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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.
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BEIJING: The US move to create a naval base in northern Australia close to the South China Sea can actually mean more dollars in the Indian kitty, and put more strategic and business opportunities in New Delhi's way, sources said. The first piece of evidence has come by way of Australia's decision to sell uranium to India.
The US move will provide a sense of protection to East Asian countries including Japan, who have serious conflicts with China but buy vast amounts of Chinese goods. The new found protection will encourage East Asia to reduce its dependence on China for goods and enhance economic ties with India, sources said.
"Japan, Vietnam and Indonesia will feel more secure. India and Indonesia can get together to control the Malacca Straits, which is the route though which 90% of Chinese goods to East Asia passes," Subramanian Swamy, Janata Party president and a widely regarded China expert, told TNN.
There are signs that China is jittery about the US move to station 2,500 US marines in the Northern Territory of Australia within five years.

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ABOARD THE USS GEORGE WASHINGTON (AP): Cold War enemies the United States and Vietnam demonstrated their blossoming military relations Sunday as a US nuclear supercarrier floated in waters off the Southeast Asian nation's coast - sending a message that China is not the region's only big player.

The visit comes 35 years after the Vietnam War as the US and Vietnam are cozying up in a number of areas, from negotiating a controversial deal to share civilian nuclear fuel and technology to agreeing that China needs to work with its neighbors to resolve territorial claims in the South China Sea.

The USS George Washington's stop is officially billed as a commemoration of last month's 15th anniversary of normalized diplomatic relations between the former foes. But the timing also reflects Washington's heightened interest in maintaining security and stability in the Asia-Pacific amid tensions following the sinking of a South Korean warship in March, which killed 46 sailors.
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