The South China Sea is still a tense location because numerous countries have conflicting territorial claims over the waters there. Nonetheless, tensions between the United States and China have continued to rise, and the United States has increased its military presence in the region as a response to China's growing aggressiveness in the South China Sea and elsewhere.

The expansive claims that China has made over the South China Sea, including the construction of artificial islands there, have been met with criticism and resistance from the United States and other nations. China has asserted its sovereignty over the contested Paracel Islands as well as the waters surrounding them, while simultaneously laying claim to almost the whole South China Sea. This has created a specific flashpoint in the territorial conflict between the two countries. The United States has been exercising its right to freedom of navigation in the region, since the country maintains that international law permits it to do so in these areas where it operates.

The recent altercation that took place between the United States Navy ship Milius and China's Southern Theatre Command is only the most recent illustration of the escalating tensions in the region. The United States has denied these claims and stated that the USS Milius was conducting routine operations in the South China Sea. China has asserted that it was successful in preventing the American guided-missile destroyer from operating near the Paracel Islands; however, the United States has refuted these claims.

It is currently unknown how these tensions will be resolved, as well as whether or not the United States and China will continue to engage in the practice of military buildup in the region. Yet, so long as disagreements over territorial claims in the South China Sea remain, it is probable that tensions will continue to escalate between the world's two greatest economies. This could have repercussions for both international trade and security on a global scale.