In recent years, the South China Sea (SCS) has become the source of tension between China and members of the Association of Southeast Asia Nations (ASEAN). SCS is a marginal sea of the Western Pacific Ocean with huge economic and strategic importance, besides an abundance of natural resources. The sea and its islands are surrounded by many countries with overlapping claims of maritime boundaries. Besides China, other claimants include Vietnam, Malaysia, Taiwan, the Philippines, and Brunei. China’s claim is based on a “9-dash line” that covers a large part of the sea, spanning from the southern part of the country to the waters off Sabah and Sarawak in Borneo. Lately, the Beijing government has become more assertive by occupying various islands in the Sea, building military installations and conducting patrols. Many high-risk incidents have occurred between Chinese patrol vessels and ships of other nations, especially the United States Navy as it tries to maintain freedom of navigation. Therefore, the purpose of this article is to examine the maritime disputes between China and ASEAN countries in SCS. It also discusses the role that China and ASEAN can play in resolving conflicts. Based on an analysis of SCS disputes and current state affairs, this article proposes that both China and ASEAN must uphold peaceful principles in resolving their differences.