The East and the South China Seas are important to global commerce and regional stability. According to the most recent statistics, some $5 trillion in global ship-borne trade passes through the South China Sea annually. All of the major trade routes through the South China Sea pass near disputed areas in both the Spratlys and Paracels. The handling of the territorial and maritime issues in these waters has economic and security consequences for the United States. And while disputes have existed there for decades, tensions have increased in the last several years. Not only could a serious incident provoke a dangerous escalatory cycle, but the region's efforts to develop a stable, rules-based order are also challenged by coercive behavior. This gives the United States a vested interest in ensuring that disputes are managed peacefully.