
The tranquil waters of South China Sea appear to churn with insecurity. At a recent conference in Vietnam, Professor Carl Thayer, a noted Vietnam watcher, observed that “China's naval modernisation represents a challenge and potential threat to all of Southeast Asia, especially Vietnam,” Further, the Chinese naval nuclear capability “would have strategic implications for the balance of power in the region”. The Southeast Asian countries have watched the growing military might of China with concern and are also worried about the regional security environment particularly in the context of recent naval standoffs between the Chinese and US navies.A non-binding multilateral agreement ‘2002 Declaration on the Conduct of Parties in the South China Sea’ with specific focus on the Spratly Islands has been in place, but China does not seem to be very happy about this arrangement and feels that ‘disputes [be] dealt with bilaterally by countries - a move seen as exploiting its growing regional clout’. Although the 2002 declaration was a concrete step to institutionalize regional dialogue among the claimants i.e. Brunei, China, Malaysia, Philippines, Taiwan and Vietnam and served for the de-escalation of military tensions in South China Sea, it appears that it was only a provisional political agreement to dispel ‘China Threat’ among the claimant states.