China Sea Conflict Over Fishing Rights Says Martin Lustgarten

While there is estimated to be 11 billion barrels of oil and 190 trillion cubic feet of natural gas buried under the South China Sea, according to an article published via Forbes, that is not the real issue laying at the heart of the problem. Instead, the real heart of the issue is sovereignty. While problems date back to 2008, on April 8, 2016, Vietnam demanded that China National Offshore Oil Company remove its exploratory drilling rig.
One of the reasons that determining sovereignty is so important is the sovereign nation has fishing rights. Countries fighting over their share of the water include China, Vietnam, Philippines and Indonesia. In fact, Indonesia blew up over 197 Filipino fishing boats over the last two years. Daily conflicts are constantly taking place between anglers. While Chinese leaders deny that they are building up their military in the area, President Obama has deployed 5,000 troops to the region.
China claims these fish are needed to feed their 1.3 billion people. The Chinese consume almost 40 percent of the fish eaten globally each year. Indonesia operates over 460,000 fishing boats annually. As competition increases, anglers must move further from shore to get their catch resulting in higher costs.
Many around the world, however, fear that the Chinese have an ulterior motive for their large fishing fleet. These experts claim that China plans to use their boats as military weapons.
While this story may not garner much press, it can be highly important for investment bankers trying to make right investment decisions. In fact, CEO Martin Lustgarten stresses that this issue underscores the importance of working with the right investment banker. While many would assume that the reason that so many countries are fighting over the oil and natural gas, the truth is that these countries are fighting over fishing rights.
This investment banker living in Ponte Vedra Beach, Florida, stresses that it is important to have an investment banker with contacts throughout the world. He says that way investors get a more balanced look at what the world is thinking than when relying on sources within just one country.

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