Part of the building of Unit 61398, a secretive Chinese military unit, is seen in the outskirts of Shanghai Feb. 19. The unit is believed to be behind a series of hacking attacks, a U.S. computer security company said, prompting a strong denial by China
Part of the building of Unit 61398, a secretive Chinese military unit, is seen in the outskirts of Shanghai Feb. 19. The unit is believed to be behind a series of hacking attacks, a U.S. computer security company said, prompting a strong denial by China and accusations that it was in fact the victim of U.S. hacking. Reuters REUTERS/Carlos Barria

China appears to have emerged victorious in its initial bid to control part of the South China Sea. According to senior Australian sources, the country has finished construction of an archipelago of artificial islands. In response, Japan is allocating its largest defence budget ever to counter China's reach.

China has been advancing into the South China Sea without showing any signs of slowing down. According to the Sydney Morning Herald, it is most likely that the nation will win the next round of South China Sea bout as the United States remain indecisive about the matter. Its allies along with Australia are also still struggling to follow through with previous promises challenging illegal Chinese claims on "freedom of navigation" exercises.

Estimates project that China will be able to equip the new islands with battlements, ports, barracks, air strips, long-range radar systems and artillery by 2017. This will push China further into establishing its military and paramilitary power across the South China Sea -- even up to the most contested regions.

"This is a huge strategic victory for China," the SMH quoted an official source. "They've won Round 1," said another. "It's hard to see how they will be stopped from winning the next round too." China already got a head start from other claimant countries. It can also potentially disrupt sea lanes as its artificial islands can carry three-fifths more than the merchandise trade of Australia.

Japan is not sitting idly following China's move. According to The Guardian, the nation has requested the biggest defence budget ever to increase its capacity to protect outlying islands. The ministry placed a 5.09 trillion yen (AU$59 billion) in the next financial year starting April 2016. Should this be approved, it will be the largest in the country's increase following the fourth increase in years. The requested budget will be drafted around December before it is submitted for the parliament's approval.

Japan's new budget request accounts for 2.2 percent increase compared to the previous year. It is also a demonstration of the shifting focus of the Japanese on security more particularly on its long and porous southern reaches.

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