An international tribunal on Tuesday, July 12 ruled against China in a bitter row over territorial claims to the South China Sea that is likely to ratchet up regional tensions, AFP reports.

"The tribunal concluded that there was no legal basis for China to claim historic rights within the sea areas falling within the 'nine-dash line'," the Permanent Court of Arbitration said in a statement.

All eyes were watching for reaction from the Asian political and military powerhouse, which had fired off a barrage of criticism even before the decision by the PCA in The Hague was announced.

China asserts sovereignty over almost all of the strategically vital waters in the face of rival claims from its Southeast Asian neighbors.

Ahead of the decision, new Philippines President Rodrigo Duterte had signalled he did not want to antagonise China, saying he would not "taunt or flaunt" a favourable ruling and would seek a "soft landing" with China.

The state-run China Daily topped its front page with a picture of Woody Island in the Paracels, emblazoned: "Arbitration invalid."

English-language headlines on the official Xinhua news agency included: "South China Sea arbitration abuses international law: Chinese scholar", "Permanent Court of Arbitration must avoid being used for political purposes" and "The sea where Chinese fishermen live and die."