According to the court ruling, Beijing has no legal basis to claim the bulk of the South China Sea. However, President of China, Xi Jinping, refused to accept the court’s decision. The country had boycotted the proceedings.
The court believes that China doesn't have the right to resources within its “nine-dash line,” extending to the south and east of the Hainan province and covering approximately 90% of the disputed waters.
The court decision is considered to be made in favour of the Philippines, what might result in aggravation of tensions in the region.