"China will continue, however, to adhere to the maritime boundaries marked by the nine-dash line, rendering the court's ruling largely ineffective," the report stated.
In June, the UN Permanent Court of Arbitration is set to rule in the case filed by the Philippines, which claims Beijing has violated the UN Convention on the Law of the Sea by its actions in the South China Sea.
Stratfor argued that the court case will likely undermine Beijing’s legal claims since a decision in favor of the Philippines could embolden other claimants.
Countries located in and around the areas of the South China Sea, including the Philippines, Malaysia and Vietnam, have expressed competing claims to the disputed Spratly Islands.
China claims sovereignty over the Spratly Islands and the 12 nautical mile zone surrounding them, and has been constructing artificial islands in the area.
The more than 750 islands and reefs are believed to hold significant oil and gas reserves as well as serving as an important commercial shipping route.
