Regarding the development of the oil and gas fields in the East China Sea, China and Japan have finally reached a consensus on the East China Sea after the four rounds of negotiations that took place over the past four years and finally the willingness to build new diplomatic relations between the two countries. On June 18, the foreign affairs departments of the two countries issued the "Sino-Japanese Understanding of the Joint Development of the East China Sea" and "The Understanding of the Japanese Legal Person Participating in the Development of the Chunxiao Oil and Gas Field in Accordance with Chinese Law."
The "Donghai Consensus" reached by the two countries, on the one hand, agreed to take the first step toward joint development in the selected area of ​​the East China Sea without compromising the legal position of both parties during the transition period before the demarcation of the relevant maritime areas. . On the other hand, with respect to the Chunxiao oil and gas field that had been debated before, the two sides unanimously confirmed that Japanese companies will participate in the relevant cooperation in the Chunxiao oil and gas field in accordance with relevant Chinese laws.
The "Donghai Consensus" covers both international law and domestic law. It has both legal and practical significance.
The "East Sea Consensus" embodies the political will of both China and Japan. Joint development is in essence a politically-advanced arrangement. The political will of the countries concerned has a decisive influence on the effective development of joint development and is a key factor in reaching a joint development agreement.
"The understanding between China and Japan on the joint development of the East China Sea" is a political consultation document reached by the two governments, which shows that the two countries are willing to shelve the controversy over maritime delimitation and first have the political will to cooperate in the development of the East China Sea oil and gas resources.
This is a political intent and a prerequisite for joint development in the legal sense.
On this basis, the two parties negotiate and negotiate to conclude a treaty or international agreement on specific matters jointly developed and give them legal effect, which constitutes joint development in the legal sense.
"Sino-Japanese understanding on the joint development of the East China Sea" has drawn a co-developed block of about 2,600 square kilometers through 7-point coordinates. The specific issues of joint development include the selection and determination of specific development locations in the above blocks, the mode of cooperation, the form of development, the determination of operators, the sharing of costs and the sharing of benefits, the establishment of a management agency, etc. Negotiated and determined by a bilateral agreement to achieve legal joint development.
The "East Sea Consensus" does not affect their respective demarcation positions. The huge differences between China and Japan in the demarcation of the borders have caused the issue of the demarcation of the East China Sea to remain unresolved.
The Japanese side has always advocated using the "middle line" for maritime delimitation and unilaterally proposed a so-called "middle line."
The Chinese side believes that the two sides should implement maritime delimitation in accordance with the relevant provisions of the "UN Convention on the Law of the Sea" in an equitable manner. Among them, the continental shelf delimitation should apply the natural extension principle, and the natural extension of China's land territory in the East China Sea can reach the maximum depth line of the Okinawa Trough. On the issue of the demarcation of the East China Sea, China does not recognize the so-called "middle line" of Japan and there is no problem of delimiting the "middle line" between China and Japan.
The two sides agreed unanimously in the "Donghai Consensus" that "cooperation will be conducted without prejudice to the legal stance of both parties during the transitional period before demarcation."
The "East Sea Consensus" does not damage China's sovereign rights and jurisdiction over the continental shelf of the East China Sea and its natural resources, and does not affect China's legal position and proposition on related issues in the East China Sea. China advocates the realization of the delimitation of the continental shelf of the East China Sea according to the principle of natural extension. In the past, it did not recognize and would not recognize the Japanese so-called "middle line."
The principled consensus reached by the two parties on joint development issues does not involve their respective previous rights claims, nor does it affect the future maritime delimitation.
The final demarcation of the East China Sea will be resolved through negotiations between China and Japan.
The participation of Japanese companies in the "Chunxiao" is not a joint development. Chunxiao is an oil and gas field on the continental shelf of China. It is located west of Japan's so-called "midline" unilaterally advocated, and has nothing to do with the controversy over the demarcation of sea areas between the two countries.
According to the relevant provisions of the "United Nations Convention on the Law of the Sea" on the continental shelf, the right to sovereignty in Chunxiao Oil & Gas Field belongs exclusively to China. The development of Chunxiao oil and gas fields by China's offshore oil companies is China's exercise of sovereign rights over the natural resources on the undisputed Chinese shelf, and it is a right conferred on the parties to the Convention.
“About the Understanding of Japanese Legal Persons Participating in the Development of Chunxiao Oil and Gas Fields in Accordance with Chinese Law” stated that Chinese companies welcome Japanese companies to participate in the development of existing oil and gas fields in Chunxiao in accordance with the relevant laws of China’s foreign cooperation in exploiting offshore oil resources.
The Chinese law mentioned here refers to the "Regulations of the People's Republic of China on Cooperative Exploitation of Offshore Oil Resources" promulgated in 1982 and revised in 2001.
Article 1 of the Regulations stipulates that “under the precondition of safeguarding national sovereignty and economic interests, foreign companies are allowed to participate in the cooperative exploitation of the offshore oil resources of the People's Republic of China”. Article 2 stipulates that "the oil resources of the Chinese mainland, the territorial sea, the continental shelf, and other jurisdictions are all owned by the State of the People's Republic of China."
The “Regulations” requires that all activities for the cooperative exploitation of offshore oil resources should comply with Chinese laws, decrees and relevant regulations; companies and individuals involved in the implementation of oil operations should be bound by Chinese laws and accept inspections and supervision by the competent authorities of the Chinese government. .
The Sino-foreign cooperation pursuant to the above-mentioned Chinese laws is a cooperation in which Chinese enterprises absorb foreign capital according to law. This cooperative development is not a joint development. Its legal nature is totally different from that of joint development.
The participation of Japanese companies in the cooperation and development of the Chunxiao oil and gas field is not a joint development in the sense of international law. It is based on the understanding of Japanese companies participating in the development of the Chunxiao oil and gas field, the commercial operations made in accordance with Chinese law, and the understanding of “China and Japan on the joint development of the East China Sea”. relationship.
Japanese companies participating in the cooperative development of the Chunxiao oil and gas field shall abide by the "Regulations of the People's Republic of China on the Cooperation and Exploitation of Offshore Oil Resources" and other laws and regulations, and shall accept the inspection and supervision of the competent authorities of the Chinese government.
This consensus fully embodies China’s sovereign rights over the Chunxiao oil and gas field and the Japanese recognition of this objective fact.
By signing commercial contracts, Japanese companies invest in shares and obtain qualifications for participating in the cooperative development of Chunxiao Oil and Gas Fields. This is a cooperative way for Chinese enterprises to absorb foreign capital according to law, and it is no different from other Chinese-foreign cooperation to attract foreign investment. Prior to this, foreign oil companies including UNIC of the United States had conducted such cooperation with Chinese offshore oil companies in accordance with Chinese laws. The Japanese companies participated in the cooperative development of the Chunxiao oil and gas field in accordance with Chinese laws, and their nature is no different from the above Sino-foreign cooperation.
Both China and Japan have signed and ratified the UN Convention on the Law of the Sea. As a party to the "Convention", in accordance with the principled provisions of the "Covenant" on joint development, the temporary arrangements for joint development between China and Japan based on the "Tokai Consensus" are the active performance of the obligations under the "Convention". .
The "East Sea Consensus" is not only a breakthrough on the East China Sea issue between China and Japan, but also sets an example for solving maritime problems through cooperation in the East Asian seas.
It is reasonable to expect that on the basis of the "Donghai Consensus," China and Japan can take the actual steps of joint development and make the East China Sea a truly "sea of ​​peace, cooperation, and friendship."

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