South China sea is a strategic sub region of the Indo-Pacific which has significant economic and commercial importance. It is bordered by South East Asian countries which makes its location geo strategically significant. There are issues related to the territorial disputes by the stakeholders claiming the territorial sovereignty within the region and throughout the Indo-Pacific. In the recent years china has increased its efforts to assert its territorial claims over the sea by encroaching the Islands or creating new Islands. US claims that sovereignty in the area should be determined by UNCLOS as it is international water. The major obstacle in resolution of the issue is China’s insistence on conducting its diplomacy on a bilateral basis.

Arbitration mechanisms suggested by the International Tribunal for the law of the sea is also rejected by the China. Region’s increased militarisation has made the dispute more difficult to resolve. There is a need to initiate confidence building measures and dispute management mechanism with all the countries involved to prevent further escalation of problem.