Abstract: Economic growth and arms race are interesting phenomena in Southeast Asia. Contrary to the view of a majority of scholars that arms race has generally negative impact on economic growth, this article argues that the arms race between China and the United States in the South China Sea helps to create a balance of power, which reinforces regional political stability and further drives economic growth. Thus, in an indirect way, the arms race aids economic growth in Southeast Asia. Elaborating on a discourse that arms race is a natural reality in international politics which must be responded to by a positive approach, this study aims to open a new space for debate and further research and offers a new perspective to understand the phenomenon. Full text available here.