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China has a strong interest in pursuing a smart power strategy towards Southeast Asia and has worked laboriously to engage with regional countries economically, socially, and politically. But China has been only partially successful in achieving its goals in the region. This paper argues that China’s security policy towards Southeast Asia significantly contradicts many other objectives that Beijing wishes to accomplish. Given the deep-seated, narrowly-defined national interests of the Chinese military in the South China Sea disputes, it is likely that the People’s Liberation Army (PLA) will continue to pose the main obstacle to the effective implementation of a Chinese smart strategy in Southeast Asia. [ABSTRACT FROM PUBLISHER]

The author comments on the decision of the internal arbitral tribunal in the case brought against China by the Philippines. He cites several arbitration cases including that of Argentina and Uruguay relating to a pulp and paper mill, the Rainbow Warrior case between France and New Zealand, and the Russian Federation and China's dispute settlement. Other topics discussed include China's reasons for not honoring the tribunal's claim for jurisdiction and opposing interests in the South China Sea.

China is the least disadvantaged major economy in the current era of global economic uncertainty. Thus it is becoming the focus of attention of its neighbours and is achieving a prominence in the world political economy unparalleled in its modern history. To a great extent, China's success is the result of 'good neighbour diplomacy' such as 'win-win' and the policies of reform and openness of the past thirty years. However, despite continuity in policy, China's 'peaceful leap forward' since 2008 has changed the context of its external relationships. The increasing asymmetries between China and its neighbours, as well as decreasing asymmetry with the United States, require an adjustment of win-win values beyond mutual benefit to credible reassurance. As China's neighbours become more dependent, they also become more anxious concerning their interests. Meanwhile, China's relative gain on the US requires a different kind of confidence-building diplomacy. [ABSTRACT FROM AUTHOR]