This chapter examines recent developments in the South China Sea through two bilateral relationships China Vietnam and China Philippines, respectively. The nature of the events causing tension is identified and the way in which the events have been managed is examined. Sharp differences relating to all the territorial disputes that are, overlapping claims to the Parcel and Spratly archipelagos, to water and continental shelf areas in the South China Sea and in the Gulf of Tonkin, and to areas along the land border were prevalent. In order to manage their territorial disputes China and Vietnam initiated a system of talks and discussions which was both highly structured and extensive. From bottom to top it looked as follows: expert-level talks; government-level talks deputy/vice-minister, foreign minister-level talks; and high-level talks presidents, prime ministers and secretary-generals of the Communist Party of China (CPC) and the Communist Party of Vietnam (CPV).