The United States has entered the long-standing territorial dispute between China, Vietnam, the Philippines, Malaysia, Brunei, Taiwan and Indonesia, regarding the Spratley* Islands, which are located in the South China Sea, in international waters. China regards the islands as a "core interest," and, given the tense situation in Korea, and the ongoing rivalry between the US and China over use of the international waters off the coast of China, the American announcement, that it would attempt to assist multilateral negotiations over the islands, could raise the risk of a military incident in the area . Smaller nations with colourable claims , especially Vietnam, who has gone to war with China over less, may commit forces to their remote outposts in the island chain, and China may retaliate. This is a very volatile situation, which could result in military action, destabilising the region, and thus raising country risk.

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