In its ruling, it also said that China has interfered with traditional Philippine fishing rights at Scarborough Shoal, even as Beijing claimed historic rights to the waters under nine-dash line, which the tribunal said is contrary to the UN Convention on the Law of the Sea that determines which countries can claim economic exploitation rights, based on geographic features.
In a written report to a legislative committee on the impact of the ruling by the Permanent Court of Arbitration in The Hague, the bureau said the result was unfavorable to mainland China and predicted Beijing might respond with more aggressive action.
Australian Foreign Minister Julie Bishop urged all South China Sea claimants to resolve their disputes peacefully, saying Australia would keep exercising its worldwide rights to freedom of navigation and overflight, and support the right of others to do the same.
In 2013, China set up an air defense identification zone over disputed islands in the East China Sea, requiring all aircraft entering the area to notify Chinese authorities or be subjected to "emergency military measures" if they disobey orders from Beijing.
Pro-Beijing protesters shout slogans against the United States supporting an global court ruling of the South China Sea outside the U.S. Consulate in Hong Kong, Thursday, July 14, 2016.
Grappling with the worldwide tribunal's verdict quashing its claims over the South China Sea, China on Wednesday turned down U.S. advise to follow India's example of settling its maritime row with Bangladesh by implementing the judgement saying that there is "no comparison" between the two cases.
Although rivals, self-ruled Taiwan and China share the same territorial claims, pitting them against other claimants, chiefly the Philippines and Vietnam.
Taiwan's Ministry of National Defense said it would continue to send planes and ships to the South China Sea on patrol missions and to defend Taiwan's territory and sovereignty.
"The peace and stability of the South China Sea is for China and the 10 members of ASEAN to dedicate themselves to maintaining".
Influential Republican Sen. John McCain was among USA lawmakers Tuesday calling for the U.S.to challenge "China's excessive maritime claims" regularly.
Chinese official press agency, Xinhua said passenger jets of China Southern Airlines and Hainan Airlines were utilized for the said test flights July 13.
China's Wednesday statement also slammed The Hague's arbitration court ruling once again, calling it "a political farce under the cloak of law".
He also said the country hopes to return to bilateral talks with Manila, who brought the case to court.
China immediately rejected the ruling. The president has signalled the he wants to avoid a major diplomatic falling-out with China over the issue.
It has already said it will ignore the tribunal's findings.
Breakaway Chinese province Taiwan also weighed in, with President Tsai Ing-wen saying the Hague ruling "seriously damaged" the island's rights as she dispatched a frigate to the disputed waters.