Thank you very much, Nigel, for that kind introduction.

It is truly a delight to be back again at the International Institute for Strategic Studies (IISS) after three years. Back then, I was invited by Dr. John Chipman to deliver a speech about China's Diplomacy in the New Era. Today, my speech is also about China's diplomacy, but I will focus on one issue – the South China Sea.

Recently, the South China Sea issue has attracted much attention and media coverage. However, the articles and reporting show that the truth and facts behind the issue remain unclear to most people. Misunderstandings still exist. So I have chosen to speak about this issue at IISS, a prestigious institution that focuses on international security. I will expound on China's position and policy, and then take questions from you. In this way, I hope our interaction today will help you gain a more comprehensive and accurate understanding of the issue.

In order to be objective, impartial and rational on the issue of the South China Sea, one must get to the root of the issue and put it in perspective. So I would like to begin with the history of China and the South China Sea.

The islands and reefs in the South China Sea have been Chinese territory since ancient times. I emphasise ‘ancient times' to highlight the historical facts that put the South China Sea firmly on the map of China. To elaborate on this, let me share with you four "Firsts".

China was the first to discover the islands in the South China Sea. Some of the countries attempt to claim some of the islands on grounds of "prior possession". They try to get away with their illegal occupation by referring to Nansha Islands as "Terra Nullius". In fact, as early as 200 BC, during China's Han Dynasty, the Chinese had large-scale and frequent sea-faring and fishing activities in the South China Sea. There is clear evidence that the South China Sea was already used by China as an important shipping route since ancient times. It follows that, because of frequent shipping, the Chinese became the first to discover the islands in the South China Sea. Marwyn Samuels is known for his studies on the South China Sea. He wrote a book in the 1980s called ‘Contest for the South China Sea'. In this book he wrote: "Along the way, both literarily and figuratively, the South China Sea and its islands helped shape the geographical cognita of the Chinese world order."

Second, China was the first to name the islands in the South China Sea. Today, Nansha of the South China Sea is called the Spratly Islands in the west. This name comes from a British sea captain called Richard Spratly who thought it was he who had "discovered" and "named" the islands in 1843. But actually the Chinese had started to name the Nansha Islands about 2,000 years before he did. In various kinds of Chinese historical records dating back to over 2000 years, the South China Sea is known as "Zhang Hai", or "rising sea", and the islands, reefs, shoals and sands as "Qi Tou", or "rugged peaks". In historical documents of later dynasties after the Han Dynasty, ancient names referring to today's Xisha Islands, Nansha Islands and individual islands in the archipelagoes are clearly recorded. A popular sailing guide called "Geng Lu Bu" was compiled by Chinese fishermen. This was during the Ming and Qing Dynasties between the 14th and 20th century. In this book, names of dozens of islands of the South China Sea, including those in Nansha, are recorded. Many of these names have been widely adopted and used by international sailors until this day.

Third, China was the first to exercise administrative jurisdiction in the South China Sea. Ever since China's Tang Dynasty, about 1,200 years ago, successive Chinese governments have exercised jurisdiction over the South China Sea. This included islands and the waters around them. China's sovereignty was established through administrative establishment, naval patrol, resources development and management. In the 10th century, during China's Song Dynasty, local chronicles explicitly recorded that the islands in the South China Sea were under the administrative jurisdiction of Qiongzhou, which is today's Hainan province. In 1279, China's famous astronomer Guo Shoujing was recorded traveling to the South China Sea and building observatorial facilities. The Governments of the Ming and Qing dynasties both placed the South China Sea under the supervision of naval patrols.

Fourth, China is also the first country to develop the islands in the South China Sea. For centuries, the Chinese have been engaged in fishing, planting and other activities on the islands and in the nearby waters. The remains of this continuous habitation can be seen through archaeological evidence found on many islands. The fact that only Chinese lived on the Nansha islands is recorded clearly in the book called The China Sea Pilot published by the British Navy in 1868.

The aforementioned four "Firsts" are based on substantial and concrete historical evidence. They testify to the fact that the islands of the South China Sea have long been Chinese territory under successive, peaceful and effective administration. Until the 1970s, it was widely recognised by the international community that islands in the South China Sea belonged to China. Let me give you two examples: In 1883, Germany sent military vessels to Xisha and Nansha for surveys. The Government of Guangdong Province protested to the Germans, citing Chinese sovereignty. Germany had to stop the survey and withdrew their team. In 1958, the Chinese government issued a declaration on territorial waters applicable to all Chinese territory including Xisha, Nansha and other islands in the South China Sea. Vietnam's then prime minister, Ph?m V?n ??ng, sent to Chinese Premier Zhou Enlai a diplomatic note which explicitly recognizes that Xisha and Nansha belonged to China. I could give you more examples like these if we had more time.

History speaks for itself as to who owns those islands in the South China Sea. Then how did the disputes arise?

Since the 1970s, some countries have tried to lay claim on the natural resources in the South China Sea. It was then that some nations began to make territorial claims. Vietnam and Philippines sent troops and illegally occupied some of the islands. That is how the disputes started. Up till today, Vietnam has occupied 29 islands, Philippines eight and Malaysia five.

In 1982, the United Nations Convention on the Law of the Sea (UNCLOS) was concluded after 9 years of hard negotiations. With this development of the maritime legal system in the 1980s, countries around the South China Sea gradually made further claims. These were based on UNCLOS agreements that include the Exclusive Economic Zone (EEZ), continental shelf and other maritime rights and interests. Such overlapping claims in some cases gave rise to disputes of maritime delimitation. This has caused further complications to the issue of the South China Sea.

It is clear that there are two disputes at the centre of the South China Sea issue: One is the territorial dispute caused by illegal occupation of Chinese territory. The other is the dispute over maritime delimitation caused by overlapping claims of maritime jurisdiction. These two disputes are intertwined and have made the issue highly complex. However, one thing is clear: whichever angle one chooses to look at the issue, China has never been the troublemaker. Quite the opposite, China has been a victim.