China Holds Drills Near Disputed Scarborough Shoal as ASEAN Talks Continue

China reported joint naval and air drills near the disputed Scarborough Shoal on Saturday, August 1, while also issuing rules restricting activity inside a Chinese-designated nature reserve around the feature. The developments came days after ASEAN and China said negotiations on a South China Sea code of conduct had made significant progress.

The sequence highlights the gap between diplomacy and activity at sea. The code of conduct remains under negotiation; it is not a completed agreement, a final settlement of competing sovereignty claims or a guarantee against future incidents.

What China reported about the drills

The reported exercise took place near Scarborough Shoal, known in China as Huangyan Dao. The Philippines also refers to the feature as Bajo de Masinloc and Panatag Shoal. According to The Associated Press, the exercise involved naval and air forces and was described by China as testing coordination between those forces and the ability to provide rapid reinforcements.

Those operational details came from Chinese state broadcaster CCTV and the People’s Liberation Army’s Southern Theater Command, as reported by AP. The available reporting does not independently confirm every element of the military’s description.

AP also reported that the drills followed Beijing’s criticism of a Philippine submission to the United Nations seeking to extend the Philippines’ seabed rights in the South China Sea. That dispute over maritime rights is separate from the question of whether the military exercise itself was a direct response.

Reserve rules add an administrative layer

China also released rules on August 1 for a nature reserve it established last year around Scarborough Shoal. The rules ban unauthorized fishing, mining and coral harvesting, according to AP.

Those are Chinese administrative measures. They should not be treated as international recognition of China’s sovereignty. China and the Philippines maintain competing positions concerning the shoal, and the underlying dispute remains unresolved.

The distinction matters because administrative enforcement can affect fishing crews, coast guards and other vessels even when sovereignty has not been settled. Operators in the area may face greater uncertainty over which rules are being asserted, how they will be enforced and how other governments will respond.

ASEAN-China diplomacy is moving, but the agreement is unfinished

At ASEAN foreign-minister meetings in Manila from July 22 through July 24, ministers said negotiations on a South China Sea code of conduct had achieved significant progress. In a joint communiqué, ASEAN ministers said they looked forward to continued efforts to conclude an effective and substantive code consistent with international law, including the 1982 United Nations Convention on the Law of the Sea, within 2026.

China’s Foreign Ministry said the China-ASEAN Foreign Ministers’ Meeting was held in Manila on July 22. Independent regional reporting by Channel NewsAsia said the ASEAN meeting concluded July 24 with a year-end objective and renewed calls for peace, stability and freedom of navigation in the South China Sea.

The 2026 language is a diplomatic goal, not evidence that the parties have reached a final or legally operative agreement. Negotiators still have to settle the content, scope and implementation of any code, including how it would shape behavior by military, coast-guard and civilian vessels.

Why Scarborough Shoal matters

Scarborough Shoal matters because of its location, fishing access and symbolic importance in the broader South China Sea dispute. Encounters among fishing boats, coast guards and military vessels create risks of collision, miscalculation or escalation even when no government announces a new confrontation.

The area is also part of a region used by commercial shipping. The reported drills do not establish an immediate disruption to global trade or consumer prices. But repeated military activity and administrative assertions can raise longer-term concerns about maritime safety, navigational confidence and the security environment surrounding major sea lanes.

What to watch next

The next indicators will be the continuation of code-of-conduct negotiations, how China applies the reserve rules and whether regional governments announce further patrols, protests or enforcement measures. The central question is whether diplomatic momentum can produce enforceable restraint while military exercises and administrative assertions continue around disputed waters.

Sources

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