepoints like the Malacca Strait to safeguard its trade routes and energy supplies in the event of escalating tensions.

Mains PYQ:

Q South China Sea has assumed great geopolitical significance in the present context. Comment.(2016)

Why in the News?

On August 21, 2024, a deadly explosion at the Escientia plant in Atchutapuram SEZ killed 17 workers and injured over 50, triggered by a solvent leak involving MTBE. The incident, part of a troubling safety trend, has prompted a government inquiry and calls for stricter safety regulations, particularly due to the exemption from regular inspections for SEZ units.

• Previous Incidents: This accident is part of a troubling pattern, as it follows another major explosion in the same SEZ last year, and recalls a deadly styrene vapour leak incident in 2020 that killed 12 people.
• Government Response: The Andhra Pradesh government has ordered a high-level inquiry into the incident. Chief Minister N. Chandrababu Naidu has expressed condolences and promised support for the victims’ families.

Importance of Safety Audits

• Preventing Future Accidents: Regular safety audits can help identify potential hazards and ensure compliance with safety regulations, reducing the risk of catastrophic incidents.
• Accountability: Audits enforce accountability among management to adhere to safety standards, promoting a culture of safety within organizations.
• Regulatory Compliance: Conducting safety audits helps organizations ensure compliance with local, state, and national safety regulations.
• Public Trust: Enhancing safety measures and transparency can restore public confidence in industrial operations, particularly in regions prone to industrial accidents.

Safety Law and Guidelines:

• Factories Act, 1948: Governs worker safety in factories, mandating safety audits and safety officer appointments. Requires safety committees with management and employee reps to address hazards.
• IS 14489:1998: Provides guidelines for occupational safety and health audits, focusing on compliance, deviations, and safety management effectiveness across sectors.
• Occupational Safety, Health and Working Conditions Code, 2020: Consolidates labor laws, mandates regular safety audits for hazardous processes, and grants inspectors authority to enforce compliance.
• CIMAH Rules: Require industries with hazardous processes to prepare safety reports and conduct regular audits to prevent major accidents, enforced by state safety authorities.
• Integrated Guidance Framework for Chemicals Safety: Offers guidance for safety audits in handling hazardous chemicals, emphasizing compliance with MSIHC Rules and robust audit practices.

Way forward: 

• Implement Regular Safety Audits: Enforce routine safety audits for all industrial units, including SEZs, to identify hazards and ensure compliance with safety standards, thus preventing future incidents and promoting a culture of safety.
• Strengthen Regulatory Oversight: Close regulatory gaps by applying safety standards uniformly across all sectors, including exempted units, and enhance transparency and accountability in safety practices to restore public trust.