U.S. diplomatic strategy on South China Sea appears to founder

Chinese dredging vessels are purportedly seen in the waters around Mischief Reef in the disputed Spratly Islands in the South China Sea in this still image from video taken by a P-8A Poseidon surveillance aircraft provided by the United States Navy May 21, 2015. U.S. Navy/Handout via Reuters/File Photo

WASHINGTON (Reuters) - In the lead-up to an international court ruling on China's claims in the South China Sea this month, United States officials talked about rallying a coalition to impose "terrible" costs to Beijing's international reputation if flouted the court's decision.

But just two weeks after the July 12 announcement by the Permanent Court of Arbitration in The Hague - which at least on paper, appeared to be a humiliating defeat for China - the U.S. strategy appears to be unravelling and the court's ruling is in danger of becoming irrelevant.