China's state firms cementing lucrative role in South China Sea, new research shows

FILE PHOTO: Chinese structures are pictured at the disputed Spratlys in South China Sea April 21, 2017. REUTERS/Erik De Castro/File Photo

HONG KONG/SHANGHAI (Reuters) - Beijing's giant state-owned enterprises are playing an increasing role in China's build-up in the South China Sea and could seek to cement their dominant position in coming years, according to new research.

The work by academic Xue Gong and published by Singapore's ISEAS Yusof Ishak Institute this week sheds light on a little-examined element of rising tensions across the vital trade route, showing extensive work by Chinese SOEs in developing infrastructure and tourism, as well as oil and gas, some in hotly disputed areas.