This article explores the impact of the Spratly Islands dispute on security relations between China and Southeast Asia after the Cold War. It is argued that the dispute reflects and promotes the emergence of a regional order combining deterrence with consultation and limited co-operation. The balance of power between China, Southeast Asia, and the United States promotes the emergence of a structure of deterrence. Within this structure, the approaches of China and Southeast Asia to diplomacy and international law allow for the development of a regional dialogue and a code of conduct based on consultation and co-operation on non-controversial issues. Consequently, the seeds of an order are emerging in the South China Sea that combines the extremes of deterrence and co-operation. Introduction The Spratly Islands in the South China Sea are located at the intersection of the security spheres of China and Southeast Asia. As such, the dispute between China, Taiwan, Vietnam, the Philippines, Malaysia, and Brunei over this area is not merely a difference of opinion on rights to territory and maritime space. It brings to the fore incompatibilities between the practices China and the countries of Southeast Asia normally employ to ensure peace and stability in their regional environment. The implications of this dispute for the development of mechanisms of deterrence and co-operation between China and the countries of Southeast Asia have tended to be overlooked in the scholarly debate. The Spratly dispute is treated as a peripheral, yet potentially explosive, aspect of Sino--Southeast Asian relations. It is regarded as a product rather than a determinant of their security practices. [1] The Spratlys have been a sore point in the relationship between China and the Southeast Asian claimant states for decades . The dispute oscillates between conflict and co-operation without reaching the stage of crisis or resolution. [2] This protracted stalemate suggests that the dispute is at the fringes of the security agendas of China and Southeast Asia, compared with more pressing security concerns such as the regional financial crisis of the late 1990s and the Taiwan problem. At the same time, the nationalist overtones inherent in the justifications of territorial and maritime claims, coupled with a continuous military build-up in the Spratly area, suggests that the dispute will at some point wreak havoc on peace in the South China Sea. The problem with the dominant approaches to the study of the Spratly dispute is the tendency to overlook the fact that, in the 1990s, it has turned into an arena where the compatibility of the security practices of China and Southeast Asia were tested. During the Cold War, Chinese security policies were directed against the subregional environment of Northeast Asia. By contrast, most of the countries of Southeast Asia formulated their security outlook within the confines of the Association of Southeast Asian Nations (ASEAN). However, the increasing importance of the maritime resources of the South China Sea, and the allowances for extensive maritime zones in international law, have made China and Southeast Asia increasingly important variables in each other's security equations. This article argues that the Spratly dispute has profound implications for regional peace and stability because it promotes the development of a new order in the South China Sea between China and the Southeast Asian states. [3] By bringing representatives of contending security practices together around an issue of conflict, the Spratly dispute has changed the security practices of China and Southeast Asia. The dispute highlights differences in the approach of the two entities to the balance of power, diplomacy, and international law. As the contending parties attempt to find solutions to the problems coming to the fore, the seeds of a new order emerge, representing a compromise between the security practices employed by China and Southeast Asia. …