The Philippines argued at a closed hearing on Tuesday that an international court should intervene in its dispute with China over the right to exploit natural resources and fish in the South China Sea.

Though China has declined to participate, the case at the Permanent Court of Arbitration in The Hague is being closely watched by Asian governments and Washington, given rising regional tensions as Chinese naval power grows.

A panel of five judges will hear arguments this week and decide whether the treaty-based court has jurisdiction.

Manila filed a suit at the court in 2013, seeking to enforce its right to exploit waters in a 200-nautical mile “exclusive economic zone” off its coast, as defined under the United Nations Convention on the Law of the Sea.

The Philippines argues that the arbitration court is the correct venue for resolving disputes covered by the treaty, which both countries have signed. “The Philippines believes the court has jurisdiction over all the claims it has made,” said lawyer Paul Reichler, representing the Philippines.

He said he is “confident” the court will ultimately rule in the Philippines’ favour.

Chinese Foreign Ministry spokesman Hua Chunying said China doesn’t accept the court’s jurisdiction and will not participate. “China opposes any form of arbitration process proposed and promoted by the Philippines,” Ms Hua told a daily news briefing in Beijing.

In a position paper in December, China argued the dispute is not covered by the treaty because it is ultimately a matter of sovereignty, not exploitation rights.
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