Executive Summary

1. Given the region’s distinctive maritime geography, the Indo-Pacific boasts extensive economic and strategic connections. As such,traditional and non-traditional maritime security risks could potentially undermine the security and the economic development of countries in the region.
2. The U.S. rebalance to Asia has generally been welcomed by American allies and partners. However, it faces challenges both from domestic pressure and international obligations, leading some to question whether the United States is truly committed to the rebalance policy. Even within the context of this policy, President Obama’s visits to various Asian countries demonstrated Washington’s somewhat different approaches towards individual countries.
3. Another challenge is addressing China’s rise. China is aspiring to become the foremost maritime power in the region, and is growing increasingly confident in the international stage. Meanwhile, Russia is also showing interest in expanding its naval presence in the Pacific, with implications for the U.S. rebalance.
4. In the midst of these fluid geo-political developments is the South China Sea. China has mainly been using non-military maritime forces to advance its claims, and has been developing its civil maritime surveillance capabilities. However, China will continue to face resistance from other claimants possibly supported by extra-regional players.
5. The U.S. has an interest in seeing the South China Sea disputes peacefully resolved through international law. It may not be taking a position regarding the respective sovereignty claims, but it is not neutral on assertive behaviour in the enforcement of maritime claims. The U.S., however, could use incentives and engagement, rather than outright military deterrence, in its dealings with China.
6. The Indian Ocean Region is also gaining prominence, with international cooperation and competition in the region heating up, and the necessity of maritime cooperation becoming even more critical. Despite tensions, maritime cooperation should continue to take place as it is essential for good order at sea. While demands for effective cooperation will become more pressing, effective regimes for cooperation are still lacking. Dialogue and confidence—developed through multilateral forums and exercises—must be built to overcome these challenges.