Background: Rich fishing grounds and the potential for gas and oil deposits have caused this archipelago to be claimed in its entirety by China Taiwan and Vietnam while portions are claimed by Malaysia and the Philippines. All five parties have occupied certain islands or reefs and occasional clashes have occurred between Chinese and Vietnamese naval forces
Economy overview: Economic activity is limited to commercial fishing and phosphate mining. Geological surveys carried out several years ago suggest that substantial reserves of oil and natural gas may lie beneath the islands; commercial exploitation has yet to be developed.