Why The Hague ruling matters

Chito Sta. Romana, fomer ABC News Beijing Bureau Chief, believes that the Arbitral Tribunal's ruling is both a challenge and an opportunity for the Philippines.

He explained it is a challenge in the sense that Manila will have to find a way to make Beijing comply with the Tribunal's decision. For him, the opportunity lies in the new administration's signal of a less adversarial and more conciliatory approach with China.