The arbitration concerned the role of historic rights and the source of maritime entitlements in the South China Sea. It was pursuant to Part XV of, and Annex VII to, the Convention that the Philippines commenced this arbitration against China on 22 January.China arbitration case and the furor over its verdict constitute a significant development that could influence the prospects for. The Philippines is exploring the possibility of bringing China to another international dispute settlement organ. There is no system of default judgment under the Convention. The wait is over: a judgment has been issued in the Philippines v. China South China Sea arbitration. In 2013, the Philippines commenced arbitral proceedings against China under the 1982 United Nations Convention on the Law of the Sea.