The arbitration concerned the role of historic rights and the source of maritime entitlements in the South China Sea. The tribunal's ruling will be legally binding only for the two parties to the disputethe Philippines and China.It was pursuant to Part XV of, and Annex VII to, the Convention that the Philippines commenced this arbitration against China on 22 January. As provided in the Convention, the Tribunal's decision is final and legally binding on both China and the Philippines. First letter set out the Philippines' comments on Viet Nam's requests.