The South China Sea is currently the subject of dispute involving China-ASEAN members. Most ASEAN (Association of Southeast Asian Nations) members and China have claimed the Spartlys and the Paracels as their territories, and acknowledge the importance of the South China Sea for its shipping routes and vast reserves of oil and natural gas. According to a 2008 report from the U.S. energy information administration, oil reserves in South China Sea are estimated to be more than 213 billion barrels, which is equal to ten times the American oil reserves. Vietnam's accusation that China's vessels cut the cables to exploration ships, China's claim to a gas rich zone near Natuna Island, which Indonesia occupies, and China's claim to the Mischief Reef that is also claimed by the Philippines as part of its territory, render to the on-going dispute. Recently China and the Philippines have disputed the ownership of Scarborough Shoal, 100 miles off the coast of the Philippine, in which both have claimed as theirs.

China's view is that multilateral negotiations for the dispute resolution will complicate matters, preferring instead unilateral negotiations, which give China distinct leverage, whereas ASEAN agree that international intervention by way of multilateral negotiation is essential. ASEAN members, however, are unable to pressure China to accept international intervention, specifically negotiation, as the basis for the dispute resolution. Non-alliance with great powers, such as the United States renders to ASEAN states' inability to pressure China.

ASEAN members have approaches to the conflict resolution: cooperative security, such as 1976 Treaty of Amity and Cooperation (TAC) for the peaceful settlement of disputes, and ASEAN's 1992 Manila Declaration; comprehensive security, such as Indonesia's approach to foreign diplomacy; and national security as they have developed naval forces to defend their Exclusive Economic Zone (EEZ) claims.

With regard to ASEAN's response to China's claim to part of South China Sea, Malaysia desires to include the United States as Malaysia distrusts China. Indonesia claims to be a neutral country, and although not intimidated by China, does not confront China but expects the United States to play a role as a mediator in the dispute. By including the United States, Indonesia has more bargaining power. Vietnam distrusts China and seeks support from the United Support for the dispute. Singapore, although not involved in the maritime dispute, is engaged in the advanced stage of talks with the United States over the deployment of new, highly advanced warships. The Philippines also distrusts China due to their dispute over the Mischief Reef. Like other ASEAN members, the Philippines seeks support from the United States under an historic 1951 treaty in which the US was obligated to defend the Philippines. Like Singapore, Thailand does not have a maritime dispute with China but China's aggressive stance towards the Philippines inflicts Thailand with suspicion. Nonetheless, Thailand maintains a relationship with China by having China as its weapons supplier. Laos, Cambodia, Myanmar, and Brunei do not have disputes with China but enjoy friendly relationships with China.

The South China Sea disputes, however, are not a serious threat to the national security of ASEAN members. This explains why ASEAN members do not confront China. Nonetheless, several ASEAN members welcome the presence of the United States' navy. The challenges for ASEAN members would remain: it is unlikely that China will give up territory in the South China Sea as China is hungry for energy resources. Welcoming the United States' presence is a good start as the United States can be a buffer for China's presence in South China Sea. Involving the United States in ASEAN Regional Forum (ARF) and East Asia Summit (EAS) without leaving Russia out has been a strategic approach in ASEAN-China dispute in South China Sea. The United States also has its interests in the South China Sea: the Sea lines of Communication (SLOCs). It is then likely that the United States is willing to be involved in the South China Sea. One formidable challenge for ASEAN members remains: China is ardently avoiding multilateral negotiations, and has so far refused to negotiate outside bilateral agreements. It then depends on the assertiveness of ASEAN members to encourage China to be involved in multilateral agreements.