While Mao Zedong was the founder of communist China, Deng Xiaoping was the architect of its economic miracle and great power resurgence. Even as China was going through spectacular economic growth during the 1980s and 1990s, Deng cautioned the country’s leaders to “bide your time and hide your capabilities.”

The first part of his advice was spot on as China was navigating the difficult task of building and modernizing in an international environment not entirely favorable to the country.

By concentrating on economic growth while maintaining relatively low international political profile right up to the beginning of the new century, China is now the world’s second largest economy with its high international political and military profile on display for any country or countries doubting its resolve and strength.

While China’s leaders did bide their time as suggested by Deng, there is some argument if they are a bit hasty in projecting and asserting their power now. The argument arises in the context of China’s increasingly tense relationship with some of its regional neighbors on the question of contested sovereignty over the island chains in the South China Sea that it claims in entirety.

China’s parliament passed a law to this effect in 1992, thus excluding any regional claimants from what it regards as its internal jurisdiction. In other words, any external interference to thwart Chinese sovereignty will be resisted and excluded.

But China was still lacking in political and military muscle to enforce its sovereign control. Therefore, while continuing to insist that the South China Sea was its territorial sea, Beijing also let it be known that it was willing to sort out issues through negotiations and/or through some sort of joint exploration mechanism for its rich underwater resources.

But nothing came of it as Beijing continued to claim exclusive sovereignty over the island chains of Spratly and Paracel islands. These island chains are also contested by Vietnam, as well as the Philippines, among other regional countries. And this has led to some naval incidents between China and Vietnam, as well as between China and the Philippines. Like China in the early 1990s, Vietnam has recently passed legislation enshrining its sovereignty over these islands.

Which, in turn, has led China to deploy a garrison on the islands to assert and safeguard its territoriality. It has also founded Sansha city in the South China Sea to cement its control over 2 million square kilometers of territorial waters. How all this will play out is difficult to say, but the South China Sea is becoming a regional flashpoint with unpredictable consequences.

Vietnam and the Philippines are obviously no match for a resurgent and powerful China. But their growing security ties with the United States will raise the stakes. While the U.S. maintains a neutral position on the sovereignty issue, it favors a code of conduct between China and the 10-member Association of South East Asian Nations for dealing with disputes in the South China Sea.

China, on the other hand, is not willing to formalize the issue to give it the character of a territorial dispute. China had a victory of sorts when a recent ASEAN foreign ministers’ meeting in Cambodia failed to issue an agreed communique to avoid any mention of the South China Sea issue.

Being considerably beholden to China for economic aid and political support, the host of the meeting, Cambodia’s foreign affairs minister, ruled out a communique because “I have told my colleagues that the meeting of the ASEAN foreign ministers is not a court, a place to give a verdict about the dispute.” With its growing power and considerable economic leverage, China is seeking to shape the regional agenda to its advantage.

Will it prevail? It will obviously be a tough fight, as the United States is not wiling to be edged out of the region. The U.S. regards itself as a Pacific power with its considerable economic and strategic interests. It is still the dominant military power, with a large naval fleet deployed in the region and a nexus of security ties with a number of regional countries, including Japan, South Korea and Australia.

In expounding the U.S. position, the U.S. Secretary of State, Hillary Clinton, has maintained that, “No nation can fail to be concerned by the increase in tensions, the uptick in confrontational rhetoric and disagreement over resource exploitation.” And she has urged that the disputes between China and its regional neighbors be resolved “without coercion, without intimidation, without threats and without use of force.” China’s message for the United States basically is to butt out of the region.

But that is where the issue has the potential of starting an accidental military clash or, even, worse. For instance, China’s shadowing of U.S. naval movements through the South China Sea might create an ugly situation, as there have recently been some naval incidents.

China is a rising power. And it is determined to make it to the top.

The United States and its regional allies in Asia-Pacific are determined to check and counter-balance it. China appears confident.

There is a sense that China might have to tough it out for some years until the United States is too tired from its financial woes and military overreach to pick up a fight. Even if this analysis is true, the transitional period of 5 to 10 years that China might need to establish its primacy will be hazardous, as the United States and its regional allies seek to confront China.

The situation remains tense both with the Philippines and Vietnam. There have already been some naval incidents. In the midst of it all an arms race is going on, with countries in the region buying the latest in weaponry. China’s own defense expenditure has been rising at double digit figures in the last few years.

The South China Sea ownership issue is also tied up with freedom of navigation, as a significant part of international trade, including oil, passes through these strategically important waters.

At the same time, there are problems between China and Japan in the East China Sea over ownership of Senkaku islands, resulting in some unpleasant naval incidents. And Japan happens to be an important security ally of the United States.

North Korea’s nuclear ambitions and the unresolved issue of Korean unification is another live issue, with China committed to protect North Korea. The status of Taiwan is also a flashpoint, with China regarding it as a renegade province and determined to use force to bring about unification if Taipei were to declare independence.

The immediate flashpoint is likely to be the South China Sea centered on the status of the Spratly and Paracel islands, and the passage through it of U.S. naval ships that China might seek to impede or intercept at some point. In other words, the great game in the Asia-Pacific is starting in earnest and there is no knowing how it will end.

By Sushil P. Seth

Sushil P. Seth is a commentator based in Australia. He was a senior editor at the Times of India and write for a number of newspapers on Chinese and Asia-Pacific affairs. ― Ed.