There is no such thing as international waters. China's exclusive economic zone is one of 17
I mean this is just definitionally wrong. You can't acknowledge the existence of exclusive economic zones without also recognizing international and territorial waters.
"The difference between the territorial sea and the exclusive economic zone is that the first confers full sovereignty over the waters, whereas the second is merely a "sovereign right" which refers to the coastal state's rights below the surface of the sea. The surface waters are international waters.[2"
The Dutch and Australians have violated this and are now complaining.
No, the Chinese government is trying to both have their cake and eat it. They are acknowledging the idea of internationally recognized law, but ignoring the aspects they do not want to adhere to.
By definition economic exclusion zones only apply to the resources beneath the surface, the surface itself is international waters. The water people are allowed to protect as if it were sovereign land is only territorial waters, which extend 200 miles from the recognized Continental shelf.