China is pressuring ExxonMobil not to undertake operations in the South China Sea. Exxon signed an agreement with PetroVietnam, Vietnam’s state owned oil company to cooperate in exploratory activities in the Spratly and Paracel Islands, which are known for their oil and gas reserves.

According to Peter Navarro of the Asia Times,

China has warned Exxon to pull out of the exploration deal, describing the project as a breach of Chinese sovereignty, according to the South China Morning Post at the weekend, citing unnamed sources close to the US company.

Though the disagreement concerning sovereignty negotiations of these islands (largely between China, Vietnam and the Philippines but other states have made claims too) is these days regarded as a stalemate, it’s interesting to consider to what extent China will try to assert control throughout the area (and therefore, the offshore resources in proximity to it), considering its ongoing development of a blue water presence and rising energy needs.