Map courtesy of the U.S. Central Intelligence Agency

There is a territorial dispute simmering that has the possibility of breaking out into open war.   At present Brunei, China, Malaysia, the Philippines, Taiwan and Vietnam all have claims to part or all of the Spratly Islands.   These islands, and their associated maritime geological features (reefs, banks, cays, etc.) are located in the South China Sea.

The Spratly Islands are deemed desirable for a number of reasons.  First, they are thought to house vast reserves of oil and natural gas.  The islands also sit in a major area for world fishing.  Lastly, they are in one of the busiest areas for commercial shipping, and are located on major trade routes to Northeast Asia. 

Based on these reasons, countries in the vicinity of the islands seem to be preparing for a naval war.  With the distances involved from the countries in question, naval ships will have to be used to take and hold claims in any hot conflict.  To this end, a naval arms race is in effect:

   *Malaysia has ordered 6 Gowind-class stealth frigates, and is adding next generation Kedah-class patrol vessels.

   *The Philippines is looking to add amphibious assault ships and frigates to its naval force.  There are also plans to put its first submarine into service by 2020.

   *Taiwan has a 20-year modernization plan covering the acquisition of 4 new frigates, new amphibious warfare ships, and 4-8 new submarines.

   *Vietnam has purchased 6 Improved Kilo-class submarines from Russia, 4 Gepard-class frigates from the Russians, and 2 Sigma-class corvettes from the Netherlands.

   *China is engaged in a massive naval building program.  New stealth destroyers, frigates, nuclear and diesel submarines; and the country has put its first aircraft carrier -- the Liaoning -- into service.  There are plans to operate 3 aircraft carrier battle groups by 2020, with 2 planned for operations in the South China Sea.  Also, in 2013, China started dredging in the Spratly Islands, creating new islands from reefs.  When the project is completed, China will have her first military airstrip in the islands from  which to project military air power.

References:

http://en.wikipedia.org/wiki/Spratly_Islands_dispute

http://www.globalsecurity.org/military/world/war/spratly-conflict.htm 

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