China’s maritime territorial claims, and its diplomatic and military measures to attain them, have caused much regional concern in recent years. The expansive maritime sovereignty claims of China in the South China Sea flow from three key goals: the completion of its incomplete nationalist project of territorial consolidation and unifying the state; the desire to control the contested maritime periphery; and the garnering of sea-based resources such as oil and gas that have assumed critical importance for fuelling the economy of a rapidly modernising China.

The PLA Navy (PLAN)'s capabilities in key areas (assets, trained personnel, experience) are currently insufficient to support long-range sea lanes of communication (SLOC) defense missions. With sufficient effort, Beijing may eventually overcome these obstacles, but it would probably also have to acquire some form of overseas basing access, which its foreign policy still proscribes.

India and Indonesia, the two major regional powers, have in the recent past initiated intimate bilateral relations. With globalization as a key driver, the two countries have reconfigured their relationship particularly in the economic and defence spheres. The signing of the strategic partnership in 2005 has been critical to strengthening of the bilateral ties. Security relations are complimentary. While India needs to safeguard its interests in Southeast Asia, Indonesia needs a benign power like India for its security concerns.

China's efforts to build 'nodes' of influence in the Indian Ocean Region have been increasingly discernible in recent years. This endeavour, many argue, is driven by Beijing's military-strategic ends. However, such an argument remains a speculation, backed by frail and somewhat disjointed evidence. At least in the public domain, it may be too early to marshal tangible evidence to prove or dismiss the hypothesis.

Energy security has become a major component of India's national security thinking and policy as its economy has begun to record high rates of growth. The criticality of ensuring access to foreign oil and gas resources will only increase with time as the gap between its demand and its domestic production widens. Furthermore, India's dependence on the seas is particularly overwhelming for its energy 'logistics' in terms of both its domestic supplies and overseas imports.

Navigational freedoms have increasingly come under restrictions because of ecological, economic and security concerns of coastal states. Fishing vessels, oil tankers, ships carrying ultra-hazardous nuclear cargoes and even military vessels have to conform to stringent international, regional and national regulations. Often there is a conflict of interest as maritime activities of one state can interfere with the efforts of others to utilise the sea. The Law of the Sea Convention was adopted to provide a balance among these competing interests.

Ensuring access to crude oil and natural gas forms a crucial component of India's security calculus. It also critically underlines the significance of sea transportation through which much of these vital resources are traded. With India virtually insular in terms of its land communications, its trade interests are increasingly focused on the maritime domain.