And yes, I don't understand what was dash-line claim base on and it legitimate.
Well that's basically the underlying issue, everything else is just window dressing.
And prior to China's reclamations there was no compromise because China clearly was not satisfied with the position of all nations involved in the disputes relative to each other.
I agree that China is deliberately being ambiguous regarding its dashed map, however through their public announcements and reinforcements I don't think they've actually claimed the entire SCS within the line as their territorial waters, rather only the islands within the line. Unfortunately no one seems to have requested a clarification surrounding just what the line means.
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That possible conflict is just a way and excuse to contain China. How can one manage something or someone's land that don't belong to you? The only "conflict" China is facing in the SCS are the media's. Other than that, no one really cares for a bunch of rocks being building up to an island in the middle of the sea.
It is not only a media fabricated story. The US has shown it has an interest in the SCS so it will be a point of potential conflict that needs to be managed, and China should not assume that other nations will stand idly by nor simply assume that a crisis or a hot war is something that cannot arise from this flashpoint.