Tuesday, December 2, 2025

China’s Grey-Zone Tactics Are Reshaping the South China Sea

Over the past two decades, Southeast Asia has faced a conflict that is no longer overt but has left behind a trail of escalating tensions.


Over the past two decades, Southeast Asia has faced a conflict that is no longer overt but has left behind a trail of escalating tensions. These tensions stem from actions that fall into a “gray zone,” carried out gradually and systematically. This strategy has been used by China as a key instrument in expanding its territorial claims without having to fire a single shot or wage war in the South China Sea. The grey zone has become one of the most decisive dynamics in shaping the new security landscape in the Indo-Pacific.

The Grey Zone is not just a strategy but a tool used by a country to build “advantages” without causing escalation that could trigger direct war. In the context of China, this strategy is useful for forcing other countries to slowly accept changes to the status quo. This approach is in line with the concept of coercive diplomacy, which asserts that limited pressure can force other parties to change their position without military confrontation. China understands that war is a very costly option from both an economic and military perspective. Therefore, the use of coast guards, maritime militias, and civilian survey ships is a far more effective alternative for achieving its strategic objectives. China’s two main instruments, the China Coast Guard (CCG) and the People’s Armed Forces Maritime Militia (PAFMM), are the spearheads of operations below the threshold of war. Both are equipped with weapons such as large ships, modern radar, and even lasers or water cannons but remain under the narrative of “law enforcement.”

Since 2013, the presence of CCG and PAFMM ships around the Spratlys and Paracels has increased, especially after China accelerated the construction of artificial islands. This is part of a “salami slicing” pattern that narrows the space for other countries to maneuver through small but gradual steps. In some cases, these vessels have engaged in dangerous maneuvers against Philippine, Vietnamese, and Malaysian ships by blocking supply vessels, chasing fishing boats, and even directing laser beams at other vessels to disrupt their observations. These actions are designed to be aggressive enough to assert control but not so provocative as to trigger military intervention from the United States or other regional allies. From a coercive diplomacy perspective, China is pursuing a strategy of gradualism, applying steady pressure that forces smaller countries to reconsider whether resistance is worth the cost. The Philippines has experienced water cannon incidents many times, but each incident has only resulted in diplomatic protests rather than a change in the balance of power on the field.

One of the most prominent aspects of China’s strategy is its use of legal narratives. China frames almost every incident as a professional and legitimate action by its coast guard to protect its national territory. These narratives are not mere rhetoric but part of China’s three-pronged warfare strategy, which is public opinion warfare, psychological warfare, and legal warfare.

In the South China Sea, the dispute over these small islands is not merely about territorial claims; rather, the region is of paramount strategic and economic importance because more than one-third of global maritime trade passes through it, making it a vital trade route. Control over this route could increase China’s economic and geopolitical leverage. Furthermore, the region is rich in natural resources such as oil and gas reserves, which will certainly help to fulfill China’s future energy needs. Furthermore, China is also seeking to expand its influence in the Indo-Pacific region and position itself as a major maritime power, thereby reducing the role of the United States. These strategic needs are the reason why it will be very difficult for China to relax its grey zone approach, as this strategy is an instrument that can change the status quo without incurring too great a cost to its reputation.

 

Looking at the responses of ASEAN countries, their responses are not entirely the same even though they are all affected. The Philippines has been the most vocal, especially since the laser incident involving their patrol boat. Vietnam has also strengthened its navy, while Malaysia tends to remain silent but strengthen its closed diplomacy. In this case, China’s strategy works because the parties under pressure do not have the capacity to respond in a balanced manner. Most of these ASEAN countries cannot provide punishment deterrence, so they can only rely on denial deterrence, which strengthens their ability to defend themselves and reduces the effectiveness of China’s pressure. On the other hand, the United States is trying to provide security guarantees through “Freedom of Navigation” operations, but these are more responsive than preventive. The uncertainty of these small countries means that China does not want to miss this golden opportunity to expand its sphere of influence.

Then, legally and militarily, China’s Grey Zone strategy is difficult to counter. Simply, there is no involvement of weapons in this strategy, and the actions of the CCG and PAFMM are difficult to categorize as use of force under international law. Second, coast guards and maritime militias are not included in the armed forces, which means they operate in a legal gray area. Finally, if the attacking vessels are fishing boats that have undergone modification, it is difficult for the targeted country to prove that they are part of a state operation. Broadly speaking, the more ambiguous China’s actions are, the more room they have to change the maritime reality without triggering open conflict.

However, this strategy could inadvertently trigger a major conflict. This can be seen from the large Chinese coast guard ships that can easily ram other ships, causing casualties and triggering escalation. The Grey Zone only works as long as all parties can restrain themselves, but if one party is cornered and loses control, escalation could very likely occur within hours.

In this situation, China’s Grey Zone in the South China Sea poses a serious threat to regional stability. This strategy creates pressure without war but can significantly change the political and legal reality by exploiting legal loopholes, power imbalances, and narrative ambiguities. Countries in the region must build more effective security mechanisms that go beyond military buildup to include coast guard coordination mechanisms, maritime incident protocols, enhanced technological capabilities, and more aggressive international legal diplomacy.

This argument underscores that without innovation in defense approaches, the region will continue to be mired in uncertainty, and China’s Grey Zone strategy will become increasingly effective year after year. Ultimately, regional stability requires legal clarity, a balance of power, and the ability of countries to resist pressure that moves silently, rather than relying solely on the absence of war.


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