ABSTRACT
A positive link between Chinese economic reform and security policy has been demonstrated by the augmented capability of the People's Republic for projecting power in and through the South China Sea in pursuit of territorial and maritime claims. Success in economic reform has enhanced the ability of Beijing's national exchequer to disburse funds in support of this role by the armed forces in general and the navy in particular. Moreover, the South China Sea holds an intrinsic at traction for the government in Beijing because of the prospect of discovering and exploiting valuable natural resources, especially oil and gas, which would in turn make a major contribution to continuing economic development.
