Abstract
This article deals with the territorial disputes between China and Vietnam and their impact on regional stability. Attention is focused on the developments since normalization of bilateral relations in November 1991. The evolution of relations has displayed an overall constructive approach to the border disputes with continuous bilateral talks at different levels. However, there have been periods of tension in relations caused by actions, mainly by China, relating to the territorial disputes. The most recent example was the Chinese move to start drilling for oil in March 1997 in an area of the South China Sea claimed by Vietnam. It is argued that such periods of recurring tension have negative implications not only on bilateral relations but also on regional stability. It is therefore important that both sides refrain from actions which might alter the status quo. To achieve that condition, it is suggested that China and Vietnam reach an agreement on a “code of conduct”, possibly along the lines of the “code of conduct” agreed by the Philippines and China, and the Philippines and Vietnam, respectively, in 1995.