The preliminary arbitration award of disputes of South China Sea initiated by Philippines has been released on Oct. 29, 2015. The preliminary award has arbitrated that the Arbitration Court has jurisdiction over the seven claims, including four claims related to the disputes of attributes of islands and reefs. Based on the legal analysis, in additional to the general characteristics, the disputes of attributes of islands and reefs in the arbitration case initiated by Philippines shall also conform to special requirements stipulated in the Annex 7 of United Nations Convention on the law of the sea. But the disputes of attributes of islands and reefs, which are not deemed as legal disputes, cannot reflect the disputing parties’ contradictive views and their interests. Therefore, it does not belong to the jurisdiction of the Arbitration Court. China should insist on its standpoint to reject the arbitration, and seek the countermeasures energetically.

Power diffusion is common phenomenon in international relations. Powers of different types have formed the current international system by means of power diffusion, in which all actors are both interdependent and mutual restraint. These powers form the areas of power-denial, power-balance, and power-attenuation and also three different types of inter-State relations by their interactions. The choice made about the international conducts and foreign policy is determined by its position in the international power structure. From the perspective of power diffusion, the American involvement is the crux of the South China Sea disputes between China and Vietnam and how to settle the disputes depends on who has the advantage of power in the South China Sea area between China and the U.S.. From the current situation, the trend is in favor of China. Although China has not a global advantage to the U.S., China can gain area-denial capability to the U.S. in the South China Sea area in the near future. Now China should have a clear understanding of the situation in the South China Sea and take proper countermeasures, at the same time, continue to enhance the area-denial capability and explore new modes of dispute settlements.

Navigation of Suez Canal in 1869 and the success of submarine cable laying between Europe and Asia in 1871 created a new era in which Eastern and Western civilization are more closely linked. To the carrier of Chinese and Western trade transportation- Shanghai ocean shipping industry，the change of the transport and communication tools made it completely changed in the mode of transport, principal part of transport and trade structure..This was mainly manifested in that the ship instead of sailing and became the protagonist of ocean shipping; new shipping companies continue to emerge, the monopoly of ocean shipping industry between Shanghai and Europe has been broken; the beginning of direct trade between China and Europe, the end of the speculative trading era dominated by the commercial king; and the changes of the investment structure of Western companies in Shanghai. These changes provided a historic opportunity for the development of modern ocean shipping industry centered in Shanghai, expanded the development of trade between China and the West. Meanwhile, with consciously and unconsciously, voluntarily and involuntarily, this put the city of Shanghai and the Chinese society into the trend of international development. Today, under the guidance of the Belt and Road Initiative, the study will give us some historical enlightenment.